Dalian Wanda Group is selling Infront Sports & Media, a marketing company that host more than 100 events each year.
Photo from CFP
By YANG Yi
Dalian Wanda Group is seeking buyers for Infront Sports & Media, a marketing company based in Switzerland. Infront has confirmed the possible sale with Reuters, but it may take months to find a buyer.
Infront collaborates with sports projects, hosting more than 100 events each year, attracting over 500,000 participants. Its operations cover media rights, television, event management and brand promotion.
In February 2015, Wanda Group bought 68.2 percent of Infront's shares for 105 million euros (740 million yuan). At the time, Wanda’s founder WANG Jianlin said Infront was a profitable company with promising prospects.
Before acquiring Infront, Wanda splurged 45 million euros on a 20 percent stake in Spanish football club Atlético Madrid and acquired the World Triathlon Corporation for US$650 million. Wanda also bought sports brands such as Italian football marketing company Gsport and the German obstacle race XLETIX.
In July 2019, Wanda Sports went public in the US, raising US$190 million, but persistent shopping sprees led to high debt. Coupled with the impact of mass cancellations due to the pandemic, Wanda Sports' businesses tanked and the stock collapsed. The company even sold the World Triathlon Corporation, somehow cobbling together a US$ 80 million profit.
Wanda Sports was delisted from NASDAQ on January 29, 2021, with a closing valuation of US$345 million, more than 50 percent down after only a year and a half of trading.
Now that the pandemic is gone and sports events are back on track, Wanda is in no position to capitalize on whatever is left among the Infront wreckage. Wanda Commercial has liabilities of 310 billion yuan. Selling Infront is a desperate move for desperate times.
Meanwhile, Infront has been busy this year making new deals with the International Association of Athletics Federations (IAAF) Indoor Tour, the Scottish Football League, and the German Basketball Bundesliga. In June, Infront obtained exclusive broadcasting rights for the Olympic Games until 2032 in many parts of Asia.
Furthermore, among the 7 international sports associations governing Winter Olympic disciplines, Infront represents 6 of these associations, including the World Curling Federation, International Ice Hockey Federation, and International Skating Union.
Infront is also responsible for broadcasting rights of the English Premier League and Serie A in international markets.
