Beijing Guoan FC, a valuable property in Chinese soccer

Chinese Super League side Beijing Guoan FC has been a seriously hot topic on web portals and social media in China over the last few weeks since various media reports suggested that the club’s holding company, CITIC Group, would be willing to sell up to half of their stake in the Beijing based soccer club.

Since then, there have been many twists and turns in the telling of the story. Various domestic media previously reported LeTV’s high-profile arm Le Sports beat two other rivals, reportedly City Football Group and Chinese E-commerce platform JD.com, to buy a stake in Beijing Guoan FC. Then Le Sports’ CEO Lei Zhenjian indirectly denied that the company had agreed a deal with the club on his WeChat post.

Despite the lack of official comment, various industry sources prove that CITIC Group has agreed a deal with one of the three bidders for a 50% stake in Guoan worth RMB2 billion. This suggests the CSL club is now valued at RMB4 billion, which is a high figure considering Chinese professional soccer is still in the early stages of development. But, is the club worth RMB4 billion?

Based in the capital, Beijing Guoan FC has never changed its name in 23 years during which time the Chinese top tier soccer league has seen its name changed from Football League One to the Chinese Super League.

According to a club survey conducted 4 years ago, Guoan had a following of 2.4 million supporters in China. In conjunction with a large fan base, the club’s brand influence accumulated over 23 years and its unique location have made it a valuable property in Chinese soccer.

As Yan Qiang, a renowned Chinese soccer reporter and commentator stated, “On the commercial side, Guoan FC is one of the best CSL clubs because nearly all of the club’s IP (Intellectual Property) remains untapped. If it is properly developed, there will be huge space (to monetize in this area)”.

Besides club value, Guoan FC has been leading the way in the CSL in trying to bring soccer and soccer clubs into people’s daily lives. Beijing Worker’s Stadium has been the “Theatre of Dreams” for Guoan supporters, fathers to sons, for over 2 decades.

However, the landscape of Chinese football has so dramatically changed over the last few years that long-established clubs are finding that there are both opportunities and challenges in front of them.

The CSL is now much more competitive amid the big increase in money-backed teams, a good example of which is 5-time CSL winners Guangzhou Evergrande. It partly explains why Beijing Guoan FC along with a few other title contenders have struggled to overcome similar difficulties in the last few seasons. Therefore, as a club which is “Always striving for the top position”, Guoan needs to innovate in its operations, management and even its framework. Accordingly, the club owner CITIC began to consider embracing the capital market now facing them.

In an age when money is seemingly playing a significant role in the sport, this professional club, located in China’s capital, is on the verge of the first big change in its history. Fortunately, however, its owners inserted a condition in the terms of the sale, which will  most likely see the club’s name and colours remain unchanged despite the potential equity transfer. And this might be one of the most precious things for the growing presence that is Chinese soccer.

Proofread by John Devlin.