Ligue 2 club revenues are less than one-tenth of those in Ligue 1.To create the budget for efficient club management and operations rather than for pursuing on-field results.
"Community" is a sports business-themed dialogue program jointly launched by China Voice's "Decisive Moment" and Sports Money, with the slogan "Seeking common ground while reserving differences, let's talk about hot topics in sports that we all care about". It airs weekly on Friday nights at 10:00 PM during the "Decisive Moment" slot.
In the upcoming 2024/25 season, the European football landscape will welcome a new Chinese-funded club to its top tier of the five major leagues. AJ Auxerre, having clinched the 2023/24 Ligue 2 championship, is set to compete in Ligue 1. On June 7th, the 164th episode of "Community" featured an exclusive interview with AJ Auxerre Football Club owner Zhou Yunjie. The interview panel consisted of China Voice reporter Zhang Wen, Vice President of Marketing at Sports Money and General Manager of Shengyi Interactive Luo Ranfeng. They engaged Zhou in a discussion about his story of managing an overseas football club since acquiring it in 2016.
This article is an excerpt of the highlights from this episode.
01 Budget is the key
Zhang Wen: As the 2023/24 European professional football season concludes with the Champions League final, Chinese-funded clubs in the top five leagues have seen varied developments. Among them, AJ Auxerre stands out, clinching the Ligue 2 championship and securing a return to Ligue 1 for the upcoming season. Today, we're delighted to welcome AJ Auxerre Football Club owner Zhou Yunjie to our program. Mr. Zhou, you're the first football club owner to appear on "Community" and even the "Decisive Moment" program. Let’s talk about your story of managing a European football club.
Let's start with your recent triumph. Social media showed you celebrating Auxerre's promotion with 40,000 local residents in heavy rain. How did that feel?
Zhou Yunjie: It was incredibly exciting. While I've become less exuberant as I age, sports events have a way of bringing out everyone's passion, and I was no exception.
AJ Auxerre is a long-established club with a significant influence in France. The club will celebrate its 120th birthday next year. It is quite unique in France as this century-old club has never left its city or changed its name or badge. However, after being relegated from Ligue 1 in 2012, Auxerre went into decline. This largely reflects the enormous challenges faced by small-city clubs in the era of football commercialization. However, as a grassroots club, Auxerre has maintained a strong bond with its fans, whose passion I frequently witness in France.
Luo Ranfeng: In 2022, AJ Auxerre returned to Ligue 1 through playoffs, but unfortunately fell back to Ligue 2 after just one season, so they had to fight for Ligue 1 qualification again in the season that just ended. You mentioned in a previous interview that the team was "over-excited" after the last promotion. From a management perspective, what changes occur when a team moves to a top league, and which pre-season preparations are crucial?
Zhou Yunjie: A modern commercialized club must prioritize financial budgeting. As the Chinese proverb goes, "Before the troops move, fodder and provisions go first." This doesn't necessarily mean spending a certain amount of money, but rather clearly organizing expected expenditures and income for various operational aspects like player transfers, stadium security, and commercial development.
For AJ Auxerre, we focus on investing in youth training. On one hand, Ligue 2 clubs earning less than 10% of their Ligue 1 counterparts, so buying players is not the best strategy. On the other hand, we also believe that youth development is the foundation of the club. Even if we spend on players, the results, rankings, and stadium atmosphere they bring are temporary without a strong youth system. Therefore, we mainly cultivate first-team talents through our youth academy, and only consider player purchases for positions we can't fill internally or when we find players in the market that particularly align with the club's values and needs.
02 A Memorable Chinese Adventure for Auxerre Fans
Zhang Wen: I really like a documentary called "Welcome to Wrexham", which tells the story of two American actors managing a fifth-tier league club in England. Watching this film made me realize the difficulties of running a club, especially cross-border management. There will be good moments and tough times. For example, when the team performs well, local residents will praise and thank the owner; when the performance is poor, they will demand that you buy players or renovate the stadium. Mr. Zhou, how have you been getting along with the local fans in the eight years since you took over AJ Auxerre?
