Xinhua report: Very few sports venues in China are profitable

According to the Chinese news agency Xinhua’s interview with the Vice President of Bloomage International Investment Group Inc., Jin Fei, at the end of 2018, very few sports venues in China are currently profitable. 

Cadillac Arena (i.e. Wukesong Arena), which is owned and operated by a subsidiary of the Bloomage International Investment Group Inc., is one of the top sports venues in China. Currently, according to Jin Fei, rent revenue accounts for less than 19% of Cadillac Arena’s income stream. The majority of their income comes from non-tangible assets, for example title sponsorship, VIP boxes hospitality, dining and advertising. 

Jin Fei said that at the present stage, although the policy environment is very good, there are still difficulties in running successfully in the market. Operating sports venue faces high investment and low income. 

In order to overcome the difficulties, Cadillac Arena try to develop around the strategy of “Sports+”, providing more events and services to consumers. 

Reference: Xinhua

Proofread by Raymond Fitzpatrick