Earlier this year,  David Holland, Senior VP, Sports and Entertainment Solutions Group at Cisco, wrote a guest post called “You’ve Come a Long Way, Baby” that discussed how emerging technology continues to improve the fan experience. So when I received information about a partnership between Cisco and Verizon at AEG’s Staples Center, I thought it was definitely worth sharing.

The premise behind the Cisco StadiumVision partnership is to leverage digital video technology build by both Verizon and Cisco, to provide a more interactive experience for fans in the building, while making information on stadium amenities and services more visible. At  the same time, this technology can provide additional sources of revenue tied to targeted digital delivery of sponsor and partner assets across more than 375 interconnected HD displays in suites, stands and concourses.

Here are more of the details, courtesy of their joint press release:

• In the luxury suites, Cisco StadiumVision further personalizes the event experience by allowing fans to customize their view of the live game or show below, or switch to other channels of premium HD content, by simply changing the channel via the Cisco touch-screen Unified IP Phones in conjunction with Verizon voice-over-IP service. In the future, fans will also be able to order concessions and team merchandise for delivery to the suites using the touchscreen on the phones.
• With constantly changing games, teams and events, one of the keys for STAPLES Center is the flexibility of the technology being delivered by Verizon and Cisco. The entire color scheme, content and branding of the venue can be done with the push of a few buttons, and this is proving exceptionally valuable at the concessions stands where dynamic menu boards can easily be updated with new menu items and pricing.
• AEG is already seeing a strong return on its investment evidenced by results from the early deployment of digital and dynamic menu boards at the refreshment stands. For example, in March AEG saw a 9% increase in revenue (year over year) from concessions for Los Angeles Kings games. Even more impressive was the 400% increase in revenue (year over year) from select pilot promotions offered for the Los Angeles Sparks games this season.

According to James Timmons, vice president of global enterprise sales for Verizon Communications, “Designing and implementing technology solutions that cater to the individual consumer, as AEG has done with STAPLES Center, is a successful model for other venues to adopt.  Together with Cisco, we’re helping to create a game-changing experience for fans and new business opportunities for STAPLES Center partners.”

Technology partnerships like this one are a key component to maximizing the in-venue experience. With more and more advantages in digital displays, data delivery and interactive content, I expect you will continue to see teams and arenas implement similar programs, hopefully topping each other with more features and benefits for the fans each time.

Today’s post is courtesy of guest blogger Brian Connolly.

Unsold premium seating inventory is a rising problem in the sports industry. It is becoming more and more common to turn on the television for a game, only to see dark suites and swaths of empty club seats in the background. Most teams have approached this issue as a sales problem… making more sales calls, offering more creative discounts, etc. In my opinion however, this is not a sales problem, this is a structural problem.

During the sports facility building boom that lasted from the early 1990’s to the mid 2000’s, most professional sports teams drastically ramped up their inventories of luxury suites and club seats. Prior to the building boom, the vast majority of seating revenues for sports teams were generated from general admission tickets, but now seating products focused on corporations and high-income individuals can account for as much as 25% of a franchise’s locally-generated income.

As the U.S. economy sank into a recession in 2007-2008, many teams were optimistic that the effects of the economic downturn would only be temporary. However as our nation’s economic outlook continues to stagnate, there are several financial and cultural factors that could continue to depress long-term demand for suite and club seat sales:

• A prevailing culture of austerity – With the U.S. unemployment rate exceeding 9 percent, many companies don’t want to associate their brands with premium seating that could potentially be viewed by the general public as “exclusive” or “excessive”.
• The rising non-ticket costs of attending a game – As corporate entertainment budgets have been slashed, the additional cost of stocking a suite with food and beverages or paying for the gourmet food and beverage options that are available in the club lounge, has become prohibitive for many firms.
• Advanced technology has made it more appealing to stay home – With the growth of satellite TV, streaming on-line video, interactive iPad apps, HD and 3D televisions, DVRs, and other such technologies… more sporting events are available at home in a wider variety of entertaining formats. The increased quality of affordable entertainment at home can make it very difficult for price-conscious buyers to commit to large, long-term contracts.
• A surplus of single-event inventory cannibalizes long-term demand – If a team responds to unsold inventory by heavily marketing it on an individual-game basis, they not only incent potential customers to avoid making a long-term commitment, but they also encourage current suite holders not to renew. If you know that discounted club seats are on sale for just about any game you want, why would you commit to buying an expensive club seat license or full-season ticket package? Or if you see another company occasionally renting the suite next door to yours on a per-game basis, why would you renew your long-term suite lease?

