Multipurpose stadiums Picture © Herzog and De Meuron more than just a football stadium Ben Veenbrink Euro 2012 Conference, Warsaw, 8th November 2007 Resume Ben Veenbrink Director of The Stadium Consultancy BV, The Netherlands Specialised consultants and managers for the planning, development, operation and management of stadiums Director Euroborg Stadium, Groningen, The Netherlands Member of UEFA Expert Panel “Stadium Construction & Management” Co-founder of the European Venue Management Institute (EVMI) Former member of management of Amsterdam ArenA Nearly 10 years experience in the venue industry As specialist consultant involved in more than 25 stadium projects in Europe, Asia and the Americas 3/21/2016 2 Historic perspective on stadium development Until ±1985: Little importance placed on venue Simple stadiums, hardly facilities for the public Focus on players and the game Stadium Management: basic job: housekeeping mowing the grass cleaning the seats 3/21/2016 3 Historic perspective on stadium development ±1985 – 1995: The Safe Stadium Bradford (’85), Heizel (’85) & Hillsborough (’89) disasters Era of hooliganism Publication of Taylor report ‘Green Guide’ to safety at sports grounds Major stadium renovations needed Stadium Management: Increased focus on safety & security 3/21/2016 4 Historic perspective on stadium development 1995 – 2005: the Profitable Stadium Commercialisation of football: Bosman ruling Commercial TV Champions League Professionalising / branding of clubs (and players) Need for stadiums as brands & revenue sources Stadium Management: Marketing focus 3/21/2016 5 Historic perspective on stadium development 2005 - ???: the Compelling Stadium Experience economy Wide range of football offering on TV Stadiums competing with other forms of leisure and entertainment Integration of technologies and entertainment Need for stadiums to offer experiences to visitors: more than just the action on the pitch Stadium Management: Multi-skilled professionals 3/21/2016 6 Characteristics new wave of stadiums Safety & security in stadiums top priority Experience economy: visitors have higher expectation levels for comfort & entertainment Stadiums often serve an iconic / landmark function Stadiums have become increasingly expensive buildings Construction costs per seat range from € 1.500 - € 7.500 (and even more) Stadiums are still underutilised (25 times per year during a football match) Need for stadiums which: Are utilised year around Generate more revenue for clubs, owners and/or operators Provide compelling visitor experiences 3/21/2016 7 The Challenge Increase the use of stadiums: Increase the number of events organised (esp. non-football events) Increase the daily use of the building (8 days a week) Increase the spend per visitor (matchday income) Increase the branding & commercialisation of the building itself Increase synergy between the stadium and its surroundings to create traffic (mixed development) 3/21/2016 8 Increase the number of events Sport Events Ground sharing Non-football sports (Rugby, American Football) Non-sport events (multipurpose use) Concerts Family entertainment Motorised sports / Fun sports Exhibitions and conventions Corporate events Need for a versatile stadium Various event configurations Short conversion times Avoid being stuck in the middle ! 3/21/2016 9 Increase the daily use of the building Utilise the available sqm. in the building to a maximum Include functions which generate traffic 8 days a week Stadium tours & Museum Conference centre Offices Commercial retail (e.g. sports related) Leisure & entertainment (fitness, casino, etc.) Double use of areas (matchday non-matchday) Lounges conference / meeting rooms Press conference room auditorium Corporate suites hotel rooms Board room restaurant Etc. 3/21/2016 10 Increase matchday income Price segmentation & Yield management Corporate suites Business & premium seats Hardcore fan sector Family stand Kids corner Corporate hospitality areas Lounges, restaurants with quality catering 10% of capacity generates 50% of matchday income Public catering 3/21/2016 Product offering tailored to event and visitor profile Efficient production systems Number of stretching meter sales counter determining factor (min. 7/1000) 11 Increase matchday income Parking VIP/corporate parking essential to sell premium seating Synergy and double of parking with non-matchday Merchandising Special items Delivery to seats for corporate guests On screen entertainment Advertising SMS games (man-of-the-match) Smart card applications 