Updated: 2013-06-02

"Only 20 million? It's too cheap." Yao Ming came over to talk to Stephen, and Stephen immediately shouted in surprise. It's too cheap to own a team with only 20 million yuan. You have to know that 20 million yuan is less than 3 million US dollars to own a top league team in China's market. Why doesn't Stephen be surprised?

China's sports market has not yet developed yet, but because of this, it is worth investing. If they develop to the level of the United States, a team will not be only a few million dollars.

According to the current market conditions, the league's teams can be divided into three levels according to their value. The Los Angeles Lakers and the New York Knicks can be divided into the first level. In a metropolis like New York or Los Angeles, the market is good and the advertising value is high. Their value is about 600 million US dollars. However, such a cash cow can make stable profits every season. If you want to buy it, the premium is about 1 billion US dollars. This is still the case when the Dolan family or the Bass family are willing to take action.

The second level is that most teams in the league, where they are in big cities like Chicago, Houston, and Atlanta, the market can maintain their own profits and losses, and if they operate small funds, they can still make a slight surplus. Among them, the Boston Celtics, Chicago Bulls, and Los Angeles Clippers are barely close to the first level, while the San Antonio Spurs have had excellent record and market in recent years, and can also be classified as this level. The value of these teams is basically above $500 million, and under normal circumstances, they will not enter the trading market.

The third level is the Charlotte Bobcats, New Orleans Hornets, Sacramento Kings, and Memphis Grizzlies. The city is not big, and the basketball atmosphere is not very good. They are basically in losses every year. If the Seattle Supersonics had not performed too well last season, they would have been in a ranks of these teams, and the valuation of these teams is generally around $300 million, even if the premium is added, it would not have exceeded $400 million.

When Bennett bought the Seattle Supersonics, the team was in a downturn, so he paid only $350 million to buy the team from his former boss Howard Schultz. After operating for a season, the team's outstanding record and the market improved. In addition, it had a stable core lineup, so Chris Hanson spent nearly $100 million when he bought it from him.

Although the Supersonics have excellent and the market has recovered, they still have not reached a healthy state. Only after two or three seasons have a beautiful stadium, and Seattle itself is a big city, can it enter the second level.

However, among the third-level teams, the Supersonics are already the team with the best operating conditions. They were basically able to make profits and losses last season. Although this is related to the team's low salary expenditure, it is still very good.

The most trasty team is also after 300 million US dollars, and it is nearly 2 billion yuan if it is exchanged for RMB. A team in the Development League is worth tens of millions of dollars. This is a team in the second division, so how surprised Stephen would hear that a team like the Oriental Sharks only has 20 million RMB. It is really cheap.

The scale of cities like the Shanghai Stock Exchange is close to the standard of international metropolis. In terms of population size, it meets this standard. If China develops to the level of the United States, it will be equivalent to the standard of New York. It can be imagined that the only team in this city, which is only 20 million yuan, naturally feels cheap.

With the development of the economy and society, the spiritual and cultural needs of the people are gradually increasing. It turns out that they may only meet the satisfaction of watching TV at home, and gradually develop to higher-end activities. Events such as watching movies, enjoying concerts, and watching sports competitions on site will naturally enter people's lives. A metropolis like Los Angeles will hold at least hundreds of concerts every year. It can be said that several concerts are held every day, and the Shanghai Stock Exchange may also develop to this level in the future.

By then, this team will not be able to buy it for only 20 million yuan. Buying at low value is the best time to invest. Although you have to take some risks, it is also worth it. So Stephen thinks this investment is worth it, but Yao Ming doesn't think so: "That's right, this team is still in a serious loss state. It doesn't mean that it's enough to just take out 20 million yuan. As far as I know, the team's operating expenses are more than 10 million yuan a year. If you want to make a record, you may have to increase your investment."

This is what Yao Ming is most worried about. 20 million yuan is not a problem for him, but it doesn’t mean it is enough. Not only can it not make money, it also needs to pay for it. One or two million yuan a year. This is not a small number. Now you can still make money. What should you do when you can’t make money? Then you won’t be able to sell it if you want to.

