Seoul City Gives Jamsil Stadium More Advertising Revenue to LG and Doosan

The Korean professional baseball LG Twins and Doosan Bears, which use Jamsil Stadium in Seoul as their home, can expect more income from advertising this year. This is because the ratio of the ‘third party usage fee’ to the two clubs has been increased. According to the professional baseball world on the 6th, starting this year, Seoul City, LG, and Doosan clubs have agreed to adjust the third-party usage fee and take the same at 33%.

The Seoul Sports Facility Management Office has signed a number contract with LG and Doosan every three years. The two clubs select an advertising agency through a bidding process and pay the Seoul Metropolitan Government commercial advertising fees based on the winning bid amount. Over the past three years, the city of Seoul has received 스포츠토토 12.7 billion won in advertisement fees for the Jamsil Baseball Stadium, including 8.2 billion won, the annual appraisal amount, and 4.5 billion won, 50% of third party usage fees. LG and Doosan split the remaining 50% in half, taking 2.25 billion won, equivalent to 25%.

However, as the contract expired this year, it was pointed out again that the clubs, which are the source of advertising revenue that attracts spectators to the stadium, are taking too small a share. As the Seoul Metropolitan Government accepted this, the club’s third-party usage fee ratio increased.

An increase in third-party royalty rates does not guarantee an increase in revenue for clubs. In professional baseball, the number of spectators has decreased due to the aftermath of the current Corona 19, and the down payment for advertising rights has decreased. However, for the club, where ‘reinforcement of self-reliance’ is the homework to be solved, better income can be expected when renewing the contract three years later. The two clubs have already obtained a similar level of money as in the previous contract despite the lower execution contract this year due to the ratio adjustment.

This change began when Heo Gu-yeon, president of the Korea Baseball Organization (KBO), directly announced the need for a readjustment of the third-party usage fee ratio. An official from the club said, “The discussion with Seoul Mayor Oh Se-hoon, who has a high understanding of the sports industry, went well, and the profit distribution was adjusted.”