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SBJ/August 1-7, 2011/Facilities
Suns converting eight suites to theater boxes
Published August 1, 2011, Page 10
United Center introduced 32 theater boxes in 2009 on the arena’s penthouse suite level. The idea was to reposition unsold suites and reduce their capacity so that they could meet a need for companies that want a suite experience without being forced to buy 12 to 14 seats, according to Steve Schanwald, United Center’s senior vice president of marketing.
Bradley Center in Milwaukee followed suit and built 10 theater boxes prior to last season that sell for about $60,000 a year.
Verizon Center in Washington, D.C., designed the boxes shown in the rendering above. Now the Phoenix Suns are joining the trend of offering smaller, more affordable premium products.
In Phoenix, the Suns went ahead with their project after seeing the success of theater boxes at United Center and Bradley Center, said team President Rick Welts. The Suns will charge $65,000 annually for theater boxes with one- and three-year terms, a little less than half the price of a regular suite at US Airways Center. The cost covers tickets to all arena events, plus all food, beer and wine. Hard liquor is a separate cost.
The new theater boxes are located on the lower of two suite levels, directly opposite the stage, so the Suns could market those units for concerts, Welts said. Some of the eight suites that are being turned into theater boxes were sold, and those premium patrons were relocated. Some of those suites had been reserved for single-game rentals.
The midpriced boxes should help the Suns generate incremental revenue in a market saturated with “way too much suite inventory,” between US Airways Center and Chase Field across the street, University of Phoenix Stadium and Jobing.com Arena in Glendale, and Arizona State University’s football and basketball facilities in Tempe, Welts said. “On the NBA ticket side, we have a very high average ticket price, yet it’s a below-average market for suite revenue,” he said. “The reason for that is just the number of venues that we have here.”
The project cost is about $750,000. Flatline Architects, a local firm, is designing the theater boxes. The Suns have not begun selling the boxes but have seen strong interest from customers, Welts said.
“We just finished the engineering portion of it, and funding, so we’re full speed ahead in having that ready for the beginning of our season,” he said.
In the NHL, the Florida Panthers plan to build several four-seat theater boxes over the next few years at BankAtlantic Center in Sunrise, Fla.
■ GOOD QUESTION: Phoenix Coyotes executive Jim Foss provided unique insight into the daily operations of the financially troubled NHL team during an IAVM session on the future of the sports venue business. When asked how corporate advertising is going, Foss, the club’s senior vice president and the general manager of Jobing.com Arena, did not flinch.
“It’s a challenge,” Foss said. “Right now, with our corporate sponsors, when we enter a room, the first question out of their mouth is, ‘Are you guys going to be here next year? Are you going to Winnipeg?’ That was last year. This year, it’s Quebec City.”
The team’s success on the ice during the last two seasons, with consecutive playoff appearances, leads Foss to believe the Coyotes will find a long-term solution, one he thinks will keep the team in Phoenix.
“When a city invests $180 million in an arena and you have a league that’s motivated to keep the team here and you have an NBC contract … as part of the deal to believe in this town, when this all flushes out from our standpoint, our sponsorship opportunities are going to be great,” he said. “It may be a little rough right now, but it’s nothing more than filling in a pothole, because long term, this [market] is going to work for us.”
The Staples Center is installing a new sound system valued at $3.4 million.
Staples Center officials worked directly with JBL to design the system and select the components, Zeidman said. Touring acts that bring their own sound equipment will be able to “plug and play” into the arena’s system to enhance their productions.
“For sports, it is going to be a tremendous asset to our game presentation,” he said. “The Kings alone have really dialed up their presentation, and this new system will increase the intelligence of the video and music. It will get everybody more into the game.”
The installation is tied to JBL’s founding partnership with AEG, which covers Staples Center, as well as Nokia Plaza and Nokia Theatre across the street at L.A. Live. The deal, struck by AEG Global Partnerships, will extend to future sound system upgrades at other AEG-managed properties, Zeidman said.
The Staples Center project should be completed by late August and ready to go live for a WNBA Sparks game.
The Red Sky Music Festival attracted big crowds to Omaha’s TD Ameritrade Park.