The 2016 Boao Forum for Asia (BFA), which is in full swing, has set up a sports sub-forum for the first time in South China's Hainan Province. Analysts believe that this is a positive response to the growing sports industry in China.
The Sports Sub-forum which met yesterday was attended by influential sports figures including the likes of CMC President Li Ruigang, former NBA star Yao Ming, Chen Juhong, vice president of Tencent Technologies, Jefferson Slack, former CEO of Inter Milan, Jiang Heping, chief of the CCTV Sports Channel, and Richard Arnold, Group Managing Director of Manchester United.
After paying a record-breaking RMB8 billion ($1.3 billion) for the five-year broadcasting rights to Chinese Super League football and buying a chunk of oil-backed English soccer club Manchester City, Li Ruigang is eyeing more high-quality sports assets globally, the Chinese media mogul stated.
Despite seemingly aggressive overseas expansion, there is still a long way to go for the Chinese sports market. Li believed it’s never as easy as a one-shot deal. After you pay the big bill, you need a full suite of operation strategies to carry it out. As to the broadcasting rights, he suggested that the traditional distribution model was a good choice and will enable fans watch their favorite games via different outlets.
When it comes to the subscription model, Li said, the pay-to-view model is the natural trend in China, but adaptation should be made for different sports content. For example, those covering mass sports should be free to the public, since almost every country is hoping to improve the public awareness of their sporting industry. This will help enhance the average ratings as well as make foundations for promotion of the subscription model.
As Li said, Chinese investors should go beyond pure investment and be involved in the operation and management of international sports firms while making investments.
“I personally think more and more capital will be pouring into the industry as it starts to release its potential. Many investors are still studying the true value of the industry.” Li added.
Proofread by John Devlin.