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Chinese sports biz news: Xinhua, AEG, Isinbayeva

Friday, 6th March 2009 ~ Maggie ~ Link ~ Comments (0)

While the world economy reels, it looks like the business of Chinese sports is one area that's moving full-steam ahead. True, the Bird's Nest sits empty without a regular tenant or a decent lineup of future events, but there's plenty of other wheeling and dealing going on. The realization of the money-making potential of sports in China is relatively new among both domestic and international businesses, and there seems to be a bit of a scramble to gain an early foothold in this developing market. Here are some of the most recent stories in China's sports business world:

Isinbayeva signs Li-Ning deal

Two-time Olympic gold medal winner and world record-holding pole vaulter Yelena Isinbayeva signed a multi-million dollar deal with Li-Ning, China's biggest sports apparel maker. Contrary to the seemingly widely held impression that Chinese fans only cared about hometown athletes during the Beijing Olympics, locals actually jumped right on the bandwagon with the biggest stars of the games. Isinbayeva was definitely one of them. Her agent says the deal is not only about Li-Ning, but about opening the door to deals with other Chinese companies. She joins swimmer Michael Phelps (Mazda China) and tennis player Yelena Jankovic (Anta sportswear) in signing big sponsorship deals for the Chinese market this year.

Xinhua Finance rebrands itself Xinhua Sports & Entertainment

Xinhua Finance rebranded itself as Xinhua Sports and Entertainment, effective March 2, a strong signal of the coming growth of the business of sports in China (Brand Republic). Despite its former name, Xinhua Finance is not new to the world of sports. It holds exclusive rights to the All Sports Network, giving it access to an array of big American sports brands: the NFL, NCAA March Madness, Big 10 college sports and the NHL. It also purchased the distribution of the UEFA Europa League's 2009 to 2012 seasons. Its Nasdaq trading code will change from XFML to XSEL.

AEG China names new CEO

AEG China recently named John Cappo its CEO (Ticket News). Cappo was formerly managing director of ImG China. Cappo's biggest responsibilities for now will be management of three new facilities: Wukesong Basketball Arena in Beijing; the 18,000-seat Shanghai World Expo Performing Arts Center, set to open in may of 2010; and a new sports arena in Guangzhou, being built for the 2010 Asian Games. AEG created a joint venture with NBA China last fall, which will build, market and manage 10 to 12 arenas in Greater China, to be built by over the next 11 years.

New track and field series to include China stop

The IAAF—the international organization for track and field (or athletics)—has announced a new series of one-day meets, the IAAF Diamond League, that it hopes will rejuvenate interest in the sport globally. Among the 12 events scheduled for its inaugural year in 2010, will be the China Golden Grand Prix in Shanghai (more from Reuters UK).

Tags: AEG, athletics, China Golden Grand Prix, Isinbayeva, NBA China, Shanghai Golden Grand Prix, sports marketing, track and field, Wukesong, Xinhua Sports and Entertainment