Factors Affecting Professional Sports in Asia

Professional sports are just more than an industry that has patriotic fans and monumental pride; it revolutionizes and conceptualizes the ability to bring forth different countries and people together. Not only it impacts the players and fans, but how the economy, politics, and gender roles affects the professional sporting industry. As professional sports is no longer contained into just one corner of the world; the newest emerging market, Asia, and their professional sports industry has been revolutionized. It has been greatly been affected by different cultures, adapting and changing this global phenomenon making it their own. In this weekly newsletter, we will look at China, Korea, and Japan’s professional sports team and how each has their cultural perspectives changed the game.

Chinese Demographics: 2

Chinese Economy : 3

Chinese Gender Roles: 4

Japanese Business Laws: 5

Japanese Arts and Culture: 6

Korean Holidays and Traditions: 7

Korean Politics and Government: 8

BUSI 2702B November 19, 2013

Presented By: America Sales

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badminton, and baseball also have high fan appeal, bringing profit to related industries including television, advertising and the sports lottery. It is estimated that by 2010, the total output value of Chinese sports industry will account for 1.5 percent of the GDP.4 This emphasizes on how attractive a sports apparel company would be in China. The country’s leading sports apparel companies are Nike, Adidas, and Li Ning.5

In recent years, the total output value of the sporting goods industry has increased by about 50 billion yuan a year and the market share of fitness products is also growing year on year. Some sports products are branded after world champions like world gymnastics’ champion Li Ning.6 Notable players like Li Na and Zheng Jie can be idolized in the company ads.7 Overall, the people of China are mainly attracted to tennis apparel and apparel for any racket sport, as well as soccer, volleyball, and other popular Chinese sports. The Chinese have a surprising interest in

1 “China GDP”, Index Mundi, January 1, 2011, http://www.indexmundi.com/china/gdp_(purchasing_power_parity).html. 2 “Historical Data Graphs per Year” (China), Index Mundi, January 1, 2011, http://www.indexmundi.com/g/g.aspx?c=ch&v=65. 3 “China Population 2013”, World Population Statistics, last modified September 18, 2013, http://www.worldpopulationstatistics.com/china-population-2013/. 4 “Professional Sports and the Sports Industry”, China Through a Lens, http://www.china.org.cn/english/features/China2004/107181.htm. 5 Katherine Downes, “China’s quest for global golf domination”, BBC News, November 8, 2013, http://www.bbc.co.uk/sport/0/golf/24852164. 6 “Sports Industry”, China.org.cn, http://www.china.org.cn/english/features/Brief/193361.htm. 7 Dennis Passa, “Zheng Jie inspired by Li Na’s historic win”, FoxNews, January 21, 2012, http://www.foxnews.com/sports/2012/01/21/zheng-jie-inspired-by-li-nas-historic-win/.

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To evaluate the living standards and willingness to pay of the Chinese, we need to study their demographics. What is their degree of disposable income? What do they consider as leisure activities? Many aspects are important when determining how to operate in a country like China. To begin with, China has a GDP (Purchasing Power Parity) of 12.3 trillion (2012)1 GDP (PPP) Billion ($).2

The most popular sports in China are all types of racket sports, specifically table tennis and badminton. China has won the most gold medals in Badminton and Ping Pong in the world. Football (American soccer) has gained increasing popularity over the years too.3

Each year, an estimated six million people attend professional sports events, producing an annual value of nearly 700 million yuan. China Basketball Association ("CBA") events attract an average 80 % box-office rating for each game. Professional volleyball, Ping-Pong,

Chinese Sports Demographics

An As i a A dm in i st ra ti o n Fe at ur e

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basketball and soccer with the CBA hosting various events and games. This may be due to famous American Chinese players, like Yao Ming or Jeremy Lin. In conclusion, China is a wealthy country and has a large consumer market, especially for sports apparel. For a sports apparel company, China is an excellent starting point for foreign entry.

