Jon Oliver certainly had his doubts about whether the University of Virginia’s new arena could attract the dates it needed to turn a profit without impeding athletics.
The University of Virginia’s 2-year-old arena proves its worth to the community in addition to serving the needs of its basketball programs.
Oliver, Virginia’s executive associate athletic director, was concerned about working around the basketball calendar in scheduling other events to meet the bottom line at the $191 million John Paul Jones Arena.
The university positioned the arena as a community center, not just a venue for men’s and women’s hoops. So it hired SMG to manage and book the 15,219-seat facility, which opened in the fall of 2006.
“I was worried about the conflicts that concerts and other shows would have with athletics,” Oliver said. “It’s hard to get those dates anyway, but we found a way to make it work, and we have ongoing conversations to stay in front of that.”
The arena’s turnstiles have spun more than 1 million times since it opened, Oliver said. The arena generated $6.5 million in revenue from ticketed events in 2007, said Larry Wilson, SMG’s general manager in Charlottesville.
Many of the touring acts that have passed through love the building, which has helped spread the word regarding a must-play arena in a city of about 50,000 residents, excluding the college population.
“JPJ has created a market that never existed before,” said Brad Wavra, Live Nation’s senior vice president of touring. “They are very professional in their approach to business and passionate about their relationships with artists and promoters.”
The Cavaliers’ fan base has also embraced the facility in its first two seasons. With the move to a much larger arena, UVA basketball ticket revenue increased from $1.7 million to $3.6 million in 2006-07, and to $3.9 million in 2007-08.
More impressive, concessions revenue jumped from $70,000 in the final season at cramped University Hall to $650,000 in each of the first two seasons in a building containing much wider concourses.
“I like the whole way they made it fan-friendly,” said Tom Gabbard, Virginia Tech’s associate director of athletics. “The concessions are tucked into the corners so you can get around without getting stuck in crowds.”
The NBA loves it as well, moving its Top 100 prospects camp from Virginia Commonwealth in Richmond to Charlottesville after league officials toured the facility.
The annual Martha’s Market benefit for breast cancer, and additional fundraisers for the Boys and Girls Club and Ronald McDonald House, are examples of the facility living up to its promise to be a civic gathering place.
