It seems obvious; invest in a venue capable of hosting multiple sports events, concerts and shows and gain a welcome boost tooperating profits. But, did you know that for many venues margins on non-core activities are paper thin and, unless executed well, a multi-purpose strategy can end up costing not making money? The reasons and the solutions are presented in this new report from SportBusiness. Stadia and Arenas II: Advanced Commercial Strategies is your guide to making your venue investment pay off. The past few years have seen unprecedented sums going into new or upgraded stadia and arenas and sports clubs and teams have grown more adept at maximising ticket and other matchday revenues.
There are more opportunities open to sports organisations to secure sponsors and boost hospitality sales through new venue developments. This can fund building projects and go a long way to offsetting the shorter operating life that modern sports facilities suffer.
Stadia and Arenas II: Advanced Commercial Strategies presents data from venue projects in different sports and across various markets to form a best practice guide to the industry. We examine funding options and techniques to maximise revenues and provide business models for new build and refurbishment projects and explore the balance in the mix of seating. Finally we assess the viability of diversified business streams and give advice on how to tap into them.
Alongside valuable financial information Stadia and Arenas II: Advanced Commercial Strategies possibilities in design and construction and reports on techniques to improve environmental sustainability.
What you will gain from Stadia and Arenas II: Advanced Commercial Strategies.
Stadia and Arena Project Strategies
This section unveils what every stadium developer needs to know before they go into a new project. There are some very big decisions to make and we examine the commercial implications of new build vs refurbishment, roof or no roof and how the project economics can be improved.
We question the assumptions behind event hosting models – with some surprising conclusions – and help you make the strategic choices on size, construction techniques, permanent vs demountable options and cost and carbon reduction.
A critical part of getting a project off the ground in the current environment is financing. We have an entire chapter devoted to navigating between debt, equity, securitisation and other types of commercial finance. We explore other innovative models plus different ways of raising project finance from the sale of debentures and PSLs to fans and supporters. An increasing number of stadium and arena projects benefit from public finance and we provide advice on how this can be achieved.
There is an art in turning a great event experience into a great commercial proposition and we give strategies to lengthen dwell times, boost merchandise sales and increase the range and variety of food and beverage outlets.
Finally we examine the trend for venues to diversify beyond sports into retail, office and hotel projects. We unearth the pitfalls and show you the important considerations in the decision making process.
Important decisions are made at the start
Many of the most important decisions affecting the commercial success of a venue are made at a very early stage. The business planning process, revenue projections and assumptions on events and costs are a key part of the initial briefing stage. So, wherever you are with your ideas for a new stadium Stadia and Arenas II: Advanced Commercial Strategies will be your guide to a successful commercial future.
Whether you are planning a large redevelopment or looking to extend the life and revenue generating potential of an existing venue Stadia and Arenas II: Advanced Commercial Strategies is a must read report.
Even in recessionary times sponsors still recognise the benefits of social and community investment. Discover how small and large venues are getting important project finance by signing up naming sponsors for large sums.
Optimising Commercial Revenues
Once a venue is operational it can be hard to maximise revenues from hospitality, retail and other important sources. This section identifies how revenue opportunities can be built into the design process with small changes having a big impact on commercial success.
The main revenue streams of ticketing, food and beverage, merchandising and hospitality are explored with valuable best practice advice gleaned from the best in the business. These operational areas are professional disciplines in themselves and we show how the impressive matchday incomes are achieved by top clubs and teams.
