SBJ/Jan. 27-Feb. 2, 2014/Facilities

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  • Davis Cup date at Petco catches interest of NFL, MLS venues

    Don Muret
    This weekend’s Davis Cup match at Petco Park has piqued the interest of NFL and Major League Soccer stadiums about potentially booking those events at their facilities, according to U.S. Tennis Association officials.

    The United States plays host to Great Britain in a first-round competition Friday through Sunday at the Padres’ ballpark. It is the first time a Davis Cup match will be held in an open-air ballpark and the second time at an MLB facility. The first one was held at Tropicana Field in 1990 (then known as the Suncoast Dome), eight years before the Tampa Bay Rays’ inaugural season, said USTA spokesman Tim Curry.

    For future Davis Cup events, Global Spectrum officials have approached the USTA about using University of Phoenix Stadium, home of the Arizona Cardinals, and PPL Park, where the MLS Philadelphia Union plays. Global Spectrum runs both buildings.

    In addition, the Boston Red Sox have expressed interest in holding Davis Cup matches at Fenway Park, said Jeff Ryan, the USTA’s director of team events.

    “We see this year’s event opening a lot of doors for us with a lot more options,” Ryan said. “But there are other things that have be factored in, such as the players, schedule, weather and a venue’s availability. The tricky part is Davis Cup dates are so spread out and we often don’t know whether we’re going to be home or away. It’s been 15 years [for example] since we played Great Britain.”

    In San Diego, the USTA had a choice of two sites for the event as part of a bid process involving a local organizing committee tied to the San Diego Sports Commission. One site was at The Embarcadero, a commercial strip that sits along San Diego Bay behind the city’s convention center. The waterfront property, future home of the San Diego Aviators, a new World TeamTennis franchise, was considered too small for the Davis Cup, though, and officials then turned their focus to the Padres’ facility.

    “We jumped in with both feet,” said Padres President and CEO Mike Dee. “They loved the venue with the proximity of players heading back from the Australian Open.”

    At Petco Park, the competitors, including Andy Murray, the reigning Wimbledon men’s singles champion, will play on a red clay surface surrounded by a temporary grandstand set up in left field. The total number of seats is about 7,000, including permanent seats down the left-field line and at the Western Metal building, a structure folded into the ballpark.

    The Padres are renting ballpark space to the USTA in conjunction with the local organizing committee, Dee said. The team generates revenue from concessions, parking and selling some Western Metal suites for $10,000 apiece covering all three days of action. Those event dollars are exempt from MLB’s revenue-sharing agreement.

    As of last week, the USTA had sold about 5,000 tickets for the event, a number that includes three-day passes, Ryan said. Single-day tickets range from $50 to $200 depending on seat location.

    The USTA’s total investment to produce the event at Petco Park is about $1 million, Ryan said. “As much as it’s about revenue … to the USTA’s credit, it’s about having a home court advantage and coming out with a win,” he said.

    > REAL NUMBERS: Many industry observers may be surprised to hear the true value of United Airlines’ naming-rights renewal for United Center, home of the Chicago Bulls and Blackhawks.

    The 20-year extension, which was announced in December, carries a total value of $220 million, an average of $11 million a year, according to a source with knowledge of the negotiations. The annual value vaults United Center to the top of all NBA and NHL arenas that carry naming rights.

    Initially, some naming-rights brokers estimated its value at $5 million to $8 million annually, the typical range for a two-team building. But new information from the source close to the deal reveals it to be a much higher number.

    The deal was done in-house by the joint venture running the facility for the two teams, arena officials confirmed.

    The success of the Bulls and Blackhawks and the arena’s event schedule, plus being in the country’s third-largest market, drove the value exponentially for a venue that turns 20 years old this year, the source said. United’s original 20-year deal was valued at $2 million a year.

    To put the agreement in perspective, it matches the terms of the naming-rights deal for Levi’s Stadium, the San Francisco 49ers’ new $1.3 billion facility opening in August.

    Don Muret can be reached at dmuret@sportsbusinessjournal.com. Follow him on Twitter @breakground.

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  • Levy, Professional Sports Catering discuss partnership to pursue minor league food deals

    Levy Restaurants is in talks with minor league food provider Professional Sports Catering about forming a partnership to pursue new business.

    Alison Weber, Levy’s chief innovations officer, and Aaron Salsbury, PSC’s manager of marketing and business development, confirmed that conversations are taking place between the two Chicago-based concessionaires. No deals have been signed, they said.

    Levy and PSC submitted a joint proposal to run the food at Huntington Park in Columbus.
    Photo by: COURTESY OF COLUMBUS CLIPPERS
    “At this point, we continue to discuss partnership opportunities,” Weber said. “We think Pro Sports Catering is a great group.”

    Those discussions are coming to a head, though, and an agreement is expected to be signed by the end of January and officially announced next month, according to a source familiar with the negotiations.

    Professional Sports Catering CEO Tom Dickson, who also owns two minor league teams, the Class A Lansing (Mich.) Lugnuts and Class AA Montgomery (Ala.) Biscuits, did not return emails for comment. The same was true for PSC partner Greg Rauch, the Biscuits’ general manager.

    What remains unclear is whether Levy Restaurants, owned by Compass Group, the world’s largest food service company, would buy Professional Sports Catering. PSC ownership, which extends to managing partner Sherrie Myers and partner Jonathan Harris, prefers a strategic partner and not a buyout, the source said. The 9-year-old company has 16 minor league baseball accounts and generates $30 million in annual revenue, and Levy’s goal is to boost that number to $100 million through the partnership, the source said.

    PSC already has a strategic partnership with Mandalay Baseball, a group that owns four minor league clubs. It remains to be seen what happens to that relationship after the Levy agreement is completed. Art Matin, Mandalay Baseball’s president and CEO, did not return a phone call and email for comment.

    Signs point to Levy and PSC already working together to land new accounts. About a month ago, Levy and PSC submitted a joint proposal to run the food at Huntington Park, home of the Columbus Clippers, the Cleveland Indians’ Class AAA farm team. The Clippers’ contract, a five-year agreement, is officially with Levy, said Ken Schnacke, entering his 38th season as the team’s president and general manager.

    “They have some kind of partnership, but our deal is with Levy,” he said. Levy replaces Sodexo, the Clippers’ old vendor.

    In addition to Huntington Park, Levy, primarily a major league food provider, has minor league deals at Haymarket Park in Lincoln, Neb., and Aces Ballpark in Reno, Nev. Next year, Levy adds the St. Paul Saints, an independent league team moving into a new $63 million ballpark.

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