Highlights From Sports Facilities & Franchises 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.”