Speaking at the China Sports Industry & Sports Management Strategy Forum held at Sun Yat-sen University, Liu Jiangnan, head of the Administration of Sports of Guangzhou Municipality, stated that to prepare for the 2010 Asian Games, Guangzhou will spend a total of RMB 200 billion. The amount includes RMB 2 billion for the building of 11 new sports centers and the renovation of existing venues. The balance will be used for development of the Asian Games Village, a News Center, extension of the subway system and other municipal infrastructure facilities.

How to turn sports into a profitable business? Commercialization may prove a viable option. Mr. Liu said that given Guangzhou's population of 13 million, 58% of which is athletically inclined, there are huge business opportunities.

"Sports not only build our bodies, but also bring honors and profits to our nation." Mr. Liu said in his analysis of Guangzhou's favorable conditions for the development of sports.

Guangzhou is currently home to 42 individual sports associations; 10,140 sports venues, 1.19% of the nation's total; 17.27 million square meters of sports grounds about 2.3 square meters per person; and approximately 200 venues for formal sports events.

Mr. Liu said that the city will seize opportunities presented by the Asian Games to develop the city's sports.

He went to say that the government faces three major choices in sports development: to develop sports using either market principles or central planning; by the public or private sector; and, by applying either modern ideas or sticking to the traditional mindset.

Speaking about the difficulties encountered in the commercialization of sports, Mr. Liu cited the lessons learned from the 2003, China vs. Brazil football match, saying that "The city's Administration of Sports made about RMB 2 million from tickets to the match between the Chinese national team and the Brazilian team; however, as people thought that the government was supposed to fund the game, we distributed 10,000 free tickets, which were worth millions of yuan," Mr. Liu went on to say, "to develop sports, stadiums should operate according to market principles, and the Administration of Sports should not merely be a money collector."

Mr. Liu also revealed that the US "Dream Team" will show off their basketball skills in Guangzhou in August.

Editor: Yan