Pioneering deal-maker John Cappo is gathering no moss as he brings more A-list international acts, such as the Rolling Stones, to China. Matt Hodges reports in Shanghai.

John Cappo, president and CEO of AEG China, is in good spirits. Having practically set up a new market for foreign musicians in Northeast China by taking Justin Bieber to Liaoning province's Dalian in October, he has just received another piece of good news after brokering a deal with one of the edgiest bands in the world.

"We heard from the Rolling Stones today, which is cool," says Cappo, a deal-maker for one of the world's largest sports and entertainment companies, Anschutz Entertainment Group. "Seven shows in Asia, which should include one in China. Put that in my calendar."

As befitting a pioneer in the world of sports, foreign entertainment and arena sponsorship in China, his office in downtown Shanghai peers over skyscrapers and is full of trophies few can lay claim to. There is a basketball signed by LA Lakers' star Kobe Bryant, a Magnolia award from Shanghai's mayor honoring his contributions to the city, a framed photo of him speaking with Chinese President Xi Jinping in Los Angeles about China's soft power, and so on.

The blinds are half-closed to keep out the afternoon sun but several computers are switched on, and so is he. Cappo, dressed in a crisp pinstripe shirt, seems pepped up on caffeine. Battery level: 100 percent. As it transpires, he is on a strict fast. He recently turned 49.

In his role as a manager and operator of arenas, as well as an agent and promoter, the New York City native is introducing both world-class facilities and A-listers who probably would have bypassed China five or 10 years ago to second- and third-tier cities that remain off the global radar.

"We had no idea what to expect," he says of Bieber's concert in China's far-flung north, one of three the singer performed in China.

"But Dalian was one of the best shows on the tour, an unbelievable show. People came in from everywhere. Justin was the first Western artist to ever play in Dongbei," he says, referring to the three provinces of Liaoning, Jilin and Heilongjiang. They have a catchment area of about 60 million people.

"People (outside China) have probably never heard of a lot of the cities we work in, like Dalian or Fuzhou or Guangzhou, but they will," he says.

In the process, AEG has been hijacking social media to sell out concerts for the likes of Metallica in the time it takes to watch Eminem's recent Rap God music video on YouTube. Online tickets for Bieber's first gig in Shanghai sold out in six minutes.

"We didn't do one hard ad for the Metallica shows (in August)," says Cappo. Instead, AEG tapped China's younger demographic via micro blogs, messaging platforms such as We Chat, sites such as GuitarChina and Web-based opinion leaders.

Cappo started his Asian journey 20 years ago in Taiwan province, where he graduated from National Taiwan University's prestigious business school. He launched several start-ups, first a translation business and then an event management company organizing sponsorship for top-tier tennis and golf events.

He was later hired by global sports and media giant IMG, which set up several of China's top sports leagues, before making the jump to AEG.

Like many pioneers, there is something of the seasoned gambler about him. He booked the Stones despite the fact their last two engagements in China met with mixed results. The first tour in 2003 was canceled due to the SARS virus. The second only went ahead after the band agreed to cut five of their songs.

Taking Bieber to a city that foreigners may vaguely associate with China's most successful soccer team, if anything at all, was also a huge risk.

"Justin was the main act for the grand opening of the Dalian building," says Cappo, referring to the city's new Zhongsheng Center. The venue, which just hosted the National Games, bears the name of China's top luxury car distributor and after-sales service provider. This was the first-ever domestic naming rights deal for an arena involving a Chinese company.

It was preceded by one of Cappo's landmark achievements at AEG: negotiating a $80 million, 10-year sponsorship deal for the Mercedes-Benz Arena in September 2009. The deal was described by the New York Times as giving birth to the naming rights industry in China.

AEG followed this up by inking a five-year agreement with MasterCard in late 2010 to sponsor the former Olympic basketball arena in Beijing. AEG manages the building with its Beijing partner.

Nicknamed the UFO for its spaceship-like profile, the Shanghai venue was built for the 2010 World Expo and featured performances last year by J-Lo, Elton John, Maroon 5 and Usher. Alicia Keys gave a concert there last month, hot on the heels of the Killers.

"The Mercedes-Benz Arena has become the premium lifestyle and entertainment destination in Shanghai," says Cao Zhiying, vice-chairman of the Oriental Pearl Group and chairman of AEG-OPG Culture and Sports (Shanghai) Co.

"We see arenas in China as a very vibrant model, where top artists can easily sell 10,000 tickets, but stadiums are still a few years off due to their larger size," says Cappo. "There are few artists, local or international, that can sell out a stadium."

Cao describes Cappo as "a bridge between East and West".

"He brings new concepts and a professional management style, and is very effective at adapting these to the China market," he says.

Cappo says it is a matter of making sure the venues are economically sustainable, describing how AEG designs them to be multi-purpose, with better roof rigging, acoustics, sight lines, international-level amenities and concessions.

AEG is also building "entertainment districts" with various local governments, including two big sports parks in Hangzhou and Fuzhou.

On a private level, Cappo has been Lang Lang's manager for the past 12 years. Having turned him into the world's most successful classical musician in terms of endorsements, Cappo sees him as the Tiger Woods of the piano.

As the clock runs down, Cappo is still radiating energy. "Now I'm on a fast. This juice diet thing," he says. "I want to get in shape for next year, because I'm going to double our business."

Then, as if embarrassed by his audaciousness, he bursts into laughter. A few seconds pass and his face tightens. As he turns his head, the window panes stand reflected in his lenses. They look a bit like dominoes waiting to fall.

Contact the writer at matthewhodges@chinadaily.com.cn.

John Cappo introduces both world-class facilities and A-listers to second- and third-tier cities that remain off the global radar. Provided to China Daily

(China Daily 12/15/2013 page4)