Why Invest in Football?

As the first of three empirical chapters, this chapter examines why profit-seeking private firms invested heavily in China's football industry following the 2014–16 reform push, despite the sector's chronic unviability. Drawing on interviews with practitioners and industry experts, it shows that investment was seldom motivated by near-term financial returns. Rather, firms used football to align with state priorities, build relations with local governments, enhance corporate visibility and signal social responsibility. For local authorities, private investment served policy goals, urban promotion and political prestige, revealing mutual but asymmetric interdependence between state and business. By outlining the perceived benefits for firms, clubs and government actors, the chapter clarifies the rationales underpinning state-business engagement in football and prepares the ground for the book's subsequent analysis of determinants and the application of the Corporate Political Strategy framework.