CSL set to become world’s largest sports company

On its 10th anniversary, the Chinese Football Association Super League is poised for incorporation and may become the sports company with the largest valuation worldwide, set at 10 billion yuan (US$1.55 billion) by some market insiders, according to Guangzhou's 21st Century Business Review.

Founded in 2005, CSL racked up revenue of 440 million yuan (US$69 million) in 2014 and boasts good prospects thanks to rising royalties and audiences as well as sales of derivative products. Leading insurer Ping An Group has paid 600 million yuan (US$93.6 million) to CSL for a four-year sponsorship deal.

To facilitate its future development, the league will be converted into a corporation, taking over control from the China Football Association, at present the largest shareholder with a 36% stake, according to a reform program for the association unveiled at a meeting convened by the country's General Administration of Sport on Aug. 17, the paper reported.

Many of the CSL's 16 member clubs, with a 4% stake each, have complained of the dominant role of the China Football Association and have demanded a greater say and more autonomy in the league's operations, which they believe is essential for its development.

With market players speculating about potential buyers of the association's stake, worth about 3.6 billion yuan (US$561.5 million), Wang Jianlin, chairman of realty giant Wanda Group and China's richest person, has emerged as the frontrunner, according to the report.

Taken from Want China Time