Suning replaces Chinese cultural holding company Olympic Power or completes the unification of football

The Chinese Cultural Industry Investment Fund has decided to transfer its shares in Tiao Power to Suning. After the transaction is completed, Suning will become the controlling party of Sports Olympic Power, and Chinese Culture will still hold part of the shares of Sports Olympic Power.

Original title: Sports Olympic Power will change hands, Suning will replace Chinese Culture as the major shareholder

. China's sports industry has undergone an earthquake-level transaction! According to the reporter, the Chinese Cultural Industry Investment Fund has decided to transfer its shares in Tiao Power to Suning. After the transaction is completed, Suning will become the controlling party of Sports Olympic Power, and Chinese Culture will still hold part of the shares of Sports Olympic Power.

Previously, LeSports has gradually abandoned the exclusive copyright of China Super League new media and the copyright of all events under the AFC. Suning's PPTV has become a new broadcast platform. As you know, the copyright of these events belongs to Sports Olympic Power. From this alone, we can actually understand that the cooperative relationship between Sports Olympic Power and Suning is already very close.

This time, after Suning successfully controls Sports Sports Power, its platforms will own the copyright of football events including the Super League, AFC Champions League, Asian Cup and China Team. In addition to the exclusive all-media copyright of La Liga and Premier League, Suning will further occupy a more powerful position in the upstream of the domestic sports copyright market. At the same time, Suning's layout around the upstream and downstream of the sports industry chain has become more complete, and Suning's football and sports empire is about to emerge.

From Chinese culture to Suning, Sports Olympic Power has found new investors.

Compared with Sports Olympic Power's old club, Chinese Culture Investment Fund, the new club, Suning, has greater ambitions in the field of sports, especially football, and its industrial chain in the field of football is also more complete. After joining the Suning Department, Sports Olympic Power will have stronger synergy with the upstream and downstream of the industrial chain. PPTV's rapid move to take over the copyright of the Super League and AFC Champions League is an example.

In September 2015, Sports Olympic Power became the "2016-2020 China Super League TV Public Signal Production and Copyright Partner" with a sky-high price of 8 billion yuan in five years. Its China Sports Olympic Power paid 1 billion yuan each year in the first two years, and paid 1.5 billion yuan, 2 billion yuan, and 2.5 billion yuan each year in the next three years respectively. Although he won the scarce high-quality event IP of the Super League, huge copyright pressure also fell on the shoulders of the Sports Olympics motivation. Fortunately, LeSports later took over the offer and signed the exclusive live video rights to the new media platform of the Chinese Super League for the 2016/2017 seasons from Sports Olympic Power. The price was 2.7 billion yuan over two years, with an average of 1.35 billion yuan per year. The two parties also promised to jointly manage the copyright of the Super League in the three seasons of 2018/2019/2020 based on the principle of "sharing costs, sharing benefits, and creating a larger industrial pattern."

However, after a season of testing the water, LeSports 'possibility of regaining capital through the Super League is close to zero, so it gives up its exclusive rights. It is understood that LeSports has not been able to pay off all of the 1.36 billion yuan for the first season. Sports Olympic Power will face huge pressure from copyright fees, which also forces it to find a next player that can take over the offer. Suning, who claims to invest in football, then decisively intervened, and PPTV took the opportunity to win the copyright of all games in the Super League. This time, after the AFC and LeSports terminated the contract, Sports Power dared to quickly take over in a short period of time. On the one hand, the reason was that Sports Sports Power had rich experience and resources in copyright marketing, and on the other hand, it was also because Suning guaranteed its guarantee, and the PPTV platform could take over. There is no doubt that next, the new owner Suning will be able to provide more sufficient weapons and ammunition for Sports Olympic Power to expand its territory in the field of sports media copyright.

China

Subsequently, PPTV quickly announced the start of live broadcasts of the AFC Champions League on the same day. CCTV will also start broadcasting the AFC Champions League on the 29th. LeSports will completely miss the copyright of this year's AFC Champions League and the top 12 competitions. In this regard, Sports Olympic Power has collected the copyrights of all core events of China football.

Prior to this, Sports Olympic Power already owned the following major event media copyrights:

On March 27, 2015, Sports Olympic Power obtained the media copyright of the China Team Series competitions in the next four years through bidding and provided public signal production services; In October 2015, Sports Olympic Power won the all-media copyright of the Super League for 5 years for 8 billion yuan; in February 2016, Sports Olympic Power also obtained the copyright of the 2016-2019 China Football Association Cup and Super Cup events.

Sports Olympic Power has been deeply involved in China's sports copyright market for many years. Its predecessor, Huaao Star Sky, was founded in 2004 by Li Yidong, executive director of TIO Power. It was engaged in copyright sales and signal production. In 2009, it was renamed now. In 2011, China Digital Copyright Group controlled by Taiwan's Xu brothers incorporated it through capital operations and purchased a 25% stake in TIO Power for US$3.8 million. In 2014, Sports Olympic Power completely separated from the Hong Kong-listed China Digital Rights Group and transferred to Chinese Culture.

The origin of Sports Olympic Power (and its predecessor) and sports media copyright signals dates back to 2001. At that time, after the business rights contract between the Basketball Association and IMG expired, Yangcheng Newspaper Group took over. However, Yangcheng Newspaper Group lacked investment promotion capabilities and suddenly abandoned the bid before the start of the league. As a result, China Basketball Association fell into a passive position. Not only did the CBA almost run naked, but for a time, TV signal producers were also rushed and difficult to find. In the end, the State Sports General Administration stepped forward and arranged for China Broadcasting Network, a broadcasting company jointly established by China Sports Newspaper Headquarters and the Network Center of the State Administration of Radio, Film and Television, to be responsible for CBA signal production. At that time, Li Yidong, the current chairman of Sports Sports In terms of football, Sports Power became a partner of the Chinese Super League in 2007. The cooperation with the AFC can be traced back to the copyright distribution and signal production of the AFC Champions League and World Championships from 2009 to 2012.

