The unfair trading of advertisement rights at Jamsil Stadium between Seoul and LG and Doosan has been improved. Until last year, LG and Doosan only took about 5% of total advertising revenue. However, from this year, LG and Doosan’s profit distribution ratio has increased. An increase in earnings can be expected in the future.

It was a strange transaction. From 2020 to 2022, Jamsil Stadium’s annual advertising revenue was 17.2 billion won, but LG and Doosan’s revenue was only 750 million won each.

Details are as follows. In an open bidding in 2019, an economic media outlet decided to execute advertising rights at 17.2 billion won annually for three years from 2020 to 2022. However, 12.7 billion won out of 17.2 billion won was taken by the Seoul Metropolitan Government. Appraisal amount is 8.2 billion won. Excluding the appraisal amount of 8.2 billion won from 17.2 billion won, it becomes 9 billion won. From 9 billion won to 4.5 billion won, which is 50%, a total of 12.7 billion won belonged to the city of Seoul.

LG and Doosan split the remaining 4.5 billion won in half. However, prior to advertising revenue, LG and Doosan pay 1.5 billion won each to Seoul, a total of 3 billion won, as stadium usage fees. 1.5 billion won excluding advertising revenue of 4.5 billion won and 3 billion won from stadium use. The 750 million won, which was 1.5 billion won divided in half, was all of the advertising revenue that LG and Doosan earned while using Jamsil Stadium. Games are held every year for 6 or 7 months, and before Corona 19, more than 2 million spectators in total for both clubs visited Jamsil Stadium, but the clubs earned too little.

The change was made through the Korea Baseball Organization (KBO). President Heo Gu-yeon recognized early on that there was a problem with the distribution of advertising revenue at Jamsil Stadium, and constantly confronted the Seoul Metropolitan Government over this issue. He communicated with Mayor Oh Se-hoon as well as the head of the department in charge and demanded an adjustment in profit distribution. As a result, we made efforts by constantly presenting local and overseas cases to Seoul, and as a result, the profit distribution was adjusted.

Previously, as described above, the city of Seoul took 50% of the total amount excluding the appraisal amount. From 2023, 33% of the total amount, excluding the appraisal amount, will be taken equally by Seoul City, LG, and Doosan. The share of LG and Doosan increased from 25% to 33%. 메이저사이트

It is not that LG and Doosan are benefiting greatly right away. Due to COVID-19, most matches have been played behind closed doors for two of the past three years. The position of Jamsil Stadium in the advertising market has also declined. The size of newly signed advertising rights contracts over the three-year period from 2023 to 2025 also decreased. The annual advertising rights execution contract of 17.2 billion won has fallen below 15 billion won.

Still, just adjusting the profit distribution is significant. Assuming that they signed an advertising rights enforcement contract for 17.2 billion won as before, LG and Doosan’s advertising revenue will increase from 750 million won to 1.5 billion won. An official from the club said, “The total advertising revenue at Jamsil Stadium has been reduced, but revenue has been maintained at the previous level due to revenue distribution adjustments.” there is,” he said.

The key lies in the future. The popularity of baseball went downhill before Corona 19, then plummeted with Corona 19. Last year, the baseball field opened normally after two years, and box office indicators improved slightly. If LG and Doosan can guarantee attracting 1 million spectators side by side as they did before, ad revenue will rise again. Although the new stadium in Jamsil has no promise yet, if the profit distribution rate is maintained even after the construction of the new stadium, larger profits can be expected.

An official from the club said, “I think this profit distribution adjustment has created a win-win structure for local governments and professional clubs. If the baseball world works together to bring in more fans again, advertising revenues will rise again, and the profits of local governments and clubs can increase,” he predicted.

Leave a Reply

Your email address will not be published. Required fields are marked *