Becoming a Sport Power House with an $850 billion Investment
A recent separation between the Chinese Football Association and government bureaucracy means that the Chinese Football Association (CFA) is now an independent organization. It has the full power over hiring staff, creating pay rates and managing international tours and is taking advantage of that.
In 2011, Xi, the vice president of China declared that China would be built into a “sports powerhouse” within the next 10 years. This has resulted in a recent surge of wealthy companies and sportsmen who have jumped at the opportunity to invest in China’s expected growth area.
In an effort to achieve this dream China is expected to invest an unbelievable figure of $850 billion within the decade. With the highest cost expected to be the recruitment of foreign players.
Gao Zhaoyu, a specialist in Chinese sport said that club money would be much better spent building the foundations for players across china rather than simply paying transfer fees and million dollar salaries to foreigners. China’s salary cap is only applied to domestic players, meaning that Jackson Martinez, former Madrid player was able to just sign a record breaking contract for £31m.
The current spending in Chinese football is far from reflected in the world rankings, with china placing a disappointing 93rd. However Xi is not deterred, he says that they have a league which people enjoy watching and in ten years China will finally be able to host the world cup everyone has dreamed of and of course, win.
Experts are concerned about the unsustainable nature of the high spending, and once China’s enthusiasm fades so will the money.
Investors are being encouraged to put money into training programs, sport education and increasing networks. These suggestions are seen as a more sustainable option and also work to relieve some of the issues, which are becoming apparent in China, such as high performance stress and reduced activity levels.