LeEco’s new investor suggests giving up CSL rights

On Jan. 16, 2017, Sun Hongbin, Chairman of the Board of Sunac China, held an investor conference call with Jia Yueting. During the conference call, Sun Hongbin said that LeSports must be the leader of the industry in China now and there is no longer any need to buy the rights to the CSL. It doesn’t make economic sense to pay more than a billion for the right to the CSL.  There is also the possibility that LeSports could cut back on some other expensive rights. LeSports has 10,000 live broadcasts a year and it can easily live without the CSL. 

In February 2016, LeSports paid 2.7 billion yuan for new media broadcasting rights of CSL matches in the 2016 and 2017 seasons. Both sides also undertook to jointly operate the CSL rights in the 2018, 2019 and 2020 seasons to fully bring the CSL into the pay to view era. The copyright contract will expire after the Chinese Super League season this year. It seems that Sun Hongbin’s words indicate LeEco Sports will stop screening CSL matches. 

In terms of funds, at a press conference on Jan.15, Jia Yueting said that LeSports will begin a new round of equity financing and even plans a public listing.  According to Sun Hongbin’s words during the conference call, LeSports will secure 3 billion yuan in this financing round and among the 8 billion secured in Series B financing, 3 billion has already been secured. Lei Zhenjian had said earlier that it is absolutely impossible for listed companies to borrow funds from LeSports.

Source：Sohu 

Proofread by Sean O Diobhilin