STATE OF THE INDUSTRY: WHERE WE VE BEEN, WHERE WE ARE, WHERE WE RE GOING

Transcription

1 STATE OF THE INDUSTRY: WHERE WE VE BEEN, WHERE WE ARE, WHERE WE RE GOING

2 Welcome to Design and Build An Exciting Time for the Sports Facility Industry $8.05 Billion in Major League Sports Projects Currently Finishing or Underway Today we discuss State of Facility Development Introduction of the MLS to the Development Database Up to Date Database Statistics Comprehensive list of Cities on the Verge of Acquiring a Professional Team

3 What does HSP do? Conduct market, financial feasibility & impact studies: Stadiums/arenas Entertainment districts Hotels, convention centers Mixed-use districts

4 How to get our arms around this exciting industry? HSP and ALSD have teamed up to create the sports facility database HSP had been working on a massive database of all sports facilities with more than 2,000, from college to pro Teamed up with ALSD after last year s conference to begin the process of a tailored database that focuses on data that ALSD members and vendors want and need Starting with the 5 Major Leagues 127 venues Future: College and Minor Leagues

5 What Trends are we Seeing? 2018 New Major League Facilities by Year and League: NBA NFL NHL MLB MLS Most Leagues had purpose-built venues by 1999 with modern amenities. Shift to renovations and new builds driven by new locations.

6 But Average Cost per New Venue by League Increasing 2018 $6,000,000,000 $5,000,000,000 $4,000,000,000 $3,000,000,000 $2,000,000,000 Average Cost Per Facility by Year by League: Average Cost Per League (Most recent 3 facilities) NBA: $795M NFL: $2.7B NHL: $500M MLB: $785M MLS: $225M $1,000,000,000 $ NBA NFL NHL MLB MLS

7 Results in Total Spending on New Venues 2018 $7,000,000,000 $6,000,000,000 $5,000,000,000 $4,000,000,000 Total Spending on Major League Arenas & Stadiums: Total amount spent per year on average ($1.5B) nearly same despite fewer venues. $3,000,000,000 $2,000,000,000 $1,000,000,000 $ NBA NFL NHL MLB MLS

8 Are we in for a Major Uptick in New Facilities & Renovations? Major League Facilities Built by Decade 2020's, 2% 1910's, 2% 1920's, 1% 1950's, 1% 1970's, 3% 1980's, 3% 1960's, 2% 9 Renovations Announced or Begun in the Last Year 30 facilities built in 90 s and 36 built in 2000 s have not seen major renovation. 2010's, 20% 2000's, 31% 1990's, 35% 11 facilities built facilities built in 1990s pressure building. Look for wave of rebuilding 1990 s venues by early 2020 s Facilities Built by Decade & Portion Renovated in last 10 Years 1910's 1920's 1950's 1960's 1970's 1980's 1990's 2000's 2010's 2020's Renovated Last 10 Years No Renovation Last 10 Years

9 Why Are the Number of New Facilities Declining? Average Number of New Major League Venues Opened per Year Well-located facilities have less need to move/be replaced. More value in upgrading existing facilities. Typically, only truly obsolete facilities are being replaced 's 2000's 2010's 2020's

10 Coming of Age in the MLS Just like the NFL converted from multipurpose to single-purpose stadiums, MLS has been converting to soccer-only facilities since Several facilities underway. Market Analysis - MLS Attendance Exceeded 21,000 Fans Per Game in MLS Officials are Planning to Have 28 teams total, with 26 now set. - Most recent additions include LA, Nashville, Miami and Cincinnati

11 MLS Facility Boom v Audi Field to open 7/14/18 - Cost $400M v Los Angeles FC make debut at new Banc of California Stadium - Cost $350M v Toyota Stadium renovation - Cost $58M v Minnesota United FC move into new Allianz Field - Cost $200M v Expansion team in Cincinnati begin play at University of Cincinnati v Expansion team in Nashville begin play at new Nashville Stadium - Cost $275M v Expansion team in Miami to begin play v Cincinnati projects new West End Stadium to open - Cost $200M v Miami projects new Miami MLS Stadium to open 11

