Clear Channel Seals 50-Year China Pact
Tue Mar 8, 2005 02:20 AM ET
By Nikki Denvir
NEW YORK (Hollywood Reporter) - Clear Channel Entertainment on Monday announced a 50-year joint venture with the state-owned Beijing Gehua Cultural Development Group, creating what one Clear Channel exec called an "opportunity for unprecedented cultural exchange of music, sports and other live-entertainment events."
The newly formed organization, Gehua Clear Channel Entertainment & Sports Co. Ltd., will have first right of refusal to launch live tours of performance shows and sporting events in China and will be involved with event promotion, venue management, artistic management, sponsorship opportunities and merchandising. Each partner will have a 50% stake and share profits equally, Clear Channel Entertainment senior vp Ed Cunningham said.
Although no specific programs have been named yet, Gehua Group has had discussions that highlight an interest in theater and motor sports, specifically monster truck events, Cunningham said. One example would be opportunities for popular Broadway musicals to be built as ongoing shows in Beijing as opposed to limited engagements, he said.
The Chinese government has stepped up efforts to improve the overall level of its citizens' cultural life, said Jian Qi Wang, general manager of Gehua Group. He said Gehua and Clear Channel are committed to bilateral cultural communications between China and the United States and said he considers the relationship a "win-win."
"We believe this agreement creates the opportunity for unprecedented cultural exchange of music, sports and other live-entertainment events," Clear Channel Entertainment chief executive Brian Becker said.
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