Here in the United States, agents are used to taking 4-5% on MLB contracts, 3% on NFL contracts, 4% on NBA contracts, 5% on NHL contracts, and 10% from the teams if their clients play basketball overseas. Endorsement takes usually are around 15-20%. Some athletes complain that the percentages handed off to agents for their services are not equal to what they deserve. If only they knew what their brothers and sisters in China were paying out, and not only to their personal agents.
Most athletes, also, are still managed by state organizations. While sports like basketball and soccer are more commercialized than others, most still fall under a system called Sports for the Nation, where the value of an athlete’s brand falls largely under the domain of “state assets”. Yao Ming, who moved abroad to play, has an international team of professional money managers. Liu Xiang’s “state owned” business activities, on the other hand, are managed by the Chinese Athletics Association. Intermediary organizations must pass through the Association to discuss advertising representative business. Under the state-owned athletic system, athletes’ advertising earnings are allocated by provisions of China’s State General Administration of Sport. Accordingly, Liu Xiang keeps 50 percent of his earnings, with 15 percent going to his coach Sun Haiping, and 20 percent to his hometown Shanghai’s sports bureau. The remaining 15 percent is allocated to the Chinese Athletics Association. Although there isn’t a vast difference between the number of ads done by Yao Ming and Liu Xiang, the hurdle star’s income is less than half of the basketball star.
Chinese athletes who disobey the rules can pay a heavy price. In 2005, Sydney Olympic diving champion Tian Liang was removed from the Olympic team for participating in too many commercial events. The decision forced Tian out of the Beijing Olympics and also saw the sponsorships for the former “Sunshine Boy” fade into the twilight.
Being able to keep 80%+ of an endorsement deal that your agent was able to procure for you does not seem so bad after all anymore, does it?
