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The secret of revenue generation in sports venues

author:Tech Connect channel

Once upon a time, stadiums were buzzing on matchdays, but the rest of the time they were unoccupied. Looking at the present, the design of contemporary sports venues has long been different from the past.

Regardless of size, all investors today want stadiums to continue to operate 24/7/365, bringing people a superior experience, connecting with the community, and becoming a "must-see" punch card mecca for tourists.

As an international architectural design firm specializing in the design of sports and entertainment venues, POPULOUS initiates an active dialogue with the client at the beginning of each project, discussing the "continuous and diverse commercial benefits" of the venue and including it in the project discussion.

A gorgeous turn from Highbury Stadium to Emirates Stadium

Andrew James, senior director of POPULOUS, said that if the venue is to achieve commercial success, its design must be deliberate and targeted.

"The fans are always craving each other's bonds. Our clients understand that the venue's appeal as a meeting place is not limited to games on the pitch. POPULOUS's decades of experience will help our clients in this process, and we will be able to identify what are the key drivers that will enable sports venues to generate better revenues. "This upfront prediction is critical to the development of the project." For example, if a club expects 20,000 spectators per game, operating a 60,000-seat stadium would be a financial disaster. To that end, each venue needs to consider its own challenges and opportunities. ”

"Then we start designing and introducing innovation space within the project. These spaces will help introduce commercial collaborations or create additional revenue streams to maximize the use of the venue. James added.

The secret of revenue generation in sports venues

Arsenal Football Club Emirates Stadium (exterior) _Simon Warren_POPULOUS

In 2005, POPULOUS completed the design of the new home stadium of Arsenal Football Club in the United Kingdom. Although the old Highbury Stadium is one of the most famous football stadiums in the world, Arsenal realised that in order to be able to compete with Europe's top clubs, they needed a larger stadium to increase revenue by adding capacity and reception space.

In 2006, Arsenal's new home stadium was dubbed Emirates Stadium (also known as Emirates Stadium). In partnership with POPPULOUS, the Arsenal Club has designed a unique combination of commercial and reception spaces that have gained significant commercial value on both match days and non-match days, meeting the needs of a wide range of conferences, exhibitions and events.

Operationally, the decision to develop a new stadium is very sensible. In 2008, the club's earnings report showed that the daily revenue of new games increased by 70.8 million euros, a growth rate of 111% – the club's largest source of revenue now, accounting for 51% of the total revenue. Emirates Stadium earns an average of €4.6 million per game, while the annual gross revenue for matchdays amounts to €134.6 million, the second-highest of all clubs. Although the club sold 10,000 new season tickets in 2006/07, the report said the season pass waitlist increased by 28 percent to 41,000.

"The success of the Emirates Stadium has been driven by a diversified development programme that provides new products and services to the football club." James concludes, "Stadiums and stadiums are the most unique buildings, very important urban elements that, if handled properly, will add a lot to urban life." They can be the center of the city, bringing urban benefits, economic benefits and social benefits. ”

Immersive space in the T-Mobile Arena

James Smith, senior director and head of business development and consulting at POPULOUS, said business analytics was another key element that needed to be incorporated into architectural design.

Through in-depth user research and full understanding of the "rule of two eight", we can find that the high-end target users of sports venues, accounting for 20%, will bring 80% of the revenue of the venue. We engage in ongoing conversations with our owners to bring breaking ideas, maximize new revenue opportunities, and balance user experience and operational efficiency. Smith introduced.

"Each of our projects is based on people's good experiences. The design process we go through with our clients or communities is not just about collecting statistics, we also uncover unique local contexts, customs and contexts. "Because we understand different audiences, from hardcore fans to regular ball game visitors to corporate customers or very wealthy fans, we've created a range of experiential products and know exactly how much users are willing to pay for these value-added services." ”

The secret of revenue generation in sports venues

The cantilevered club space in the T-Mobile Arena _Jeff goldberg of Esto

The secret of revenue generation in sports venues

With detailed business analysis, POPULOUS has designed a variety of spaces and quality facilities that set the T-Mobile Arena in Las Vegas, USA apart.

From local residents to international visitors, the stadium caters to a wide variety of visitors. The most striking aspect of the seating and event options are the two one-of-a-kind immersive club spaces – two cantilevered lounges that connect to each other and jump out of the upper stands to overlook the events below.

