More stories

  • in

    Do Sports Still Need China?

    Global outrage, broken contracts and shifting politics could change the calculus for leagues and teams that once raced to do business in China.The rewards for international sports leagues and organizations are plain: lucrative broadcast deals, bountiful sponsorship opportunities, millions of new consumers.The risks are obvious, too: the compromising of values, the public relations nightmares, the general atmosphere of opacity.For years, they have surveyed the Chinese market, measured these factors and come up with the same basic math: that the benefits of doing business there outweighed the possible downsides. The N.B.A. might blunder into a humbling political crisis based on a single tweet, and rich contracts might vanish into thin air overnight, but China, the thinking went, was a potential gold mine. And for that reason leagues, teams, governing bodies and athletes contorted themselves for any chance to tap into it.But recent events may have changed that thinking for good, and raised a new question: Is doing business in China still worth it?The sports world received a hint last week of a changing dynamic when the WTA — one of many organizations that have worked aggressively over the last decade to establish a foothold in the Chinese market — threatened to stop doing business there altogether if the government failed to confirm the safety of Peng Shuai. Peng, a top women’s tennis player once hailed by state media as “our Chinese princess,” disappeared from public life recently after accusing a prominent former government official of sexual assault.The WTA’s threat was remarkable not only for its reasoning, but for its rarity.WTA Tour officials, fellow players and human rights groups spoke up for Peng Shuai after China tried to censor her accusations of sexual abuse.Demetrius Freeman for The New York TimesBut as China’s president, Xi Jinping, governs through an increasingly heavy-handed personal worldview, and as China’s aggressive approach to geopolitics and its record on human rights make the country, and those who do business there, a growing target for a chorus of critics and activists, sports leagues and organizations may soon be forced to re-evaluate their longstanding assumptions.That sort of direct confrontation is already taking place elsewhere: Lawmakers in the European Union recently called for stronger ties with Taiwan, an island China claims as its territory, only months after European officials blocked a landmark commercial agreement over human rights concerns and labeled China a “totalitarian threat.”For most sports organizations, the WTA’s position remains an outlier. Sports organizations with multimillion-dollar partnerships in China — whether the N.B.A., England’s Premier League, Formula 1 auto racing or the International Olympic Committee — have mostly brushed aside concerns.Some partners have acquiesced at times to China’s various demands. A few have issued humbling apologies. The I.O.C., in perhaps the most notable example, has seemed to go out of its way to avoid angering China, even as Peng, a former Olympian, went missing.But an evolving public opinion may get harder for sports organizations to ignore. A report this year from the Pew Research Center, for instance, found that 67 percent of Americans had negative feelings toward China, up from 46 percent in 2018. Similar shifts have occurred in other Western democracies.Mark Dreyer, a sports analyst for China Sports Insider, based in Beijing, said the WTA’s standoff with China represented an escalation in the “them or us” mentality that appeared to be forming between China and its Western rivals.The threat from the WTA, then, could serve as a sign of showdowns to come, in which case, Dreyer said, China could lose out.“Frankly, China is a big market, but the rest of the world is still bigger,” he said. “And if people have to choose, they’re not going to choose China.”To some experts, then, the WTA’s extraordinary decision to confront China head-on might actually signal a turning point, rather than an aberration.