China has had a difficult time improving football in the country. (Photo : Wikimedia)
Guangzhou Evergrande Taobao Football Club has become the first listed football club, not just in China but in all of Asia, after listing its shares on the New Third Board on Friday, Nov. 6.
The National Equities Exchange and Quotations has allowed the listing of the ailing football club, with analysts expecting the move to improve the fortunes of the club.
According to Ke Peng, chairman of Guangzhou Evergrande Taobao, "the listing will help boost sales and lay a solid foundation for development of young Chinese players."
The football club issued 375 shares on the New Third Board, each priced at 1 yuan (15.7 U.S. cents), according to the company's statement.
Launched during the latter half of 2012, the New Third Board has attracted around 2,500 companies, with 77 percent of them in industries related to technology and innovation.
While the club has had a stellar record since 2010, when it became one of the highest ranked football clubs in China, sources from the club have said that the company has been losing money for years due to large investments in international players and coaches.
"We have invested huge amounts to help build a professional club with international practices. We will continue to invest in the years ahead," Ke said.
According to data, the club registered losses of 576 million yuan and 483 million yuan in 2013 and 2014, respectively. For the first five months of 2015, the company has already registered losses of 265 million yuan.
The football club plans to strengthen its cooperation with Spanish La Liga club Real Madrid in brand building and commercial activities after the listing, said Ke.
Ke added that the club will begin to make profits in 2016. He also said that the club is striving to develop an all-Chinese-player squad within the next six years.
The club is currently owned by Evergrande Real Estate Group and Alibaba Group Holding Ltd., with each company holding a respective 60 percent and 40 percent stake.
Guangzhou Evergrande is coached by Luiz Felipe Scolari, who coached Brazil to victory for the 2002 FIFA World Cup.
