**Can Equity Crowdfunding Save Chinese Football?**
*Date: May 22, 2015 22:13*
Equity crowdfunding has emerged as a powerful tool in the global sports industry, offering fans a new way to connect with their favorite teams. In Spain, the small town of Eibar made history by becoming the first football club to successfully raise funds through equity crowdfunding. With a population of just 30,000, Eibar faced a critical financial challenge when they had to pay a €1.7 million deposit to remain in La Liga. Unable to meet this demand, the club turned to the internet, launching a campaign that allowed fans worldwide to purchase shares for as little as €50.
The initiative was a massive success, raising over €1.98 million from more than 8,000 investors across 48 countries. This not only saved the club from relegation but also expanded its shareholder base significantly. Chinese fans became the second-largest group of overseas shareholders, showing the potential of crowdfunding to bring global support to local clubs.
In China, the concept is still in its early stages, but there are signs of progress. The State Council’s 2014 policy on sports development encouraged the integration of the internet and finance, paving the way for innovative funding models. Alibaba invested heavily in Evergrande Football Club, while projects like the Beijing Marathon special issue were funded through crowdfunding platforms. Similarly, the Chinese Baseball Association partnered with Hengda United Investment to launch a crowdfunding campaign for a baseball culture project, marking one of the first equity crowdfunding efforts in the sports sector.
However, the regulatory environment in China presents challenges. According to the “Private Equity Crowdfunding Management Measures†issued by the China Securities Association, equity crowdfunding must be conducted through non-public channels, with strict limits on investor numbers and minimum investment thresholds. These regulations make it difficult for ordinary fans to participate directly, unlike the open model used by Eibar.
Despite these hurdles, the future looks promising. As the market pushes for more flexible policies, public equity crowdfunding could become a reality, allowing grassroots fans to own shares in their favorite clubs. One such example is the Shenzhen Renren Football Club, which plans to be entirely built and operated through crowdfunding. The team aims to be self-sustaining, with all operations, including management and daily expenses, funded by its supporters.
With the right policies and continued innovation, equity crowdfunding could play a transformative role in Chinese football, giving fans a real stake in the sport they love. While the road ahead is long, the success of Eibar and the growing interest in crowdfunding suggest that the dream of fan-owned clubs is no longer just a fantasy.
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