After Hong Kong businessman Yang Ka-shing took control of British football club Birmingham, it was followed by Xtep International (1368.HK), headquartered in Quanzhou, Fujian Province. This is the first time that a Chinese sports brand has entered the five major European football leagues - England Premier League ("Premier League") as an official supplier. However, it is still far from toast to celebrate. Whether this huge investment can bring profits is still unknown. Painful 75% On January 18, Xtep International signed an agreement with Hongkong Hongfeng International Holdings Ltd., which will replace UM-BRO, a British soccer apparel manufacturer, as a sponsor of the Birmingham Club. The next few years, people will see Birmingham's British boys dressed in white and blue "Xtep" card jersey. The cost of this scenario is calculated in tens of millions of dollars. In the next five years, Xtep will sponsor a full range of sports equipment in Birmingham. The two parties will also jointly develop "BCFC-Xtep" series of apparel brands - the joint apparel brand of Xtep and Birmingham; the Xtep brand will land in the Premier League; Birmingham club activities in China, and will ensure that during the cooperation period, each year from CCTV broadcast Premiership and Birmingham related games. In addition, the content of the contract, the most striking is that Birmingham club to cooperate arrangements for Chinese mainland players to play in the Premier League, at least one. Although Xtep International declined to say how much it spent on sponsorship, sportspeople told reporters that it is quite possible to spend tens of millions of U.S. dollars annually. According to the 2009 Interim Report, Xtep International spent 11.6% of its revenue on advertising and marketing. In the first half of last year, Xtep's revenue was 1.68 billion yuan. In Dingshuibo it seems that although the Birmingham club is controlled by Yang Ka-shing, it is still hard to call it the "Chinese Premier League" if the team does not have Chinese players. Ding Shuibo attempt to please consumers through the Chinese players, leveraging the Premier League to leveraging the Chinese market, and then from China to Europe to achieve global expansion. Now, for the urgent need to start the Chinese market, only this team has enough Chinese elements, a lot of money to have valuable, and the most important Chinese element is the Chinese player. Although the wish is good, there are many obstacles. Fan Zhiyi, general counsel for Birmingham China, told reporters that this summer, Birmingham clubs will choose potential Chinese athletes to go to St Andrews home to exercise, but the introduction of players is by no means easy. To enter the Premier League club, in addition to the potential players and other factors, the most crucial to get the British "labor card." Premiership League regulations, non-EU players in the past two years on behalf of the national team to participate in Class A events more than 75%, party may obtain labor permits. Only this painful "75%" standard will minimize the player range available. Fan Zhiyi I have been trapped by labor certificates. The risk of huge sponsorship is not only from the successful introduction of Chinese players. Although Premier League is seen as the most popular soccer league, China is also the largest television market with the highest potential audience - which is just the consumer market Xtep is trying to please, but so far Premier League TV rights and China's TV market Difficult to find a satisfactory bridge between the two sides. Whether the Premiership can get a centralized open channel in China is still unknown. Birmingham need Premier League free relay in mainland China, in the Premier League bidding for copyright, is still pay-TV Tiansheng high price leader. Carlyle Behind the Scenes In September 2009, Yang Ka-shing became the majority shareholder of the Birmingham Club through its Hong Kong-based Hong Feng International Holdings with a 94% stake. Fan Zhiyi was invited to become Birmingham's general counsel for football in China. However, "General Fan" is not a boon between Yang Jia-shing and Ding Shui-bo. At the age of 16, Yang Ka-shing went to London to study English and returned to Hong Kong to become a hairdresser before setting foot in the real estate and gaming industry. Xtep international predecessor Dingshuibo founded in 1999, a sneaker OEM, special brakes began in 2002 to produce sports shoes, clothing and accessories and other sports apparel items. Until Yang Jiacheng holding Birmingham club before, Ding and Yang have never had contact. The driving force of this international marriage is actually private equity fund Carlyle Investment Group. June 2007, Carlyle's two investment funds in the form of convertible loan agreement, about 30 million US dollars into Xtep International, holds 9.6% of its shares, when Carlyle shares price of 1.55 Hong Kong dollar. In June 2008, Xtep International landed on the Hong Kong Stock Exchange, the shares diluted to 7.21%, while the special issue of International Striking 4.05 Hong Kong dollar. Carlyle earnings here is evident. According to Xstep's prospectus disclosure, Carlyle shares held only six months of the lock-up period, which means that in December 2008, Carlyle Investment has the right to sell shares of cash. However, the ambitious Carlyle did not rush to exit the market with the special step counseling. Carlyle, on the other hand, has been helping Xtep look for international acquisitions in an attempt to grab market share from bigger rivals such as Anta and Li Ning. In June 2008, coinciding with the approaching of the Olympic Games in China, Carlyle quadrupled its holdings of Xtep and its shareholding rose from 7.21% to 9.7%. However, how to get the most out of your assets while exiting an investment still requires surgery for Xtep. In fact, when Dingshuibo started using Xtep brand in 2002, it encountered problems that its rivals Anta, Pick, and Li Ning were far ahead in sports. To avoid direct competition with tough opponents, Xtep invented a differentiated line that "makes the difference." Xtep first opened the sporting goods industry, "Entertainment Marketing", "Entertainment + Sports Double Track Marketing" and other differentiated marketing model precedent. Although it has achieved 100 times the asset growth, but in the more potential sporting goods market, Xtep seems to see the huge market is divided by the rival. Li Ning, Anta, Peak and sports events in close connection, passers-by are known; and Xtep different, their spokespersons are entertainment stars. The success of differentiated marketing seems to have left it from its original track: the comprehensive development, production and sale of sports shoes, clothing, bags, hats, socks, etc. based industry's major sporting goods business. This, prompted as a share of nearly 10% PE Carlyle, take the initiative to find a breakthrough path. At this point, Yang Jiacheng Premier League club success, was Carlyle as a must-see opportunity. "Yang Jia Cheng and Carlyle, a top familiar, two meet, quickly convinced Ding wave, sponsor the team." Xtep international insiders told reporters. January 2, 2010 By sponsoring the 2010 Xiamen International Marathon, Xtep began to convey the slogan "Love Running, Love Walking," with obvious points of interest. Xtep no longer content with "make the difference." 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Xtep international this departure from its consistent main entertainment route, a full return to the sports industry. Ding Shui-bo, chairman of the company revealed that sponsoring Birmingham club is just the beginning, the future in running, feather net and other sports will meet Xtep name.