ECOMNOMICS

Economics

Economics

1. Introduction

Football has been one of the most well supported sports in China since it was introduced in the 1900s. In 1994, the Chinese Professional Soccer League (CPSL) was established. Under the direct supervision of the Chinese Football Association (CFA's) Professional League Committee, this nationwide league was divided into Divisions 1 and 2. From 1994 to 2004, the top flight of professional football was "Jia A" (Jia in Chinese means top or first). The China Football Association Super League (CSL) kicked off in May 2004. During eleven years period, the Chinese football market is an incredibly increase, despite the market lack of any real competition.

China Football Industry Development Corp. (CFIDC) is a state-owned enterprise directly under the control of China Football Association (CFA). It is the largest development of the football market company in China and the unique agency authorized by CFA in the promotion of various football industrial operations and business development.

CFIDC as the result of football commercialization has been growing along with the development of Chinese professional leagues. It has always been focusing on the study of the international football trends, experiences, and models, and combining the advanced market management concepts into football business operations in China. The company is to develop Chinese football industry and related business in all areas and at all levels. Recently CFIDC are successfully operating some football projects such as the Chinese Football Association Super League (CSL) and Team China etc.

Background

Team China which is the collective of all national football teams represents the highest level of Chinese football, and it is widely concerned by the public and diversity media. The television coverage rating and the on-site audience for the Team China competitions lay in the first place amongst all sports competitions in China. CFIDC's role in the Team China is to promote high quality and high level competition; expedite the sales and promotions of all the match tickets and souvenir; introduce advanced managerial concepts to the market; enforce the delivery of minimum standards of professionalism.

Football is identified as an important part of sport economic activity, also a part of the growingly important sport industry. Therefore, they need use basic economic model and economic theory to provide explanations about demand for the products.

At this level, money receives from four parts into sport such as sponsorship, paying spectators, government and television companies. At the bottom end of the pyramid shows that people can take part in sport for pleasure or get fitter and healthier.

The government support whole sport market whatever top and bottom. In the top of pyramid, every country wishes to see champions in international sport events. There is a national demand for successful in international sports, so government put money in the top of the sport market with the intention of obtain sporting excellence and international sport success from their lottery funds and direct expenditure. At the bottom, government can supply funds and sport facilities in the community and in schools for people more than the top athletes in the sport ...