Zhou Yunjie: My relationship with the fans is very good. Let me share an example. In my second year at the club, some fans came to China based on rumors that the team might play here. They bought cheap tickets, so you can imagine the journey was quite arduous. They took off from Paris and stopped at Frankfurt and then Kazakhstan, and finally arrived in China.
When I learned they were coming to Beijing, considering that the team wasn't actually coming and their journey had been difficult, I arranged for airport pickup, hotel accommodation, and meals for their group of over ten people. I also organized for them to watch a match between Beijing Guoan and Guangzhou Evergrande. They toured Beijing for about three days and then happily returned home. This gesture, which I considered simple Chinese hospitality, left a deep impression on the fans. It's still talked about in fan circles today.
Later, the mayor of Auxerre city publicly called on fans to refer to me as "Mr. Zhou" rather than "the Chinese owner", showing respect for me as an individual. I believe sincerity in treating fans as friends can earn their support. It's not about deliberate communication strategies, but genuine interactions.
Zhang Wen: AJ Auxerre has a long history, but it's also a small-town club. When you first got involved with the club, did you feel any shock at the contrast between the club's historical roots and its market size?
Zhou Yunjie: AJ Auxerre is actually quite famous in France. The most recent survey shows that out of France's population of over 30 million, Auxerre has more than 8 million fans and 2 million registered supporters. Although Auxerre is a small town, it's rich in tradition, somewhat comparable to Yangzhou in China, which was prosperous during the era of water transportation dominance. Auxerre's prominence may have diminished with the development of modern transportation, but it still holds significant influence in France and even in Europe.
03 Ligue 1 Promotion: A Catalyst for Financial Growth
Zhang Wen: When you initially decided to acquire the club, did you conduct very in-depth research?
Zhou Yunjie: Yes, indeed. Auxerre's greatest strength is its youth training system. The club has 28 satellite clubs across France and former French colonial countries, funneling talented young players to Auxerre for training. This year, our U19 team reached the final of the French U19 league, and it will compete against Paris Saint-Germain U19 on June 16th. Theoretically, we have already secured a spot in next season's UEFA Youth League. So overall, Auxerre's strength, culture, heritage, and influence made it a valuable acquisition target.
Zhang Wen: France itself is known for youth training. Auxerre's success in reaching the U19 French league final, competing directly with powerhouses like PSG, certainly demonstrates the effectiveness of its youth program.
Luo Ranfeng: Auxerre has produced many famous players. The most famous should be Cantona, who started his professional career at Auxerre. Arsenal's Sagna and Roma's Mexès were also trained in Auxerre. I noticed an interesting trend in your transfer expenditures: in the 2022/23 season, while in Ligue 1, Auxerre invested around 1.5 million euros in transfers. However, in the 2023/24 season, playing in Ligue 2, the club's transfer expenditure actually increased to 3 million euros. Initially, I thought this might indicate a strong determination to return to Ligue 1.
But after hearing Mr. Zhou's emphasis on youth development, another possibility occurred to me: given your approach of building around your own players, the difference between 1.5 million and 3 million euros might not be as significant as it first appears. Could you help us understand the reasoning behind this? What was Auxerre's investment strategy in the transfer market for these two seasons?
Zhou Yunjie: As a sports club, Auxerre's budget isn't set solely to pursue results, but is based on the club's overall development needs. It's similar to running a business - if you want to make good products, you need good equipment, but you also need the financial strength to support your entire system. You asked why we spent over 1 million more last season than when we were in Ligue 1. There's an important reason for this. Staying in Ligue 1 for one year brings the club a share of nearly 40 million euros, while in Ligue 2, even at best, it's only about 3 million euros. Additionally, our ticket sales and sponsorship income doubled during our Ligue 1 season, significantly improving our financial income.
Ligue 1 also has a "parachute protection" mechanism for relegated teams. This is an official fund allocated to relegated clubs to ensure they still have the financial strength to support their operational systems. We received about 3 million euros in parachute funds last season.
So our income increased, and our expenditure correspondingly increased a bit. Our operation doesn't just focus on results; it includes youth training. Youth training serves two purposes: providing good players for the first team and generating economic benefits. For instance, in the 2021/22 season, we succeeded in promotion, and a year earlier, we sold a 19-year-old player for 10 million euros. (Sports Money note: defender Jean Marcelin, who transferred from Auxerre to Monaco in the 2020 winter transfer window). With this income, our expenditure was correspondingly guaranteed. So we create our budget with the overall management and operation of the club in mind, rather than solely pursuing on-field results.