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The Chinese Super League has caused plenty of corruption in the economy. China pursues gold by funnelling athletes into sports in order to win medals, however they invest less in football (American soccer) players because there are only 2 medals to win. In the 1990s, gamblers began spending government money on “favour” matches, influencing the outcome of games through investors, referees, coaches and players.8 In 2006, the head of the Chinese Football Association, Mr. Nan confessed that players could buy spots on the national team for 100,000 Yuan.9 From 2000 to 2013, the number of Chinese teenagers playing football decreased from 600,000 to 100,000 because parents worried that playing football would corrupt their offspring.10 Recently, however, Chinese soccer has seen a significant decrease in corruption. For example, two ex-heads of a Chinese football league have each been sentenced to10.5 years in jail for corruption.11

In 2010,The Evergrande Real Estate

Group began paying the teams generous salaries and victory bonuses, reducing players' incentives to fix matches.12 Currently, 13 of the 16 clubs are owned by property-developers.13 In

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exchange for their support they receive cheaper land, impacting the real estate economy. The league ranked 15th in the world for the amount of investment, and $36 million has been spent by Chinese football clubs in 2012.14 Companies have been increasing their brand image through the league. Tens of thousands of people attend the games, and millions of people watch the matches on television. Each year, billions of dollars are spent on football related goods, and millions of fans buy products endorsed by their idols.15 The manager of Lu Neng Club recently signed a contract with a U.S. power plant to advertise in the league, which demonstrates how Chinese football is affecting the global economy.16

To boost its football influence globally,

the Chinese Super League is hiring international players with high salaries (Didier Drogba just signed a salary for $300,000 a week).17 Overall, the Chinese Super league is cleaner than ever. Companies are noticing the benefits of marketing through this rising industry. The league is influencing the economy in a far more positive way than it has in the past ten years.

8 The Economist, “Why China fails at football Little red card,” http://www.economist.com/node/21541716, accessed November 2013.9 Ibid. 10 The Mom soccer manual, “Soccer Salaries,” http://soccermommanual.com/soccer-salaries-how-much-do-soccer-players-make/ , accessed November 2013. 11 The Economist, “Why China fails at football Little red card,” http://www.economist.com/node/21541716, accessed November 2013. 12 Ibid.13 Ibid.14 Ibid. 15 Marketing China, “Let Chinese Football Promote Your Brand,” http://marketingtochina.com/let-china-footbal-promote-your-brand/, accessed November 2013. 16 The Economist, “Why China fails at football Little red card,” http://www.economist.com/node/21541716, accessed November 2013. 17 The Mom soccer manual, “Soccer Salaries,” http://soccermommanual.com/soccer-salaries-how-much-do-soccer-players-make/ , accessed November 2013.

A Europe Production Feature

Cleaning Up the Chinese Super League to Improve the Economy

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18 Bose, Debopriya. "Popular Sports in China." Buzzle.com. http://www.buzzle.com/articles/popular-sports-in-china.html (accessed November 12, 2013). 19 "Chinese Athletes Say No to the System." Chinese Athletes Say No to the System. http://www.nytimes.com/2011/08/19/sports/chinese-athletes-begin-to-challenge-governments-tight-grip.html (accessed November 12, 2013). 20 "The Common Language Project is now the Seattle Globalist!." RSS. http://www.clpmag.org/article.php?article=Womens-Sports-Take-China-by-Storm_00357 (accessed November 12, 2013). 21 "China's Traditional Gender Roles Start Young: Theme Park Lets Children Test 'Conventional' Career Paths." International Business Times. http://www.ibtimes.com/chinas-traditional-gender-roles-start-young-theme-park-lets-children-test-conventional-career-paths (accessed November 12, 2013).

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The most popular sports in China are basketball, table tennis, badminton, diving, gymnastics, soccer, and chess.18 From a young age, children in China are exposed to these popular sports at school, but many, especially girls, do not participate in any sports outside of school. This is a result of the heavy influence of the Chinese state. Control of the state extends far beyond the playground, as with the Chinese Olympic team, there is no separation between sport and the state. Athletes are controlled and strictly monitored by government run programs.19 There are many national men and women’s sports teams such as basketball, cricket, football (soccer), field and ice hockey, rugby, softball, and volleyball. Many of the professional sports leagues are separated by gender, i.e. they each have their own male-female counterpart team. In Beijing,

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we saw the formation of a women’s rugby team called the Beijing Devils three years ago. This allowed women to enjoy becoming physically fit. However, a player by the name of Zou believes that there is still a gender divide in sports access. Zou says it is rare for girls to play sports outside of school and that the number of women representing China in the Olympics does not represent a culture that goes out of its way to support women’s sports.20

Traditionally,

women’s roles in China were to be submissive and follow the lead of men. Sports, on the other hand, promote leadership and empowerment, which goes against traditional values. This is displayed in team sports since when there is a captain who leads the team, which gives women the opportunity to experience roles that were traditionally reserved for males.

