Arenas: Factors for success

Critical Factors for Success 1. Clear strategic plan from outset... The venue business is NOT inherently profitable. What makes your venue UNIQUE 2. T...

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Arenas: Factors for success Ian Nuttall, EVMI 27th November 2007 Copenhagen

An independent observer of the venues business since 1999...

What is EVMI? • A not-for-profit, international network of venues, teams & experts • Knowledge transfer/exchange • Professional development • Recruitment/Appointments 3

Industry challenges • • • • •

Too many new facilities, too many seats... Insufficient content, poor revenues Shortage of experienced management Rising operating costs Competition from all other forms of LEISURE

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Why are you building..? • For the public good? Increase sports participation, civic pride, social welfare etc... • Or for business (profit)?

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Critical Factors for Success 1. Clear strategic plan from outset... The venue business is NOT inherently profitable. What makes your venue UNIQUE 2. That CONTENT is king... 3. Partnerships... you cannot do this alone! 4. And last (but not least) your management team 6

Factor 1: The Plan • • • • •

Arena ≠ Arena (each one is unique) Catchment area – A local facility? Or an international icon? Concept/programming comes before architecture What do you want the building to do? What are the revenues? The REAL COSTS are over the next 20-30 years…. 7

Factor 2: CONTENT • Who is using the building? The anchor tenant • Do you have access to other content? • Will you create it? How? • Breakeven is 80-100 full events pa 8

Factor 3: Partnerships • • • • •

Content partners Operation partners Naming rights/sponsor ...Marketing Partnerships Not just €£$ – WHO brings the most added value 9

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Factor 4: Management • Like any business, venues need good management • Who is running your facility? • Do they bring added-value? • Young industry = Small supply of skills/experience 11

Case Study 1: Color Line Arena • PLAN - hockey, handball and concerts • CONTENT - yes • PARTNERS - beer, catering, naming rights... • MANAGEMENT - experience from hotel sector • RESULT = profitable success for Hamburg 12

Case Study 2: LTU Arena • • • •

PLAN - ??? CONTENT - some... PARTNERS - a few... MANAGEMENT needed turnaround to focus on to the real business • RESULT = operating… 13

Case study 3: The Dome • • • •

PLAN - ??? CONTENT ??? PARTNERS - ??? MANAGEMENT - who was the manager? • RESULT = a €1bn+ flop 14

Case Study 3A: The O2 • PLAN - to build Europe‘s finest entertainment destination

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Case Study 3A: The O2 • CONTENT - live music is the anchor... • Sports is a bonus • Cluster of venues • Something for everyone… 16

Case Study 3A: The O2 • PARTNERS... • A host of partners who all add value • Signed up prior to construction • O2 provides massive (brand) marketing 17

Case Study 3A: The O2 • MANAGEMENT • Picked the best... • CEO from consumer/TV, tourism background • Customer service 18

Case Study 3A: The O2 • RESULT • The best venue in the world? • Next stop... Berlin.. And then...

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Closing thoughts... • • • •

Be clear from the outset... Get the best management... Partner for added value BE CREATIVE! You are in the entertainment business 20

Thank you. Any questions? • EVMI can be visited at www.evmi.org • Email [email protected] • Save the dates: 18-30 May 2008, EVMI’s Stadium Management Summer School in Frankfurt and London… 21