China's Professional Football Clubs In Principal - Agent Relationship Study

This article first briefly analyzes the proxy theory in the economics. The proxy theory is the theory which studies the relations between the trustee and the agent and their behavior rule. In law, when some person (either organization) authorizes another person (or organization) represent it to be engaged in some kind of activity, the proxy relations have occurred. Former is called "the trustee", and latter is called "the agent". In the joint-stock enterprises, the relations between the shareholders and the managers are typical proxy relations. The production of the proxy questions mainly originates in the information asymmetry. The information asymmetry possibly occurs before signing a treaty by bilateral litigants, and also possibly occurs after signing a treaty. The model researching on the beforehand asymmetry is called"diverse selection"model, focusing on how to choose the agent in the proxy theory; The model researching on the afterwards asymmetry is called"moral hazard"model, focusing on how to drive the agent in the proxy theory.Looked from the property right structure and the organizational structure of the modern enterprise system, the professional soccer clubs in our country at present basically belong to the corporate system. The proxy relations of the professional soccer club in our country have initially formed. This article attempts to utilize the proxy theory to carry on deep discussion and research towards the proxy questions existing in the professional soccer club in our country, especially the phenomenon and origin of the"diverse selection"and the"moral hazard". The"diverse selection"of the professional soccer club in our country mainly performs: because of the incomplete information and information asymmetry, the trustee is unable to confirm the information authenticity through the effective method which the applicant transmits. The"moral hazard"mainly performs: the manager pursues "the speed benefits"; because the driving mechanism is unreasonable, the manager only pays great attention to the club team's competition results; and the production of other moral hazards behaviors because of the lack of the consideration towards the club's long-term benefits. The origins of the"diverse selection"of the professional soccer club in our country are as follows: the first is the transitiveness characteristic of the management system and the operational mechanism of the professional soccer club in our country; the second is the rentability characteristic of the professional soccer club in our country; the third is the imperfect corporate governance structure. The origins of the "moral hazard" are as follows: the first is the duality of the development goal of the professional soccer club in our country; the second is the serious short-term behaviors because of the murky soccer atmosphere; the third is the lack of the exterior directors and the board of supervisor's surveillance towards the managers; the fourth is the clubs do not fully realize the managers'great function towards the clubs.Based on the above analysis, this article proposes the essential countermeasures about how to perfect the proxy relations of the professional soccer club in our country.