2007 Coverage | Sports Facilities & Franchises 2008

Street & Smith’s Conference Group
Home Program Agenda Speakers Sponsors & Exhibitors Venue & Pricing 2007 Coverage Request a Brochure Register Online

2007 Coverage

Highlights From Sports Facilities & Franchises 2007: Day One

(l to r) David Pillsbury, Stan Kasten And
Derrick Hall Take Part In Opening Panel

The seventh annual Street & Smith’s Sports Facilities & Franchises conference kicked off yesterday at The Wyndham New Orleans at Canal Place with a panel titled, “The Executive Prospective: The Facility as a Catalyst for Franchise Growth.” Several speakers indicated that the biggest challenge facing their franchises is ticket sales. Nationals President Stan Kasten said, “We have increased fragmentation of our marketplaces, ... and we’re trying to continue to escalate revenues at a time when the entertainment options are so widespread.” Celtics President Rich Gotham added, “We play in a market where the Red Sox and Patriots ... are very successful both on the playing field and off, and I think for mindshare in that market we’re a distant third team even though we have a great brand. We think ticket sales 24/7.” Kasten said of the fan experience, “When we’re selling a ticket to a customer, it’s not just their money we’re asking for, it’s the four hours of their time we’re asking for. ... If we give them a good time during their four hours, if we give them reasons to spend money, they don’t mind spending money.” Gotham noted the Celtics conduct surveys after every home game as a way to gauge fan opinions on in-arena entertainment. Sunrise Sports & Entertainment COO Michael Yormark: “Fans have a much higher expectation today when they spend those dollars and they are looking for much more. The more research we can do, ... the better our success is going to be.”

CONCESSIONS: Kasten said there is less negative reaction to ticket price increases than to increases to concessions. Kasten: “Fans seem to understand why you have to raise ticket prices because payrolls are going up and that’s how you afford the team. But they don’t understand that same connection that exists with food prices. ... That’s because they understand how much a hot dog costs outside the park versus what it costs inside the park; they have no way to compare what a second baseman costs outside the park.” Ravens Senior VP/Business Ventures Dennis Mannion said, “The concessions world is in need of creative thinking.” He added, “We’re getting to a place where $8 beers and $6 hot dogs doesn’t make any sense to anybody.” Yormark: “When you look at concessionaires in general, what have they done over the last ten years to change their business model? ... Where’s the big idea? Where’s the creativity? ... How do we justify premium prices?”

Jon Oliver (r) Says UVA Modeled
Basketball Arena After NBA Facilities

JOHN PAUL JONES ARENA: The day’s second session featured a case study on the Univ. of Virginia’s (UVA) new John Paul Jones Arena. UVA Exec Associate AD Jon Oliver said that the school modeled the $130M arena after NBA facilities. Oliver: “We try and follow the NBA markets, steal ideas from them, but I think we created something that really works for us.” He added, “When (fans) walk into that building they talk about the experience, not just the basketball.” Oliver said the school has sold all 20 suites in the arena. He added, “If I had to do it all over again I would have built more suites.” Oliver also said the arena has already helped the men’s basketball team recruit players. Oliver: “The last ten years we really weren’t on anybody’s final list that was a top 20 player. ... Of the top 15 players in the next recruiting class we’re on every one of their lists.”

HOUSE CALL: During a session titled, “Filling the House: Ticket and Suite Sales,” Dodgers VP/Ticket Sales Steve Shiffman said the new all-you-can-eat section in right field at Dodger Stadium “is going great.” He added, “I believe (all-inclusive tickets are) the future.” Discussing the secondary-ticket market, Saints VP/Ticket & Suite Sales Mike Stanfield said, “Either you’re going to grab a piece of it and manage your own area or you’re just going to waste money. If you can manage it and collect those names and numbers to add to your data base, I don’t understand how somebody can’t be in that market.” The panelists also discussed the practice of complimentary tickets. Stanfield said, “Comps can kill an organization.” MLS Dynamo COO Chris Canetti said his team has a “strict policy” against handing out complimentary tickets. He said, “Let’s give people more reason to come, have them pay fair price for that and then they will actually believe in that value and see that value and that’s going to help us grow our brand.”

