The way sport content is consumed is changing dramatically, and this is changing the business of sports events. PwC’s Sports Survey 2021 revealed the top “key market force” in the sports industry to be the transforming media landscape.

“We want to invest around the change,” George Pyne, Founder & CEO of Bruin Capital told SportsPro Activision conference. “The pandemic is accelerating the adoption of all things digital, which if you’re investing in technology is a good thing.”

The pandemic has presented challenges as well as opportunities.

“Portfolio companies are having a hard time hiring people and not meeting with clients – and there are supply chain issues. But strategically we feel good about the long-term technology change that’s taking place today.”

Bruin bought data-driven sports marketing agency Two Circles before the pandemic. Other recent acquisitions include Deltatre, TGI and OddsChecker. Bruin also bought golf simulation technology Full Swing, which experience mixed fortunes due to the pandemic. “Home simulators sailed off the charts, but golf was one of the sports that people could still do as it was outside.”

But Bruin’s investments have generally been well placed at this time of transition. “All our companies had a good tailwind. It’s working for us, being in the tech space – tech is disrupting life and for sure will disrupt sports.

“When I started Bruin we wouldn’t have been so tech focused. Our focus is growth, so where in the sports ecosystem can you find returns? We find the best place is in technology. We’ve landed on technology because of the growth credentials.”

High risk threshold

Pyne offered an insight into the needs of startups.

“When you’re looking for capital, you need capital that’s patient, easy to work with and can help you grow. When you are a startup you need to be able to pivot, to adjust, to be nimble and adapt to what’s going on around you.”

Investing in startups is a high-risk business. “In the startup space, most don’t make it. If you have 10 companies, about three are going to make it. It’s about investing in technology and people you believe in.

“Your threshold for risk is quite high. We don’t expect all to be successful – it’s the level of success you’re looking for.”

Pyne empathises with the disappointments that everyone in business faces from time to time. “I’ve been fired by a client, I’ve missed a budget, I’ve failed. Every day isn’t a sunny day. We are good to be around when things go bad – that’s the Bruin secret sauce. If you’re not a people business, you can’t be successful.”

From 2006 to 2014, Pyne was President of Sports and Entertainment and Board Member of IMG. “Having the experience of running a company, we are way more empathetic to CEOs. If you’re a CEO or management team, we are able to open doors. And equally importantly when things don’t go well, we understand. Those things are important to CEOs and CFOs.

“What works for me is three-year plans. It’s not just about money, but ideas. Check in once a month on strategy and numbers and you’ll never really fall apart. We have great CEOs, they run the businesses, we’re just here to help; we’re on their side.

“It’s based on trust, integrity, doing what you say you’re going to do – and how you handle it when things go wrong. Nobody’s perfect, we try to address our mistakes in the best way possible.”

New and emerging technologies

Technologies are emerging at an unprecedented rate – but which ones are here for good?

“NFT is probably here to stay. Cryptocurrency and the blockchain looks pretty sticky too.

“Sport reflects life and is going to follow the trends – all those trends are being enabled through global technology and sport will follow, which is good. I embrace innovation.

“If you look at Microsoft and Activision and the impact of the metaverse – that is the new frontier. There are going to be big winners and big losers and a lot of value created. There are going to be some big enterprises that come out of those categories.”

“NFTs and crypto is very exciting, but I’m more into the data and lifetime buy of the consumer. There are so many ways to interact with consumers through data and there are so many opportunities to be great in that area.”

“The relationship between club and consumer will define success in the future.”

Which perhaps brings us to the real reason that technology is such a huge growth area – it connects people with their passions.

“Golf is a passion point and Full Swing is satisfying that passion point – we love a good passion point in a partner.

“Our focus now is on TGI and Full Swing, helping them to do well. Somewhere along the way this year we’ll probably find a new technology platform to invest behind.

“It’s all about people. Technology without people is nothing.”

This article is based on the live Q&A by SportPro’s Editor-at-Large, Eoin Connolly

The Boao Forum for Asia takes place annually on the Chinese island of Hainan. This year’s event included a panel discussion on “Potential of the Sports Industry” with VIP speakers including Olympic champions, national sports association leaders, leading Chinese brands and media owners.

