In the top league: What’s behind the rush of Chinese firms into the global sports business?
The prospect of delivering global sports content and merchandise to a booming and hungry domestic market while helping the country’s planned rise to sporting powerhouse is the ultimate goal
Chinese firms are rushing into the global sports business, drawn by the prospect of a trillion yuan market at home for broadcast content and merchandise as well as the political bonus of helping the country’s goal of becoming a sports powerhouse.
Analysts see more deals, especially in Europe, to follow the latest move by Baofeng Technology, a Shenzhen-listed video-streaming firm, which unveiled on Tuesday details of its new subsidiary, Baofeng Sports. The new unit will provide live casts and virtual reality content on its PC and mobile platforms, beginning with the Chinese Super League in 2016-2017.
Andrea Radrizzani, co-founder of MP & Silva, a leading Italy-based football broadcasting rights firm acquired by Baofeng and China Everbright in March, will be the chief executive of Baofeng Sports’ international business, the company said.
That deal comes a day after Chinese home appliance and electronics retailer Suning bought a 69 per cent stake in Italian football club Inter Milan for 280 million euros, the first time a Chinese investor has taken control of a top European team.
Suning, which is 20 per cent owned by internet giant Alibaba, said it plans to build a “soccer empire” that spans sports-related e-commerce to club ownership. It is also bidding against other Chinese suitors, including Guangzhou-based property developer Evergrande, for British sports management agency Stellar Group, according to Reuters.
Chinese property developer Wanda in November set up Wanda Sports to invest in all sports-related assets, after purchasing FIFA broadcasting rights manager Infront Sports & Media earlier. Internet company Tencent last year snapped up rights to the NBA in a US$700 million five-year deal.
Zhao Rui, a technology and media (TMT) sector analyst with Guotai Junan Securities in Hong Kong, said China’s active sporting population is a low percentage of the total, and offers vast growth potential.
