Flip or flop. The lifespan of big-league stadiums and arenas is seemingly shrinking to a level far below the customary 30-year benchmark for sports venues.
As several teams announce plans to build new facilities, the existing model has expanded to mixed-use developments connected to those venues to create 24/7 destinations for fans and amenities to attract mega-events like the Super Bowl, NCAA Final Four and the College Football Playoff championship.
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Factoring into that decision is the deferred maintenance of 20-year-old buildings and record inflation, which along with skyrocketing material costs, continued supply chain disruptions and workforce shortages, in some cases can double the cost of renovating existing structures.
With public funds available in certain markets, teams are opting to build new facilities instead of spending hundreds of millions in upgrades. Those public sums have soared to record heights in Buffalo, New York, Nashville, Tennessee, and other markets to help finance sports development.
Melissa Heiter, CAA Icon senior vice president, will moderate the “Extending the 30-Year Life Cycle for Sports & Entertainment Facilities” panel at the VenuesNow Conference, which takes place at the Austin Convention Center Oct. 5-7.
Heiter has spent 18 years on the development side of sports and entertainment venues in a business development and marketing capacity and has participated in the opening and reopening after renovation of 25-plus venues.
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“Understanding how the deals come together from the very beginning give me a unique perspective on the intricacies of the development process and what it takes to get a deal done,” she says.
Heiter anticipates the panel’s pressing topics to be:
- The realities of operating an aging venue (from an operator/owner perspective)
- Balancing those realities with what is possible from a monetary, physical, and deal-structure perspective
- Remaining competitive with other arenas/stadiums
Not all owner/operator perspectives align on what the future looks like for their venue, their tenants, and what works for their market, according to Heiter.
“Of course, all of us are trying to understand what ‘future proofing’ means and how we can be prepared for it,” she added.
Panelist Dwight Johnson, vice president of arena operations for FedExForum in Memphis, Tennessee, said that venue technology and improvements will be another topic of consideration.
“It’s moving faster than buildings can keep up,” offered Johnson.
Johnson has a diverse background working in a variety of venues from newly renovated theaters to new outdoor sporting facilities.
“Every day I go into work and look for ways to better position the venue I’m in for the long run,” he said. “Our goal is always to maximize the guest experience and provide the best possible customer service. While doing that, we need to make sure we are providing a functioning building that is safe for our patrons.”
Not all owner/operator perspectives align on what the future looks like for their venue, their tenants, and what works for their market, according to Heiter.
“Of course, all of us are trying to understand what ‘future proofing’ means and how we can be prepared for it,” she added.
“I don’t see an issue that would cause disagreement, but I would say there are many different ways to extend the life a venue,” added Johnson.
Panelist David Kells, executive vice president of entertainment and venues for Bridgestone Arena and the NHL Nashville Predators, says time is a critical factor. “With material and labor costs escalating there is a sense of urgency for venue renovations,” Kells said.
Working at the Bridgestone Arena during times of development and stagnation, Kells recognizes the need for constant investment in venues at every capacity as Bridgestone enters a four-year renovation.
“Regardless of the size of your venue, you need a constant source of funding for upkeep and improvements,” he said. “Taking a year off is a bad idea.”
Rounding out the panel is Donna Julian executive vice president of the Spectrum Center in Charlotte, North Carolina; Adam Nuse, senior vice president of business operations for the NFL Tennessee Titans in Nashville, Tennessee; and Chris Zimmerman, president and CEO of business operations for the NHL St. Louis Blues in St. Louis, Missouri.
“We’ve heard this conversation many times before from select venues or consultants,” Heiter said. “This is going to be all owners or operators, so attendees will leave the panel with a current, relevant perspective of what owners and operators are saying about the state of aging venues in 2022 and what they’re doing to stay competitive and relevant for the future.”