“The calculation is one part political, one part moral, one part economic,” said Simon Chadwick, a professor of international sports business at Emlyon Business School in Lyon, France. He said that the WTA’s dispute with China reflected the “red line” growing between the country and many of its Western counterparts, with the sides seeming more entrenched in diverging sociopolitical ideologies.Some sports organizations are deepening their ties to China. Formula 1, for example, just extended its contract for the Chinese Grand Prix, keeping the race in Shanghai through 2025.Greg Baker/Agence France-Presse — Getty Images“I think we are rapidly heading toward the kind of terrain where organizations, businesses, and sponsors will be forced to choose one side or another,” Chadwick added.The WTA’s own about-face was stark. Only three years ago, the organization was heralding a deal that made Shenzhen, China, the new home of its tour finals for a decade starting in 2019, accepting promises of a new stadium and a whopping $14 million annual prize pool. In 2019, just before the pandemic, the WTA held nine tournaments in China.Fast forward to last week, when Steve Simon, the WTA’s chief executive, said in an interview with The New York Times that if China did not agree to an independent inquiry of Peng’s claims, that the tour would be willing to cease operations in the country.“There are too many decisions being made today that aren’t based on what is simply right and wrong,” Simon said. “And this is the right thing to do, 100 percent.”The language raised eyebrows around the sports world.“They are not the first ones to have had a run-in with China,” Zhe Ji, the director of Red Lantern, a sports marketing company that does work in China, said about the WTA. “But I haven’t seen anybody else come out with as strong a wording as that.”The run-ins have proliferated in only the last few years.The N.B.A., for instance, was seen as a pioneer when it played its first games in China in 2004, including a game featuring Yao Ming, the Chinese star for the Houston Rockets. The ensuing years brought prosperity for the league there, and relative peace. It was praised for its patient, culturally sensitive approach to building there. Then, in 2019, Daryl Morey, the general manager of the Rockets at the time, tweeted in support of pro-democracy protests taking place in Hong Kong, and in the blink of an eye a relationship that had developed over several years imploded.Merchandise for the Rockets — China’s favorite team in China’s favorite sports league — was removed from stores, and the team’s games were no longer broadcast on television. Fans took to Chinese social media to attack the league. Then, when the N.B.A. issued what was widely taken as an apology, it sparked an almost equally robust wave of criticism back home. (The N.B.A. did not immediately respond to a request for comment on Wednesday.)“The NBA should have anticipated the challenges of doing business in a country run by a repressive single party government, including by being prepared to stand in strong defense of the freedom of expression of its employees, players, and affiliates across the globe,” read a letter sent to the league by a bipartisan group of United States lawmakers.The N.B.A. saw its brand battered in China and at home after a team executive waded into Chinese politics on Twitter.Tyrone Siu/ReutersThe letter’s signees — a cross-party group that included Representative Alexandria Ocasio-Cortez of New York, a Democrat, and Senator Ted Cruz of Texas, a Republican — accused the N.B.A. of compromising American values and effectively supporting Chinese propaganda.“If you’re angering both sides, it means there is no middle ground, which I think was significant,” said Dreyer, the Beijing-based sports analyst.Like other observers, Dreyer suggested the WTA’s stance was potentially game-changing. But he noted, too, that it was possibly easier for the WTA to defy China than it had been for, say, the N.B.A., for two reasons.First, because the pandemic had already forced the WTA to cancel its events in China for the near future, the tour was not necessarily forfeiting big sums of money in the immediate term. (Severing ties with China permanently would of course require the WTA Tour to replace tens of millions of dollars in revenue and prize money.) Second, because China has essentially erased any mention of Peng and the ensuing international outcry from its news and social media, the WTA’s brand may not take much of a hit there. Many in China simply do not know about Peng, or the WTA’s response.