As all of these factors continue to depress the demand for traditional premium seating products, the 1990’s mentality of maximizing revenue by building as many large luxury suites as possible on your suite-level is no longer relevant. The days of generating premium prices from non-premium locations by turning them into club seat sections are over. So now, many of those large luxury suites and many of those mezzanine-level club seats are sitting empty. This is a structural problem… a fixed inventory that cannot easily be adjusted to meet changes in demand.

I have been engaged by several professional and collegiate sports teams in recent years to analyze premium seating demand, and there are several demand trends that have consistently appeared:

• As overall demand has decreased for large suites that can be difficult for all but the largest companies to fill, new demand has developed for a wider variety of suite sizes, configurations and locations. Examples include smaller suites with seating capacities for 8 to 12 people, super suites with memberships sold in 2-seat increments, large party suites that cater to high-capacity corporate functions, and bunker/event-level suites that offer both a lounge area with behind-the-scenes views of the players and front row seats in the lower bowl.
• There is significant untapped demand for loge boxes (open-air, “theater-style” boxes with seating for four to six people). Loge boxes are extremely popular with small to mid-sized businesses that can’t afford suites but would like a comfortable, private space for entertaining clients.
• Demand for club seats that are located on a mezzanine level is rapidly decreasing. Attaching premium amenities to a non-premium seating location has lost its appeal for many fans. The demand for club seats can be greatly enhanced by relocating them in the center of the lower bowl.

In order to maximize their premium seating revenues in the new economy, many teams/buildings will need to invest in facility renovations to meet the current levels of consumer demand. Until teams provide a wider variety of seating options and price points, they will continue to carry large amounts of unsold inventory and cannibalize their long-term sales efforts with single-game rentals.

Brian Connolly is a sports and entertainment venue consultant with CSL International (www.cslintl.com). He specializes in market demand analysis and financial advisory for professional sports franchises, collegiate teams, arenas, stadiums, ballparks, performing arts centers and amphitheaters. You can follow him on Twitter @BrianHConnolly or e-mail him at bconnolly@cslintl.com.

Today’s post is from guest blogger David Holland, Senior VP, Sports and Entertainment Solutions Group at Cisco.

When Dr. James Naismith was trying to keep his gym class active during a rainy day in 1891, and invented a game with two hoops and a ball, no one outside that gym was able to watch this game (later named) basketball.

When the Boston American League baseball club was pitted against the Pittsburgh Pirates in the 1903 World Series, many fans had to wait until the following morning to learn from their local newspaper which team had come out on top.

When the first Super Bowl aired on television in January of 1967 from Los Angeles Memorial Coliseum, if you were away from your television set – you were completely removed from all of the action. Checking the score on the Internet or watching a video clip on your phone, were simply not possible.

Our lives today are evolving in almost every aspect, and technology is helping lead the way – from changing the way we work, to how we access information, communicate and interact. This is also true in the world of sports, where technology is having a profound impact on the way we play. Coaches, for example, use the latest video, training and visualization tools to improve their teams’ skills; referees depend on replay technologies to help them make the right calls; and off the field fans now expect ubiquitous connectivity to their sport’s most up-to-the-minute information – with no hassle.

An increasing number of today’s fans have not only become immersed with the sports information machine, but they also help drive it – from downloading applications on their mobile device to getting the latest score, to watching live streaming video of the hottest matchup – and debating it via social media. Fans live and breathe sports. Technology innovation not only has to keep pace with demands of sports fans, but increasingly is delivering new fan experiences that they may have never imagined possible.

With fan expectations rising, new and existing venues across the globe are upping their game in terms of delivering a memorable in-person experience – and this goes beyond what happens on the field of play. Venues in some ways are competing with ‘the couch’ for viewers. Fans today have a wide array of viewing options to choose from in the comfort of their home. High definition TV, digital video recorders, computers, and now even smart phones, tablets and other Wi-Fi devices provide viewers with high video quality, interactive information about the game, and in some cases more choice over viewing angles, etc.

To get more ‘butts in seats’ and provide fans with more intense sporting experiences, teams and leagues see to the imperative for upgrading the in-venue fan experience. They aim to bring fans closer than ever to all of the action and to have them benefit from real time, relevant information and promotions that make a great game even more memorable.

This next generation fan experience is not only creating and attracting a more loyal fan following, it also has tangible business benefits. Through customized promotional, marketing and branding capabilities, stadiums and arenas can increase profitability by attracting new business opportunities and adding new sources of revenue.

For example, technology today allows sports operators to host more and more varied events. With a few clicks, a stadium can change its entire look and feel on strategically placed digital screens – converting itself from a sporting venue during the day to a rock concert in the evening, to perhaps a trade show a few days down the road. From venue entrances to concourse displays to the clubs and all points of sale (i.e. concession), immersive video and other network-based amenities are delighting fans, and enhancing sports and enhancing the business of sports and entertainment.