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Additionally, children in China are encouraged to follow careers that fit into traditional gender roles. A good example of this is in a theme park in Beijing called “I have a dream”, which allows children to test out careers in mock settings. Boys are encouraged to look at male stereotyped jobs such as security guards and military personnel while girls are geared towards female stereotyped jobs such as flight attendants.21

A Europe Sales Feature

The influence of Gender roles on Professional sports in China

Li Na, a famous Chinese female tennis player who was able to break free of the government controlled program and has won numerous titles.

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The professional sports market in Japan has grown immensely in the past 30 years where baseball, soccer, and rugby teams are now competing at an international level. Baseball is currently the most popular sport and the Nippon Professional Baseball league generates large annual revenues. The Japan Professional Football League is also in the international spotlight with high performing teams. T]he country has one of the most successful teams in Asia, winning the Asian Cup four times. In 2019, Japan will be hosting the Rugby World Cup which will be the first time the tournament is held in Asia. Lastly, in 2020, the Summer Olympics will be held in Tokyo. In the 1990’s there was very few significant “laws” in Japan relevant to pro sports.22 There was no body of sports law and nothing to dictate professional sports team’s decisions. During this time, there were a number deaths of athletes who belonged to professional sports teams on their way to a training camp. Due to a lack of laws and rights, families did not receive any compensation for the deaths and were said to be, “in the scope of business”.23 It is quite different today as there is a push in Asia for sports law and resolution bodies. The period since 2000 has been one which has seen a significant amount of developments regarding players’ rights in professional sports in Japan.24 It has been a period which has seen progression towards the creation of an environment where the stakeholder clubs and players can both negotiate equally.25 A highly significant law for the sports market was formed in 2011. This is called the Basic Act on Sports. Article 5(2) of the law states: Sports associations shall, for the purpose of appropriately carrying out work to promote sports, endeavour to ensure transparency in such work as well as establishing standards in relation to the said work activities which the sports associations themselves must strictly observed. Article 5(3) of the law states: Sports associations shall endeavour to achieve swift and appropriate resolution to all disputes involving sports.26

The Court of Arbitration in Sport (CAS) is finally deciding to set up an Asian headquarters. CAS is an international arbitration body set up to settle disputes related to sport where temporary courts are built in Olympic cities.27 It is extremely probable that it could be in Japan, due to the upcoming World Rugby Cup as well as the 2020 Olympics in Tokyo.

22 "International Sports Law and Business, Volume 2." Google Books. http://books.google.ca/books?id=mjNXZdjP6HgC&pg=PA1638&lpg=PA1638&dq=sports+law+in+japan&source=bl&ots=kTN0P93Ii9&sig=xpleu7UuJ-H2fW4_ypmMQ5n1siE&hl=en&sa=X&ei=U1J9UvWeB-emygGqp4CADw&ved=0CEsQ6AEwBg#v=onepage&q=sports%20law%20in%20japan&f=false (accessed November 13, 2013). 23 "International Sports Law and Business, Volume 2." Google Books. http://books.google.ca/books?id=mjNXZdjP6HgC&pg=PA1638&lpg=PA1638&dq=sports+law+in+japan&source=bl&ots=kTN0P93Ii9&sig=xpleu7UuJ-H2fW4_ypmMQ5n1siE&hl=en&sa=X&ei=U1J9UvWeB-emygGqp4CADw&ved=0CEsQ6AEwBg#v=onepage&q=sports%20law%20in%20japan&f=false (accessed November 13, 2013). 24 Yamazaki, Takuya. "The rights 'revolution' for pro sports stars in Japan – Part 3." LawInSport. http://www.lawinsport.com/articles/employment-law/item/the-rights-revolution-for-pro-sports-stars-in-japan-part-3 (accessed November 13, 2013). 25 Yamazaki, Takuya. "The rights 'revolution' for pro sports stars in Japan – Part 3." LawInSport. http://www.lawinsport.com/articles/employment-law/item/the-rights-revolution-for-pro-sports-stars-in-japan-part-3 (accessed November 13, 2013). 26 Yamazaki, Takuya. "The rights 'revolution' for pro sports stars in Japan – Part 3." LawInSport. http://www.lawinsport.com/articles/employment-law/item/the-rights-revolution-for-pro-sports-stars-in-japan-part-3 (accessed November 13, 2013). 27 De Marco, Nick. "The awakening Tiger -€“ The rise of Sports Law in Asia." LawInSport. http://www.lawinsport.com/features/item/the-awakening-tiger-the-rise-of-sports-law-in-asia?highlight=YToxOntpOjA7czo1OiJqYXBhbiI7fQ== (accessed November 13, 2013).

