facility mangement
DESCRIPTION
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 - PowerPoint PPT PresentationTRANSCRIPT
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Facility Mangement
Sport Mangement - Period 7
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History of Stadiums
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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
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History of Arenas
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History of Arenas• The MLB was the first professional entity
to have its own arenao in the early years the NFL teams
would play where the MLB teams did• The NHL soon followed by making their
own arenaso NHL arena owners founded the Ice
Capades1st large scale annual touring ice
show where they would share arenas with other on ice events
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Partnering With Arenas
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Modern Era
Matt TulioJamie Hendershot
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Stadium Construction:• Basketball and hockey are more compatible in terms of
buliding designs then baseball and football.o 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.o Due to this new stadiums were built during 1960-1970
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• 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
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• 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
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• 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
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Facility Financing
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How to Finance the Facility• The ways teams finance and build their venues include public
and private finance.o These two options are voted on by citizens.
• Public Financeo Citizens of the town or city pay money through taxes to help
pay for the venue.• Private Finance
o The team and its owners pay for the building of the venue.o 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.
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Public vs. Private• Public Finance
o Tax Payers poll to either pay or not pay for the new building.
o If original taxes and this would pay for the venue.
o common publicly financed venues Convention centers
and other buildings that help or contribute to citizens.
• Private Financingo If citizens reject public
financing it is up to the team and their managers to finance the team.
o Often vote is not approved for public financing then they try to open the business privately.
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Bonds
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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
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Bonds Continued
2 Categories of Bonds• General Obligation Bonds
o Safe investment that is backed by local government's ability to raise taxes t opay off the debt
• Revenue Bonds o Riskier investment that is backed by facility's ability to
make money to pay off the debto If facility has a down year financially, there may not be
enough money to make debt payments
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Taxes
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Taxes ContinuedWhen 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.
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Corp. Investment & Facility Revenues
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Facility Mgmt. & Private Mangement Options
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Facility Management• Relationship between owner and management determines
efficiency and profitability• 3 main types of facility ownership
1.Community Many regulations and and procedures for facility
2.Colleges Funding based on student growth, gifts, and
institutional subsidies 3.Private
Solely for profitResponsibilities
o serving tenant's needso providing clean, safe, comfortable environment for patrons o Securty, cleanup, marketing, sales, scheduling and booking,
operations, event promotions, and finance
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Private Management OptionsPrivate 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
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Career Opportunities in Facility Management
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Marketing Director
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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.
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Goals of a Public Relations DirectorOne 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.
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A Typical Day for a PR DirectorA 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.
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Important Attributes of a PR Director
- Strong writing abiliity- A creative mind- An ablity to respond rationally while under pressure.
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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
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Booking Director
• rent the facility • Co-promoter
• Purchase the show directly from an agent
A booking director choses from these 3 methods when working on the job............
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Booking directors work
with....... 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.
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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.
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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
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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.
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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
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Group Ticket Salesperson
• Many college graduates begin their facility management careers in the group sales department.o 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.o 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.
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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.
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Security
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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.
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ADA
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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. -
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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