Panel
The Business of Sports and Entertainment
Milken InstituteDong Wang, Sophie Goldschmidt, Robert Rankin, David Shoemaker, Chatri Sityodtong, Jim Small
- The NBA will host games in China in October, aiming to shift from B2B licensing to a direct B2C model by monetizing 10 renminbi a month from a small percentage of the 765 million unique Chinese viewers who watched games last year, while leveraging local heroes and continuing innovation through Play Zones and e-commerce.
- Formula One events in China and the US are predicted to increase under John Malone's ownership, and e-sports is expected to grow from a one billion dollar sector within a $100 billion video game market, potentially becoming an Olympic event following the International Olympic Committee's planned 2020 Tokyo e-gaming tournament.
- Major League Baseball recorded attendance records in the last 10 years, driving 75 million people annually, with digital consumption planned to integrate with the customer experience to drive park attendance rather than replace it, alongside the launch of development centers that have already graduated 35 kids to professional or collegiate levels.
- The Asian middle class is expected to become the largest in the world within several years, influencing viewing habits and spending on mobile and television, with demand for world-class production values predicted to skyrocket as technology disrupts traditional media and media rights in Asia follow a trajectory similar to the NFL's growth from one billion to seven billion dollars.
- A series of major upcoming events including the 2019 Rugby World Cup, 2019 World Basketball Championships, 2020 Tokyo Olympics, and 2022 Beijing Winter Games are forecast to transform the region's sports landscape, with the Rugby Sevens format driven by Olympic suitability and the NBA expected to raise the competitive bar for local leagues like the CBA.
- Investments in e-sports and the acquisition of teams trained in Korea are planned, with the sector's full potential viewed as just starting compared to traditional sports, and Apple is predicted to eventually acquire Premier League rights while Chinese brands like Huawei are expected to transform their image through sports associations over the next 10 to 15 years.
- Risks include potential struggles for the Chinese basketball association to improve their national team and qualify for the World Cup, challenges with declining participation rates in developed markets, and the possibility that Chinese investments in football may fail if they rely on buying players rather than grassroots development.
- Infrastructure development from global events is expected to lead to more governmental support and facilities, with local ownership and partnerships deemed essential for success, while a new model may be adopted by the Chinese basketball association to move away from the traditional Soviet system for grassroots growth.