12 FACILITY DEVELOPMENT PROJECTS AUDI FIELD WASHINGTON D.C. MLS Franchise: D.C. United Reported Cost: $195 million Opening Year / Season:

13 FACILITY DEVELOPMENT PROJECTS TOYOTA STADIUM DALLAS, TEXAS MLS Franchise: FC Dallas Reported Cost: $58.4 million First Season in Renovated Facility:

14 FACILITY DEVELOPMENT PROJECTS ALLIANZ FIELD SAINT PAUL, MINNESOTA MLS Franchise: Minnesota United FC Reported Cost: $200 million Opening Year / Season:

15 FACILITY DEVELOPMENT PROJECTS NASHVILLE FAIRGROUNDS STADIUM NASHVILLE, TENNESSEE MLS Franchise: TBD Reported Cost: $275 million Opening Year / Season:

16 FACILITY DEVELOPMENT PROJECTS FC CINCINNATI STADIUM CINCINNATI, OHIO MLS Franchise: FC Cincinnati Reported Cost: $200 million Opening Year / Season:

17 Recent Renovations & New Builds Four Major Leagues

18 NBA: Recent Renovations & New Builds v v v Little Caesars Arena opened - Cost $863M Wells Fargo Arena announced $250M renovation United Center renovated v Quicken Loans Arena $140M renovation v Wisconsin Sports and Entertainment center to open - Cost $524M v Verizon Center $40M renovation v Philips Arena unveil $192M renovation v Chase Center to open - Cost $1B v v Target Center $128.9M renovation Vivint Smart Home Arena $125M renovation v Spectrum Center $34M renovation

19 FACILITY FACILITY DEVELOPMENT PROJECTS PROJECTS LITTLE CAESARS ARENA DETROIT, MICHIGAN NBA Franchise: Pistons NHL Franchise: Red Wings Reported Cost: $863 million Opening Year / Season:

20 FACILITY DEVELOPMENT PROJECTS VIVINT SMART HOME ARENA SALT LAKE CITY, UTAH NBA Franchise: Jazz Reported Renovation Cost:$125 million First Season in Renovated Facility:

21 FACILITY DEVELOPMENT PROJECTS TARGET CENTER MINNEAPOLIS, MINNESOTA NBA Franchise: Timberwolves Reported Renovation Cost:$128.9 million First Season in Renovated Facility:

22 FACILITY DEVELOPMENT PROJECTS WISCONSIN SPORTS AND ENTERTAINMENT CENTER MILWAUKEE, WISCONSIN NBA Franchise: Bucks Reported Cost: $524 million Opening Year / Season:

23 FACILITY DEVELOPMENT PROJECTS PHILIPS ARENA ATLANTA, GEORGIA NBA Franchise: Hawks WISCONSIN SPORTS AND ENTERTAINMENT CENTER MILWAUKEE, WISCONSIN Reported Renovation Cost:$192 million First Season in Renovated Facility:

24 FACILITY DEVELOPMENT PROJECTS CHASE CENTER SAN FRANCISCO, CALIFORNIA NBA Franchise: Golden State Warriors Reported Cost: $1 billion Opening Year / Season:

25 FACILITY DEVELOPMENT PROJECTS QUICKEN LOANS ARENA CLEVELAND, OHIO NBA Franchise: Cavaliers Reported Renovation Cost:$140 million First Season in Renovated Facility:

26 NFL: Recent Renovations & New Builds v Mercedes-Benz Stadium Opens - Cost $1.6B v University Of Phoenix Stadium plans for $100M in renovations for Super Bowl LVII v Ford Field $100M renovation v LA Rams and LA Chargers move to new Inglewood Stadium - Cost $4.96B v Raiders relocate to Las Vegas and move into new Las Vegas Stadium - Cost $1.9B

27 FACILITY DEVELOPMENT PROJECTS FORD FIELD DETROIT, MICHIGAN NFL Franchise: Lions Reported Renovation Cost:$100 million First Season in Renovated Facility:

28 FACILITY DEVELOPMENT PROJECTS MERCEDES BENZ STADIUM ATLANTA, GEORGIA NFL Franchise: Falcons Reported Cost: $1.6 billion Opening Year / Season: NFL Franchise: Falcons Reported Cost: $1.6 billion Opening Year / Season:

