China National Sports Group has teamed up with Singapore-based investment and development firm, White Group, to launch a new fund with the aim of accelerating the development of the sports sector in China and the wider region.
The strategic cooperation centres on the theme of ‘Connecting the World, Gathering Dreams, and Leading the Future’ and outlines a plan to acquire the intellectual property (IP) of leading international sports events as well as complete global or Asia-Pacific commercial rights that will establish a sports format that is “closely integrated with event IPs”.
The deal will also seek to create a group of international-level stadiums and supporting facilities that will cater for popular sports. The cooperation was announced at a signing ceremony held in Beijing.
A new fund, entitled the China-Singapore International Sports Industry Fund, will see Xinfang Huade Group invest an initial RMB1.4bn (£155m/€178m/$193m) and Chinese capital investing RMB600m.
The investment will be gradually increased moving forward according to the needs of the market, and there are plans for the fund to eventually top out at RMB6bn with investment from Xinfang Huade Group accounting for RMB4.2bn and Chinese investment accounting for RMB1.8bn. Huati Private Equity will be the implementation entity and manager of this fund.
White Group will work with China National Sports Group to conduct extensive cooperation across sports event investment and operation management, integration of investment, construction and operation of sports venues, sports technology, international sports industry funds, and sports derivative businesses.
The two parties will also work towards acquiring and operating top international event IPs through an industrial fund model and build a China-Singapore International Sports City in the Guangdong-Hong Kong-Macao Greater Bay Area.
Peh Chin Hua, White Group chairman and chief executive, said: “This strategic cooperation in the international sports industry between China and Singapore supports the idea that only by adhering to the spirit of sports, regardless of country, politics, race, religion, culture, language, rich or poor, can we together promote the international sports industry to empower it to achieve a more prosperous and rapid development. It is only through development can we make a more positive contribution to the friendship between China and Singapore.”
Gu Haoning, chairman and president of China National Sports Group, added: “Sport has the potential to transcend national boundaries, language, and cultural differences and the sports industry has become a massive market with increased health awareness and the popularity of sports events the main driving forces behind the rapid growth of the sports industry.”