“With the N.B.A., they were burning jerseys,” Dreyer said. “You don’t have that reaction against tennis.”To be sure, big sports leagues that have deep, longstanding interests in China, barring some extreme turn of events, will not exit the market any time soon. And some organizations are still going all-in.The I.O.C., which will stage the 2022 Winter Olympics in Beijing in February, has tuned out any and all calls from critics for the organization to make some statement about China’s human rights abuses, including the treatment of religious minorities in the country’s western regions.The Beijing Olympics marked the start of its 100-days-out countdown on Wednesday.Andrea Verdelli/Getty ImagesFormula 1 this month announced that it had signed a deal to continue the Chinese Grand Prix, an annual race in Shanghai, through 2025, and the Premier League appears to have patched over a crisis that began when a top player infuriated China by criticizing its human rights record.Some in the industry, though, have already noticed a change, a slight cooling, among other companies pondering business in the sports market there.“With increased political tension and the complications of doing business in China, I’ve seen more companies focus back on Europe and the U.S., where the reward may not be as large but the risk is much less,” said Lisa Delpy Neirotti, an international sports marketing consultant and director of the sports management master’s program at George Washington University.That dynamic has been vivid in European soccer, which had collectively seemed to view China as a sort of El Dorado five years ago, but now seems to be coming to terms with reality after a series of disappointments. In Italy, Inter Milan, one of that country’s most storied clubs, is in a tailspin after its Chinese owner, Suning, a consumer goods company, became engulfed in a major financial crisis. The team has been forced to sell player contracts to meet its payroll.In England, the Premier League remains in litigation with a broadcast partner that failed to pay up after signing a record-breaking television deal to broadcast games in China. A new partner is paying a fraction of the previous agreement, leaving some clubs disillusioned.Manchester City’s Bernardo Silva in Shanghai in 2019. The Premier League had to find a new television partner in China after a record-setting deal collapsed.Hector Retamal/Agence France-Presse — Getty Images“Over the last five years there had been a perception in the West that China is there for the taking — there’s lots of money, economic growth is strong, a growing middle class, disposal income, and we can go feast on this,” Chadwick said. “What has happened for some sports organizations in the West is that they have not found China as lucrative as they imagined, and they have also found China incredibly difficult to do business with.”The difficulties appear to be deepening.Half a decade ago, the Chinese government, emboldened about sports after hosting the 2008 Summer Olympics in Beijing, announced plans to create an $800 billion domestic sports industry, the largest in the world. That captured the attention of Western sports organizations.What many organizations did not anticipate, though, were the peculiarities of the Chinese business landscape, the extent to which politics is woven through all aspects of China’s economy, and the growing spirit of nationalism under its increasingly autocratic president, Xi.“I absolutely think over the long term that major sporting events will be hesitant moving forward to schedule out in China right now,” said Thomas A. Baker III, a sports management professor at the University of Georgia who has done extensive work in China. “The China that welcomed the world in 2008 is not the same China that people are doing business with in 2021.”Tariq Panja More

