Reborn in Hong Kong: The Tycoon Grows Up

The Los Angeles Olympic Games have not yet started, which means that the General Administration of Sports of China has not yet seen the huge economic benefits of sports projects. Bao Zixuan can only instill it little by little and commercialize it in advance, and it will be more standardized in the future.

As for how it will develop in the future, it is not something he can care about.

Bao Zixuan said with a smile: "Excellent sports events will inevitably be watched by audiences. The Olympic Games is a sports event that sweeps the world. But why are so many countries and regions unwilling to host it? The main reason is that they suffered too much in the early stage. No country is willing to spend money Something that’s so huge and doesn’t get any benefit at the same time.”

"The Los Angeles Olympics is setting a precedent. If you operate it well, you will definitely be able to make a lot of money."

"Peter Ueberroth, chairman of the Los Angeles Olympic Organizing Committee, pioneered the private model of commercial operation of the Olympic Games."

"I know this person somewhat. He is definitely a business genius. Moreover, many of his practices are more in line with the business model. It is only a matter of time before he becomes profitable."

Ueberroth was not favored when he took office. This guy opened a bank account with US$100, and then raised US$700 million with a sign of the Olympic Organizing Committee. Of the US$700 million, there was not a penny from the government, and it was entirely raised by Ueberroth relying on its own unique business model. This basic business framework is still used today.

In the "Ueberroth Model", television broadcast rights bidding and the "select the only merchant model" are core components. This has also become the two main methods for the Nuggets in subsequent Olympic Games.

Seeing the confused expressions on everyone's faces, Bao Zixuan continued: "For example, in the sale of television broadcast rights, Ueberroth broke the traditional method and used the bidding method for the first time. Any TV company interested in bidding must pay first A deposit of US$750,000. The interest on these deposits in the bank is US$1,000 per day, and through the long bidding and negotiation process, these huge interests become the "first pot of gold" for the organizing committee."

"After fierce bidding and Ueberroth's personal lobbying, the American Broadcasting Corporation finally bought the broadcast rights for the 16-day competition for US$225 million and provided technical equipment for US$75 million. The previous TV broadcast rights for the Moscow Olympics Only got $101 million."

"Not only that, Ueberroth also sold the broadcast rights to European and Australian institutions respectively, which is unprecedented, which caused the original 225 million to soar to 287 million."

"At the same time, in the sponsor section, Ueberroth broke the original small and scattered situation and concentrated on "catching big fish." Therefore, it is stipulated that the number of sponsors shall not exceed 40, and the number shall be controlled at around 30. There shall be only one sponsor in each industry. One family, with a low price of US$4 million. The formulation of this rule has made competition within all walks of life extremely fierce. The first reason for this is that the Olympic Games have attracted much attention and have a strong publicity effect. The second reason is that it is conducive to the establishment of enterprises. The only image in an industry.”

"In the end, Ueberroth selected 32 sponsoring companies and received US$385 million in corporate sponsorship. However, the number of sponsors for the last Olympic Games reached 381 companies, but the total sponsorship amount was only US$9 million."

Of course, there are many ways. For example, at the 1984 Los Angeles Olympics, Ueberroth set a precedent for distributing Olympic game tickets to facilitate audiences to purchase through mail order, door-to-door and other methods. And the "best location" that was previously given away as a gift was sold at different prices. At the same time, Ueberroth understood the psychology of American sports fans and significantly increased the price of Olympic tickets, resulting in a rush to buy tickets.

That year, the total revenue from Olympic tickets was US$123 million, and through the "Sponsor Plan Ticket"; individuals who sponsored more than 25,000 people could get two of the best grandstand seats every day. As well as allowing merchants to do business in the Olympic Games and commemorative coins, medals and other methods, raising nearly 100 million US dollars.

Of course, tickets and souvenirs haven’t been released yet, and no one would believe it even if I told them. But broadcast rights and sponsors are things that have actually happened.

