Reborn in Hong Kong: The Tycoon Grows Up

The Los Angeles Olympics have not yet started, which means that the General Administration of Sports of China cannot see the huge economic benefits of sports. Bao Zixuan can only instill a little bit, commercialize it in advance, and the follow-up will be more standardized.

As for what could develop in the future, it was not something he could care about.

Bao Zixuan said with a smile: "Excellent sports events will inevitably be watched by spectators. The Olympic Games is a sports event that sweeps the world. But why are so many countries and regions unwilling to host them, mainly because the early losses are too bad. No country is willing to spend Such a huge thing and at the same time not getting any benefit."

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

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

"I know a little bit about this person. He is definitely a business genius. And many practices are more in line with the business model, and it is only a matter of time before making a profit."

Uberros was not well-received when he took office. This guy opened a bank account with $100, and then raised $700 million with a sign of the Olympic organizing committee. And of this $700 million, without a penny from the government, it was entirely raised by Uberros relying on his own unique business model. This basic business framework is still used today.

In the "Uber Ross Model", TV rights bidding and "Select Only Merchant Model" are the core components. This has also become the two main means for the Nuggets in the subsequent Olympic Games.

Seeing everyone's bewilderment, Bao Zixuan continued: "For example, in the sale of TV broadcasting rights, Uberros broke with the traditional method and used the bidding method for the first time. Any TV company that intends to bid must pay first. A deposit of 750,000 US dollars. The interest of these deposits in the bank is 1,000 US dollars a day, and then through the long process of bidding and negotiation, these huge amounts of interest have become the “first pot of gold” for the organizing committee.”

"After intense bidding and personal lobbying by Uberros, ABC bought the rights to broadcast the 16-day game for $225 million and provided technical equipment for $75 million. The previous TV rights for the Moscow Olympics were purchased. Only got $101 million."

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

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

"In the end, Uber Ross selected 32 sponsoring companies and received US$385 million in corporate sponsorships. In the last Olympic Games, there were 381 sponsors, but the total sponsorship amount was only US$9 million."

Of course, there are many ways. For example, at the 1984 Los Angeles Olympics, Uberros created a precedent for distributing tickets for the Olympic Games to facilitate audiences to purchase through mail order, door-to-door and other methods. And sell the "sweet spots" that were previously given away at different prices. At the same time, Uberros understood the psychology of sports fans in the United States and greatly increased the price of Olympic tickets, resulting in a crowded buying situation.

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

Of course the tickets and souvenirs have not been released, and no one will believe it even if they say it. But broadcast rights and sponsors are things that have actually happened.

The torch relay has always been carried out only between elite athletes, but Uberros sold it at a price of 3,000 US dollars per kilometer, while the Olympic torch was passed from Greece to Los Angeles, a total distance of 19,000 kilometers, and Uberros sold 10,000 of them. The company, which alone earned $40 million in additional revenue. Of course, in the end, part of the torch relay was called off, perhaps because the International Olympic Committee felt a little embarrassed. Or it is against the Olympic tradition, but the torch quota purchased with money before is a good experience of the feeling of passing the torch.

At the same time, in order to reduce the cost of Olympic members, Uberros has used a large number of volunteers to carry out all aspects of work, including: field support, medical and health care, technical communication, transportation and so on. In addition, the construction of the gymnasium and the Olympic Village was reduced as much as possible, the university dormitory was used instead of the Olympic Village, and some modern stadiums were built by means of sponsorship.

In the end, the Los Angeles Olympic Games made a profit of 225 million US dollars, so Pan Xingyu, a network operator, said that a good business model is extremely important in an enterprise.

Now, the director of the China Sports Bureau has not had this feeling yet. Listening to Bao Zixuan's words, it was rainy and foggy.

Foreign successful cases may not work in China, but first of all, we must open our minds. If you don't think about anything and don't implement it, no matter how good the plan is, it's useless.

Bao Zixuan continued: "For example, if we hold a basketball game, is there a lot of people watching the game? It's entirely possible to sell the tickets, so that a part of the income can be increased."

"At the same time, the broadcast rights can also be sold to TV stations, which can increase a 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 the TV station, it's better. They can add commercials during the broadcast. This way, the audience can watch it during the intermission or pause."

"Snacks, snacks, soft drinks and other products are sold inside the stadium. Don't underestimate the spending power of the people. As long as the operation is done well, the electricity bill can definitely be earned back by selling food."

"In short, the development of sports peripheral products is really innumerable, so I'm bullish on how the director makes a choice."

It's no wonder that people can make a fortune, but it is this advanced awareness that is beyond their reach. In fact, not only Director Zhang, but also Huo Yingdong was very emotional. Bao Zixuan's control of business and its specific operations are even better than him.

In fact, this is Mr. Huo's modesty, and Bao Zixuan is just a stunned young man. Not knowing the domestic situation, Huo Yingdong is very familiar with mainland China. Of course, he knows that some rules will not be easily changed, so he didn't think of these. No one thought that the courage of the Kyoto side would be so great, which greatly subverted the past perception.

Seeing that several people were still unsatisfied, Bao Zixuan continued: "This Olympics can also make a profit, it depends on whether the General Administration of Sport wants it or not."

"Domestic TV stations can broadcast events, and there is no problem with reporting athletes. Each TV station needs to divide the advertisements in the broadcast process into equal shares; whichever TV station is most willing to let will get the most news. This is also a business model."

"At the same time, foreign sports teams can also be invited to play games. These are real benefits. The establishment of various sports associations can completely establish professional leagues in China~www.readwn.com~ Whether domestic table tennis is promoted or popularized. To be at the forefront of the world. The sports committee can also contact the provincial team to let athletes go abroad to play, and it is reasonable to charge a portion of the training fee at that time.”

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

Bao Zixuan's words were an eye-opener for Director Zhang, if he could really do this. Not only will you not lose money in sports, but you can make a lot of money. If you have money, you will not lie in your heart, and you will no longer have to go to various departments to ask for funds as before.

Huo Yingdong said with a smile: "Xiao Baosheng can always surprise people, and it is the Huo family's duty to do things for the national sports. Director Zhang can take advantage of this Olympic Games to have a good inspection. After we come back, we can negotiate and see how to promote Huaxia. Sports combined with business."

With the support of Mr. Huo, the resistance to sports reform will be much smaller. It seems that this visit to Xiangjiang is really worth it, much better than expected.

Afterwards, Bao Zixuan discussed the details of sponsorship with Director Zhang. When he left Huo Mansion, it could be said that the host and guests enjoyed themselves.