  • in

    Where Is Peng Shuai? The Question the I.O.C. Is Too Weak To Ask.

    Chinese tennis player Peng Shuai went missing after publicly accusing a former government official of sexual assault. Tennis stars, led by Naomi Osaka, and the WTA have all asked #whereispengshuai?Where is Peng Shuai?That’s the question the International Olympic Committee and its president, Thomas Bach, should be shouting right now — loud, demanding, and aimed squarely at the leadership in China, set to host the Beijing Games in February. But instead of firm demands, we’re hearing not much more than faint, servile whispers from Olympic leadership.Peng, 35, a Chinese tennis star and three-time Olympian, has been missing since Nov. 2, when she used social media to accuse Zhang Gaoli, 75, a former vice premier of China, of sexually assaulting her at his home three years ago. She also described having had an on-and-off consensual relationship with Zhang.Peng wrote that the assault occurred after Zhang invited her to play tennis at his home. “I was so scared that afternoon,” she noted. “I never gave consent, crying the entire time.”“I feel like a walking corpse,” she added.The message was quickly deleted from China’s government-controlled social media site.There have been no verifiable signs of Peng since — no videos or photographs to prove she is safe. Instead, all the outside world has seen is a stilted message, said to have been written by Peng and sent to the WTA, in response to its demand for an inquiry into her allegations. Peng’s supposed response, released by China’s state-owned broadcaster on Wednesday, immediately raised concerns.“Hello everyone this is Peng Shuai,” it read, before calling her accusation of sexual assault, made just weeks ago, untrue. “I’m not missing, nor am I unsafe. I’ve been resting at home and everything is fine. Thank you again for caring about me.”It reads like a message from a hostage, a natural concern given the Chinese government’s long history of using force and heavy-handed pressure to crush dissent and flatten those it deems guilty of going against the state.So, what has been the I.O.C.’s response to a potentially endangered Olympian? A neutered, obsequious statement.“We have seen the latest reports and are encouraged by assurances that she is safe,” read an official I.O.C. declaration on Thursday.What world of fantasy is the I.O.C. living in? Given China’s history, we can reasonably assume the latest missive supposedly written by Peng is a fraud. Peng dared to speak up with force and candor, but not the I.O.C., a Swiss-based organization with a history of cowing to dictators that goes back to Adolf Hitler and the 1936 Summer Games.After some criticism, the committee followed up with another statement, hinting its representatives were talking to the Chinese.“Experience shows that quiet diplomacy offers the best opportunity to find a solution for questions of such nature,” it said, offering no evidence of prior success. “This explains why the IOC will not comment any further at this stage.”Responding to a message purportedly written by Peng, the I.O.C. said in a statement, “We have seen the latest reports and are encouraged by assurances that she is safe.” Valery Gache/Agence France-Presse — Getty ImagesBach and the wide cast of leadership at the I.O.C. typically use every chance possible to claim the Olympic mission stands for humanity’s highest ideals. They say all Olympic athletes are part of a family. Peng was among those ranks in 2008, 2012 and 2016. Once an Olympian, they say, always an Olympian.That’s an admirable idea, but it gets tossed to the wayside when the stakes grow too high.Looming are Beijing’s Winter Games, fueled by huge fees for broadcasting rights and corporate sponsorships and the billions spent by the Chinese government in an effort to gain respect on the international stage.Do Bach and the I.O.C. have the guts to stand up for one of their own and call out the dictatorial host of its next showcase for a frightening human rights abuse?The answer, so far at least, is no.Contrary to the official I.O.C. statement, nothing is encouraging about this situation.Not if you know the long history of Chinese authoritarianism. Not if you know how it has been hammering at dissent and silencing anyone with enough clout to threaten national order — including prominent cultural and business figures like Jack Ma, founder of the internet firm Alibaba.Not if you know about how China has suppressed protest in Hong Kong and Tibet, or if you pay attention to the treatment of Muslim minorities — deemed genocide by the United Nations and dozens of nations, including the United States — despite Chinese denials.As predicted by critics, or anyone watching with even a bit of common sense, the I.O.C. finds itself compromised. That’s the cost of cozying up to authoritarian hosts like China, which held the Summer Games in 2008, and Russia, the site of the 2014 Winter Games.Compare the typical fecklessness of Bach and the I.O.C. with the uncompromising approach taken by the women’s pro tennis tour, which has been unafraid to stand up boldly for Peng, a former world No. 1 in doubles.“I have a hard time believing that Peng Shuai actually wrote the email we received or believe what is being attributed to her,” wrote Steve Simon, chief executive of the WTA Tour, in a statement. “Peng Shuai displayed incredible courage in describing an allegation of sexual assault against a former top official in the Chinese government.”Simon continued: “Peng Shuai must be allowed to speak freely, without coercion or intimidation from any source. Her allegation of sexual assault must be respected, investigated with full transparency and without censorship.The voices of women need to be heard and respected, not censored nor dictated to.”That’s putting people over profit. That’s guts. Professional tennis in China is a lucrative, fast-growing market. The men’s and women’s tours hold high-profile tournaments there, and the WTA Finals are slated for Shenzhen in 2022.Given the way female tennis players have long led on matters of human rights, it is no surprise that Billie Jean King, Serena Williams, Chris Evert and Martina Navratilova have stood strongly for Peng. And it is no surprise younger stars have followed suit, led by Naomi Osaka, the torch bearer in the Tokyo Games this past summer, who has added her significant stature to the chorus asking “Where is Peng Shuai?”But Bach and the I.O.C., peddlers of Olympic mythology, have yet to join that chorus. Peng Shuai is part of the Olympic family, but the I.O.C. overlords lack the spine to stand up for one of their own. More

