No team in the professional basketball team makes money, and the annual revenue starts at 80 million! Wang Wenxiang, Gu Zhongliang, Cai Mingxing and his son…why do the big bosses spend money to support the team? Analyzing the power play of the consortium (Today’s Weekly Chart)
Written by Today’s Weekly Editorial Team
Taiwan’s professional basketball world has experienced violent shocks this month. Wang Wenxiang, chairman of the New Taipei Kings, called out for a major reshuffle of the original two leagues, P. League+ (PLG) and T1 teams, and a new league, the Taiwan Professional Basketball League (TPBL). Out of nowhere. After mergers, reshuffles, and reorganizations, the period was filled with counterattacks and rebellions. By July 16, a new situation was formed with 7 teams in the new alliance and 4 teams in the PLG alliance.
This game is no longer just a fight on the court, but also a showdown between the bosses of the parent company behind the team, which has a market value of hundreds of billions, or even more than one trillion yuan, with open and covert attacks and ideas. The merger of the two leagues has always been a direction that all the existing 11 teams have nodded in favor of. It is obvious that a merger will benefit both parties and everyone agrees with the merger of the leagues. Why can’t they reach an agreement?
A T1 shareholder representative said implicitly but to the point, “The big bosses are all behind the scenes. They have always had the final say in making decisions in the market. Now who wants to listen to whom? As long as someone is unwilling to take a step back and integrate It’s not easy to succeed.”
To put it bluntly, the real players in this merger outside the competition are not the players or the fans, but the collision of dreams and ideas, the display of firepower and the battle for face of the owners of the consortium that owns the team.
Among the 11 teams in the two leagues, at least three major financial holding companies have entered the market to invest. Among the most powerful players, Fubon Group, the parent company of PLG Fubon Warriors, has a market capitalization of more than one trillion yuan. Last year, its net profit following tax exceeded 60 billion yuan. It has a strong ambition for professional sports. The influence of the Cai family on PLG is self-evident. Metaphor.
Behind the T1 CITIC special attack is Gu Zhongliang, director of CITIC Financial Holdings. The Gu family’s investment in the sports industry is no less than that of the Fubon Tsai family; CITIC Financial’s market value exceeded 700 billion yuan, and last year’s following-tax surplus exceeded 50 billion yuan. With its financial resources, Being willing to invest, CITIC is regarded by the PLG camp as the big brother of T1.
The other teams are not fuel-efficient. Wang Wenxiang of the Kings is the second son of Formosa Plastics Wang Yongqing, and his financial resources are not a problem. Although the Taishin Ares was established relatively late, it has the support of the chairman of Taishin Financial Holdings and its young master Wu Xinhao, and its strength cannot be underestimated. .
Despite this, the appetite of the Taiwanese market is limited. In order to increase the visibility of the game, the teams do not hesitate to spend a lot of money to grab players. In addition, the teams on the other side also offer high salaries, resulting in higher player salary costs. Zhang Sihan, the president of Costco Asia Pacific who just resigned as the chairman of PLG, said frankly, “No team makes money, it only loses less.”
Shang Ruiqiang, the team leader of Taishin Ares and the vice chairman of Taishin Bank, bluntly said that the investment cost of the team is high. “Looking at it roughly, the cost of a more luxurious team is regarding 120 to 30 million yuan a year, which is the most youthful one.” The team will also spend 80 to 90 million yuan.”
The team is not making any money, so why let the owner’s consortium grab the head? Shang Ruiqiang believes that in addition to adding points to the image of the parent company, the fans themselves are an economic force. “Although they may not receive real money, they have a lot of hidden value.”
In the case of CITIC actively playing the role of promoter of the unified professional basketball league this time, one of the reasons behind it is that Gu Zhongliang heard the analysis of Zhang Mingtian, an important staff member and former CFO of CITIC Financial, “Baseball fans are showing signs of aging, and young people are more interested in them.” The trend of basketball is changing. “For CITIC, investing in the sports industry is a long-term investment. “The future brand image must start from the younger generation and take root.”
It is understood that when Koo Zhongliang returned to the board of directors, he immediately sought approval from the board of directors for CITIC Capital’s investment in basketball and baseball sports. “If we work together for the common good, we will have the opportunity to reduce losses and even create profits.”
Dreamers director Chen Lizong said frankly that it is so difficult to make a profit by running a football team, “Is it vanity? Maybe it is.” But he said, “What’s behind it is actually love.” Regardless of Fubon Cai Chengru, Cai Chengdao, King Chen Xinsheng, and Gu Gu Zhongliang and Puyuan Li Zhongshu, these players really love basketball.
