Wang Jianlin reveals Wanda Sports 'new gameplay: net profit in 2020 will be listed in at least ten digits in the capital market

On December 4, Wang Jianlin, Chairman of Wanda Group, delivered a keynote speech at the "7th Caixin Summit and Second China Sports Industry Forum", looking forward to the future of China's sports industry from the evolution of the world sports industry, and revealing Wanda Sports's new ways of playing for the first time.

Original title Wang Jianlin reveals Wanda Sports 'new gameplay: net profit in 2020 will be at least 10 digits.

On December 4, Wang Jianlin, Chairman of Wanda Group, delivered a keynote speech at the "7th Caixin Summit and Second China Sports Industry Forum", looking forward to the future of China sports industry from the evolution of the world sports industry, and for the first time revealed Wanda Sports' new gameplay.

"We don't care about face, we only care about money." Wang Jianlin revealed that Wanda Group's four major measures to "play big" the sports industry are to expand cooperation with international sports organizations, carry out international industrial mergers and acquisitions, introduce major international events, and ensure the continued profitability of sports companies.

Wang Jianlin said that Wanda Sports's goal is to achieve relatively good profits in the global aggregate statement in 2016, and its net profit in 2020 must reach at least 10 digits, or several 10 digits."Finally, Wanda Sports will be listed on the capital market and contribute to China's capital market." Dedicated to an extremely excellent, unique, high-value and excellent company with sustained profit prospects."

In his speech, Wang Jianlin reviewed the development history of world sports. Competitive sports with a history of thousands of years have gradually evolved into the sports industry, and the commercialization of sports has only a history of about 100 years. He introduced that the current total scale of the sports industry in the world, including related industries, is about US$2 trillion. There are nearly 100 million employees around the world. This scale is very large and can be regarded as a big industry.

Wang Jianlin summarized four development trends that the sports industry has shown on a global scale. The first is the integration of sports and business. Now sports must be considered from a commercial perspective. It can be said that the concept of business has penetrated into all competitive sports and into all aspects of competitive sports; secondly, the integration of sports and media, media and sports events is getting closer and closer, and events have become a core resource of various media; the third trend is the combination of sports and tourism, and sports events have become an important way to stimulate tourism consumption. For example, the organizers of the Olympic Games and World Cup can not only gain both fame and fortune, but more importantly, the after-effects of these events are obvious, and the integration of the sports industry and the tourism industry is increasing; finally, the integration of sports and social development, and sports has become a country, especially an important opportunity and carrier for urban development.

In Wang Jianlin's view, there is still a big gap between China's sports industry and developed countries in Europe and America. The current situation of China's sports industry is that the system is backward and there are too few events.

In terms of sports population, the sports population in the United States accounts for 75% of the total population, Japan's sports population accounts for 70% of the country's total population, and China's sports population is officially only 30%. Even if this figure is 30%, the gap with Europe and the United States is huge. In terms of total industry, the total sports industry in the United States is close to US$500 billion, accounting for about 3% of GDP; Japan's sports industry accounts for 2.6% of GDP; China's sports-related industries together account for 7/1,000. Removing related industries, it is estimated that the real sports industry will be less than 3/1,000. In terms of per capita expenditure, it is even less. The money spent by people on sports consumption in China is about one-fifty of that in the United States, and Japan's per capita sports expenditure is 40 times that of China. Therefore, China's sports industry has great potential. The gap in sports facilities is even huge. On average, 46,000 people in the United States own a standard football field, on average, 38,000 people in Japan own a standard football field, and more than 130,000 people in China own a football field. Wang Jianlin said frankly,"If the football field cannot be developed, it will be difficult for China football to be developed."

Wang Jianlin faced the audience and told everyone about Wanda Sports 'new gameplay. The first is to expand cooperation with international organizations, obtain sports event authorizations through international sports organizations and have IP for sports events; the second is to carry out international industrial mergers and acquisitions. Three years ago, he spent 1 billion euros to acquire Yingfang, Europe's largest sports company. This is also the starting point of Wanda Sports, thereby establishing personal connections in the sports industry. Through him, he successively acquired a series of events such as WTC in the United States, and gradually moved outstanding foreign events to China. The third is to introduce major international events. It takes ten years or even longer to cultivate an event. Wanda holds the Football China Cup, the Tour of Guangxi Bicycle Race, etc., and there are also a series that are basically based on this style of play. Through this settlement, Wanda has its own intellectual property rights. If Wanda achieves ten to twelve events in the future and has sports events every month, this value will be very high.

More importantly, Wang Jianlin said that Wanda must ensure continued profitability when playing sports."It is unethical for a company not to make profits." He introduced that building clubs is an aspect of the sports industry, but it is not the goal pursued by Wanda Sports Company. Because few clubs achieve large profits, no matter what the ball is. "We don't care about face. We only care about money. Of course, we need to do lively things, but we need to make money when it is lively."

"Everyone thinks that the sports industry is a club. This is a big mistake. The sports industry mainly engages in events, and the economy of events, events 'commerce, media, etc., which extend from events, are the most important direction of the real sports industry."

Editor: Nancy