3/21/2016 Access system Faster payment Loyalty program CRM Module 12 Branding & commercialisation of the building Naming Rights Sponsor names stadium or section of stadium Activation of sponsorship important Possibility to securitise contract Founding Partners Exclusive supply rights (construction or operation) Branding Activation through corporate suite and other Supply rights Right to sell product or service at market rate Publicity Other partnerships E.g. co-develop product (prototyping) 3/21/2016 13 Mixed development Stadiums are attractive buildings: Landmarks Provide status, exposure and income for cities Places where lots of people gather together Commercially interesting: branding, selling products/services Association with sports & entertainment: sponsoring Create a lively urban area with stadium as centrepiece with year round activity traffic Create synergy with other functions in the urban area Infrastructure can be double used (parking, road network, public transport facilities) Income from commercial development around stadium can (partly) finance stadium project (win-win) 3/21/2016 14 Picture © Louis van Vuurst Case study 1: Amsterdam ArenA 3/21/2016 15 Characteristics 52.000 capacity multi-purpose stadium, opened in ’96 Anchor tenant: AFC Ajax Total investment: € 127 million (stadium only, excl. parking) Well developed B-to-B concept: skyboxes, business seats, restaurant capacity 3.000 seats B-to-B generates 50% of match-day revenue (10% of capacity) Versatile stadium design, capable of hosting wide range of worldclass events from 10.000 – 70.000 spectators Amsterdam is high potential events market, the ArenA hosts 70-80 major events per year (incl. football) Part of mixed development scheme: ArenA Boulevard 3/21/2016 16 3/21/2016 17 Multipurpose use 3/21/2016 18 Daily Use 3/21/2016 19 Branding 8 Founders (KPN Telecom, Philips, Coca-Cola, Grolsch, BAM/BallastNedam, State Lottery, Amsterdam RAI, ABN Amro) Each invested € 2,3 million in cash In return founders obtained 10 years exclusive rights: Skybox + tickets Supply rights Advertising boards (general areas of stadium only) Free event in the stadium (activation of sponsorship) 3/21/2016 20 Mixed development Stadium built in ‘poor’ South-east area of city (‘Bijlmer’) Stadium catalyst to attract private investment Development of 2nd city centre: ArenA Boulevard Redevelopment and socio-economic regeneration of Bijlmer Mixed development: Shopping: megastores (Decathlon, Mediamarkt, Villa ArenA, etc.) Leisure & entertainment: ArenA, Heineken Mucic Hall, Pathé cinemas, GETZ Entertainment centre Working: (financial) services Living: apartment towers Double use of infrastructure (parking) 3/21/2016 21 Mixed development 3/21/2016 22 Case Study 2: Euroborg Stadium 3/21/2016 23 Characteristics 20.000 capacity football-only stadium, opened in ’06 Anchor tenant: FC Groningen (Dutch premiership) Groningen has no market for (inter)national events Football only stadium Stadium building is integrated with various commercial functions inside the main complex as well as around Investment costs: € 36 million (stadium only) € 110 million (entire building) 3/21/2016 24 Daily Use Stadium integrated with 6 other functions: Parking (1.000 spaces) School (8.500 m2) Cinema (10 screens) Casino (2.000 m2) Offices (6.000 m2) Restaurant (800 m2) Other commercial functions next to stadium Supermarket (5.000 m2) Fitness & wellness (5.000 m2) Offices (15.000 m2) Two 75m apartment towers (180 apartments) Synergy and traffic to entire urban area 3/21/2016 25 3/21/2016 26 Daily Use Cinema Parking under building Business lounge stadium Casino Commercial Offices Public concourse stadium Restaurant Main entrances stadium School 3/21/2016 27 Branding No naming rights partner (yet) 3 founding partners: Fair Play Casino’s Noorderpoort college Contractor Euroborg provides brand to entire urban area 3/21/2016 28 Mixed development Stadium is catalyst for development of new urban area: Europe Park Stadium building itself integrated with 6 other functions Further commercial development adjacent to stadium City owns Euroborg NV together with private developer (50/50%): Owner of stadium Development vehicle of the other commercial functions Development receipts from land transactions used to finance stadium 3/21/2016 29 Mixed Development 3/21/2016 30 Thank you for your attention, questions? The Stadium Consultancy BV PO Box 154 1400 AD Bussum The Netherlands 3/21/2016 Tel.: +31 35 5233342 Fax: +31 35 5233343 info@stadiumconsultancy.com www.stadiumconsultancy.com 31