Probe Property Rights & Governance Structure Of Chinese Professional Basketball Clubs

The movement of Chinese basketball has boosted since the reform is generated from 1995 on the purpose of building the market of professional basketball industry. However, professional basketball clubs(PBCs), as the cell of market, lag on the development. Through the study on Chinese PBCs, we found institution problems are the main obstacle, especially the problems of property rights distinction and governance structure.On the distinction of clubs' property rights, we deem that three reasons veil the ownership at present:(1) how to define public bodies as PBC shareholders since they invest intangible assets such as players, coaches and administrators.(2)how to distinct the property rights of subsidiary from parent company.(3)the relationship between PBCs and CBA. Therefore, the correspondence reforms are: firstly, the ownership of Chinese professional basketball league should be confirmed clearly; secondly, the model of share-holding system should be established in those PBCs with multi-owners; finally, the truly legal person state of clubs must be confirmed even though it is subsidiary.It is critical time to enforce the plan of gradual institutional reform model in the field of property rights reform in PBCs since it has been widely and successfully implemented in other fields of economy reform. Taking the governance structure of club, we regard suggest that PBC is not only belong to capital investors but stakeholders, who possess the state of quasi-ownership gearing club's development. And club pursues both investors' wealth maximization and stakeholders'. Therefore, club should better employ the integrated mechanism of co-governance and contingent governance while avoiding single governance model.