"Las Vegas is known for its spectacular live performances, and the key to the project was to design a venue that would rival the surrounding attractions and entertainment. This space idea attracted many fans, allowing them to arrive at the venue early and then fall in love with it. Smith explained.

Tottenham Hotspur Stadium, which creates diverse experiences

In London, England, the Tottenham Hotspur Stadium, which opened in 2019, has once again pushed the bar up to a multi-experiential venue. Tottenham Hotspur are ambitious to build a new sporting, leisure and entertainment destination in north London. The master plan and architectural design, completed by POPPULOUS, achieves this ambitious goal, attracting an influx of around 2 million visitors each year.

Regardless of the level of tickets the spectators hold, they will find their own space in the stadium. Tottenham Hotspur underscores the importance of creating an extraordinary matchday experience for every fan, with a wide range of high-quality products and services available to fans. The design of premium hospitality facilities also makes the most of the space, unleashes the potential of the stadium, creates a unique experience for fans and brings new opportunities for the club to generate income.

"The Tunnel Club, located in the heart of the stadium, allows viewers to enjoy a unique VIP experience for an additional fee. In the club's restaurant and bar, guests can see the exclusive behind-the-scenes scenes of player admission through the glass walls. "The stadium itself is a place for diverse experiences – every time fans visit, they make new discoveries." ”

Tottenham Hotspur's new stadium has a capacity of 62,303 spectators, providing one of the best viewing experiences in the world. By adopting a fully retractable stadium setup, it became the first stadium in Europe to be able to convert to a professional venue for Major League Soccer (NFL).

The secret of revenue generation in sports venues

Tottenham Hotspur Stadium (interior) _Edward Hill_POPULOUS

Thanks to the premium hospitality facilities of the east and west stands, POPULOUS also adjusted the design of the south side of the stadium, resulting in a passionate single-storey home fan stand, the South Stand, the largest home fan stand of its kind in the UK. The grandstand, which can accommodate 17,500 home fans, was designed with a large slope to enhance the natural acoustics of the stands and project a deafening "wall of shouts" on matchdays.

On match days, the spectator atmosphere in the stands is an experience in itself, providing opportunities to socialise while also maximizing the venue's revenue on match days.

In addition, POPULOUS's design redefines the matchday experience by creating attractions that are open 365 days a year.

The Tottenham Experience has an interactive museum, the Tottenham Hotspur Archive, a café, and the largest retail space of any club in Europe. It is also the starting point for visits to the stadium and other excursions, facilities that guarantee a wealth of activities throughout the year.

To further support the club's revenue generation, the world's first small on-site brewery was born in the stadium's bar, brewing on-site just a stone's throw away from the fans, ready to supply craft beers. In the East Stand, POPULOUS created a huge ballroom with 520 seats, becoming part of London's third-largest convention facility, while there is also a new hotel in the southwest of the stadium.

"Stadiums can also reap lucrative revenues through other non-match-day revenue streams, including renting office space to commercial tenants or selling naming rights and sponsorships, which is at the top of the stadium's revenue structure." Smith emphasizes, "This forward-thinking approach to design enables a multi-faceted experience venue that provides year-round commercial revenue through a variety of different spaces and brand activation areas that attract people to come and go." ”

Taken together, regardless of the size of venues, the secret to revenue generation is to turn them into city landmarks, providing fans, venue operators and tenants with multiple use options and immersive and unique experiences.

POPUROUS, who has mastered the secret of generating revenue from sports venues

POPULOUS is the world's leading sports, exhibition and entertainment venue design and event consulting company, as well as the company with the largest number of completed projects, the largest total scale and the most experienced company in the field of sports architectural design. The business income in sports planning and design projects has ranked first in the world for many consecutive years. He has designed and completed many world-renowned buildings such as the main stadium of the Sydney Olympic Games, the Wimbledon Tennis Open Central Field, the London O2 Performing Arts Center, the Hangzhou Asian Games Equestrian Center, and the Hong Kong Kai Tak Sports Park. POPULOUS can not only provide accurate services in the development consulting, planning and design of events and venues, but also help owners maximize urban benefits, social benefits and economic benefits through the introduction of events and the commercialization of venues.

For more information, please visit its official website https://populous.com/, or follow the official WeChat account Poppulous-China.

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