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Opinion | How Chinese corporations are leading the way in country’s global grab for football

A new mega-deal to broadcast English Premier League football in China is the latest example of the country’s corporations putting business to work backing the state’s grand football plan

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Suning and Wanda are among China's mega corporations getting heavily involved in football
Reports emerged last week that the Chinese video streaming service PPTV has agreed to pay US$700 million for the right to broadcast English Premier League football in China. If confirmed, the deal will be 10 times more that the EPL’s current deal in China, and will be its biggest ever overseas broadcast deal.
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The mooted deal is laden with a whole series of issues, ranging from the receptiveness to and willingness of audiences to pay for television, through to the role that football plays in soft power projection. Yet it is PPTV’s part-owner, the Suning Commerce Group (SCG) that is of particular interest, both for the way in which it has rapidly become an influential player in football and for the way in which it characterises the importance of corporate China in the country’s pursuit of its vision for sport.

SCG operates a franchised store network across China, the company’s core business involving the sale of televisions, refrigerators, washing machines, digital and information technology products, and so forth. Significantly, SCG also runs an online commerce platform which sells books, household goods, health products, and (please note) content products.

Jiangsu Suning's Alex Teixeira celebrates during the Chinese Super League football between Jiangsu Suning and Shandong Luneng on March 5, 2016 in Nanjing. / AFP PHOTO / STR
Jiangsu Suning's Alex Teixeira celebrates during the Chinese Super League football between Jiangsu Suning and Shandong Luneng on March 5, 2016 in Nanjing. / AFP PHOTO / STR
Listed on the Shenzhen Stock Exchange in 2004, SCG is now not only one of China’s biggest company’s it is also recognised by Forbes magazine as being amongst the biggest companies in the world: SCG’s market capitalisation is US$12.6 billion, has sales of US$21.5 billion, and employs 25,000 people.
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In 2015, SCG acquired Chinese Super League (CSL) club Jiangsu Guoxin-Sainty FC for 523 million yuan. Shortly afterwards, the club (renamed Jiangsu Suning) shocked world football during the 2016 transfer window, signing Brazilian players Ramires (from Chelsea) and Alex Teixeira (from Shakhtar Donetsk) for £25 million and £37 million respectively. SCG’s spending spree didn’t stop there; in the summer, the company also bought a 70 per cent stake in Italian club Inter Milan (for US$307 million).
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