World-class sports stadiums require first-rate management, says an article in Beijing News. The following is an excerpt:
In the Beijing Olympic Games, the first-rate sports stadiums such as the Bird's Nest and the Water Cube capture the eyes of people across the world. It is reported that six multinational companies are competing for the naming right of the Bird's Nest and the 30-year-long naming right may cost them several hundred millions of dollars. If the right to name the Bird's Nest can be successfully sold to the market, it will be a milestone for China in developing the sports industry.
It is widely acknowledged in other countries that sports stadiums and sports games can be used by companies to promote their brands and lift their brand images. For fans of NBA games, they are quite familiar with arenas like Toyota Center for Houston Rockets and Staples Center for Los Angeles Lakers. Corporate brands are deeply rooted in the hearts of audience and can be quickly converted into market value.
Meanwhile, the sports stadiums can get sponsorship from companies winning the naming right and the capital can be used to keep the stadiums in good conditions, improve the service standard and conduct more promotional activities for stadiums. So the naming right is a multi-lateral, win-win business practice.
Of course, the development and utilization of sports stadiums are not just limited to the naming right. Sports industry in general covers a wide area, including the selling of TV broadcasting rights, partner sponsorship, designated products, souvenirs, billboards as well as ticket revenues.
Since sports stadiums are operated at huge expenses, they require a high level of comprehensive development. It is reported that the operating fees for the Bird's Nest will reach tens of millions of yuan annually. If the expenses are to be covered by the government, it will add a heavy burden for it. It also does not go with the trend of market economy and sports industrialization.
There is a tough work ahead and a long way to go for China to develop its sports industry, which started later in China than in other countries.
Take the naming right, for example. Domestic enterprises and stadiums lack a strict and scientific evaluation of the naming of sports stadiums, which makes them unclear of the exact value of the naming right. Most importantly, the inability to regularly host renowned sports leaves stadiums in a low profile. Who are willing to pour money into stadiums that cannot help them lift their corporate image? In the US, stadiums for basketball, baseball and football as well as ice hockey are attractive for sponsor companies for they can offer entertaining games and have high profile media coverage.
(China Daily 08/21/2008 page10)
