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Facility Mangement. Sport Mangement - Period 7. History of Stadiums. Stadiums. professional sports demanded big stadiums to accommidate fans Urban spaces can only alow irregular or odd shaped fields in the late 1950s and 1960s they started to make fields sutable for fans
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Facility Mangement Sport Mangement - Period 7
Stadiums • professional sports demanded big stadiums to accommidate fans • Urban spaces can only alow irregular or odd shaped fields • in the late 1950s and 1960s they started to make fields sutable for fans • the nfls stadiums had to grow because more and more people liked it • early on, the nfl teams typically played in mlb stadiums but the stadiums where made for baseball so it made football calls questionable • in the 1960s early 1970s they started to make stadiums for football
History of Arenas The MLB was the first professional entity to have its own arena in the early years the NFL teams would play where the MLB teams did The NHL soon followed by making their own arenas NHL arena owners founded the Ice Capades 1st large scale annual touring ice show where they would share arenas with other on ice events
Modern Era Matt Tulio Jamie Hendershot
Stadium Construction: • Basketball and hockey are more compatible in terms of buliding designs then baseball and football. • For this reason it is critical to develep arenas capable of hosting both indoor and outdoor sports. • It is important to have two prime sport tenants. • Baseball only stadiums became obsolete during the 1960's due to not having wide enough seats, leg room, and not having easy access to concession stands. • Due to this new stadiums were built during 1960-1970
Financing the facilites has become a probelm for owners because of the owners desire to use facility revenues to compete for free agent players and boost their profits • Some cities have constructed facilities that will provide team owners the design and revenue streams they need to be successful • Team owners are seeking lucrative leases that provide revunues from four sources: prefered seating, parking, concessions, and staduim sponsorships
Team owners flee their traditional locations for grener pastures because of more profitable facility deals • The facility in which a professional team plays has the most significant impact on its profitablity and is often its primary consideration in choosing to reamain or move to a new location
Owners Decided multipurpose facilities were not good enough • Stadiums designed for both baseball and football ended up being desirable for neither sport • The new trend this decade is single purpose stadiums • The Columbus Crew Stadium in Columbus, Ohio was the first soccer only venue in the United States • It has become a model for all MLS franchises
How to Finance the Facility • The ways teams finance and build their venues include public and private finance. • These two options are voted on by citizens. • Public Finance • Citizens of the town or city pay money through taxes to help pay for the venue. • Private Finance • The team and its owners pay for the building of the venue. • Pladeging facility revenue streams to pay for debt service or mortage expenses takes revenue away from profits. • Stadium/Arena financing has fluxuated over the years between public and private.
Public Finance Tax Payers poll to either pay or not pay for the new building. If original taxes and this would pay for the venue. common publicly financed venues Convention centers and other buildings that help or contribute to citizens. Private Financing If citizens reject public financing it is up to the team and their managers to finance the team. Often vote is not approved for public financing then they try to open the business privately. Public vs. Private
Bonds Bonds • A promise by the borrower (bond issuer) to pay back the lender (bond holder) a specified amount of money, with interest, with a specified period of time • May be issued by local authorities (cities, states) to underwrite the cost of sport facility construction
Bonds Continued 2 Categories of Bonds • General Obligation Bonds • Safe investment that is backed by local government's ability to raise taxes t opay off the debt • Revenue Bonds • Riskier investment that is backed by facility's ability to make money to pay off the debt • If facility has a down year financially, there may not be enough money to make debt payments
Taxes Continued When a professional team decides to build a stadium it is a very costly process, that is why it is necessary for many different payment options. One of these types of payment options is taxes, some of the different types of taxes that can be imposed are such as property taxes; for those who live in the area of the stadium. Also they could impose a higher sales tax, taxing both the citizens and the tourists, this type of tax is more supported by the citizens of the area.
Facility Management • Relationship between owner and management determines efficiency and profitability • 3 main types of facility ownership • Community • Many regulations and and procedures for facility • Colleges • Funding based on student growth, gifts, and institutional subsidies • Private • Solely for profit Responsibilities • serving tenant's needs • providing clean, safe, comfortable environment for patrons • Securty, cleanup, marketing, sales, scheduling and booking, operations, event promotions, and finance
Private Management Options Private management offers more expertise and resources not available to individual venue managers. • Most companies have group of facilities to create relationships and bring in event purchases • Have people for overlooking management • More efficient production and negotiation for materials • Offer opportunities to managers who will be able to work in many different places in any management Chase Field, managed by SMG, a private management company
Definition of a Public Relations Director A public relations (PR) director is essential for facilities as they deal with the media on a wide variety of issues. They often have to fight off the media with many questions about the team and the venue.
