Yao Capital, IDG back sports marketing business Shankai
Yao Capital and IDG Capital have invested RMB300 million ($45.3 million) in Shankai Sports, coinciding with the Chinese sports management company signing an agreement to manage the China operations of golf’s PGA Tour.
Beijing-based Shankai, which also has offices in Switzerland, has worked with international sports organizations such as the International Olympic Committee (IOC), FIFA and UEFA. It develops China strategies covering sponsorship, media, events and licensing. Previous activities include brokering Alibaba Group joining the IOC's global sponsorship program and advising Dalian Wanda Group on its acquisition of sports marketing agency Infront Sports & Media.
The company will work with the PGA Tour for 20 years from 2018 and help relaunch the organization's annual China-based series of golf competitions, which was held between 2014 and 2016. A total of 14 events are planned for 2018 – up from 13 in 2016 – with purses of RMB1.5 million apiece, a 25% increase from the tour's first three years.
"Operating the PGA Tour Series-China is a major undertaking and we're delighted to be starting this new era with the backing of major financial players like Yao Capital and IDG Capital, who have vast experience of supporting companies with potential for major growth," Hong Li, chairwoman and co-founder of Shankai, said in a statement.
Yao Capital was co-founded by Chinese former NBA star Yao Ming, his business partner Erik Zhang, and David Han, previously a managing director of The Carlyle Group. The firm focuses on growth and buyout sports deals in China as well as overseas.
Previous investments in the sports marketing space include Mailman, a digital marketing agency based in Shanghai and ticketing platform Wesai.com. The firm has also backed kickboxing organization Glory Sports International – with a joint venture to promote the sport in China – electric car racing series Formula E Holdings, and Chinese sports school Doing Now.
IDG Capital was founded in 1993 and has invested in over 600 companies, including Baidu, Tencent Holdings, Meitu, and Xiaomi. "As investors, we see the huge potential of sport in China for years to come, and are very happy to support Shankai and PGA Tour China during a time of exciting growth," added Jianguang Li, a partner with IDG.
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