BRANDED AREAS: During a session titled, “Developing Branded Areas to Increase Sponsorship Value,” Heineken USA Southeast Region Marketing Dir Bruce Skala said the company is “getting away from static signage.” Skala: “We don’t want to be wallpaper. I don’t want to spend $80,000 dollars for a sign in left field that people are going to glance over. ... We want to become interactive; we want a chance to have our brands somehow become part of the fan experience.” Reds VP/Corporate Sales & Marketing Bill Reinberger, whose team constructed a branded area with Cincinnati Bell this season, said the team will only agree to a branded area for a three-year minimum. Noting the Reds have branded concessions, Reinberger said, “It’s really not a money maker for them. But the consumers love it.”

Highlights From Sports Facilities & Franchises 2007: Day Two

(l to r) Jamey Rootes, Pat Gallagher And Mike
Walker Discuss Boosting Non-Game Day Revenue

The second day of the seventh annual Street & Smith’s Facilities & Franchises conference at the Wyndham New Orleans at Canal Place began with a panel titled, “Making Non-Gameday Revenue an Integral Part of the Business Model.” Hicks Sports Marketing Group Senior VP Brad Alberts said, “We’re looking to become sports entertainment behemoths that go beyond, but we’re utilizing that platform of our major sports to be able to launch into these other businesses.” Lone Star Enterprises President Jamey Rootes said, “We look at properties not for what they are but for what they can be.” MLB Giants Enterprises President Pat Gallagher said, “The era of the multipurpose sports venue is over. A lot of new ballparks are trying to think like arenas. ... It’s not an 81-game year, it’s a 365-day year.” Heat Group Enterprises Exec VP Mike Walker added, “This business has peaks and valleys and our challenge is always to fill the valleys.”

GLORYPARK: The second session featured a case study on Glorypark, a mixed-use development in Arlington, Texas, near Rangers Ballpark in Arlington and the Cowboys’ new stadium. The $600M project will include housing, shopping and entertainment components. Hicks Holdings Exec VP Casey Shilts, whose company is one of the developers, said Cowboys Owner Jerry Jones agreed to a moratorium on development in the area until 2012. Shilts: “That allowed us to get out in the market, build our project first and let (the Cowboys) focus on building their stadium. We think it will allow us to have a better product.” Discussing naming rights, Shilts said, “While we don’t think we’ll sell the naming rights to Glorypark, ... we do think there are districts within this development that are ripe for selling.”

RISE OF MIXED-USE: During a panel titled, “Understanding the Rise of Mixed-Use Developments,” RTKL VP Ron Turner said, “I remember when I was first doing these buildings no one wanted to be next to a stadium. Now everyone wants to be next to a stadium.” Turner added, “It’s really all about setting your team up for future development, because if you go into any new facility and you don’t look beyond where you are from the real estate standpoint, you’re really being short-sighted.” AEG N.Y. Development/Red Bull Stadium President Nick Sakiewicz said the success of a mixed-use project depends on the city. Sakiewicz: “Smart cities start with faster plans and they develop. Unfortunately there aren’t a lot of smart cities out there.”

(l to r) Gerardo Prado And Tom Proebstle Close
Out Conference With Renovation Panel Discussion

RENOVATIONS: The final session of the conference featured a discussion on how facility renovations can boost a franchise’s bottom line. HNTB Architecture Principal Gerardo Prado said, “As you start to analyze your stadium or arena for renovations you have to look at it as a business value approach. What’s the cost of adding or renovating piece A versus adding or renovating piece B or what about a combination of A and B?” Crawford Architects Partner Tom Proebstle stressed the importance of incorporating sponsors in renovation plans. Proebstle: “One of the most important things we don’t see enough of in the industry is engaging your loyal sponsors. They want to be a part of your brand and there’s so many different ways to engage them. One of the easiest ways is to come up with a program of opportunities that you see and take it to them and work together to come up with what the best fit would be.”