Jordan'S Sports Infringement Case Has Been Blocked Or Hit Hard.

Landing capital

A few days ago, Michael Jordan formally prosecuted Jordan's infringement of the right to name in sports in China.

The latest news is that the second intermediate people's Court of Shanghai has formally accepted Michael Jordan's claim to Jordan's sports and Shanghai Bai Ren Trading Co., Ltd.

This also means that Jordan sports is a step closer to losing the brand of "Jordan".

An investment bank person said that if Jordan sports lost the "Jordan" brand, the company had no special investment value, nor was it likely to get the SFC's listing.

Because for Jordan sports, the most valuable is not the company's machinery and equipment, but the "Jordan" brand.

As the two major protagonists of the case, Jordan sports and Michael Jordan's litigation agents in China chose to avoid talking about the specific contents of the lawsuit.

What litigation claims did Michael Jordan put forward? Jordan sports told reporters: "at present, the case is officially entered into the proceedings, so it is not easy to disclose more information."

A spokesman for Fang Junhe, a Chinese agent of Michael Jordan, replied to reporters: "we are not allowed to comment on details of litigation."

Although the two sides kept taboo about the details of the object of action, it was an indisputable fact that the flying men sued Jordan for the formal entry into the proceedings, which made Jordan's sports ready for listing fall into a very unfavorable situation.

No matter what the final result is, before the end of the proceedings, the Jordan sports listing door has been closed.

Investment bankers told reporters that for Jordan sports such a company, the brand is the core asset, Jordan sports because the brand suspected of infringement into the proceedings, constitute a major event affecting Jordan's sports production and operation, so that Jordan sports future performance has great uncertainty, so Jordan sports has been approved in the early stage of the SFC's listing, but no formal listing pactions, before the end of the proceedings, Jordan sports listing is unlikely.

In the industry view, the listing of Jordan sports will be faced with great distress.

For sprint

As of June 30, 2011, a total of 5715 Jordan brand stores, from 2006 to 2010, the average annual compound growth rate of stores was 19.17%, the growth of the number of monopoly shops has made Jordan sports performance grow rapidly.

According to the financial report, in 2008, the income of Jordan sports was 1 billion 135 million yuan, because of the rapid expansion of the number of shops and other factors, the income doubled to 2 billion 279 million yuan in 2009 and increased to 2 billion 912 million yuan in 2010.

According to the calculation of 1 billion 701 million yuan at the end of June 2011, Jordan sports annual income in 2011 exceeded 3 billion yuan, there should be no big problem.

In the same period, the expenditure of Jordan sports for advertising was 72 million yuan, 108 million yuan and 141 million yuan respectively, and the value increased year by year, providing support for marketing expansion of the number of stores.

The industry said, to go on the market, Jordan sports must be done on a large scale, so a variety of preferential conditions to attract join, some of the Jordan sports do not "cold" dealers also join the channel system in the company, but once Jordan sports have wind blowing, the dealer "anti water" to other brands to embrace or direct the possibility of close to the store will appear.

"The radish is fast and not washed", and the large expansion of the dealer team has brought a lot of trouble to Jordan sports.

In 2008, Jordan sports accounts receivable was only 41 million yuan, in 2009, it expanded sharply to 340 million yuan, and in 2010 it reached 385 million yuan. By the end of June 2011, this figure has expanded to 584 million yuan, and the proportion of business income has expanded from 3.5% in 2008 to 34.3% at the end of June 2011.

Accounts receivable count as income, but it does not mean that Jordan sports has got real gold and silver. Listing can quickly bring cash to Jordan sports, and a lawsuit by flying people makes the listing raising money temporarily become a bubble. How to continue to do mass is not the most important problem of Jordan sports. It is probably a great victory to keep the current scale.