Zhang Sihan regretfully said that following the championship game, the players had not really enjoyed themselves, but the team was in a mess. He said earnestly: “In basketball, fans are our consumers and players are products. We must protect these two.”For more information, please refer to the latest issue of “Today’s Weekly” (Issue 1439)
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No team in the professional basketball team makes money, and the annual revenue starts at 80 million! Wang Wenxiang, Gu Zhongliang, Cai Mingxing and his son…why do the big bosses spend money to support the team?Analyzing the Machiavellian Game of Consortiums
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No team in the professional basketball league makes money, with annual revenues starting at 80 million! Wang Wenxiang, Gu Zhongliang, Cai Mingxing, and his son… why do these big bosses spend money to support their teams? Analyzing the power play of consortiums (Today’s Weekly Chart)
Written by Today’s Weekly Editorial Team
Taiwan’s professional basketball landscape has been shaken this month. Wang Wenxiang, chairman of the New Taipei Kings, proposed a major reshuffle of the existing two leagues, P. League+ (PLG) and T1, leading to the formation of a new league, the Taiwan Professional Basketball League (TPBL). The period has been filled with mergers, reshuffles, counterattacks, and rebellions. As of July 16th, the new alliance consists of 7 teams, while the PLG alliance remains with 4 teams.
This game is no longer just a fight on the court. It’s a showdown between the bosses of the parent companies supporting these teams, with market values exceeding hundreds of billions, or even trillions of yuan, engaging in open and covert attacks and maneuvering. While merging the two leagues has been a direction favored by all 11 existing teams – benefiting all parties and seemingly universally accepted – why can’t they reach an agreement?
A T1 shareholder representative hinted, “The big bosses are all behind the scenes. They always have the final say in market decisions. Now, who wants to listen to whom? Unless someone is willing to take a step back and integrate, it’s not easy to succeed.”
Simply put, the real players in this merger, beyond the players and fans, are the consortium owners who own the teams, with their colliding dreams and ideas, displays of power, and battles for face.
Among the 11 teams in the two leagues, at least three major financial holding companies have invested in the market. Fubon Group, the parent company of PLG Fubon Warriors, is among the most powerful players, with a market capitalization exceeding one trillion yuan. Last year, its following-tax net profit exceeded 60 billion yuan. The Cai family’s influence on PLG is evident, their ambition for professional sports unmistakable.
Behind the T1 CITIC special attack is Gu Zhongliang, director of CITIC Financial Holdings. The Gu family’s investment in the sports industry is no less than that of the Fubon Cai family. CITIC Financial’s market value exceeded 700 billion yuan, and its following-tax surplus last year surpassed 50 billion yuan. The company’s financial resources and willingness to invest have led the PLG camp to perceive CITIC as the big brother of T1.
The other teams are no slouches either. Wang Wenxiang of the Kings, the second son of Formosa Plastics Wang Yongqing, has ample financial resources. Although the Taishin Ares was established relatively late, it enjoys the support of Taishin Financial Holdings chairman and its young master Wu Xinhao, making its strength undeniable.
Despite all this, the Taiwanese market’s appetite is limited. Teams are prepared to spend enormous sums to attract players, aiming to boost game visibility. Moreover, teams on the other side are also offering high salaries, resulting in a higher player salary cost. Zhang Sihan, the President of Costco Asia Pacific and former chairman of PLG, admitted frankly, “No team makes money, they only lose less.”
Shang Ruiqiang, the team leader of Taishin Ares and vice chairman of Taishin Bank, said bluntly that the team’s investment cost is high. “Roughly speaking, the cost of a more luxurious team is regarding 120 to 30 million yuan a year, which is the most youthful one. The team will also spend 80 to 90 million yuan.”
If teams aren’t turning a profit, why are consortium owners vying for control? Shang Ruiqiang believes that in addition to boosting the parent company’s image, the fans themselves constitute an economic force. “Although they may not bring in direct money, they have a lot of hidden value.”
CITIC’s proactive role as a promoter of a unified professional basketball league stems partly from Gu Zhongliang heeding the analysis of Zhang Mingtian, a key staff member and former CFO of CITIC Financial. “Baseball fans are showing signs of aging, and young people are more interested in basketball,” Zhang Mingtian said. “Investing in the sports industry is a long-term investment for CITIC,” Gu Zhongliang added, “Future brand image must start from the younger generation and take root.”
It’s understood that when Koo Zhongliang returned to the board of directors, he immediately sought approval from the board for CITIC Capital’s investment in basketball and baseball sports. “If we work together for the common good, we will have the opportunity to reduce losses and even create profits.”
