Chinese football "might not rank highly on the global playing field, but it's a growing industry with great prospects," analysts said Tuesday in response to the latest corporate investment in the football sector, according to Wang Cong of the GLOBAL TIMES. Suning Commerce Group Co., a leading domestic home appliance retailer, announced Monday that it acquired Chinese Super League club Jiangsu Guoxin-Sainty from Guoxin Investment Group for $80.75M. Suning, which has been a "major sponsor of the team, promised to make further investments to improve the team's management, operations and facilities," and maintain the team's competitiveness in domestic and Asian fields. Suning Chair Zhang Jindong said that the acquisition was an "obvious choice for the retailer given its strategy of diversification." Zhang said that as Suning moves to "broaden its business portfolio," football is becoming a key component of its plan to build an "Internet plus sports" model. China Investment Consulting Co. analyst Zhang Jiayuan said that the investment is "not only in line with Suning's long-term strategy, it could also yield short-term profits for the retailer through broadcast rights fees." Zhang said that Suning's move is "one of many investments" in the football sector by some of China's richest businessmen. In '14, e-commerce conglomerate Alibaba Group Holding, led by Founder Jack Ma Yun, paid 1.2B yuan for a 50% stake in what was then known as the Guangzhou Evergrande Football Club. Dalian Wanda Group Chair Wang Jianlin has "invested millions" in football in China and overseas. Beijing-based sports marketing analyst Ji Ning said that the "giant cultural and media industry" behind football was the "main motivation for Alibaba, Wanda and Suning" (GLOBAL TIMES, 12/22).
