Chapter 728: Chapter 728: Disbanding the Club
When Chen Yiyang heard this, he initially found it quite strange.
Normally, domestic business has been quite honest in foreign affairs; they wouldn’t just hold onto someone’s goods without special reasons.
Then Chen Yiyang was informed.
The reason why customs detained the goods from India this time was because of past losses.
Previously, India also needed to purchase shield machines from Germany for their projects.
Of course, while the contract was signed between India and the German company, the shield machines were still manufactured domestically.
However, when the German Chancellor led a delegation to visit India, India told the German Minister that the German shield machine was actually made by Huaxia, but Huaxia refused to sell it to India.
The German Minister specifically looked into this matter and finally cleared it up.
Indeed, Huaxia had shipped the shield machines to India as per the Indians’ request.
But since the shield machines were too large, they were transported as parts and needed assembling upon arrival.
Of course, assembling a shield machine isn’t a simple task; it requires a professional team.
But even though the shield machines were shipped over, the Indian side didn’t issue visas for Huaxia’s technical team.
Initially, this operation left Huaxia’s team bewildered.
Without issuing visas for the team to come and assemble the shield machine, the transported parts are just scrap metal and useless.
Later, Huaxia’s team realized what was going on.
India was doing this on purpose, not issuing visas, forcing the technical team to provide remote guidance and send technical manuals to the Indians.
This way, the Indians could learn the assembly technology.
This point was crucial.
Once the Indians learned to assemble these shield machines, there was no need to pay the final payment.
All the goods were in the hands of the Indians; why would they pay the money afterward?
Moreover, next time when purchasing shield machines, they could play the same trick: Have the other side ship the goods over, assemble them themselves, and randomly find a reason not to pay the final payment.
Therefore, Huaxia’s team refused the request for remote guidance to teach the Indians assembly.
Indian engineers explored for weeks but couldn’t figure out how to assemble them.
So they regretted it and wanted Huaxia’s team to assemble the shield machines first.
But by this time, Huaxia’s team knew what the Indians were thinking, so they said, pay the final payment first, then I’ll send the team over to assemble.
However, the Indian company used the excuse that the contract was signed with Germany and refused to pay the final payment.
Regardless of who the contract was signed with, the shield machines were produced in Huaxia, and Huaxia had to receive the money.
But the Indian side simply refused to pay, ultimately leaving the brand new shield machine in parts form at an Indian warehouse.
With this as a previous example, Huaxia had to get the final payment before shipping to India this time.
This way, at least they could keep the goods; otherwise, it would be just like last time, with no money and no goods.
After informing Schaefer about the situation, Chen Yiyang straightforwardly stated.
This job simply couldn’t be helped; without Indians paying the final payment, the goods just couldn’t clear customs.
Anyone acting as a broker for this, guaranteeing for the Indians, would likely end up not only covering this batch of funds but also never receiving the promised money from the Indians.
"I just figured out India’s tricky operation too." Schaefer couldn’t help but complain to Chen Yiyang, "Previously, Indians imported shield machines from Germany, but they painted the Indian flag on them, insisting that it’s an Indian-made shield machine, claiming India has mastered the shield machine technology.
Since the Indians say so, let them produce the shield machines themselves."
After finishing the phone call with Schaefer, Chen Yiyang continued handling work matters.
Then he saw a report sent by his assistant.
’Recommendation to dissolve Jidao Club.’
Jidao Club?
Chen Yiyang recalled, realizing it was an esports club he had invested in long ago.
The investment was made under intelligence advice for bargain purchases, which turned out to be profitable.
Because not long after he invested in the club, they won the S Championship in South Korea.
This was the first domestic S Championship win, and after the victory, sponsors quickly lined up, requesting to sponsor.
At that time, Extreme Path Team’s players had signed multi-year contracts; despite winning the championship, their value didn’t increase much.
So the team played for another year with its original lineup.
This year they only secured fourth place, but they performed brilliantly, maintaining the number of sponsors.
However, after this year, several club players were dissatisfied with the salary offered by the club.
Chen Yiyang considered that if paying the industry’s highest salary to the five players, the club essentially wouldn’t have any profitability.
So he took the opportunity, while the contracts had a year left, to gradually sell all the players.
This brought another batch of income.
By this time, the investment allowed Chen Yiyang to return tenfold.
Therefore, Chen Yiyang let the club manager Zeng Hai oversee its operation, ensuring not to make losses.
The entire club hadn’t caught Chen Yiyang’s attention for a long time.
But because the club was still his asset, assistants regularly checked its accounts.
After this inspection, the assistant sent Chen Yiyang a report suggesting the dissolution of the entire club.
Chen Yiyang carefully read the report contents and found the suggestion indeed made sense.
Generally, an esports club’s revenue sources come from three aspects.
One is the club’s own business earnings, including sponsorships, ticket sales, peripherals, and players’ livestreaming revenue shares.
One is the league rewards because leagues have dedicated sponsors, generating decent revenue. Once the season ends, the league officials distribute bonuses based on each club’s performance throughout the year.
The last is the competition’s prize money and championship skin revenue share. Competition prize money doesn’t amount to much, essentially a pittance.
The main focus is on championship skin revenue share. Championship skins are only issued to teams holding the S Championship title.
The game’s officials share a part of the revenue from selling skins with the club and its players.
Extreme Path Team’s championship skin sold well, bringing the club millions.
However, Extreme Path Team only won one season’s championship, so they earned only once.
Yet this is all in the past.
Currently, the status of Extreme Path Team is such that, due to poor performance, the revenue from the first and third parts is almost negligible.
However, because the club now has low investments, relying on the league’s official dividends, it can still earn a bit.
But this year, the situation is different again.
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