29 FACILITY DEVELOPMENT PROJECTS LAS VEGAS STADIUM LAS VEGAS, NEVADA NFL Franchise: Raiders Reported Cost: $1.9 billion Opening Year / Season:

30 FACILITY DEVELOPMENT PROJECTS INGLEWOOD STADIUM/LOS ANGELES LOS ANGELES, CALIFORNIA NFL Franchise: LA Rams / Chargers Reported Cost: $4.96 billion Opening Year / Season:

31 MLB: Recent Renovations & New Builds v SunTrust Park opened in Atlanta, Georgia - Cost $622M v Tropicana Field announced $85M renovation if MLS team decides to move in v Petco Park $2M renovation v Miller Park $10.3M renovation v Citizens Bank Park plan $30M renovation v Globe Life Field to open in Arlington, Texas - Cost $1B

32 FACILITY DEVELOPMENT PROJECTS SUNTRUST PARK ATLANTA, GEORGIA MLB Franchise: Braves Reported Cost: $622 million Opening Year / Season:

33 FACILITY DEVELOPMENT PROJECTS CITIZENS BANK PARK PHILADELPHIA, PENNSYLVANIA MLB Franchise: Phillies Reported Renovation Cost:$30 million First Season in Renovated Facility:

34 FACILITY DEVELOPMENT PROJECTS GLOBE LIFE FIELD ARLINGTON, TEXAS MLB Franchise: Rangers Reported Cost: $1 billion Opening Year / Season:

35 NHL: Recent Renovations & New Builds v Scottrade Center plans $160M renovation v Little Caesars Arena opened - Cost $863M v Wells Fargo Arena announced $250M renovation v Bridgestone Arena $6M renovation v United Center renovated v Nassau Veterans Memorial Coliseum $165M renovation v Seattle announces plan to attain team

36 FACILITY DEVELOPMENT PROJECTS SCOTTRADE CENTER ST. LOUIS, MISSOURI NHL Franchise: St. Louis Blues Reported Renovation Cost:$160 million First Season in Renovated Facility:

37 FACILITY DEVELOPMENT PROJECTS NASSAU VETERAN S MEMORIAL COLISEUM UNIONDALE, NEW YORK NHL Franchise: Former Islanders Stadium Reported Renovation Cost:$160 million First Season in Renovated Facility:

38 ALSD Cities on the Verge Five Major Leagues

39 What Cities Can Host Their First Team? Or Another? HSP assessed the market conditions for cities and their ability to support a Major League Franchise Three Key Factors Market Power Committed, Financed Ownership Group City willing to Finance a Facility HSP Focused on Market Power Primarily TV Market Size/Wealth Growth In Population Large Companies Household Income (# of HH s over $100k) GDP Presence of Existing Major or Minor League Teams Presence of Major College Programs Las Vegas Effect: Adult Tourism Central City/Primary Draw

40 1. Austin 2. Louisville 3. Norfolk-Virginia Beach 4. Richmond 5. Birmingham

41 1. Seattle 2. Portland 3. San Diego 4. San Antonio 5. Montreal 6. Houston 7. Sacramento 8. Charlotte 9. Vancouver

42 1. San Antonio or Austin 2. Norfolk/Virginia Beach or Richmond 3. Portland 4. Toronto/Vancouver 5. Sacramento 6. London/Mexico City*

43 1. Portland 2. Montreal 3. Charlotte 4. Austin/San Antonio 5. Norfolk/Virginia Beach and Richmond

44 1. Seattle 2. San Diego 3. Vancouver 4. Louisville 5. Norfolk-Virginia Beach or Richmond

45 1. Seattle 2. Houston 3. Quebec City 4. Portland 5. San Diego

46 1. Phoenix 2. San Diego 3. Raleigh-Durham 4. San Antonio 5. TIE: Indianapolis; Tampa Bay/St. Pete; Charlotte

47 Des Moines Greenville, South Carolina Omaha Madison Grand Rapids Boise Charleston, South Carolina Northwest Arkansas

48 HAVE A GREAT CONFERENCE! THANK YOU!