  • in

    Olympics Power Broker Convicted in Forgery Case

    Sheikh Ahmad al-Sabah of Kuwait faces possible jail time, pending an appeal.GENEVA — Ahmad al-Sabah, a Kuwaiti sheikh who for years has been one of the most influential power brokers in global sports, faces more than a year in prison after being convicted in a forgery case in Switzerland.Sheikh Ahmad was found guilty along with four others in a case in which prosecutors successfully argued that he was the mastermind of a complex plot to implicate another member of the Kuwaiti royal family in a scheme to overthrow the country’s ruler.Sheikh Ahmad was in the wood-paneled court as the sentence was read out by the presiding judge. He said he would appeal the ruling and declared his innocence as he prepared to leave the court. The judgment not only threatens his liberty but also his future role in sports, where his influence has stretched from the upper echelons of the International Olympic Committee to the top of world soccer and beyond.“I know I didn’t do anything; I will wait for the appeal,” Sheikh Ahmad told reporters at the court. “I will never stop, because I believe I am innocent.”The case is not the only legal issue that has blighted Sheikh Ahmad in recent years. He is also an indicted co-conspirator in a United States Department of Justice corruption case that led to the conviction of a senior soccer official in 2017. Sheikh Ahmad subsequently resigned from FIFA’s ruling council and pledged to withdraw from soccer while the case was being litigated.Since November 2018 he has been declared “self suspended” by the International Olympic Committee after the charges that led to Friday’s court ruling. Until then he had been a key lieutenant to the I.O.C.’s president Thomas Bach, whose election victory in 2013 he helped to mastermind by securing key votes. He is also credited with winning support for Tokyo’s bid to stage the recently completed 2020 Olympics.Much of Sheikh Ahmad’s power stems from his control of the Olympic Council of Asia, a body set up by his father 40 years ago. Despite relinquishing all his other official roles in sports as the allegations and accusations mounted, Ahmad continued to lead that organization until Friday, when the group said that he would “step aside temporarily.”Prosecutors in Geneva successfully argued that Sheikh Ahmad, his English former lawyer, a Kuwaiti aide and two more Swiss-based lawyers orchestrated a sham arbitration case in order to frame other royals in a coup plot.“It’s very strange, I’ve been a long time as a criminal lawyer in Geneva; it’s the first time I’ve seen a sham arbitration,” said Pascal Maurer, the lawyer for Nasser al Mohammed al Sabah, a former prime minister of Kuwait who was one of the figures Sheikh Ahmad tried to frame.“It was very sophisticated in the way they planned it, but it was not very sophisticated in the way they realized it because they made many mistakes in their organization and in the way they forged documents.”For the I.O.C., the case is another embarrassing episode involving one of its most senior figures. The organization said it would not take action against Sheikh Ahmad because he had decided to suspend himself. Sheikh Ahmad’s only character witness was scheduled to be Francois Carrard, the I.O.C.’s longtime former director general who continues to serve as its legal adviser. Mr. Carrard did not show up in court last Thursday, with the court citing an unspecified medical issue.Despite his legal troubles, Sheikh Ahmad has continued to play an influential role in sports behind the scenes.A candidate for a seat on FIFA’s governing council claimed that she was told she did not stand a chance of winning because Sheikh Ahmad had already decided that a rival candidate from Bangladesh should retain the seat.In April, the Court of Arbitration for Sport, also based in Switzerland, sided with the woman, Mariyam Mohamed, a soccer official from the Maldives, and agreed that Sheikh Ahmad had actively interfered in the elections held in 2019 by the Asian Football Confederation to achieve his desired outcome.Mohamed told the court that she was told to drop her candidacy and that in return Ahmad would use his influence in international soccer circles to obtain any other position of her choosing at the A.F.C. or FIFA.Sheikh Ahmad’s influence has also stretched beyond the sports world. As a senior Kuwaiti royal he has been a government minister, and he was also Secretary General of the Organization of Petroleum Exporting Countries, the influential cartel for oil producing nations.At the height of his power, the sheikh, known for his burly security entourage, was a magnet for sports officials looking to secure highly sought after committee roles and other sinecures. He spent decades building his portfolio, which started from running the Asian Olympic body after the murder of his father during the 1990 invasion of Kuwait by Iraq. His roles multiplied rapidly and at one point numbered almost a dozen. More