Goals of a Public Relations Director One of the main goals of a PR director is to make strong relationships with TV and radio stations and directors, newspaper editors, and reporters asking questions about the players, coaches and the venue.
A Typical Day for a PR Director A PR director's day includes coordinating live TV broadcasts, writing press releases anouncing ticket prices, and mascot appearences at local charities and schools. Remember the next time you see your favorite mascot in a public place the team's PR director probably coordinated it.
Important Attributes of a PR Director - Strong writing abiliity - A creative mind - An ablity to respond rationally while under pressure.
Event Director • Point person for facility during each show • Supervises all staff memebers • Manages shows from start to finish • Must be able to react quickly to problems • Has to be able to manage all types of people • Huge responsibilites • Day begins at 8 p.m. • Suprvises and schedules traffic and parking • Meets with all the staff before every event • Could be at event for almost 18 hours
Booking Director A booking director choses from these 3 methods when working on the job............ • rent the facility • Co-promoter • Purchase the show directly from an agent
Conventions, trade shows, concerts, family shows, Broadway shows and staduims Booking Director is responsible for all the shows and for making the staduim or arena have no"off night" or when theres no one in the arena. Which mean when theres no one schedualed people cannot make money. Booking directors work with.......
Operations Director • supervises facility preparation for all types of events • spends most of annual expense budget on labor, maintaining and repairing all equipment, and purchasing all necessary supplies • most important job is coordinating, scheduling, and supervising the numerous changes throughout the year • might face problems daily because the facility might change from hockey to basketball in one night • job requiers mechanical knowledge • expert in heating, ice making, and stuctural issues • superior people skills, because in charge of staff of facility, foremen, mechanics, etc.
Daily Life of Operations Director • early morning with a check from last nights changeover from what ever event that happend to todays • inspect the overnight clean up and temperature condition from hockey to basketball • discuss any problems with assistants will keep the operations director busy in the morning • plan for the week ahead • meet with manager of incoming event and city officials • also scheduling, this will complete the day for the operations director
advertising, sponsorship, and signage salesperson cont. advertising and sponsorship revenue represent a significant total of a facility's annual revenue. this job is for people that can preform in high-pressure sales encviroments. this area offers a good entry-level position. sales is a numbers game, and only strong, thick-skinned personalities are seccessful in such an environment. successful salesperson genarate money for themselves, and the facility-and that will be notice at the executive level.
cont. if you are really good at being a salesperson they usually can end up as a general manager or an exucitive director for the facility. in a days worth of working a salesperson they have at least 25 cold calls to corporate decision makers, two to four face-to-face slaes presentation, and plenty of writing. you have to be really good at writing tobe successful at this sport
Group Ticket Salesperson • Many college graduates begin their facility management careers in the group sales department. • Group salespeople are primarily responsible for selling tickets to various events to corporations, charity organizations, schools, Boy Scout and Girl Scout troops, and other parties. • Group sales for certain types of shows contribute significantly to an event's success. • Shows: Sesame Street Live, Disney on Ice. • Similar to the successful signage and sponsorship staff person, a good group salesperson is tenacious and excels on the telephone and in face-to-face presentations. • A good group salesperson is an important asset to a facility.
Box Office Director • Responsible for the sale of all tickets to events as well as the collection of all ticket revenue. • The box office is the 1st impression that patrons usually get of the stadium/arena. • The box office director must be: • - patient - good with numbers • - understanding - good at supervisory skills • Within most venues the box office is the 2nd largest deparment, after operations.
Security • Security of sporting events and generally around the world have greatly increased since September 11, 2001. • Bag checks, pat downs, and metal detectors are now used as normal regular security checks, not only for sports but for other means of security as well. • The best management tool created for security is known as the crowd management plan. • Crowd Management Plan- this plan encompasses categorizing the type of event, knowing the surrounding facilities, team or school rivalries, threats of violence, the crowd size, and seating configuration.
Ada -On July 26, 1990, President George H.W. Bush signed inot the law the Americans with Disabilities Act. -The intent of this act is to prevent discrimination against qualified people with disabilities in employment, public services, transportation,public accommodations, and telecommunications services. -
Ada Ada -You must provide 1% of seating, must be wheelchair accessible, a companion seat must be provided next to each wheelchair seat. -Instead of steps they must provide ramps, and bars to grab on to -Other th9ings are drop off and pick up areas, water coolers and other things as well
