Coming off a strong ’15, Asia continued to dominate sports business headlines in ’16. China still ruled the roost as far as sponsorship deals and sports investment. Asian businesses remained heavily involved in European football, with partial investments as well as full takeovers of top-tier clubs. The next three Olympic Games will be hosted on the continent as China, Japan and South Korea have found a common cause in helping one another host successful Games. The Indian Supreme Court’s Lodha Committee recommended a range of sweeping reforms for the Board of Control for Cricket in India that was met with resentment by much of the board, causing an ongoing rift between the two bodies.
Chinese President Xi Jinping’s initiative to grow China as a global sports powerhouse has fueled major investments in Chinese sports and abroad. Several Chinese Super League clubs spent record amounts signing European talent in ‘16. Most recently, Chelsea midfielder Oscar agreed to move to Shanghai SIPG for a reported $65M. In response to the deep pockets and quick spending of Chinese teams, Chelsea Manager Antonio Conte warned, “The Chinese market is a danger for all teams in the world.”
ASIAN INVOLVEMENT: Following its purchase of a 20% stake in Atlético Madrid in ‘15, China’s Dalian Wanda Group grabbed the naming rights to Atlético’s new stadium for €100M ($104M), fueling rumors of a takeover worth a reported €220M ($230M). Beyond football, Dalian Wanda also acquired Ironman owner World Triathlon Corp. in ’15, a deal worth $650M that has already brought two events to China. Another major Chinese player, Alibaba’s sports division Alisports, announced it would invest $100M over the next 10 years to popularize rugby in China, with a goal of increasing the number of players and bringing major events to the country. Asian investors taking ownership in clubs was a common theme last year, and that has not dropped off. This year, clubs in almost every major European league experienced a full takeover or minority investments from Asian businesses and consortiums. Premier League side West Bromwich Albion, Serie A’s Inter Milan, La Liga’s Granada and Ligue 1’s OGC Nice all saw majority takeovers by Asian investors -- with most coming from China. With the number of clubs in need of investors and the surplus of Asian cash, the trend does not seem to be slowing.
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Tokyo Governor Yuriko Koike has had her city come under IOC scrutiny.
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OLYMPIC ISSUES: Although the 2018 PyeongChang Games are next on the Olympic schedule, the 2020 Tokyo Summer Games have gotten most of the press. From budget inflation to venue disputes, the Tokyo Organizing Committee has had to deal with its share of controversy. The Tokyo Games budget has now been put at between $13.6B and $15.2B, pending IOC approval. In November, IOC officials and execs from PyeongChang 2018, Tokyo 2020 and Beijing 2022 met to reaffirm their commitment to hosting successful Games.
WICKET TIMES: Indian cricket could be set for a major shakeup with the country’s Supreme Court set to rule on whether the BCCI must conform to the Lodha panel’s recommendations. The long-standing debate has seen the BCCI claim to have complied with most of the recommendations and say that it would gradually comply with the rest. The bench has viewed this as a stalling tactic and has asked banks to stop the BCCI’s financial disbursements. If the court accepts the Lodha Committee’s recommendations, top BCCI officials could be removed and replaced by court-appointed overseers.