Dreamers director Chen Lizong admitted that it’s extremely difficult to turn a profit from running a sports team. “Is it vanity? Maybe it is.” However, he emphasized, “What’s behind it is actually love.” Whether it’s Fubon Cai Chengru, Cai Chengdao, King Chen Xinsheng, Gu Gu Zhongliang, or Puyuan Li Zhongshu, these individuals genuinely love basketball.
Zhang Sihan lamented that following the championship game, the players hadn’t truly enjoyed themselves as the team was in disarray. He said earnestly, “In basketball, fans are our consumers and players are products. We must protect these two.” For more information, please refer to the latest issue of “Today’s Weekly” (Issue 1439)
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No team in the professional basketball team makes money, and the annual revenue starts at 80 million! Wang Wenxiang, Gu Zhongliang, Cai Mingxing and his son…why do the big bosses spend money to support the team?Analyzing the Machiavellian Game of Consortiums
The Power Play Behind Taiwan’s Basketball Merger: A Machiavellian Game of Consortiums
The world of Taiwan professional basketball has been shaken by a recent merger, bringing together the P. League+ (PLG) and T1 leagues to form the Taiwan Professional Basketball League (TPBL). While the merger is seen as advantageous for all teams, the negotiations have been fraught with tension and power struggles, revealing the complex and often hidden forces behind the scenes.
The Big Bosses Behind the Game
This isn’t simply a basketball competition; it’s a clash of titans, a power play among the owners of the consortiums that own the teams. These consortiums are not just interested in winning games; they are vying for brand visibility, market dominance, and a share of the growing sports industry.
Among the major financial holding companies involved, Fubon Group, parent company of the PLG Fubon Warriors, stands out with its market capitalization exceeding one trillion yuan and a net profit exceeding 60 billion yuan. The Cai family’s influence on the PLG is undeniable, making them a major force in the new league.
Another prominent player is CITIC Financial Holdings, parent company of the T1 CITIC special attack, led by Gu Zhongliang. The Gu family’s investment in sports rivals that of the Cai family, with a market capitalization exceeding 700 billion yuan and a surplus exceeding 50 billion yuan. This financial muscle makes CITIC a key player and a potential leader on the T1 side.
Beyond these giants, other consortiums like Formosa Plastics, backed by the New Taipei Kings’ owner Wang Wenxiang, and Taishin Financial Holdings, behind the Taishin Ares, are also significant contenders. Despite the competition, the Taiwanese basketball market remains limited, leading to a battle for players and a fierce fight for fan attention.
The High Cost of Winning
The pursuit of success has driven up player salaries, leading to a situation where no team is making a profit, only minimizing losses. The cost of a top-tier team can exceed 120 million yuan per year, while even a less extravagant team may spend 80 to 90 million yuan annually.
So why invest so heavily in a market that seems to offer little financial return? Consortiums see it as a long-term investment, an avenue to enhance their image, solidify their brand presence, and, importantly, cultivate a valuable fan base. This investment goes beyond just the monetary value, recognizing the potential for future growth and a shift in consumer interests towards basketball.
Beyond Profit: A Love for the Game
While the financial aspect is crucial, many of these owners are also passionate fans themselves, investing out of a genuine love for the sport. This passion drives them to pour resources into building strong teams, attracting talented players, and creating an engaging atmosphere for fans.
The recent merger of the two leagues presents a unique opportunity to expand the fan base, attract younger audiences, and potentially improve the financial viability of the industry. While challenges remain and the struggle for dominance is far from over, one thing is clear: passion, ambition, and the desire for market leadership are driving the forces behind the scenes in Taiwan’s professional basketball.
For more information, please refer to the latest issue of “Today’s Weekly” (Issue 1439)
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The three nuclear cities will not be able to generate electricity before 2030. Not only Wu Dongliang spoke out, but Tong Zixian said: I am not a nuclear supporter. It is a pity to retire following 40 years of stable operation.
Say goodbye to NT$5 per unit of electricity when renting a house. Landlords who overcharge electricity bills can be fined up to NT$500,000!New electricity bill system for rental houses goes into effect on 7/15
Do children become less sensible as they get older? Let yourself go!3 things parents should do to resolve conflicts in parent-child relationships
No team in the professional basketball team makes money, and the annual revenue starts at 80 million! Wang Wenxiang, Gu Zhongliang, Cai Mingxing and his son…why do the big bosses spend money to support the team? Analyzing the Machiavellian Game of Consortiums