The torch relay has always been only carried out between elite athletes, but Ueberroth sells it at a price of 3,000 US dollars per kilometer. When the Olympic torch is passed from Greece to Los Angeles, a total of 19,000 kilometers, Ueberroth sells 10,000 U.S. dollars. The company, alone, generated an additional $40 million in revenue. Of course, part of the torch relay was stopped in the end, perhaps because the International Olympic Committee felt a little embarrassed. Maybe it goes against Olympic tradition, but I spent money to buy a spot for the torch before, so I got to experience the feeling of passing the torch.

At the same time, in order to reduce the cost of Olympic members, Ueberroth uses a large number of volunteers to perform various aspects of work, including: stadium support, medical and health, technical communications, transportation, etc. In addition, the construction of stadiums and Olympic villages has been reduced as much as possible, university dormitories have been used to replace the Olympic villages, and some modern competition venues have been built through sponsorship.

In the end, the Los Angeles Olympics made a profit of US$225 million, so Internet athlete Pan Xingyu said that a good business model is extremely important in an enterprise.

The director of the China Mainland Sports Bureau has not yet felt this way. Hearing Bao Zixuan’s words, he was confused.

Successful cases abroad may not work in China, but you must first open your mind. If you don’t think about anything and don’t implement it, no matter how good the plan is, it will be useless.

Bao Zixuan continued: "For example, if we hold a basketball game, there will be a lot of people watching the game. We can definitely sell the tickets, which can increase some of the income."

"At the same time, the broadcasting rights can also be sold to TV stations, which can increase part of the income. At the same time, some billboards can be placed around the venue. I believe there will be many manufacturers willing to pay for advertising."

"As for TV stations, it's easier. They can add advertisements during the broadcast. This way, the audience can watch it during the intermission or pause."

"Snacks, snacks, soda and other products are sold inside the stadium. Don't underestimate the people's spending power. As long as it is done well, the electricity bill can definitely be earned back through the sale of food."

"In short, there are really countless sports peripheral products to be developed. I am optimistic about how the director will decide."

No wonder other people can make a fortune, but this advanced consciousness is beyond their reach. In fact, not only Director Zhang, but also Huo Yingdong was extremely emotional. Bao Zixuan's control of business and specific operations were even better than his.

In fact, this is Mr. Huo's modesty, and Bao Zixuan is just a stupid young man. Although he didn't understand the domestic situation, Huo Yingdong was very familiar with the Chinese mainland. Of course, he knew that some rules would not be changed easily, so he did not think of these. No one expected that Kyoto would be so bold, which greatly subverted past perceptions.

Seeing that several people were still unsatisfied, Bao Zixuan continued: "We can also make profits in this Olympics, it depends on whether the General Administration of Sports wants to do it."

"Domestic TV stations can broadcast events if they want, and there is no problem in reporting on athletes. Each TV station needs to share the advertisements during the broadcast process equally; whichever TV station is most willing to do so will get the most news. This is also a business model."

"At the same time, we can also invite foreign sports teams to play games. These are real benefits. By establishing various sports associations, we can completely establish professional leagues in the country."

"Domestic table tennis is at the forefront of the world in terms of promotion and popularization. The sports committee can also contact the provincial team to allow athletes to play abroad. It is reasonable to charge a part of the training fee."

"Sports peripheral products should also be developed simultaneously, such as image endorsements. Suppose that Heiyun's companies find domestic sports stars to endorse if they need it. The General Administration of Sports and the provincial teams will take a part of the commission, of course not more than 30%, then everything is reasonable. "

Bao Zixuan's words opened Director Zhang's eyes to see if this could really be done. Not only will you not lose money in sports, but you can earn a lot of money. If you have money, you won't lie. You no longer have to go to various departments to ask for funds like before.

Huo Yingdong said with a smile: "Little Baosheng can always surprise people, and it is the Huo family's duty to do things for national sports. Director Zhang can take advantage of the Olympics to do a good inspection. When we come back, we will discuss how to promote China Sports and business combine.”

With Mr. Huo’s support, the resistance to sports reform will be much smaller. It seems that coming to Xiangjiang this time is really worth it, much better than imagined.

Afterwards, Bao Zixuan discussed the details of the sponsorship with Director Zhang, and when he left Huo Mansion, it could be said that the guest and the host had a great time.