Oct. 2014, the State Council issued the “Guiding Opinions on Speeding up the Development of Sports Industry and Promoting Sports Consumption”, which set up the goal of five trillion Yuan by 2025. Local governments also issued related beneficial industrial policies. Besides which capital market is ready to enter like the football area. The golden era is opening very soon.
Local Policies Heat up Sports Consumption
In May, Hebei Provincial Government issued Guiding Opinions on Speeding up the Development of Sports Industry and Promoting Sports Consumption. By 2025, average sports ground will reach to two square meters, regular exercisers will be over 270 million, overall industry size will be over 300 million Yuan. Major initiatives include, first, cancel executive approval on commercial and social sports competitions which will be authorized to social sports organizations. Hebei Sports Industry Association is established to guide the development. Second, under the background of 2022 winter Olympic, Zhangjiakou and Chengde will widely develop ice sports though building venues and constructions of stadiums for the Olympic, like Chongli County. Third, by 2025 every regional city should be high standardized sports center and fitness center. In the meantime establish multi-functional stadiums and jogging and bicycle tracks. Establish 15 minutes fitness circle and realize 100% coverage. Fourth, stimulate development of Beijing Tianjin Hebei fitness zone, development outdoor sports like rock climbing, water games, hiking, X-sports, camping, drifting, horsing, and aviation. Fifth, reduce 15% capital gain tax on companies that do sports cultural industry and 3% less on business tax, also, reduce tax on transfer of technology and corporate income tax for those sports companies. Sixth, establish province level public fund for stadium construction and subsidy on county stadium construction.
On 1st of June, Qinghai Province issued their Guiding Opinions on Speeding up the Development of Sports Industry and Promoting Sports Consumption. In the next decade, Qinghai sports will reform, guided by the market, promote healthy life, provide environment for innovation, assist sports industry, and increase public sports related services and products and sports diversification in order to meet the public demands. By the end of 2025, supporting projects will be 100, province level sports stadiums reach to 20, automobile and motorcycle camps reach to 100, sports tourism projects reaches to 50. Employment opportunities will be 15000.
The overall industry market will be 10.5 billion Yuan. Public sports service system will be further strengthened, average sports field will be two square meters, 15 minutes fitness cycle will be built, new sports community will cover 100% and sports field coverage will be 100% for all country, city, executive community and villages. Awareness of healthy will be strengthened, combining sports into daily life, enable everybody to exercise. Regular exercisers will be 2.24 million, accounts 35% of the whole population of the province, and 15,000 mentors.
On 23rd of June, Jiangsu Provincial Campus Football for Teenagers Meeting passed Guiding Opinions on Promoting Campus Football for Teenagers. The Opinion raised a lot of initiatives that can be implemented. By 2020, there will be over 100 natural grass football fields, 1000 football schools, and 10000 registered campus football players. It is required by the Ministry of Education of Jiangsu Province that football will be compulsory course by every school. Football featured should have at least one football lesson each week, more than three football themed outdoor activities. Optional football lesson will be set in high school with authorized teachers in order to build campus football culture.
On 23rd of June, Shanghai also passed the Guiding Opinions on Speeding up the Development of Sports Industry and Promoting Sports Consumption for Shanghai. The Opinions states that Shanghai will become a worldwide first class sports center, holding important international competitions, allocate sports resources, and promote sports innovations. By 2025, Shanghai sports industry size will be 300 billion Yuan, sports services industry accounts 60%. The meeting also states that the government will play more roles in developing sports industry by transferring governmental functions and taking more responsibilities in public sports services. Promote sports industry function, reallocate resources, and improve industrial structure. Enlarge market supply, build more small to medium stadiums, fitness centers, jogging tracks, outdoor bases, and create more market entities. Utilize development environment, stimulate public sports service platforms.
Investment Boom Starts Golden Age
Wanda group wants to be top of the world for sports industry in 2015. The Chairman of Wanda, Wang Jianlin said the following mergers will be three sports companies. By finishing these mergers, Wanda will be the number one in the world sports industry. Besides, Wanda requires their projects to be held in China and control property rights and marketing rights of certain sports competitions.
Guirenniao and Hoop China co-set sports industry fund which focus on O2O, sports training, and personal fitness services on 19th of Jan. 2015. Suning becomes the sponsor for Guosen Shuntian football club of Jiangsu. Jingdong signed five year strategic contract with Chinese Super League. Alibaba bought 50% share of Hengda with 1.2 billion Yuan.
(Excerpts by Zhang Shuguang)