Because he was born in this team, he knew the current situation of the team very well. The internal operation was unreasonable and the team's lineup was not strong. Taking over would require a big fight. If he did this, it would affect the interests of many people. When he solicited opinions, his parents expressed their disapproval of his takeover of the team, but his agent agreed and he was hesitating.

Players are a youthful person. Even if they can eat for a few years, what should they do in the future? As a basketball player, they know the most about basketball. Yao Ming doesn’t like it very much as a coach or commentator. However, the role of the team boss is in line with his ideas, but the investment is a bit too great and he will not be able to make a decision for a while.

After hearing this, Stephen began to hesitate. Even if it is 20 million yuan a year, it is only 3 million US dollars. It is still not a problem for him, but if he continues to invest, it is a burden. If he invests for a few years, there will be no problem.

"I haven't seen the game here in person. How popular is basketball? Is it better than football? How much does it cost to watch a game? How much does it cost to watch a game? How much does it cost? Is the sales of related products ideal? What about advertising and broadcast revenue?" As a basketball player, I naturally have a very good understanding of the team's operations. The few words Stephen asked are the key income of a team. If there is room for growth, there is no problem. If the record improves, the market will naturally improve. The key is whether there is a possibility of improvement.

"The situation of the Oriental Sharks in recent years has ranged from 20 yuan to 100 yuan per game. The market is extremely miserable. This amount of money is nothing to most people, and it only accounts for a few tenth of the average monthly income." Yao Ming smiled bitterly when he said this. He really couldn't bear it when his parent team fell to this point. Although he said it was as little as 20 yuan, in fact, as far as he knew, many times he would give in, otherwise the seat would be empty.

"Twenty yuan? RMB?" Stephen asked in disbelief. Seeing Yao Ming nodding, he smiled bitterly. It was indeed too low, but this is also good news. Since it is nothing to most people, there is room for growth and room for price increases, but this has to wait until the results improve.

"Better than football, after all, basketball has only developed in recent years, so let alone related products. The advertising revenue of the Basketball Management Center has contracted all of the advertising revenue to Yingfang Company. The team has no profit in this regard. As for broadcast revenue, it is better not to give others money." Yao Ming mentioned the situation and Stephen also frowned. The market is not good, the sales of related products are not ideal, there is no advertising revenue, and there is no broadcast revenue. Is this still a professional team?

The sales of related products are closely related to the team's record and also to the players' popularity. For both players, Ronaldo's strength is significantly greater than David Beckham, but in terms of popularity and sales of related products, the combined number of Ronaldo is not as good as Beckham alone. This is the gap, but these can be improved.

It is hard to accept that there is no advertising revenue or broadcast revenue. As the market improves and there are more and more audiences on the spot, the value of sideline advertising will become higher and higher. However, the Basketball Management Center contracted all this to Yingfang Company, which was responsible for one company, and the team's revenue is not normal.

Of course, it is said that this is also for the need for balanced strength. Some teams are popular, while some teams are not popular. The popular teams will naturally sell well, and a company will be responsible for it. Then the benefits can be distributed uniformly. The same is true for the league. However, the contract fee is handed over to the basket management center. If the basket management center is not distributed or distributed very little, this is abnormal. It is just a policy-based thing that has the possibility of change.

As for broadcasting rights income, this is a business philosophy. Now that the media has the upper hand, they naturally feel that they have the final say. If all teams work together to form an alliance and prohibit any media from broadcasting, you will not pay for your broadcast anyway, so it is better not to let you broadcast it. Anyone who wants to watch it has to come to the scene, so the audience will naturally force them to come to the team for negotiation.

So if you want to change this situation, firstly, the team must play well, have many fans, and be popular; secondly, you must be united and have strength. However, according to Yao Ming, this is also related to the Basketball Management Center. The Basketball Management Center does not restrain the team in this regard, nor does it actively strive to protect the team's interests. It seems that this fundamental problem is still with the Basketball Management Center.

This is why the league came into being. To this day, the league and the team have developed into a symbiotic relationship. The team cannot do without the league, and the league cannot do without the team. It seems that if you buy this team, you have to talk to the people in the basketball management center, which is just right to take advantage of the gold medal.
Chapter completed!