The legacy of live sports and entertainment must also be protected. In other words, technology must be built into the fabric of the venue, in such a way that it doesn’t get in in the way of the live performance. Whether we are talking about uses of video, networking, fan security, or Wi-Fi connectivity, a successful technology provider works hand in hand with venue owners and operators to make their offerings integrated with the live experience, user friendly and complementary.

Looking into the horizon, fans expectations will continue to evolve. Technology will find even more ways to harness fans desires to be part of sports and entertainment communities. We can’t foresee every fan requirement today, but we know having a solid technology platform to drive this evolution is critical. Connected fans will decide what they want. Sports and entertainment properties must be ready to deliver it!

Sports have come a long way. Were he with us today Dr. Naismith would surely be amazed – and hopefully delighted – to see how his game with two hoops and a ball is having its impact on so many today.

David Holland serves as Senior Vice President and General Manager of the Sports and Entertainment Solutions Group (SESG) at Cisco. In his role, Holland has overall responsibility for accelerating development and adoption of Cisco solutions in the Sports and Entertainment market. Cisco has targeted the Sports and Entertainment industry as a $1B market opportunity, and it is one of the company’s top Market Adjacencies.

Today’s post is courtesy of guest blogger Amy Skiles, SVP of Business Development for Phoenix Design Works.

Branding the building is a process that usually comes after you’ve branded the team, but actually it presents the first point of engagement with your brand for many of the consumers in your various fan bases.  If indeed, you do plan to allocate resources to utilize your facilities in your branding efforts, it just means that you need to allow a little additional time to go through your primary identity process first, and then proceed to apply your branding program to your buildings or arenas.

But it will be well worth the extra effort, and for those of you who already have your core branding program locked down, you’re one step ahead when it comes to branding your building.

Facilities branding also known as outdoor, display, on site, and campus branding, usually consists of banners, video displays, or manipulation of display and construction materials.  Usually there is a hierarchy of usage that dictates the chosen execution.  For example, Banners usually have a promotional or seasonal theme that indicates that they will go up and come down within a certain time frame, while actual manipulation of metal, wood or stone materials would be reserved for a longer lasting purpose, such as delivery of your core logo branding.

Branding for your building can be thought of as the place where your logo meets your ad – it would be a waste of precious marketing resources to produce banners, billboards of any sort of facilities branding program with one and not the other.

Building branding, no pun intended, really is an area that is unique unto itself.  On the one hand, building branding requires more finesse than other lesser, or at least, smaller brand applications, in it’s visibility, and on the other hand, it becomes the largest ad you will ever do –  Eight foot tall type is simply more commanding than eight point tall type.

Although scale is the most obvious and dominant consideration of a branding program for your building, it’s not the only one.  Time would be other major factor – You have to imagine ahead of time what it will be like for your fans to see your branding and promotional campaign over and over when it is, quite literally, the size of the building.  That’s why there is never a substitute for the development of a proper strategy and a savvy deployment of your branding campaign on this level .  If your messaging is “trendy”, or cavalier, your audience will tire of it quickly, and so will you.  You can actually damage your brand perception in the marketplace, in fact, your marketplace, and spend a lot of money doing it.

Which brings us to our next point – While we are all enjoying the digital revolution in our branding applications,  (We are, aren’t we?) a mistake here is harder to get rid of than replacing the web page.  So if you want to avoid really, really big typos, proof, proof and proof again.

Regarding the point of building branding being the place where your logo meets your ad, this is the part of the process of developing your program where you’ll want to allocate the most time and effort to create your new campaign.

When you’re developing your strategy, you’ll want to consider exactly what you want to communicate to your audience – Is it season tickets going on sale?  An anniversary?  Or the return of your marquee event?  Whichever the case may be, this is the time and place for you to think it through.  And in the process of doing so, you will hopefully come to the realization that you need a big idea.

It’s only fair – A Big Idea for a Big Execution.  The benefits of delivering your messaging within the context of a larger, more provocative concept are many.  For starters, a larger concept can deliver your messaging here and now, but also have the legs to deliver additional messaging further down the road.  Also, a bigger idea will underscore your brand recognition in other media like print, broadcast and the web.  Further, you have to consider the way people think, and the way they interact with your brand.

There is nothing terribly sexy about “Tickets Now 9.99″, but under the heading of “Dare to Bring the Thunder”, “It’s Showtime”, or “Minor Entertainment”, it almost seems as if you’re doing me a favor by letting me buy a ticket… “9.99″ is a product benefit.  ”Major Entertainment” is a brand promise.

If you have an existing campaign in place in other media, then your concerns are what we’ve covered so far, in terms of time and space, as well as to what degree the campaign is dominant or subordinate to your identity. But if you really want to have some fun, launching your campaign on a scale the size of your arena is one of the most exciting things you can do, and provides absolutely tremendous potential return for your brand as well.

