Kingway's Super League sponsorship goes flat
Shenzhen-based brewer Kingway has confirmed it will not continue to sponsor the Chinese Super League (CSL), the nation's top-flight soccer league, in the upcoming season, claiming past sponsorship deals with the league have proven unsustainable.
"I can assure you Kingway will not sponsor CSL any longer," Ye Xuquan, board chairman of Kingway, told Sina.com.
Ye admitted the company benefited from wide media exposure and increased its popularity in the past year but has decided to focus its efforts on other sports.
"Kingway has been developing rapidly since we got involved in sports. We will not get rid of our tradition."
Employees of the brewery suggested unbalanced revenues convinced the company to withdraw its sponsorship.
"The cost of raw and processed materials is increasing and beer marketing is getting more competitive," an employee of Kingway who refused to be identified told Sina.com.
"If Kingway continues its big investment in the new season, the company will be under huge financial strain, so it's impossible to extend the sponsorship contract any more."
The state-owned enterprise beverage company, which is listed on the Hong Kong Stock Exchange, became a surprising China Football Association (CFA) partner last year amid concerns that CSL would go without a major sponsor. The brewer paid 36 million yuan ($4.5 million) to have its name in the title of China's premier football competition.
Lu Feng, the manager of CSL who is in charge of marketing development, said he understood Kingway's decision, but hopes the brewer will reconsider. Kingway still has the option to renew its contract when the current one expires in March.
Lu also shrugged off concerns about CSL's marketing prospective, saying he is upbeat about the sponsorship development for the new season.
Kingway is the third company to sponsor the CSL after German electronics giant Siemens and internet phone maker iPhox.
Siemens paid 8 million euros (about 85 million yuan) to sponsor the league when it debuted in 2004, but the sponsorship fee has plummeted since then as the league has struggled after a series of match-fixing and "black-whistle" scandals.
China Daily
(China Daily 01/11/2008 page23)
