Why is Wang Jianlin investing so much money in sport?

BEIJING — China’s richest man Wang Jianlin, who has come to the rescue of FIFA by becoming the first key sponsor in the post-Sepp Blatter era, has built up the world’s first sports conglomerate to go alongside his property and entertainment empires.

The 61-year-old former People’s Liberation Army officer’s fortune is estimated at nearly US$29 billion (S$39.4 billion) and Forbes ranks him the 18th richest person in the world. He is the first mainland Chinese to make the Forbes top 20.

Wang is an avid football fan. But his key stake in Atletico Madrid and ownership of World Triathlon Corporation which runs the Ironman series, and Infront, one of the world’s biggest sports media and promotion companies, are not for philanthropy.

“We want to truly impact the development of sport around the world,” Wang said last year after buying Infront.

“He is deadly serious about making money from sport as he is from property, make no mistake about it,” one Wanda company insider said.

Wang built his fortune on Wanda shopping malls and a chain of hotels across China.

He also owns the US cinema chain AMC, which he bought for US$2.5 billion, and the Legendary Entertainment film studios in Hollywood which cost another US$3.5 billion. Wang financed the “Spotlight” movie which won this year’s Oscar.

Wanda’s sports holdings divison already proudly boasts that it is “the world’s largest sports company.”

Wang first entered the soccer business in the 1990s when his group became the key backer of Dalian Wanda.

But he withdrew in 2000 after condemning the corruption in Chinese football. But he has never lost interest in the sport.

He bought a 20 per cent stake in Atletico Madrid for 45 million euros (S$69 million) in January 2015 which he said was an investment but also intended to “strengthen the quality of Chinese football and narrow the gap between the rest of the world.”

The following month, he spent an estimated 1.05 billion euros on Swiss-based marketing group Infront company.

Infront’s businesses include producing World Cup broadcasts for FIFA and its chief executive is Philippe Blatter, nephew of the now fallen Sepp Blatter.

It works with the governing bodies of skiing and ice hockey, Italy’s Serie A football and the Chinese basketball league.

Wang again highlighted that it was an investment that would also help Chinese sport.

“This acquisition of Infront will significantly increase the future impact of the Wanda Group in the culture and entertainment industry,” he said at the time.

The deal “will also drive the development of Chinese sports industry and its interest around the globe.”

Since then Wang has added World Triathlon Corporation for another US$650 million and is regularly reported to be in talks for other sports properties.

China has already secured the 2022 Winter Olympics and many observers say a bid for the 2026 World Cup could follow.

Analysts said that having Wanda as a top-level backer of FIFA and a football-loving president in Xi Xinping could only help the bid. AFP