There is nothing that is as exciting, or provides as much brand potential, as the combined launch of a new identity and a new campaign in your own arena –  Otherwise known as “Branding the Building”.

To learn more about branding your building and other services that Phoenix Design Works offers, visit www.phoenixdesignworks.com.

Today’s post is courtesy of guest blogger Ron Turner, Director of Gensler’s Sports and Entertainment practice.

In today’s competitive environment, sports sponsors are more attentive than ever to ROI.  And with many owners planning stadium and arena upgrades, the industry has a unique opportunity: by integrating the needs of sponsors and advertisers into the design process, we can create dynamic, transformational arenas and stadia that enhance the fan experience, increase sponsorship revenue, and create operational efficiencies for property owners.

With this in mind, we recently convened a panel of sports industry professionals representing brands, sponsorship agencies, sports teams and sports venues to get a better understanding of the needs of the industry.  My colleague and founder of MRA International, Michael Rubin, helped lead the discussion with a distinguished panel that included:

• Shervin Mirhashemi – Chief Operating Officer, AEG Global Partnerships
• Woody Thompson – Executive Vice President, Octagon
• Michael Robichaud – Vice President of Global Sponsorships, MasterCard
• Robert Jordan – Managing Partner, Venue Research and Design LLC
• Lisa Delpy Neirotti – Associate Professor, George Washington University
• Tim McGhee – Senior Vice President, IMG Consulting
• Seth Rabinowitz – Founder, Rabinowitz Consulting

We learned that the biggest concerns for the industry are related to technology, fan experience, ROI and sponsor integration.  Here is some of the advice we heard:

Involve sponsors early in the design process. Ideally, the venue owner should have sponsorship deals in place during the design process. This allows sponsors to customize their presence at the venue and maximize the fan experience, leading to an optimal ROI. Giving sponsors the ability to help design their own experience will also allow the property owner to provide added value in exchange for the price for the sponsorship as well as create a revenue stream prior to the completed construction of the venue.

Embrace technology and build it into infrastructure. The game day experience is becoming more interactive.  Fans are using digital signage and handheld devices more than ever. In response, venues need to incorporate enough bandwidth to satisfy this demand. This will allow fans to access information as they like, and also allow the venue to reach the fan during the game. Technology systems created by providers like Cisco and Harris allow operators to individually control every video display screen within a venue and target the unique audience watching each of those screens. The use of customer databases – with information gathered from the internet, handheld devices, credit cards, or ticket scans – will allow this technology to segment fans precisely. The technology holds great promise and will not reach its true potential until those involved with its operations are fully informed about its applications.

Make attending the event easier and more convenient than ever. Today, with what it costs to take a family of four to a sporting event, fans can buy a big screen HD TV to watch with friends and family in the comfort of their own homes. To get fans in the seats, venues need to minimize both monetary and non-monetary costs (such as time) by maximizing value and convenience. By integrating both automatic technology and reassuring human contact throughout the venue’s customer service strategy – from initial web inquiries and ticketing all the way through event parking, concession purchases, concourse navigation and post-event communication – venues can make both the fan and the sponsor feel like they are a valued part of the overall experience.

This event allowed us to gain insight from sports industry professionals, but we want to take it a step further and hear from the fans. What do you think? What elements in a stadium create such a fun, exciting, game day experience? Take a quick online survey here so we can find out about your fan experiences.

Ron Turner is Gensler’s Director of Sports and Entertainment and a principal in the Los Angeles office. Ron has over thirty years of experience dedicated to creating iconic event center designs that generate increased revenue, build civic brands, and employ innovative technologies. As a founder of sports design practices for Ellerbe Becket, NBBJ, RTKL and now Gensler, Ron has led design teams for numerous venues and sports-anchored entertainment districts around the world. You can reach him at ron_turner@gensler.com.

Today’s post is courtesy of guest blogger Jared Frank, Editor of SEAT Magazine, Association of Luxury Suite Directors.

The ALSD dubbed 2010 the year of “The Transformation.” We were in the wake of a period in which suites became prisons for some corporations, and premium amenities were considered contraband. We were beginning to see the industry approaching the intersection of sports and entertainment as we observed some major changes. Specific to premium seating, these changes included shorter leases, shared leases, lower occupancy rates, no show issues and a waning fan experience. And well, the environment is not drastically different one year later. We are still jousting between old methods and new in some circumstances.

With these things in mind, this year’s theme is “The Solutions.” 2011 will teach us the magic bullets to achieve meaningful progress in our altered environment as well as instill the conditioning needed for new ideas to anchor. If I am calling a spade a spade, we did not fare as well as we would have liked in 2010, but we fared onward. And in 2011, we will fare upwards.

