Wang Jianlin, China's richest man, said that FIFA's corruption scandal "was an opportunity for big Chinese companies to further the country's lofty footballing ambitions" by undertaking sponsorship deals with the global governing body, according to Zhang & Jim of REUTERS. Wang's Dalian Wanda Group became "the first Chinese top level sponsor of FIFA last week." At a news conference in Beijing on Monday, the 61-year-old multi-billionaire said that he expected other companies "to follow suit to help drive China's ambition" to become a football "superpower." Wang: "Two or three years ago, Chinese and Asian companies probably wouldn't even have had a chance to sponsor FIFA even if we wanted to. But because some western companies dropped out, we got the opportunity. To my knowledge, another Chinese company will become a FIFA top sponsor soon. If there are no surprises, there will be three Chinese top-level sponsors by the end of the year. If more Chinese brother companies become FIFA sponsors like Wanda, we will join forces to advance the interests of China soccer." Led by China's President Xi Jinping, an avid football fan, China has "embraced the goal of shedding decades of corruption and underperformance to become a major power in the game," aiming first to host the World Cup and "then ultimately win it." The country aims to grow its sports market to 5T yuan ($782B) by '25, about a "five-fold leap from its current size," and football will play a "large part." FIFA President Gianni Infantino first announced the 15-year sponsorship deal with Dalian Wanda in Zurich on Friday. A source close to the deal said that the sponsorship from Wanda would be worth "hundreds of millions of dollars." Wang: "We are lending them a hand during their toughest period" (REUTERS, 3/21).
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| Wang Jianlin |
STRATEGIC DEAL: In L.A., Patrick Frater reported the strategic deal sets Wanda on course to be a "major developer of 'the beautiful game' in China." Wang did not "shy away from discussion of FIFA’s own scandals," but said instead, "We continue to believe in the development of football. It is spring-time for football in Asia." Sports development has been set as a national priority "by the highest levels of the Chinese regime." That enables Wanda to claim that it is "doing government bidding" in supporting grassroots development of the game in China, while also developing football as a business (VARIETY, 3/20).
LONG TIME COMING: In N.Y., Laurie Burkitt reported it is a deal Wanda "started laying the groundwork for at least two years ago" as it set out to buy a company with ties to the FIFA leadership, part of its bid to advance football in China and President Xi’s stated goal that China will "one day host the World Cup." Wanda "began circling companies on FIFA’s periphery" two years ago and in February last year acquired Swiss sports-marketing and broadcasting company Infront Sports & Media AG for $1.18B. FIFA Marketing Dir Thierry Weil said that the federation will "strike deals with other Chinese companies in the future." He added that "China is an important country" to the growth of football. Wanda’s deal with FIFA "echoes Chinese corporate strategy elsewhere." Chinese oil companies have been moving into parts of the world such as Africa and the Middle East "where others have distanced themselves." Shanghai-based consultancy China Market Research Associate Principal James Roy said that Chinese sports fans have not been following the scandal "to the degree that fans in Europe have." Roy: "The risk calculus is much smaller for Wanda" (WALL STREET JOURNAL, 3/21).
STARTING A TREND?: BLOOMBERG reported Wang said that "more Chinese companies are likely to join" Wanda in becoming top FIFA sponsors and help the country’s chances "to host the World Cup for the first time." Wang said that having multiple sponsors "will help China bid to host the World Cup." He added, "That’s for sure." Wanda became FIFA’s sixth partner, the highest sponsorship level, with two partner slots "still open from the void left by Emirates airline and Sony Corp." Wang: "We hope to find in this sponsorship contract a huge opportunity for Chinese soccer and for the development of Wanda’s soccer business." He said that Western companies that chose not to renew their sponsorship agreements "will surely regret it" (BLOOMBERG, 3/21).
