China’s Wanda Group may sell its ownership stake in Infront Sports & Media

One of the world’s leading sports marketing agencies may be acquired by a consortium led by Buyo Capital and NJF Capital

Wanda Group, one of China’s largest privately owned conglomerates operating in real estate development, hospitality, retail, and entertainment, is reportedly looking to sell Infront Sports & Media, a global leader in sports media rights management and commercial partnerships. Negotiations are said to be underway with the private equity firm Buyo Capital and the venture capital firm NJF Capital.

Wanda acquired Infront in 2015 for €1.05 billion (approximately US$1.22 billion) as part of its strategy to diversify beyond construction and real estate into sports, media, and technology. However, the downturn in China’s real estate sector has weakened the conglomerate’s financial position, and speculation about a sale has circulated since 2023, when Wanda reportedly hired Deutsche Bank as an advisor. Wanda has denied the latest reports, telling Bloomberg that the rumors of ongoing negotiations are “false”.

Founded in 2002, Infront Sports & Media manages media and commercial rights for some of the world’s biggest sporting organizations — from the Olympic Games and European football leagues to basketball federations and winter sports. The company also owns Host Broadcasting Services (HBS), which produces television coverage for major global events including the FIFA World Cup, Roland Garros, and the Rugby World Cup.

Despite its strong position in the sports industry, Infront’s business model requires substantial upfront capital, as agencies must pay rights holders in advance before recouping investments through media and sponsorship deals. This approach conflicts with Wanda Group’s current strategy of reducing expenses and improving liquidity amid financial pressure on its core businesses.

In this context, a potential sale of Infront would be a logical move. It could provide Wanda with much-needed cash while allowing the conglomerate to refocus on more stable business areas. A return to private equity ownership would also make strategic sense, as such funds typically have the long-term capital and risk tolerance required to support growth in the sports marketing sector.