Narrowing down my specific observations of the industry into something manageable was difficult. I shaved my list by differentiating the deep-rooted ideas that call for endurance contra to the fleeting incremental changes that simply satisfy society’s instant gratification, microwave mentality and impatient approach. I ultimately settled on the following three major points. But I realize the list is more sundry rather than all and sundry.

We are working in the paradigm of mixed inventory

The traditional 16-person suite still has a place, but as part of a wider variety of product offerings. We highlight the Oklahoma City Arena in the current issue of SEAT Magazine (page 24), which is a perfect illustration of the changing forces of real estate. Its 2010 renovation eliminated 20 suites and repurposed the space with 48 four- or six-seat terrace boxes. The building’s new ratio of 36 traditional suites to 48 terrace boxes is upside down compared to other arenas. But I expect this to be a trend that grows and favors other similar sized markets.

Further evidence of the decreasing number of suites and the rise in popularity of mid-level inventory is found at CONSOL Energy Center in Pittsburgh, which opened in August 2010. When I spoke with Mike Guiffre, Director of Premium Seating for the Pittsburgh Penguins, last summer, he stated, “We have two areas of loge boxes that we couldn’t build enough of.”

Another trend of the future is thinking about creating greater demand and intimacy in venues through smaller capacities for the repeated event, while including flexibility to expand for the big event. Speaking of the big event…

We are working in the paradigm of the big event

In broad terms, the amount of revenue that can be generated from a facility coupled with as little financial risk as possible is still one of the most important issues for the industry to consider. To maximize cost-effectiveness, the arena business has been competitive for some time now in trying to book as many events as possible outside of the anchor NHL or NBA tenant. Now, MLB and NFL stadiums are joining the mix.

With public financing significantly less available and in some cases non-existent, the solution to emerge over the last decade and proliferate considerably in 2010-2011 is to build a facility as multi-purposeful as possible in order to make the venue profitable for private financiers.

The obvious example of this is Cowboys Stadium. Cowboys Stadium has attracted a mishmash of big events, including this year’s Super Bowl, last year’s NBA All-Star Game, NCAA men’s basketball games, numerous NCAA football games (regular season and bowl games), boxing matches et al.

A sample of other non-traditional big events in unique facilities in 2010 includes:

• Illinois vs. Northwestern NCAA Football, played at Wrigley Field
• Notre Dame vs. Army NCAA Football; Pinstripe Bowl, played at Yankee Stadium
• Penn State vs. Indiana NCAA Football, played at FedEx Field
• The NHL Winter Classic, played at Heinz Field
• Dallas Mavericks vs. Phoenix Suns AutoTrader.com Open, played at Indian Wells Tennis Garden

I expect teams traveling to unique facilities to continue to become more and more common as we continue to push for big experiences that cannot be found in front of a television or computer. Speaking of big experiences…

We are working in the paradigm of the big experience

How to create a unique and compelling enough experience to compete with the living room is the greatest challenge the sports industry faces at present. The industry is starting to look at the fan experience from square one by looking beyond its borders for best practices and fresh perspectives outside stadiums and arenas. Our industry is finally starting to realize that we might not have all the answers. I have heard of noteworthy presentations from everyone from Frito Lay’s to the seemingly omnipresent Disney Institute.

My belief is a disciplined adherence to the seemingly insignificant details is what will ultimately separate the in-person experience and drive revenue. If I learned anything from Disney Institute’s presentation at last year’s ALSD Conference, it is that taking care of the minutiae of our customers’ experiences is what separates the venue from the living room. It is the little moments of joy that people remember.

May all of us have many little moments of joy in 2011.

Jared Frank is the editor of SEAT Magazine, published quarterly by the Association of Luxury Suite Directors (ALSD) and provided complimentary to all members of the ALSD. For more information on the 2011 ALSD Conference and Tradeshow, visit www.ALSD.com, or find the group on Facebook and LinkedIn. You can follow Jared on Twitter, connect with him on LinkedIn and reach him via email at jared@alsd.com.

Today’s post is courtesy of guest blogger Brian Connolly.

Over the past several years, I’ve worked on numerous football stadium planning projects for NFL franchises and BCS athletic departments.  In most cases, team supporters who were interviewed via survey or focus group ranked Personal Seat Licenses (“PSLs”) relatively low as a potential stadium funding mechanism, compared to other potential funding sources such as corporate sponsorship and naming rights, long-term premium seating leases, and surcharges on tickets or parking.  In some recent cases, NFL franchises have even created different brand names for the PSL product, such as “Stadium Builder Licenses” or “Membership Equity”, due to worries over the potential public/media reaction to the use of PSLs for project funding.

