New World Enters Professional Baseball... Will 'Incheon City' Be Born?

Following an Experience-Oriented Management Policy, a Complex Cultural Space Will Likely Be Created
Avoiding the Pitfalls of Acquisition Amid Management Deterioration, 130 Billion KRW Sale, Confirming Potential of Professional Baseball
"Other Teams Also Expected to Seek New Cooperation Methods with Parent Companies"

[Image source=Yonhap News]

Shinsegae Group's Emart is entering professional baseball. Emart announced on the 26th that it signed a memorandum of understanding to acquire 100% of the shares of SK Wyverns, owned by SK Telecom. The acquisition price is 135.28 billion KRW, including 100 billion KRW for stocks and 35.28 billion KRW for land and buildings. The final contract will be signed on the 23rd of next month.

This is the sixth team transfer in the history of professional baseball. Previously, companies that acquired existing teams were Cheongbo (1985), Taepyungyang (1987), LG (1990), Hyundai (1995), and KIA (2001). All of them expected to enhance corporate promotion by rescuing teams that were in trouble due to the deteriorating conditions of their parent companies.

The nature of this acquisition is different. SK Telecom has no financial issues. Since 2007, the Wyverns have undergone a cultural reform, creating a new culture in professional baseball. This is reflected in their performance under the concept of 'Total Baseball' and their popularity represented by 'Sportainment' (Sports + Entertainment). With four Korean Series championships and fan-friendly management, they have established themselves as a prestigious team representing Incheon.

Shinsegae will maintain the home base in Incheon. The coaching staff, players, and front office will be 100% retained. The plan is to add new business ventures to the unique identity that SK Wyverns have built, creating another revenue model. Therefore, new business initiatives that create synergy with distribution are expected. The Incheon SK Happy Dream Stadium, home of the SK Wyverns, is anticipated to be developed into an urban integrated entertainment district, combining a complex shopping mall, amusement park, and more.

SK Wyverns

One example is 'Tokyo Dome City' in Japan. Opened in 1988, Tokyo Dome was built not just as a dome stadium but as a complex cultural space. Nearby facilities include amusement rides such as roller coasters and Ferris wheels, a natural hot spring resort (LaQua), a hotel (Tokyo Dome Hotel), shopping arcades, restaurants, permanent exhibition halls, horse racing ticket booths, bowling alleys, and toy exhibitions. Based on high foot traffic and excellent accessibility, it generates high revenue and has become Tokyo's premier leisure space.

Shinsegae has sufficient capability to present a similar model. Following a management policy that emphasizes consumer experience, it has already introduced several theme park concept shopping malls (Starfield). It is also participating in the Gyeonggi-do Hwaseong International Theme Park development project, aiming to open in 2031. It has confirmed the possibility of success by conducting various businesses in professional baseball. Notably, it operated the 'Emart Barbecue Zone' for five years at SK Happy Dream Stadium, where fans could grill meat while watching games, and in 2019, it created an Emart brand room using skyboxes. It also provided enjoyment to baseball fans through various events such as the 'Green Summer Festival' when popular opposing teams visited.

The concretization of experience-centered management could bring a fresh breeze to professional baseball. A baseball official predicted, "This could be a starting point for teams to move away from systems dependent on their parent companies' support and develop new businesses." He added, "If this leads not to self-reliance but to new cooperation methods with parent companies, it will increase fans' enjoyment and enhance the value of professional baseball." Another official said, "It is encouraging that the team was sold for more than 130 billion KRW without following the acquisition pattern caused by management deterioration," and added, "It seems the time has come for professional baseball to function properly as a market."