Multipurpose stadiumsmore than just a football stadium

Ben Veenbrink

Euro 2012 Conference, Warsaw, 8th November 2007

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Resume Ben Veenbrink

Director of The Stadium Consultancy BV, The NetherlandsSpecialised 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

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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

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Historic perspective on stadium development

±1985 – 1995: The Safe Stadium

Bradford (’85), Heizel (’85) & Hillsborough (’89) disasters

Era of hooliganism

Publication ofTaylor report

‘Green Guide’ to safety at sports grounds

Major stadium renovations needed

Stadium Management:Increased focus on safety & security

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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

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 andentertainment

Need for stadiums to offer experiences to visitors: more than just the action on the pitch

Stadium Management:Multi-skilled professionals

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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

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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)

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Increase the number of events

Sport EventsGround 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 !

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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 weekStadium 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.

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Increase matchday income

Price segmentation & Yield managementCorporate suites

Business & premium seats

Hardcore fan sector

Family stand

Kids corner

Corporate hospitality areasLounges, restaurants with quality catering

10% of capacity generates 50% of matchday income

Public cateringProduct offering tailored to event and visitor profile

Efficient production systems

Number of stretching meter sales counter determining factor (min. 7/1000)

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Increase matchday income

ParkingVIP/corporate parking essential to sell premium seating

Synergy and double of parking with non-matchday

MerchandisingSpecial items

Delivery to seats for corporate guests

On screen entertainmentAdvertising

SMS games (man-of-the-match)

Smart card applicationsAccess system

Faster payment

Loyalty program

CRM Module

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Branding & commercialisation of the building

Naming RightsSponsor names stadium or section of stadium

Activation of sponsorship important

Possibility to securitise contract

Founding PartnersExclusive supply rights (construction or operation)

Branding

Activation through corporate suite and other

Supply rightsRight to sell product or service at market rate

Publicity

Other partnershipsE.g. co-develop product (prototyping)

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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)

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Case study 1: Amsterdam ArenA

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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 world-class 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

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Multipurpose use

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Daily Use

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Branding

8 Founders (KPN Telecom, Philips, Coca-Cola, Grolsch, BAM/Ballast-Nedam, 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)

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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)

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Mixed development

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Case Study 2: Euroborg Stadium

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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)

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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

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Casino

Restaurant

School

Commercial Offices

Main entrances stadium

Public concourse

stadium

Business lounge stadium

Parkingunder building

Daily UseCinema

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Branding

No naming rights partner (yet)

3 founding partners: Fair Play Casino’s

Noorderpoort college

Contractor

Euroborg provides brand to entire urban area

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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

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Mixed Development

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Thank you for your attention, questions?

The Stadium Consultancy BVPO Box 1541400 AD BussumThe Netherlands

Tel.: +31 35 5233342Fax: +31 35 5233343info@stadiumconsultancy.com www.stadiumconsultancy.com