prynovel Chapter 65: Equity!
Chapter 65: Equity!
According to Fu Shiyan's understanding of the LPL ecosystem, the total annual expenditure of a team fighting relegation is approximately between five and six million. This number sounds substantial, but when broken down into player salaries, coaching staff, team leaders, analysts, base operations, travel and accommodation expenses, every penny is actually carefully managed.
Mid-tier teams will see their budget rise to between eight and ten million, which is enough to support one or two moderately famous players and allow them to live a more comfortable life, but they are far from being extravagant.
As for the top LPL teams with star players earning millions of yuan a year—established powerhouses like EDG, LGD, and OMG—their total annual salaries alone approach 20 million yuan. However, even for such powerhouses, including costs for base rental, logistical support, business operations, and youth training, their annual operating expenses are only around 30 million yuan.
But Boss Mo asked for fifty million right off the bat.
Ok.
Fu Shiyan silently did the math in his mind; it seemed this guy really intended to go all in as soon as he sat down at the table.
It was this number that made him instantly understand the weight of what Mo Ziye was about to say.
"Xiao Fu, let's go through it from the beginning," Mo Ziye cleared his throat and said seriously.
"Based on your demonstrated player skills and coaching experience over this period, and of course, your core value in team management and tactical output, Lao Qi and I discussed it repeatedly for a long time and finally decided to give you 15% of the equity in terms of your technical contribution."
As he spoke, he pointed with his index finger to the location of the clause, as if afraid that Fu Shiyan might miss the crucial information.
"In addition, there is a 5% that is specifically allocated for the exposure and commercial value you bring to the club through your personal ranking on the Chinese server, live streaming platforms, esports forums, and other channels. In other words, we have also included your personal traffic in the calculation."
Fu Shiyan remained silent, listening quietly, his gaze fixed on Mo Ziye's face.
"Of course, there are conditions to receiving this 20%." Mo Ziye changed the subject, "We have set up a mechanism for phased unlocking of the equity, mainly to prevent you from withdrawing halfway, which would be bad for everyone."
He spoke as he turned the page.
"After signing, 50% will be unlocked. After the club has been operating for six months and has achieved its promotion goal, 30% will be unlocked. After one year of operation, the remaining 20% will be unlocked."
At this point, he looked directly at Fu Shiyan: "After this, if the club achieves significant honors and accomplishments, you will be the sole holder of the right of first refusal for the remaining shares. In addition, regarding the reserved equity pool, Lao Qi and I have set aside 10% to 15% as future incentives."
"Oh, right," Mo Ziye added, as if remembering something, "you also enjoy full shareholder rights. You have the right to be involved in major matters concerning daily management and operations."
After he finished speaking, he and Qi Sheng exchanged a glance and looked at the young man in front of them.
To be honest, they were a little apprehensive. They were afraid that the young man in front of them wouldn't understand the intention behind "gradual unlocking," that he might feel distrusted, which could lead to a rift and even cause the cooperation that was about to be finalized to fall through.
however--
After listening, Fu Shiyan did not show any displeasure. Instead, he nodded slightly, and the corners of his mouth even curved upwards, revealing a sense of satisfaction that said, "Just as I expected."
"A very reasonable equity distribution method." His tone remained unchanged: "As for the terms for the gradual unlocking of my personal equity—I fully accept them."
What he said was the truth.
Frankly speaking, without this mechanism of gradually unlocking equity, he would have to worry about the rationality of the club's establishment plan and the prospects of his cooperation with the two.
The logic is simple: if a partner who doesn't need to contribute a single penny but has a core influence on the club's future development for a long time comes up and hands over all their shares without reservation, that's not sincerity, that's being brainless.
Nobody's money comes from thin air. Mo Ziye, who has established himself in the business world, would never do something so foolish. On the contrary, the more rational the proposal is and the more reasonable the constraints it sets, the more it shows that the other party is serious about doing a long-term business deal, rather than acting on a whim.
As for the "team advancement unlocks 30%" rule, he would have no objection to it.
Which is more valuable, an LSPL club or an LPL club? This is a question that doesn't need an answer.
In other words, as long as he can lead the team into the LPL—judging by the scale of the investment promised by the two—he will be able to step into the threshold of becoming a multi-millionaire in the first year.
Ten million.
Although most of this money cannot be immediately converted into cash, and the value of the shares cannot be simply calculated based on the book figures, even so, the terrifying amount of money behind it is enough to illustrate the point.
As for the final 20%, it will only be unlocked after a full year of operation?
Fu Shiyan chuckled inwardly—come on, I've already led the team into the LPL and confirmed that staying with this club is a good thing. Shouldn't I be focusing on how to get the remaining portion of the equity pool?
"Okay, okay, as long as there are no issues with the equity stake, we can start signing the contract!"
Qi Sheng, his face beaming with excitement, rubbed his hands together impatiently and turned to look at Mo Ziye. "Old Mo, tell your assistant to send the contract over quickly, don't dawdle."
"Hey, what's the rush!"
Mo Ziye waved his hand, his tone much more relaxed than before. After receiving Fu Shiyan's affirmative answer, he seemed to have finally lifted a stone from his chest, leaning back in his chair with a much more relaxed expression.
"We're all family now, we can deal with the contract signing tonight." He pointed to the two of them, "Let's clarify the other aspects first, so we don't end up arguing after we sign."
The "other aspects" that Boss Mo mentioned naturally refer to the division of responsibilities in club management.
The core principle is simple and clear: each of the three parties has its own responsibilities.
Fu Shiyan is fully responsible for the daily management and operation of esports affairs. He has the final say on how to lead the team and how to conduct the matches.
Financial security and business expansion were left to Qi Sheng to worry about; he would handle the money and sponsorship matters.
As for Mo Ziye himself, he is responsible for the overall coordination of the club and provides support in major decisions.
All three parties should consult on major matters together to prevent problems such as unclear responsibilities and buck-passing.
Fu Shiyan focused on the boundaries of his responsibilities in this area.
After reading it carefully, he secretly breathed a sigh of relief.
In terms of power, neither of the two bosses had any thoughts of vying for power just because the scope of management expanded from "team" to "club".
The overall operating model remains exactly the same as the current BJBS operation model—Boss Mo is responsible for logistical support, and all other core matters are handled by him.
Specifically, including but not limited to;
He has complete authority over everything, from the daily management of the training base, the recruitment and termination of players, the formation of the coaching team, the arrangement of daily training, the formulation of tactical systems, and the registration and coordination of competitions.
He has a core say in major club decisions, especially personnel changes;
In addition, he has the right to independently form a management team and allocate club funds reasonably for daily operations, training, player salaries, etc., only needing to report according to the financial system, without the need for layers of approval or constant obstruction.