04 Revitalizing Youth Academy and Restoring Confidence.
Zhang Wen: Managing a club is a "cross-industry" venture for you, and there might be a learning curve involved. The challenges aren't just in the field but also involve cultural aspects. What cultural differences have you encountered in club management, and how did you address them?
Zhou Yunjie: The key is communication and understanding. Cultural differences exist, but you can't rush to bridge them; it's a gradual process. We must remember that we're all human, sharing basic needs, emotions, and interpersonal dynamics across cultures. When I first arrived, club legend Guy Roux welcomed me but also told me not to worry about things here. That made me uncomfortable initially.
However, after years of consistent communication, we developed mutual understanding. I didn't try to impress him with football knowledge; simple, genuine interaction was enough. When we achieved promotion to Ligue 1, Guy Roux proudly told reporters, "We got promoted because the club has a 'good father'. Our players and staff are willing to work for him, to fight for him." This recognition from the old gentleman was deeply gratifying.
In 2020, the transfer of youth academy player Marcelin to Monaco brought significant income to Auxerre
Zhang Wen: It's crucial for local fans and club veterans to understand how a new owner operates. When they see healthy development, stable performance, and that the new owner isn't just there to exploit the club, communication naturally improves.
Luo Ranfeng: We often hear that sports clubs' main income sources are tickets, broadcasting rights, commercial deals, and merchandise. In football, player transfers can also contribute significantly. You mentioned Marcelin's transfer provided substantial financial support. Since taking over, how has Auxerre's ability to generate income evolved? Did you increase investment to achieve the current level of self-sufficiency?
Zhou Yunjie: When Auxerre declined and was relegated, budget issues played a part, but a bigger problem was selling young players too early. This led to financial strain and disrupted our youth development system. After taking over, I focused on two priorities: revitalizing our youth academy and restoring the club's confidence. We made some initial investments, mainly in infrastructure like improving the pitch and training facilities, but it wasn't extensive. Auxerre is a small city with limited opportunities for major sponsorships. So we've concentrated on increasing income through youth development, ticket sales, and fan-oriented commercial activities. Our large, loyal fan base allows us to effectively manage sports-related products and merchandise.
05 Nurturing Dreams: The Ongoing Quest for Chinese Talent in European Football
Zhang Wen: Now the club has Baptiste Malherbe as executive president, Christophe Pélissier as coach, and David Venditelli in charge of recruitment. Within this structure, what's your role as the owner? How do you handle disagreements?
Zhou Yunjie: It's quite straightforward. They're all professionals, and I primarily listen to their opinions. I don't interfere much in professional matters, but I am involved in management because I need to oversee the budget. My main point of involvement, whether it's the recruitment process or investments in sports facilities, is budget management. I try to minimize my involvement in professional stuff, though of course, it's impossible to be completely hands-off.
Zhang Wen: Speaking of inevitable involvement, we must address one of the reasons for Chinese investment in foreign clubs. When you took over in 2016, you mentioned three goals: Auxerre's return to Ligue 1, which has been achieved; the club's financial self-sufficiency and profitability, which is being implemented well; and having Chinese players in Ligue 1. The third goal remains a beautiful aspiration, but we know the current level of Chinese players makes it challenging for them to establish themselves in the top five leagues. Do you still think supporting Chinese players to make a big leap through club investment is realistic?
Zhou Yunjie: My philosophy is that we should at least create opportunities. I want to say to many players' parents that we very much hope and welcome your children to come to Europe, to Auxerre, to play football. This will benefit both their personal development and Chinese football as a whole. For this generation, results won't appear immediately, but as Chinese players take this step, more will follow. The more people who join advanced football systems, the more progress Chinese football will definitely achieve.
Zhang Wen: Your story of managing a club in France for nearly ten years has been very inspiring. A club can help enterprises find a larger market, and sports can be an excellent means of connecting with consumption and culture. As long as we patiently conduct business and build relationships, success can be lasting. Thank you, Mr. Zhou, for this interview. We look forward to speaking with you again.
