China's property market crash wreaks havoc on soccer | DW News

Key Concepts

• Chinese Football Corruption: Systemic issues spanning 20-30 years, involving match-fixing, bribery, and gambling.
• Property Market Crisis: The ongoing collapse of the Chinese property market and its devastating impact on football club funding.
• Government Ownership of Clubs: The increasing trend of Chinese Super League clubs being owned by state-affiliated capital.
• Jangsu Super League: A new, non-professional local league gaining popularity as a grassroots alternative.
• Cultural Emphasis on Financial Gain: The societal pressure in China to prioritize wealth over passion, hindering football talent development.
• AI & Robotics as Economic Alternatives: The potential for AI and robotics industries to offset the economic damage caused by the property crisis.
• "Going Overseas" Strategy: Chinese tech companies prioritizing international expansion over domestic investment.

The State of Chinese Football: A Crisis of Culture and Capital

The interview details a deeply troubled Chinese football landscape, facing a confluence of crises stemming from long-standing corruption, a collapsing property market, and a cultural emphasis on financial success over sporting passion. The situation is described as dire, with the scale of investment in football now reduced to approximately 1% of its previous levels.

The Impact of the Property Market Collapse

The collapse of China’s property market, now in its fifth year, has had a catastrophic effect on Chinese football. Developer-owned clubs, once major investors in the Chinese Super League (CSL), have been forced to fold or face relegation due to financial difficulties. Specific examples cited include:

• Evergrande FC: Collapsed following the crisis at Evergrande, a major investor.
• Jiangsu FC: Disbanded after its owner, Suning Group, entered a financial crisis.

This has led to an exodus of international talent and a shift in ownership towards government-backed entities. Currently, all major CSL clubs, with the exception of Beijing Guoan (still privately owned by a developer), are owned by Chinese government-related capital firms. This represents a significant change in the league’s structure and financial stability, albeit one born of necessity.

Corruption: A Decades-Long Problem

The speaker emphasizes that corruption has plagued Chinese football for 20-30 years. He paints a bleak picture of the past, stating, “We thought that we have been watching football. But actually we have been watching reality shows.” While recent government crackdowns have improved the situation, corruption persists, albeit on a smaller scale.

Significant legal consequences have been handed down to high-ranking officials:

• Chief of Chinese Sports Bureau: Sentenced to death by probation.
• Former Chief of the Chinese Football Association: Sentenced to 18 years in prison.
• Former National Team Head Coach: Also sentenced to 18 years in prison.

Despite these severe punishments, instances of gambling among players continue to surface, highlighting the deeply ingrained nature of the problem. The speaker notes the presence of “very very clean people” in current leadership positions, offering a glimmer of hope.

The Rise of Local Leagues: The Jangsu Super League

The emergence of new local leagues, such as the Jangsu Super League, is presented as a positive development, offering a grassroots alternative during a difficult economic period. These non-professional leagues have attracted surprisingly large crowds – over 60,000 spectators at some games in Tanggu – demonstrating a strong public desire for football. However, a key concern is whether these leagues can maintain their integrity and avoid corruption if they become professionalized. The speaker jokes that the Jangsu League’s success is “only because it’s not professional.”

The Cultural Barrier to Football Development

A central argument presented is that China’s cultural emphasis on financial gain is a major obstacle to developing football talent. Unlike countries like Brazil, where children play for the love of the game, Chinese youth are discouraged from pursuing football due to limited financial prospects. The speaker states, “Unless we solve this problem which is a very very difficult to solve… Chinese football will remain mediocre.” He highlights the disparity between potential earnings as a football player versus a physical education teacher, influencing parental decisions and hindering talent development. He believes China will not catch up to Japanese or Korean football in his lifetime without addressing this cultural issue.

Future Prospects & Economic Diversification

The speaker expresses cautious optimism about the future of Chinese football, citing investments made between 2014 and 2020 in pitch construction and youth training. Over 340 youth coaches were hired from Europe, Brazil, and Argentina to improve the quality of training. He anticipates seeing better Chinese youth players emerge in the next five years as a result of these initiatives.

However, he also acknowledges the impact of new regulations limiting player salaries (around 8 million RMB for domestic players) and overall club spending. These measures are intended to curb corruption and promote financial stability.

Looking beyond football, the speaker discusses the potential for AI and robotics industries to compensate for the economic downturn in the property market. While AI itself is not a sufficient economic driver, the robotics industry, combining AI with manufacturing, offers a more promising path. He notes that Chinese tech companies are currently focused on international expansion (“going overseas”), which may limit their investment in domestic football. He cites the example of a robotics company that previously sponsored Manchester City but no longer does.

The "Going Overseas" Phenomenon

The speaker explains the current strategy of Chinese tech companies, prioritizing international expansion and brand recognition over domestic investment. This "going overseas" trend may mean that even if these companies succeed, they are more likely to sponsor international clubs like Manchester City than invest in Chinese football.

Quote: “First of all we have to say the Chinese football has been corrupted since probably 20 30 years ago. It's unbelievable. Just imagine all the fans in China. We thought that we have been watching football. But actually we have been watching reality shows for the last 20 30 years. Not really football.” – Changai, on the extent of historical corruption.

Quote: “Unless we solve this problem which is a very very difficult to solve… Chinese football will remain mediocre.” – Changai, on the cultural barriers to football development.

Conclusion:

The future of Chinese football remains uncertain. While government intervention and regulatory changes offer some hope for curbing corruption and promoting stability, the deeply ingrained cultural emphasis on financial gain poses a significant long-term challenge. The potential for economic diversification through industries like robotics offers a glimmer of hope, but the current focus of Chinese tech companies on international expansion may limit their investment in domestic football. The interview paints a realistic, and often pessimistic, picture of a sport struggling to overcome systemic issues and cultural barriers.