Could someone kindly explain how this facility works? And how should I utilize this? I am very confused. Thanks for the help.

You have to buy the TV rights to matches, then you can take out sponsorships.

Its like rave party.
Buy games, take sponsors and repeat...
Buying gives new members to TV.
Taking sponsors lost some members but gives papers.

Buy cheaper games with most people.
Build up your TV level, get higher members and invest money you had from sponsors. Keep it optimum.

yuanzijian: Could someone kindly explain how this facility works? And how should I utilize this? I am very confused. Thanks for the help.

Please note. At your level, it's not worth investing in the TV Channel. For the time being, you're better off investing in the shop, if your aim is to make a bit of money.