Summary of Key Points
Large sports venues are facing a "resource competition" between sporting events and entertainment activities. On one hand, sporting events have a strong public welfare nature but generate low revenue and require high-quality facilities (such as lawns that need extensive maintenance). On the other hand, entertainment activities bring quick profits but can damage the venues and encroach on their public welfare purpose. The underlying issue is the difficult balance between maintaining the venue's viability through commercial income and adhering to its original purpose of providing public services. This article proposes a solution from a "zero-sum game" to a "win-win situation for both" by comparing venue operations in China and the United States, highlighting successful cases of integration in Shanghai, and discussing potential future paths forward (in terms of infrastructure, management, and community benefits), as well as the role of technology.
I. Why Do Sports and Entertainment Compete for Space? Survival Pressure Forces This
The fundamental issue in venue operations is a lack of funding. The construction costs of large venues in China are enormous (often billions), and ongoing maintenance expenses (for lawns, energy consumption, staff) are endless.
- Sports Events: They generate little revenue and are cumbersome to organize. High-level events (such as World Cup qualifiers) have strict venue requirements (natural lawns need to be restored after use), but the income from basic rentals and ticket sales is insufficient to cover these costs.
- Entertainment Activities: They bring quick profits but can damage the venues. The daily rental revenue from a top-tier concert can match that of several sporting events, and they also boost local consumption. However, the setup and dismantling of concert facilities take time and can permanently damage the lawns, leading to debates about the commercialization of public resources.
To survive, venues often prioritize entertainment events, which leads to competition for scheduling and space with sports events.
II. What Are the Differences in Venue Operations Between China and the US?
The fundamental difference lies in the underlying logic of how these venues generate revenue:
- In the US: Venues are designed to be versatile and generate multiple sources of income. For example, the SoFi Stadium for the 2026 World Cup was modular, allowing it to be converted from a football field into a concert venue in just 48 hours. Revenue comes from various sources, including season tickets, sponsorship rights (long-term fixed income), rental fees, ticket sales, and ancillary services (such as dining and merchandise), ensuring profitability across the year.
- In China: Venues are primarily focused on public welfare, with revenue coming mainly from rentals. Many are built by the government for public use (e.g., free fitness facilities for residents). Without additional income streams, they struggle to withstand financial challenges, and there is a lack of opportunities for secondary consumption (e.g., no post-event activities that would attract visitors).
III. Are There Any Good Examples in China? Shanghai's Integrated Approach
Shanghai has successfully transformed venues from being mere rental spaces into platforms for integrated events:
- The F1 "Economic Engine": The F1 event in Shanghai is more than just a racing competition; it includes a shopping district and cultural attractions. During the 2026 F1, the Xuhui West Bund area saw a 62.7% increase in foot traffic, generating 2.47 billion yuan in economic activity. Fans used their tickets to visit restaurants and attractions, turning event attendees into consumers.
- Olympic Qualifiers: The 2028 Los Angeles Olympics qualifiers (in sports like climbing and skateboarding) were held in public spaces, utilizing the momentum generated by the F1 event. This approach expanded the benefits of the venue to the entire city area without competing with concert schedules.
IV. How Can We Find a Solution in the Future? Adopt a "Precision Dual Track" Approach
We need to move away from a binary perspective and create a model where both sports and entertainment can thrive:
- Infrastructure: New venues should be designed with flexibility, using modular components that allow for quick conversions (e.g., replaceable lawns). Protective flooring can be installed for concerts and natural grass for events.
- Management: Cross-departmental collaboration is essential. For example, the Phoenix Mountain venue in Chengdu hosted over 150 events annually through government coordination across various departments (transportation, culture, tourism, dining), offering bundled services that attracted visitors from other cities and generated 13 billion yuan in revenue.
- Community Benefits: Venues should maintain public spaces for residents' use, balancing commercial interests with community needs, which helps resolve public concerns and integrates the venue into urban life.
V. How Can Technology Help? Use AI to Solve Old Problems
Technology can improve venue operations and balance commercial and charitable goals:
- Smart Traffic Management: AI can analyze crowd movements and push promotional offers to nearby restaurants during concerts, turning disordered crowds into orderly consumer flows and increasing revenue during off-event periods.
- Digital Ticketing: Physical tickets can be transformed into digital assets, allowing fans to earn virtual rewards and enhancing their experience, thus prolonging their stay at the venue.
- Lawn Monitoring: Sensors can predict when lawns need maintenance, preventing damage from entertainment activities and ensuring that sporting events can take place on time.
In the end, venues should evolve from being mere property owners to data-driven operators, using technology to reduce costs and increase efficiency while maintaining their public welfare mission.
Conclusion
The competition between sports and entertainment is not about which sector prevails, but about how venues contribute to the overall value of the city. Ideal venues in the future will be capable of hosting large-scale events while also providing free fitness facilities for residents, generating significant revenue, and fostering a vibrant sports culture. This is the true solution to the ongoing conflict over scheduling and space utilization.