However, from my perspective as a sports business consultant, I have seen firsthand many of the positive features of a successful PSL program.  Here are a couple of the frequently overlooked positive aspects of PSLs that I have identified in recent years:

1) PSLs have enabled new football stadiums to be built with less public funding.

As municipal budgets have gotten tighter in recent years, the availability of public funding for new sports stadiums has also decreased.  More than 20 new NFL stadiums have opened since 1995, however the public contributions to those stadium projects have generally decreased. For example,, from 1995 to 2000, 75 percent of NFL stadium development costs were funded from public sources, however that public percentage decreased to 48 percent for stadiums opened from 2001 to 2005, and then to 35 percent for new NFL stadiums opened from 2006 to 2010.  In fact, New Meadowlands Stadium (“NMS”) opened in 2010 as the first modern NFL stadium financed entirely through private revenue streams, and NMS did so by relying heavily on the upfront sale of PSLs to obtain private financing.

2) PSLs generate funding from stadium consumers, rather than spreading the cost over the general public.

A number of the traditional public funding sources that have been utilized for stadium projects over the years, such as sales tax increases, property tax increment and visitor tax increases (i.e. for hotel nights or rental cars), tax the general public rather than the specific users of the venue.  Through the use of PSLs, the people who actually consume the product are the ones paying for it, which can be viewed as more fair to the general public.  Granted, a number of taxing sources can also be venue-specific, such as ticket/parking surcharges or in-stadium taxes on concessions or merchandise, however this ignores the reality that…

3) Without PSLs, fans will typically end up paying more anyway.

With public contributions decreasing, teams have privately financed more and more of their stadium development costs, which means they need to generate significant incremental revenues to cover their debt service. To do so, they have had to increase prices throughout the stadium, not just in the corporate sponsorship and premium seating categories.  Without the significant upfront funding that can be generated by a PSL program, fans would see much greater increases in areas such as ticket prices, concessions, parking, etc. At least with a PSL program, fans are seeing much of those cost increases in a form where…

4) PSLs have significant long-term value to the owner.

Many media reports paint a picture of PSLs as a one-time expense that simply takes more money out of the fans’ pockets, however most accountants would note that a PSL should not be viewed as an expense… but rather as an appreciating asset.  For a recent CSL project for an NFL franchise, I researched the long-term value for PSL owners of the nine NFL seat license programs that were launched between 1998 and 2003.  By comparing the average original PSL price for each stadium to the current market prices on team or third-party resale sites, it was determined that the market value of these nine NFL stadium PSLs increased by a compound annual growth rate anywhere from 7.5 percent (in Nashville) to 28 percent (in Pittsburgh and Chicago). In fact, the secondary market prices for many of the PSLs in Pittsburgh and Chicago have increased by more than 10-15 times the original purchase price.

Of course, many fans intend to purchase tickets in their personal seat for the rest of their lives, and thus may not be overly concerned with the value of the PSL asset on their personal balance sheet.  However, it never hurts to be able to sell your seat rights for a significant return if your personal finances take a downward turn that prevent you from purchasing season tickets any longer.

Brian Connolly is a sports business consultant with CSL International (www.cslintl.com), specializing in market research and financial advisory for professional and collegiate teams, arenas, stadiums and ballparks. You can follow him on Twitter @BrianHConnolly or e-mail him at bconnolly@cslintl.com.

Today’s guest post is from Christopher Lamberth. Chris is the Director of Sports Business Development for Kansas City, Missouri-based 360 Architecture, a national leader in sports & athletic facility design. Recent projects include the new home of MLS’ San Jose Earthquakes, New Meadowlands Stadium (at right), Auburn Arena, BB&T Ballpark, and Basra Sports City.

It’s fall in America.

The MLB postseason is in full swing. NFL and college football seasons are settling in. NHL and NBA seasons are beginning this month. Do you know what is going on in Major League Soccer (MLS)? Remember the World Cup?

Momentum for soccer awareness and support in the U.S. has certainly gained steam from this past summer’s 2010 World Cup. The skeptical U.S. media and general populous were captivated by the relative success of the U.S. Men’s team in South Africa as well as the charm, power and presence of various international teams and their colorful, expressive and loyal countryman.

We all watched some coverage or highlights even factoring in the time zone lapse almost half a world away. Friends posted comments, pictures and video from travels to the various venues around South Africa or just as commentary to the action from the broadcast. YouTube, Twitter and Facebook were blowing up with World Cup content. Surprisingly, many of us in the sports industry likely know at least one colleague that made a trip to Africa during the competition. My firm even had a delegation attend the finals match.

