A news report by China’s official Xinhua news agency has suggested that very few sports venues in the country are currently profitable.
With Xinhua seldom being critical of China’s investment in infrastructure, the interview with Jin Fei, Vice President of Bloomage International Investment Group Inc, is significant as a precursor to a potential change in Government support for new venues.
It also indicates that the rush by international sporting bodies including football, the NBA and AFL, to bring their games to China may soon be slowed by lack of returns.
Commenting on the Cadillac Arena in Wukesong, owned and operated by a Bloomage subsidiary, Fei advised that rent revenue accounts for less than 19% of the venue’s income stream with the majority of its income comes from non-tangible assets including its naming rights sponsorship, VIP box hospitality, dining and advertising.
Fei said that at the present stage, although the policy environment is very good, there are still difficulties in running successfully in the market with sports venues demanding high investment and delivering low income.
Fei pointed out that venues needed to offer a fuller program of events providing more events and services to consumers.
Images: Cadillac Arena in Wukesong.
About the author
Nigel Benton
Co-founder/Publisher, Australasian Leisure Management
Born in the English county of Dorset, Nigel Benton is the co-founder and Publisher of Australasian Leisure Management, Australia, New Zealand and the Asia-Pacific’s only magazine for professionals in all areas of the leisure industry and the www.ausleisure.com.au website - the go to news resource for industry leaders and professionals.
With a long-term commitment to communicating all that is best about the leisure industry (aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues) his career has been defined by an ability to develop and implement industry communications.
Starting his career working in heritage visitor attractions and then adventure travel in Africa and the Middle East, an interest in writing about his experiences led to his change of career into magazine journalism and publishing.
In addition to publishing, Nigel speaks on marketing communications at a range of industry events.
He was made a Life Member of the World Leisure and Recreation Association in 2006 and is a Fellow of the Royal Geographical Society (London).
In 2020, he launched the new Asian Leisure Business website.
As of October 2024, he was inducted into the Australian Fitness Awards Roll of Honour at the 2024 AUSactive National Awards.
Among a range of published works and features, his comments on a Blog (blogspot) from 2007 to 2011, when this website went live in its current form, may be interesting to reflect back on.
His philosophy on life is to be kind to all and to indulge those that you love.
His passions include family, Newcastle United and motorcycles (especially British ones) as well, until February 2025 when she left us, caring a little pug named Stella.
Click here to connect with him via LinkedIn.
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