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BIZCHINA> Center
Companies in a flap for Bird's Nest naming rights
By Du Xiaoli (chinadaily.com.cn)
Updated: 2008-08-20 18:35

The National Stadium Co Ltd has negotiated with up to seven domestic and overseas enterprises over title rights to the National Stadium, now fondly known as the Bird's Nest.

China Business News reports that no final intents have been reached yet, citing Zhang Hengli, deputy general manager of National Stadium Co Ltd.

Companies, Leverage Agency and Prescient Group have undertaken the related broker work.

Zhang also revealed that the first phase of partnership negotiations on the Bird's Nest have been completed, with 13 to 14 enterprises selected. The cooperation revenue reached more than 100 million yuan ($14.58 million). Now the second phase is being launched.

There are three types of sponsors for the Bird's Nest: sponsors with naming rights, partnership sponsors and suppliers.

The National Stadium Co Ltd was jointly established by the Beijing State-owned Assets Management Co Ltd and CITIC consortium to take charge of the financing, construction, operation and management of the stadium. CITIC consortium's investment accounted for 42 percent and the Beijing State-owned Assets Management Co Ltd offered the remaining 58 percent of funds.

The CITIC consortium will own operation rights for the stadium, which has hosted the Olympic track and field events, for 30 years after the Games. Finding sponsors for the title rights to the stadium is important work for the CITIC consortium, but it is still undecided on who the final sponsors will be, Zhang said.

As for the qualification, there are two factors to be considered: a healthy brand image and the right amount of funds, according to Zhang.

The main Olympic venues and relevant facilities projects for the Beijing Games included six corporate bidding projects with a total investment of around 20.5 billion yuan, of which 85 percent or 17.4 billion yuan were financed via project corporate bidding, according to statistics from the Beijing Organizing Committee for the Games of the XXIX Olympiad (BOCOG).

As for extending the commercial value of the Bird's Nest, Zhang said that ways to maximize the commercial value are still being discussed due to the fact there is no precedent in China.

Chinese consumers are making more money now, and in their leisure time they will spend it on culture and sports. It is reported that the Bird's Nest has already been booked as the home for the Beijing Guoan Football Club and stadium managers are in talks for other activities, aiming for a total of 60 matches or concerts a year. In addition, museums, malls and hotels may be established in the surrounding area.


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