No doubt the American MLS stars featured on the U.S. Men’s Team have become important ambassadors for MLS and their assorted teams. For those players and the whole league, their regular season is winding down and by late October will be staging the first leg of the playoffs.

MLS is the United States’ first-division professional soccer league. Basically it’s the top of the professional soccer hierarchy in the United States and Canada. The inaugural MLS season began in 1996 with 10 teams. In the past five years the league has expanded to 16 teams via relocation and expansion. On the horizon, expansion teams will play in 2011 in Portland and Vancouver, and in 2012 in Montreal.

The United States Soccer Federation (USSF) also has a 10-team, second-division league. What? Another league you say? Now, I did not grow up a soccer fan and I never played organized soccer as a kid or adult. Michael Hitchcock of Playbook Management International (PMI) is a 12+ year veteran of MLS. He rose from the ranks of several clubs beginning in the league’s infancy before forming PMI, an international sports & entertainment consultant group. To help clarify the world of professional soccer in the states, Hitch shared, “the sport has developed to the point that we’re close to having a true four-division professional league hierarchy with MLS as the 1st Division… This is great for the game in this country.”

The USSF 2nd division league, whose championship series is set for the end of October, will continue as the NASL in 2011 and as the next-tier feeder to the MLS clubs. NASL, itself a reincarnation in name of the former North American Soccer League that dissolved in the mid-80’s, is also inclusive of breakaway teams from the former United Soccer Leagues (USL) 1^st Division.

As a sports architect, I have been to numerous sporting events and venues. However, it was not until 2007 that I saw my first professional soccer game in the stadium where Hitch was the GM. I was at Pizza Hut Park, on a warm, sunny Sunday with my two preschool-aged boys. The experience was electric and the place was packed with fans of all ages and walks of life. Drums were rhythmically pounding and cheering sections erupting. Although comparative to the international game and those premier leagues, this was likely a small, tame crowd. But it made an impact and I began to understand that the soccer revolution in the U.S. was already here.

What you may not realize is that going back to the first new soccer specific venue built in Columbus, Ohio in 1999, MLS has seen surprisingly rapid stadium development comparative to the four other major league professional sports here in the US. The trend for soccer specific or shared soccer/American football use is set to outpace the other venue types.

Many of you can tell me that since 2006 we have seen four new NFL stadiums open in Arizona, Indianapolis, Dallas and New York/New Jersey. There have been five new MLB stadiums for the Cardinals, Nationals, Yankees, Mets and Twins, and three new NBA/NHL Arenas in New Jersey, Pittsburgh and Orlando. Did you know that six new MLS stadiums have opened since 2006 in Chicago, Toronto, Colorado, Salt Lake City, New Jersey, Philadelphia? There are several more on the horizon.

Hitch adds, “Relative to venues; 2nd and 3rd Division teams are exploring soccer specific stadiums that will be used for other events to include concerts. Similar to the Minor League Baseball stadium boom, we’re about to see that in Pro Soccer.” That means even more potential new soccer venues. In turn, the influence of the game will help develop a few more fans, players and sponsors.

Soccer is here to stay. And I am telling you now, the revived rivalry in the Pacific Northwest coming to MLS in 2011 will create a few headlines. The Seattle Sounders are already doing it now. For those who have not been to a match, the game is very accessible as a spectator sport and more exciting in person. Check out a game on TV. Don’t wait for the 2014 World Cup. Although the professional season is winding down in the states, here are a few events to keep an eye open for:

• MLS Cup, November 21st, Toronto, Ontario, Canada at BMO Field.
• College Cup, December 10th & 12th. University of California, Santa Barbara at Harder Stadium

ESPN will cover both finals matches live on ESPN and ESPN2 respectively.

Editor’s note: Do you think MLS’ mandate that new teams build soccer-specific stadiums directly correlates to the success of soccer in the U.S.? As a business strategy, how does this set MLS apart from other leagues (besides the MLB, NFL, NHL, or NBA) like Major League Lacrosse or the WNBA?

Today’s post is courtesy of Jared Frank, Editor of SEAT Magazine, Association of Luxury Suite Directors.

Future new construction and renovation projects will be propelled by social interactions in a world of connected interactivity.

Redefinition. Fan experience. Flexibility. Sustainability. Technology. Speak with any architect at any of the top tier firms in the sports industry, and inquiring minds quickly figure out these are the driving forces of design in the 21^st century. Not budgets or lack thereof, at least not exclusively. When presented with doubt, those who reciprocate with creativity rule the day. And the truth about constraints, financial or otherwise, is they are great for spurring imagination. So while no one can say with confidence what the next five or ten years will yield, it is clear the postmodern sports venue will not only survive, it will prevail. And it will prevail because its driving forces are inspired by social relations.