The panel opened with reflections on the leadership of the President Xi Jinping, under which sports has played an important part of the drive for healthier living and the development of China's “soft power”.

Fang Gang, Director of CCTV's sports channels said “Sport is part of national strategy for fitness and healthy living – sports has critical role in society.”

“Everybody is behind the national plan – it is substantial”, said Qian Jiannong, Senior Vice President, Fosun International.

The 2016-2020 National Fitness plan set ambitious targets for improving fitness and increasing sports participation by raising awareness of health and integrating exercise into everyday life.

Opening sports facilities for free to local people is an important aspect of the plan.

Alisports is using the Alibaba online retail platform to help achieve the 19th NPC goals by giving Ali credits as online incentive for users to exercise more.

“Sport is independent, something special and different,” said Zhang Dazhong, CEO of Alisports, whose project is laying foundations “to empower industries and provide services to national fitness.”

Alisports is also working with badminton, table tennis and tennis teams to improve performance.

He emphasised Alisports’ commitment to the empowerment process of sports, while also focussing on the enjoyment of sports.

Zhang Dazhong, CEO, Alisports said: “China must accumulate its own sports and not just buy international assets.”

Zeng Gang, Vice President of Suning Sports emphasised the importance of investment into education while also making it fun. “Sports is one part of entertainment… we try to promote enthusiasm and a positive feeling for sport”.

The ability to develop a sport is also linked to the availability of venues and equipment, which is one reason for the rapid growth of snooker in China. “Anyone can play in snooker halls,” pointed out Ju Cunguo, general manager of Daqing city's Cultural Media Co., Ltd.

According to Rupert Hoogewerf, Chairman of the Hurun Report, motor sports, fitness and horse racing are increasing and leading demands in China for sport.

Digital boost for winter sports

China has its eyes on great success at the 2022 Winter Olympic Games, hosted in Beijing.

"Whilst there is pressure on for Beijing2022, all sportspeople can do is their best for their country," said Li Yan, Chairwoman of the Chinese Skating Association.

Fang Gang said CCTV wants to showcase sport stars who can lead and inspire Chinese people and play sports. “The advantage of CCTV is that it is a national channel working for national good,” he said.

One such star is Wu Dajing, who has been incredibly busy ambassador for winter sports since PyeongChang 2018, where he became the first Chinese man to win Olympic short track gold.

According to Fang Gang, 20 million per minute watched Wu Dajing win his gold medal.

“I could not believe how many people were at the airport on my return. But my coach said it will only last for 40 days!” said Wu.

He said he wants to “make a contribution to Winter Games and promote speed skating and skiing.”

“Three years ago, nobody in South of China knew short track speed skating – they do now!”

Wu Dajing is asking for help from digital platforms to help promote Beijing2022.

While Alibaba is the biggest online retailer in China, the biggest communication platform is WeChat, owned by Tencent.

“Sports is so substantial” said Chen Juhong, Vice President of Tencent. “Wu Dajing made a huge impact.”

Tencent is also working with tennis, soccer, and baseball organisations to find out how data can be used in China.

“Tencent owners are very forward looking – there is no need to monetise data today,” he said.  “We are looking for a win-win of Tencent working with people.”

Li Yan, Chairwoman of Chinese Skating Association was interested to find out how digital platforms can help their 60 national events. “Work with us… Do not let the sport get lost in data and size of market,” she asked.

Zhang Dazhong said Alibaba expects a doubling of winter sports sales and higher value per sale for winter sports, but stressed that more investment is needed in winter sports infrastructure.

Zeng Gang, Vice President of Suning Sports invited skaters to work more closely with Suning to promote stories about athletes, generate more content and get more engagement.

He also said that football in China needs to fulfil its potential. The Chinese Super League must find a home for football fans and “create a tie from fan to club”.

The Chinese Super League is working with English Premier League to learn how to customise and commercialise football in China, said Zeng.

Suning is considering offering new membership events for Chinese Super League.

It’s not just online where sales are growing; Suning has recently opened a sport store in Nanjing as it promotes a “hybrid offline-online model for sport.”

This article was based on a panel discussion at Boao Forum For Asia on 9 April 2018. For more detailed discussion on Sports development in China please attend Host City Asia in Beijing on 31 May 2018