An Asia Production Feature

How Business

Laws Affect Professiona

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Lorem Ipsum Dolor How culture affects baseball in Japan An Asia Sales Feature

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A country’s culture and national sports are deeply intertwined. The sport and how it is viewed, reveals many aspects about a culture which helps cultivate the sport. In Japan, one of the national sports is sumo wrestling, which is a Japanese tradition. However, another tradition that has been deeply integrated into Japanese culture was imported. For the Japanese, baseball is not just a sport, it is like a religion.28 Fans will go as far as changing their hair and clothes, not just for the games, but as part of their day-to-day lives. Japan claims that Americans don't take baseball seriously enough, and that Japan really appreciates it. The amount of respect a baseball player

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receives is similar to the level of respect a samurai would have received in the past. This is because paid baseball players are expected to go through gruelling training and demonstrate “fighting spirit” along with extreme “doryoku” (effort).29 The team strategy and mentality is seen in a Japanese game of baseball, tied games are more common and every player’s loyalty, self-control, discipline and selflessness are tested. In Japan, a referee’s judgment is not absolute, the discussion of several people is more weighty than the opinion of one individual. Thinking about US or even North American baseball games, that would probably not happen. There are however some similarities, it is not to say that American baseball players are not also disciplined, but it is more heavily emphasized in the Japanese culture. The Japanese traditional culture is very collaborative, which has helped

28 Associated Press “In Japan, Baseball is the Art of War” LA Times, last updated April 21 1991, taken from http://articles.latimes.com/1991-04-21/sports/sp-906_1_japanese-baseball 29 Unknown author “Differences Between Nippon Professional Baseball and Major League Baseball” University of Michigan, taken from http://www.umich.edu/~wewantas/brooke/differences.html. 30 David Barker “Take Me Out to the Besuboru Game” Exploratorium, taken from http://www.exploratorium.edu/baseball/besubaru.html.

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Japan's baseball get where it is today.30 Nevertheless, both baseball and culture grew up together and analyzing the sport practices and values can say a lot about a country’s culture.

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31 "Visit Korea." Chuseok – Korean Thanksgiving Day. http://english.visitkorea.or.kr/enu/SI/SI_EN_3_6.jsp?cid=811650 (accessed November 9, 2013). 32 "What is Ssireum?." What is Ssireum?. http://ynucc.yeungnam.ac.kr/~ssi/Introduction/What_is_Ssireum_/what_is_ssireum_.html (accessed November 9, 2013). 33 "Traditional Korean wrestling faces its toughest bout yet." CNN Travel. http://travel.cnn.com/seoul/play/ssireum-legacy-old-days-727634 (accessed November 9, 2013). 34 "Ssireum: Korean Wrestling." Ssireum: Korean Wrestling. http://angelescity.com/index.php?newsID=680 (accessed November 9, 2013). 35 "SSireum ." Ssireum Sports . http://ssireum.sports.or.kr (accessed November 9, 2013).

Traditions and Holidays in Korea – How do they affect Sports?

