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Surveys, strategic seating programs helped University of Houston enhance its brand

For decades, the University of Houston hosted Cougars fans in Robertson Stadium. Built in 1942, the 32,000-seat stadium served UH well for years. In 2010, UH decided it wanted something more — something to energize its fans, serve as an impressive campus edge feature, and bring in significant revenue. Fans also wanted more — a game-day experience. The answer arrived in the form of TDECU Stadium, which opened in 2014.

TDECU Stadium has 40,000 seats, and on game day, the stadium is packed. In fact, the stadium has sold out of its premium seating offerings since opening. It’s not hard to understand the excitement; the award-winning stadium features Houston skyline views, one of college football’s largest scoreboards, 160 concession points of sale, a 5,000-square-foot home locker room, and more. Fans also have multiple choices for premium seating: suites, loge boxes, club seats, suite decks, and open-air party decks. 

The school also uses the stadium “to provide a gathering point for school pride, along with a new venue for commencement,” said David Bassity, UH’s senior associate athletic director for strategic communications and digital media. “Since opening, the facility has seen the Houston football program win a conference championship, No. 3 Louisville and Heisman Trophy winner Lamar Jackson taken down on a national TV broadcast, and commencement speeches from Matthew McConaughey and Arnold Schwarzenegger. In addition, TDECU Stadium has hosted high school football playoff games.”

Spurred by this success, UH’s athletics program has entered a period of striking growth. Multiple other projects are now underway, each bringing in revenue and bolstering excitement around the Cougars. 

How did all of this happen? This article explores one facet of the effort: A premium-seating program taken on in coordination with a venue development adviser (full disclosure: our team). As you’ll see, strategic seating programs can help athletic brands flourish. 

The key word here is strategic. 

THE ART OF VENUE FINANCING

To determine the demand for premium seating at TDECU stadium, UH began with a comprehensive market evaluation and premium-seating analysis of selected comparable markets, conference institutions and peer institutions. Next came: (1) Concept refinement focus groups, (2) Financial analyses of improvement scenarios, and; (3) Surveys of regional alumni and athletics program supporters designed to provide a valid statistical analysis of existing behaviors, seating preferences, improvement opportunities, price sensitivities and potential program space demands.

These analyses determined a level of demand and recommendations on seating mix and other aspects of the premium-seating program. Note that with such thorough research and market understanding, the strategic seating program goes way beyond “design.” A seating program isn’t about what will look nice or how many seats will fit, but how many seats are demanded and what investments will pay off — what revenue will be generated, and how they’ll support operating requirements and potential debt service obligations.  

Houston has found success after implementing a detailed seating design at TDECU Stadium.getty images

SEATING AND PRICING

More than 2,700 people participated in the surveys. Many who did not attend UH sporting events at the time indicated they would do so if the facilities and fan experience were improved. Participants indicated significant levels of interest in traditional luxury suites, loge seats, and club seats.

The following seat allocation was recommended:

  • 25 luxury suites 
  • 40 loge boxes 
  • 800 club seats

Additional recommendations included where in the bowl premium seats should be, what amenities should be included in or within close proximity to premium seats, and the optimized price point.

TDECU Stadium design closely followed the recommended seating program, building:

  • 26 luxury suites
  • 42 loge boxes
  • 766 club seats

These decisions received high marks in the press. The Houston Chronicle published an article one month before TDECU Stadium’s opening, saying: “UH is betting that once fans arrive they will like what they see. And that’s a good bet. The club level is a mere 25 feet from the playing surface, and prices are such that the breaking of one’s bank isn’t necessary for admission.”

These three years later, fans are impressed with what they’ve seen. “Houston fans who have secured season tickets in the premium-seating areas have consistently enjoyed their game-day experience, and the renewal numbers reflect that,” Bassity said. “The variable seating options and premium amenities have greatly contributed to the success of premium-seats sales while offering a top-notch game-day experience.” 

MONEY

In 2016, the Houston Chronicle reported, “As of Friday’s renewal deadline, UH had sold a record 18,193 season-ticket packages for the upcoming season. The old record, according to the school, was 15,022 in the first year of TDECU Stadium in 2014.” That uptick in sales, as well as the overall rejuvenation of the athletics brand, has translated to serious dollars. “With the move from Robertson Stadium to TDECU Stadium, UH saw an increase in annual football revenue from $1.5 million to $5 million-$6 million.”

BEYOND MONEY

Beyond financials, the stadium has helped redevelop UH’s athletics brand in three key ways:

1. Possible conference realignment. The stadium catapulted UH to the top of the American Athletic Conference, introducing the option of conference realignment. The power five and its payouts from bowls, television deals and tournament invites might be a desirable move for UH. If it is, the new stadium makes that possible. 

2. Easier, more successful recruitment. When a recruit walks through UH’s athletic facilities, these spaces reflect the university’s commitment to its football program.

3. Improved student-athlete experience. “The stadium has given our football student athletes a place to call home, and with student seating in the lower bowl, has provided a raucous game-day atmosphere giving our student athletes motivation to compete,” Bassity said.

THE FUTURE

The plan had been if the new stadium was a success, it would be the first of several upgrades to UH’s sports facilities. For example, if the revenue from TDECU stadium were substantial, and if the project proved the demand for expanded, improved facilities, a new basketball arena could be next. 

Guess which school is now building a new basketball arena?

William Mykins is vice president, and Bryan Slater is senior project manager at Brailsford & Dunlavey. B&D was selected by the University of Houston, in conjunction with Ellerbe Becket, to conduct an athletic facilities market study and financial analysis for a potential renovation or replacement of its athletic facilities.

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