Human beings are social animals. That is not changing. Not in a bull market. Not in a bear market. No matter what variables are introduced, our nature remains a constant. Interfacing with new and existing friends and business associates is what drives us. And sports hospitality is still one of the best ways to satisfy this innate need for company. Maybe premium seating does not and should not only exist in the traditional form anymore, but it is still necessary in some form certainly.

Without question in this day and age, the way people interact is changing all the time and at a faster rate than we have ever seen. As people interact differently, they have different demands to meet people who have common interests, business and social. That realization provides tremendous opportunity to provide hospitality stages. In the end, social interaction is a major part of the opportunities for new revenues in sports facilities.

Elvis Has Left the Building

What has emerged in stadiums and arenas are neighborhoods within neighborhoods. Premium seats can no longer be classified as one area, such as other seating districts like upper concourse, mezzanine level or bleachers, but are now subdivided into many unique lots. This translates to increased market segmentation and to different sectors, such as specialized clubs or loge boxes or party suites.

Most of this change is in response to declining renewal rates. Teams must now adjust to what the market is telling them; a market that is not likely to come back in the foreseeable future, if ever. So the question is, “How are you going to capture any revenue if you have multiple events where your suites are not being sold?” One solution at present is to introduce new types of premium products into the marketplace.

Many new products to come online in recent years have performed quite well and have paid off initial investments in year one. To play devil’s advocate, there is an objection that asks, “Well, where did that money come from? Are we just recycling existing money?” It is fair to say a team is not going to bring in all new customers to fill a new space and will see some redistribution of revenue.

But here’s the selling point to remember: while the revenue generated by the reinvented space does largely come from upselling club seat patrons and downgrading suite holders, teams are driving higher revenue from both ends. In reference to relocation from club seats, those individuals are now linked to a higher priced commitment thus contribute higher revenues. That’s the easy one. In reference to suite holders relocating, if they do downgrade from a suite to something like a loge box, it is not because a team has cannibalized its own inventory; it is because the suite holder can no longer afford the investment or no longer desires that type of social outlet and were not renewing anyway, but they still need suite-like amenities to fulfill their marketing and relationship building objectives. The alternative to downgrading is impersonating Elvis and leaving the building to seek other hospitality options more in tune with their social needs. And once a customer is gone, there is little to no chance for an encore.

Mid-priced premium inventory is one of the best solutions to keep existing customers who are waffling over their renewals. And keep in mind, zero multiplied by 15 non-renewed suite accounts equates to zero revenue. So teams can no longer only cater to the top tier. Because nowadays, just like the general fan base, the premium fan base is not just top tier.

Everything is connected

The future of venue development is still largely tied to premium seating and the goals of generating maximum revenue while having a facility that is as low maintenance as possible. And whether a team is looking to keep current with a new facility or renovations to its existing one, premium seating remains a driver of the architectural design aimed at meeting those goals. What has changed over the past 15 years is not solely economic conditions; more relevant is how the changes to technology, sustainable and flexible practices and fan expectations have changed the way society interacts. Capture a progressive staging that meets the social environmental expectations of fans, and capture the revenue to kindle a profitable organization.

Jared Frank is the editor of SEAT Magazine, published quarterly by the Association of Luxury Suite Directors (ALSD) and provided complimentary to all members of the ALSD. For more information on the ALSD, visit www.ALSD.com, or find the group on Facebook and LinkedIn. You can follow Jared on Twitter, connect with him on LinkedIn and reach him via email at jared@alsd.com.

A constant challenge that faces teams and venue owners is how to generate revenue from your building once your season has passed. The company has this valuable entertainment asset, but without events to host, it can sit dormant for weeks or even months at a time (outside of the occasional stadium tours, which can provide a small incremental revenue bump).  This isn’t as much of a problem for indoor arenas and weather-independent (i.e. domed) buildings, where you can always bring in concerts, family shows and other traveling entertainment groups. But what about a baseball stadium in the middle of winter? What can you do with that?

Well, the Indians have decided to take a very creative approach to this dilemma with their “Indians Snow Days” program. They are literally turning Progressive Field into a winter theme park. According to today’s news release, they will have a snow-tubing hill, a quarter-mile ice skating track, a kids’ skating rink, a snow play area, and a fire-pit area featuring seasonal food and drink options – a veritable winter wonderland on a baseball field. Their “snowpening day” is November 26, and it will be open through at least January 2.

From Bob DiBiasio, the Indians’ VP of Public Relations:

“No question, this whole thing is based on how can we make ultimate use of this facility for 12 months, not just six months. We’ve done that indoors. Now, we’re taking one more major step outdoors.”

Now this particular strategy won’t work for all teams and venues, but this is still a great example of an organization coming up with creative ways to make their facility a year-round, revenue-generating, fan-friendly destination.