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North and South Korea have different political ideologies, however, despite their 1948 split, they are bounded together through their unique traditions and holidays. South Korea has adapted to many aspects of Western culture and holidays while retaining their roots. North Korea on the other hand continues to practice more of their traditional roots. Although Korea follows the Western calendar, many people celebrate holidays which are fairly unique and follow traditional practices. Chuseok, 추석, originally known as “hangawi” is a harvest festival with a three-day holiday celebration on the 15th day of the 8th month in the Lunar calendar. It is also known as Korean Thanksgiving in the Western calendar being celebrated in late September/October.31 Chuseok is the often the biggest and most celebrated holiday in Korea, a time for family, paying respects for past ancestry, feasts of Korean traditional foods, and

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celebrating folk games. Ssireum, 씨름, was a celebrated folk game since the 18th century and is still played today.32 It is very similar to wrestling or sumo, where two athletes must try to push each other out of the ring or into the ground using various techniques with their arms, legs, and torso.33 Unlike sumo, slapping or blows are not allowed.34 Not only was it celebrated during the holidays, it has become a very famous sport where spectators of both the rich and the poor can come together and watch for a fairly inexpensive price. Although Ssireum originated from Korea’s holidays and is now a Korean tradition, it has been losing its traditional presence especially in South Korea due to the introduction of soccer in the 1990s. The liberalization of the South versus the isolation of the North brings changes towards its holidays and traditions. Its original cultural significance is no longer emulated among the younger generations. Thus, Ssireum associations such as the Korean Ssireum Association, Korean University

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Ssireum Federation, and Fok Ssireum Committee have been introduced to increase popularity of the national pastime and cultural significance.35

An America Sales Feature

Ssireum has been celebrated since the late 18th century, as demonstrated through this painting. Source: "Korean Sports." English Conversation. http://www.eslgo.com/conversation/viewtopic.php?f=13&t=9783 (accessed November 9, 2013).

Modern day Ssireum, a highly spectated game; rooted the celebration of the Korean festival, Chuseok. Source: "Ssireum: Korean Wrestling." Ssireum: Korean Wrestling. http://angelescity.com/index.php?newsID=680 (accessed November 9, 2013).

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Lorem Ipsum Dolor Government aid for Sports - Korea A Europe Administration Feature

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Korea's athletes are known for their success in competitions around the world. This can be partially accredited to the extensive help from the Korean government. Funded by the Korean government, The Korea National Training Center opened in 1966 and over the years has grown to include 24 buildings, gymnasiums, swimming pools and dormitories for the athletes. The center includes training facilities for 20 different sports including swimming, gymnastics, taekwondo and skating. The goal of the center is to promote success of their current 2,700 athletes through ongoing training, summer-winter camps and abroad training opportunities. The Center is also responsible for the insurance, pensions, education and subsidies of their athletes.36

Traditionally, Korean people have enjoyed a variety of sports activities and games. The impressive economic advancement of recent years has brought about a flourishing interest in sports. The government recently carried out a Five-Year national Sports Promotion Plan in which 2.8

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trillion won ($2.3 billion) was invested into the sports of Korea.37 The primary objectives of the plan were the promotion of a “sports-for-all” movement, the support for elite sports, and the development of new sports technology and information to improve sports industries in the region. A large portion of the fund is being used in the construction of public sports facilities across the region to construct new public sports facilities. One important aspect of the government's sports policy is the promotion of exchanges between the two Korean states.38 The Korean government has long pursued participation in sports events between the two states as sports is seen as one of the most effective means of reconciling the divided people and aiding for future business relations to foster.

36 “Korea National Training Centre”, Korea Sports and Council, last accessed November 12, 2013 http://www.sports.or.kr/player_eng/science/science.jsp. 37 “Korean Political System”, One World Nations Online, last accessed November 12, 2013, http://www.nationsonline.org/oneworld/korea_south_profile.htm#Sports. 38 “Korean Political System”, One World Nations Online, last accessed November 12, 2013,

As shown throughout this newsletter, Korea, Japan, and China have unique ways of incorporating their local cultures to influence the development of professional sports team. Although there are global regulations and laws, professional sports team is affected by each country and is managed differently. To conclude, Korea, Japan, and China has revolutionized the sporting industry within Asia and the world by adding their own unique niche while celebrating a global past time.

A Letter from Jessica Wong:

vi Easton, N. The real revolution in the Middle East: Women in business. Retrieved from http://management.fortune.cnn.com/2012/04/16/middle-east-women-business/ vii Rubin, J. Arab women: The key to middle east progress? Retrieved from http://www.washingtonpost.com/blogs/right-turn/wp/2013/09/18/arab-women-the-key-to-middle-east-progress/