maximizing the impact & optimizing the performance of sports & recreation assets

Maximizing the Impact & Optimizing the Performance of

Sports & Recreation Assets Jason Clement, Dev Pathik, Evan Eleff

What We Will Cover •  Introductions •  Define performance: Sports & Recreation Assets •  New Generation of Operations and Expectations •  Questions

Introduc)ons: Speakers Bio •  Since 2003 -‐ Firms have produced funding documents for a por>olio

totaling over $4 Billion in sport & recrea1on venues.

•  Past 3 Years – Opened more than 2 million square feet of indoor facili)es and over 800 acres of outdoor

•  2014 – Venues managed & advised hosted more than 12 million visits •  2015 -‐ Will host more than 15 million visits this year •  2014 -‐ Venues generated $20 -‐ $50 million in Economic Impact

annually to their communi)es

•  Over 200 team members Improving the Health & Economic Vitality of the Communi)es We Serve

www.SportAdvisory.com

Introduc)on – About You What size of community do you represent? A.  Popula)on less than 15,000 B.  15,001 – 45,000 C.  45,001 – 75,000 D.  75,001 – 150,000 E.  151,000+

Introduc)on – About You

Types of sport & recrea1on assets are your interest? A.  League-‐Based Sports Programming B.  Membership (Fitness, Aqua)cs, or Recrea)on Center) C.  Sports Tourism D.  Leisure E.  Group Events (Family) Entertainment F.  Start-‐Up (In Planning)

Introduc)on – About You

What interests you? A.  Building economic impact from outside community B.  Capital needs for asset maintenance & replacement C.  Facilita)ng healthy lifestyles D.  Financial Sustainability – increasing % Cost Recovery E. All of the Above

Current Sport & Recrea)on Performance

•  Nearly 3 million fewer kids are playing above sports (SFIA) •  Less than 1 in 3 children between ages 6-‐12 par)cipated in a high

calorie burning sport or fitness ac)vity 3 )mes/week


•  Youth from homes in lowest income bracket are half as likely to play


•  Lack of ac)vity links to obesity

•  40% of girls &

35% of boys are obese

•  U.S. is country with highest obese youth among 15 peers

Performance – How do we define success? Cost Recovery The Great One -‐ Wayne Gretzky

“I skate to where the puck is going to be, not where it has been. A good hockey player plays where the puck is. A great hockey player plays where the puck is going to be.”

Performance – How do we define success? •  Cost Recovery/Financial Performance •  Quality of Programs -‐ diversity •  Economic Impact •  Venue Door Swings

•  Ancillary development, incremental spending •  Family Connec1vity and Par1cipa1on

•  Family involvement •  Leadership and Character Development

•  Gradua1on Rates, standardized tes1ng •  Philanthropic Involvement •  Employment tenure, rates

•  Improved Health – Mental, Physical, Social, Spiritual •  Brain ac1vity, obesity rates

Performance – How do we ACHIEVE success? 1 of 5: Know Your Opera1onal Model

Anchor Operation Type Average Annual Revenue per Square Foot High

Sports Tourism $40

League Based (Traditional) $75

Membership Fitness $125

Group Event (Entertainment) $125

$- $10 $20 $30 $40 $50 $60 $70 $80 $90 $100

Performance – How do we ACHIEVE success? 2 of 5: Innovate and create incremental opportuni1es

Ancillary Revenue Analysis

Ancillary Revenue Service % of Operations

% of Income

Avg Income Examples

Food and Beverage 91% 11% $175,000 $1,750,000 Advertising and Sponsorships 85% 2% $40,000 $500,000

Camps Clinics 70% 7% $119,000 $1,200,000 Parties - Group Event 70% 3% $48,000 $1,500,000

Kids Programs 67% 9% $187,000 $1,000,000

•  Sports Leadership Programs •  Corporate & Group Programs (grad par)es, iron skillet, etc.) •  Child Development – Lil’ slugger, kicker, laxers, infant swimming – cogni)ve motor skills •  Corporate partnerships •  Educa)onal Academies

Performance – How do we ACHIEVE success? 3 of 5: Solicit Guest Feedback

Performance – How do we ACHIEVE success? 4 of 5: Recruit, Train, and Retain Talent

Stanford MBA Graduate �  Average compensa)on: $400,000 �  First Year Average: $140,000 �  Average Industry GM: $70,000

ISU MBA Graduate �  Average compensa)on: $125,000 �  First Year Average: $65,000 �  Average Industry GM: $70,000

Train for Success – not a first year posi)on �  Business Development – Marke)ng, Branding, Sales �  Financial Competence – Repor)ng, Cash handling, Forecas)ng �  Strategic Thinking – Market awareness, Leadership �  Opera)onal Excellence – Great products, service, effec)veness �  Risk Management – Legal, Human Resources

Performance – How do we ACHIEVE success? 4 of 5: Recruit, Train, and Retain Talent

Reten)on Method:

Ø  Engage, Educate, Equip, Energize, Empower, Elevate Ø How to create a culture of accountability:

Ø  “I want you to think and make decisions like an owner”

•  Trust •  Clarity of vision, intent, scoreboard •  Incen)ve based compensa)on

“I’ll kick you so fast I’ll look like a one legged man.” -‐ Burton R. Snook

Financial Investm

ent

High $$$

Low $

Brand Iden1ty

Marke1ng Systems

Product Appeal

Sales Process

Quality of Service

Ideal Customer Rela1onships The set of behaviors your advocates/raving fans exhibit.

SFA|SFM TARGET MODEL Performance – How do we ACHIEVE success? 5 of 5: Lead: Create a Culture of Business Development,

Service, and Accountability

Performance – How do we ACHIEVE success? 5 of 5: Lead: Create a Culture of Business Development,

Service, and Accountability q Crak and Communicate the Vision q Establish Goals for results, rela)onships, processes q Alract and inspire others to share commitment to excellence q Give feedback that improves performance – verbal & wrilen q Measure and benchmark

²  Inten1onal Leadership is the Biggest Variable many can control to op1mizing the performance of the opera1on

Characteris)cs of Successful Opera)ons �  Embrace opportuni)es �  Innovate wisely and con)nuously � Don’t be afraid to Learn �  Proven management systems & repor)ng �  Invest in high achievers

�  Engage, Educate, Equip, Encourage, Empower �  Energize and ELEVATE

Next Genera1on of Sport & Recrea1on Assets Expecta1ons: •  Cost Recovery/Financial Performance •  Quality of Programs -‐ diversity •  Economic Impact •  Venue Door Swings

•  Ancillary development, incremental spending •  Family Connec1vity and Par1cipa1on

•  Family involvement •  Leadership and Character Development

•  Gradua1on Rates, standardized tes1ng •  Philanthropic Involvement •  Employment tenure, rates

•  Improved Health – Mental, Physical, Social, Spiritual •  Brain ac1vity, obesity rates

Next Genera)on of Sports Assets will achieve:

Questions/Comments? Jason Clement

Founding Partner The Sports Facilities Advisory

The Sports Facilities Management [email protected]

727-474-3845

Dev Pathik Founding Partner

The Sports Facilities Advisory The Sports Facilities Management

[email protected] 727-474-3845

Evan Eleff Vice-President

The Sports Facilities Advisory The Sports Facilities Management

[email protected] 727-474-3845