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Can Shanghai stadiums still make a profit on tournament activities alone?

On the evening of November 26, in the second round of the 2017 China Football Association Cup held at the Shanghai Stadium, Shanghai Greenland Shenhua away 2:3 Shanghai SIPG, with a total score of 3:3, to win the championship with the advantage of more away goals.

Inside the stadium, Shenhua won the title, cheered and celebrated in the presence of nearly 40,000 fans; outside the stadium, the vast majority of stores in the neighborhood have long been shut down and closed due to the construction of the Xujiahui Sports Park, which added a little bit of coldness to the early winter night.

Before 2016, the Shanghai Stadium (also known as "80,000 people" stadium), Shanghai Stadium (also known as "10,000 stadium") and the Shanghai Aquatics Center and other "a two halls "The surrounding area has formed a bustling commercial area, stationed in the century Lianhua supermarkets, brand sports stores, various types of food and beverage, hundreds of merchants. The venues have been operating profitably for many years, and according to a reporter from Caijing, in 2014, the area's income from rent and ancillary income alone was close to 80 million yuan.

But most of the nation's stadiums are not sufficiently commercialized to carry out operations, and have been idle for a long time, with serious losses and the need for state subsidies to keep them running.

Taking the national stadium, the Bird's Nest, as an example, the Bird's Nest*** had 21 performance events in 2017, an average of less than two per month. In addition to the first and last 70-day-long Happy Ice and Snow Season activities, the Bird's Nest hosted only four sports events and two sports-related forums and summits throughout the year, with the remaining activities being performances and exhibitions.

At the same time, the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) has stipulated that the Bird's Nest is not allowed to house retail, catering and other stores. The Bird's Nest has again lost the foot traffic and rental income that stores might have brought in.

"It's a 'white elephant,' only ornamental, and you don't know what to do with it." Shen Lei, editor-in-chief of Wen Wei Po's sports section, commented. White elephants are regarded as sacred by the Thais and are strictly forbidden to be used for anything but worship.

As a demonstration representative of the earlier commercialized operation of venues, the profitable one and two venues have gained the attention of stakeholders in foreign provinces and cities in the past.

Shanghai Jiuzhi Sports Industry Development (Group) Co., Ltd. deputy general manager Yao Leng told "Finance and Economy", "large venues after the game operation has always been the world's difficult problem, in the case of the then fewer professional events, venues operating costs are high as well as the lack of demand for sports and fitness, Shanghai took the lead in starting to try to 'commercialize to raise the body ' model, the basically unutilized sports auxiliary rooms for commercial operation."

However, with the development of Shanghai's economy, the stadium area gradually appeared the phenomenon of commercial aggregation, in the eyes of some ordinary people, the commercial atmosphere is too strong, "the stadium is not surnamed sports."

If you really want to commercialize, a two museums and the surrounding **** about 600 acres of land are changed to commercial land, only the tax is more than the rent of the stadium. So this area is going back to sports, to create a sports and cultural landmark that takes into account both popular sports and professional events.

The former manager of a department of BEA Sports slightly regretted this, "(The) 80,000-strong stadium (that used to make a profit) was the odd one out, but now it may have to go back to the same way it was before."

Early in 2016, the original Dongya Group, which was responsible for operating one stadium and two halls, was merged into Shanghai Jiuzhi (Group) Co, Ltd, and then began planning and designing the Xujiahui Sports Park, with the boundary of North Caoxi Road - Zuoling Road - Tianyaoqiao Road - Zhongshan Nan Er Road, a 40.6-hectare area that includes one stadium and two halls.

Shanghai Municipal Land Bureau announced the "Shanghai Xujiahui Sports Park Control Detailed Planning Local Adjustment and Additional Plan Preparation (Public Participation Planning Draft)" in March this year, which retains and renovates four major buildings, namely, the stadium, Wanshidian, swimming pool and East Asia Building, while the rest of the buildings are basically dismantled.

The store clearance and demolition work began last year. Negotiations began after spring this year, and more than 500 merchants were moved out of the Xujiahui Sports Park planning area. And according to Dongfang.com, and the original company in charge of the direct contract *** there are 98 leasing merchants, and another 40 merchants through subletting, as of September this year, has been retired 96, the clearance rate of 98%.

The project began construction later this year. A circle has been fenced off next to the 80,000-strong stadium to begin remodeling, and a soccer training ground next to it is still available for games. All other stores, including restaurants, clothing and sports equipment stores, have closed, except for the field's pool hall, Tai Chi hall and a few restaurants downstairs at the Regal East Asia Hotel, which are still open.

Because 80,000 is currently the home of the Shanghai SIPG soccer team, Jiuwei will "transform and operate" to ensure that SIPG's home matches as well as warm-up training for home and away teams. Yao Leng said, "In principle, it will not undertake other arts and entertainment activities for the time being."

The Xujiahui Sports Park is scheduled to basically complete its renovation by the end of 2019 and be fully completed and operational by the end of 2020. Jiuzhi will also explore the market-oriented operation of Xuhui Sports Park based on the sports theme under the premise of meeting the demand for events and public fitness, including measures such as venue naming, looking for partners and designated suppliers, hosting large-scale international tournaments, carrying out large-scale activities related to sports and culture, and doing a good job in the operation of functional supporting services.