Sports Olympic Power has always been quite low-key in the sports industry. Until October last year, Sports Olympic Power won the all-media copyright of the Super League for 5 years for 8 billion yuan, becoming the largest effort in the history of China's sports industry. The spotlight has been on this company for a long time. After winning the copyright of China Super League, Sports Olympic Power invested 50 million yuan to build a copyright signal production base to facilitate intensive cultivation and achieve refined operations.

For the upcoming new round of copyright investment in CBA, Sports Olympic Power is also eyeing. In an interview with big sports business at the end of last year, Zhao Jun, general manager of Sports Olympic Power, made no secret of his interest in the CBA copyright that was about to expire: "In 2017, the entire CBA contract expired. This is also the last relatively big sports IP in the China market. CBA is a project that we will definitely win with 120% of our strength." After finding the new gold master Su Ning, the sports Olympic power may get more support.

Suning builds a football empire and the entire industrial chain.

Suning first entered the sports industry in 2013. Suning strategically invested US$250 million in PPTV. Its PPTV Sports is the most important online live broadcast platform for sports events in China.

Suning first laid out the football industry on March 3, 2015. Suning signed a contract to become the main sponsor of Guoxin Shuntian Football Club in 2015. The distinctive symbol of Suning Tesco began to appear in the Super League. On December 21, 2015, Suning Group officially announced that it would fully take over the former Jiangsu Guoxin Shuntian Football Club, and the new Jiangsu Suning Football Club was launched, marking that Suning Group was moving towards the upper reaches of the sports industry. In August of that year, Suning's PPTV won the exclusive all-media copyright of the 2015-2020 La Liga League in China for a price of 250 million euros, or nearly 2 billion yuan.

Entering 2016, Suning continued to make big efforts: in January 2016, Suning took over Jiangsu Women's Football Club to further improve the layout of Suning Sports 'entire industrial chain; in April, it led the investment in sports data company Shanghai Chuangbing Technology; in June, it acquired 270 million euros. About 70% of Inter Milan's shares; in July, the Intelligent Sports Alliance was established; in August, it invested in the football information platform Understand the Ball Emperor Round C; In November, its PPTV acquired a 100% stake in the live broadcast company and a 25% stake in the e-sports company after the spin-off of Youshi Network (Dragon Ball Live Broadcast) for more than RMB 1 billion; On the afternoon of November 18, 2016, Suning Group officially announced that its PPTV Juli Sports won exclusive all-media rights in the mainland of China and Macau for the three Premier League seasons 2019-2022. Suning's $721 million this time (700 million live broadcast rights +21 million on-demand rights, equivalent to approximately 4.967 billion yuan) has once again set a domestic copyright fee record, nearly 10 times the current fee paid by Premier League copyright party Xinying Sports.

The practice of "attacking from all sides, playing high and playing high, regardless of cost" has made Suning a well-deserved local tycoon player in the sports circle. Sports has also become the sixth largest industrial sector of Suning Holding Group after cloud business, real estate, financial control, cultural creativity and investment, which shows Suning's determination to work in the sports industry.

However, although Suning is a local tyrant, it is by no means a fool and a lot of money. Suning Group entered the sports industry in 2013, and has since continued to deploy around the upstream and downstream of the sports industry chain. At present, the construction of a sports ecosystem including eight major sections including football clubs, sports e-commerce, sports media platforms, copyright marketing, sports brokerage, and event operations has been completed. Zhang Jindong once said: "In terms of the layout of the sports sector, we will focus on building an Internet sports ecosystem with football as the core and covering" competitive events, media promotion, fan culture, and e-commerce platforms."

The purpose of Suning's entire sports industry chain layout is to use resource integration and synergy to generate new value. For example, Zhang Jindong once explained the reasons for acquiring Inter Milan. Its advanced football management concept, scientific training system and youth training echelon can help Jiangsu Suning Football Club lay a solid foundation, improve its performance, and enhance its core competitiveness. For another example, Suning Investment invested in sports data company Chuangbing Technology in May last year. One of the purposes was to serve the construction of a team training big data system in Jiangsu Suning, collecting data from first-line teams and echelon players at all levels, and regularly forming analysis reports. Provide reference for players and coaching teams to formulate training plans.

Suning Holdings is mainly engaged in media copyright and signal production, which is a further improvement and supplement to Suning's sports industry chain and an important part. Although Suning currently has rich copyright resources, PPTV's signal production capabilities are not excellent, and it has also been criticized by many fans. With the addition of Sports Olympic Power, this situation is expected to improve.

If China's sports market can be described as madness in 2016, then 2017 may turn back to rationality. Under the situation of tightening national policies and management, overseas investment such as acquiring clubs will become more rational. In China, after nearly two years of copyright wars, the copyright market has been divided up completely. The next thing players in the sports copyright market have to consider is how to realize it. When the money-burning model is difficult to sustain, Even LeSports, which has been rushing all the way, has to slow down and work intensively. In the past four or five years, domestic sports players will face integration, and vertical and horizontal combinations will become a major trend.

From media platforms to football clubs, Suning pieced together its own sports empire step by step, and until Suning's complete sports ecosystem is fully established, Suning's crazy moves will not stop.

Editor: Nancy