Wang Jianlin: Sports Is A Sunrise Industry.

Wanda sports ushered in a milestone day: Wanda sports Holding Co., Ltd. ("Wanda sports"), the global headquarters formally settled in Guangzhou.

Wanda formally laid out sports in early 2015.

In January, we bought 20% of the Madrid football team (Madrid competition) for 45 million euros; in February, we took the lead in the acquisition of 100% of the world famous sports media production and broadcasting company's Ying Fang sports media group, and followed by the acquisition of WTC.

The establishment of global headquarters at the end of the year is a staged upgrading of Wanda sports in the past year, and it is not a destination, but a new start.

Starting from Wanda's involvement in sports, I have been asked by many people on many occasions why Wanda as a commercial real estate company has to do sports.

Especially after the publication of Article 46, many sports rights were photographed at a high price.

Wanda's acquisition of sports industry is by no means a whim. We are not the Chinese tyrants in other countries.

Wanda has always bought assets related to its own business and strategic expansion. Similarly, our merger and acquisition in sports industry also follows this basic logic. Our acquisition of sports business will soon come down in China.

Wanda Sports Association was basically formed in 2017.

In the next few months, we will probably announce one or two major acquisitions. Next we will start a series of sports events, which will be announced before and after the Spring Festival.

At that time, the important value and role of the sports industry in Wanda's whole business system will gradually emerge, and the outside world will see clearly the value of our acquisition of these companies, and we will see clearly what Wanda wants to do.

Although the sports industry in China is very weak at present, the country has already made a magnificent plan.

According to the 46 article published last October (that is, the State Council's opinions on accelerating the development of sports industry to promote sports consumption), by 2025, the income of China's sports industry should reach 5 trillion yuan, equivalent to 800 billion US dollars, that is to say, in 2025, China will become the world's largest sports industry country. At present, 13 provinces and autonomous regions in the country have announced the local policies to promote the development of sports industry.

Let me first talk about sports that I understand.

What is the sports industry? It is the sports industry that relies on social investment, can support itself, or even make money.

Correspondingly, the sports industry can survive on the government's investment.

In the past many years, sports in China has almost no industry, only career.

After Wanda entered the sports field, many people suggested that I should go to a football club and play basketball clubs. It seems that only a Sporting Club Hotel can be called sports industry. This is a superficial understanding.

Based on my long research and understanding of sports, I tend to divide it into three ends: A, B and C.

The A end is an international organization in the sports industry. It includes both international organizations of major comprehensive events and international organizations of single events.

It is very difficult for an enterprise to have the A end. At present, hundreds of sports organizations in the world are basically non-profit organizations, such as FIFA and International Olympic Committee.

Strictly speaking, these organizations are also companies. They sell broadcasting rights, earn income, and deposit billions of dollars or even higher on account.

The B terminal is the company that represents these sports industry organizations or brand events broadcasting rights and marketing rights.

For example, the company that we bought is a B terminal company.

There are seven major ice and snow events organized by the Winter Olympic Games, including ice hockey, skiing, skating and so on. The copyright and marketing rights of these single organizations are all exclusively represented by the surplus side, but they seldom organize their own competitions.

The C end of sports industry is a specific single sports competition or a single sports club.

B and A are the real high-end products in the sports industry.

Next, let's look at the current situation.

The status quo.

China's sports industry can be said to be a baby, still in the embryonic stage of enlightenment.

According to the information released by government departments, China's sports and related industries earned less than 300 billion yuan in 2014.

Please note that the expression "sports and related industries" refers to

Sports shoes are counted as sports industry.

But according to international practice, only sports events, sports brokers and sports media are the real sports industry.

So according to this standard, the scale of China's sports industry is also 150 billion yuan.

The sports industry in the United States has been expanding at a rate of GDP times over the past ten years.

In 2014, the United States 300 million people, sports industry income reached 500 billion dollars, equivalent to more than 3 billion yuan.

The reason is easy to understand, because human needs will inevitably escalate from the survival needs to the enjoyment of sexual needs, that is, when money is idle, you will naturally come to play sports and play culture.

Based on the above, I believe China's sports industry will achieve leapfrog development next.

The Chinese film industry has been growing by 35% over the past six years, creating a miracle in the history of world cinema. By contrast, sports industry is more valuable, because it not only provides spiritual enjoyment like cultural industry, but also provides health and combines entertainment with health.

In addition, compared with technology, manufacturing, e-commerce and other industries, the sports industry has a very big advantage, that is, the more valuable the event is, the longer the brand is, the more valuable it is.

None of the most famous sports events in the world has been operating for decades or even hundreds of years, and no matter how advanced the technology is, it will not easily die out or change.

China's sports industry has great room for development. This will be a promising sunrise industry.