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§ An Exciting Time for the Sports Facility Industry
§ $8.05 Billion in Major League Sports Projects Currently Finishing or Underway
Today we discuss
§ State of Facility Development
§ Introduction of the MLS to the Development
Database
§ Up to Date Database Statistics
§ Comprehensive list of Cities on the Verge of
Acquiring a Professional Team
Welcome to Design and Build
What does HSP do?§ Conduct market,
financial feasibility & impact studies:
§ Stadiums/arenas
§ Entertainment districts
§ Hotels, convention centers
§ Mixed-use districts
How to get our arms around this exciting industry?§ HSP and ALSD have teamed up to create the sports facility database
§ HSP had been working on a massive database of all sports facilities with more than 2,000, from college to pro
§ Teamed up with ALSD after last year’s conference to begin the process of a tailored database that focuses on data that ALSD members and vendors want and need
§ Starting with the 5 Major Leagues’ 127 venues
§ Future: College and Minor Leagues
2018What Trends are we Seeing?
0123456789101112131415161718
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
New Major League Facilities by Year and League: 1999 - 2021
NBA NFL NHL MLB MLS
Most Leagues had purpose-built venues by 1999 with modern amenities. Shift to renovations and new builds driven by new locations.
But Average Cost per New Venue by League Increasing 2018
$0
$1,000,000,000
$2,000,000,000
$3,000,000,000
$4,000,000,000
$5,000,000,000
$6,000,000,000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Average Cost Per Facility by Year by League: 1999-2021
NBA NFL NHL MLB MLS
Average Cost Per League (Most recent 3 facilities)§ NBA: $795M§ NFL: $2.7B§ NHL: $500M§ MLB: $785M§ MLS: $225M
Results in Total Spending on New Venues 2018
Total amount spentper year on average($1.5B) nearly samedespite fewer venues.
$-
$1,000,000,000
$2,000,000,000
$3,000,000,000
$4,000,000,000
$5,000,000,000
$6,000,000,000
$7,000,000,000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Total Spending on Major League Arenas & Stadiums: 1999 - 2021
NBA NFL NHL MLB MLS
30 facilities built in 90’s and36 built in 2000’s have notseen major renovation.
Are we in for a Major Uptick in New Facilities & Renovations?
11 facilities built 1960-198941 facilities built in 1990spressure building. Look forwave of rebuilding 1990’svenues by early 2020’s.
9 Renovations Announcedor Begun in the Last Year
1910's, 2% 1920's, 1%1950's, 1%
1960's, 2%
1970's, 3%
1980's, 3%
1990's, 35%
2000's, 31%
2010's, 20%
2020's, 2%
Major League Facilities Built by Decade
05
101520253035404550
1910's 1920's 1950's 1960's 1970's 1980's 1990's 2000's 2010's 2020's
Facilities Built by Decade & Portion Renovated in last 10 Years
Renovated Last 10 Years No Renovation Last 10 Years
Why Are the Number of New Facilities Declining?
44.2
2.7
1
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
1990's 2000's 2010's 2020's
Average Number of New Major League Venues Opened per Year
Well-located facilities haveless need to move/bereplaced. More value inupgrading existing facilities.Typically, only truly obsoletefacilities are being replaced.
Coming of Age in the MLS…
Market Analysis- MLS Attendance Exceeded 21,000
Fans Per Game in 2016- MLS Officials are Planning to Have
28 teams total, with 26 now set.- Most recent additions include LA,
Nashville, Miami and Cincinnati
Just like the NFL converted frommultipurpose to single-purposestadiums, MLS has been convertingto soccer-only facilities since 1999.Several facilities underway.
11
MLS Facility Boom
v Audi Field to open 7/14/18
- Cost $400M
v Los Angeles FC make debut at new Banc of California Stadium
- Cost $350M
v Toyota Stadium renovation
- Cost $58M
v Cincinnati projects new West End Stadium to open
- Cost $200M
v Miami projects new Miami MLS Stadium to open
v Expansion team in Nashville begin play at new Nashville Stadium
- Cost $275M
v Expansion team in Miami to begin play
v Minnesota United FC move into new Allianz Field
- Cost $200M
v Expansion team in Cincinnati begin play at University of Cincinnati
2018 2019 2020 2021
FACILITY DEVELOPMENT PROJECTS 2017 - 2021
MLS Franchise: D.C. United
Reported Cost: $195 million
Opening Year / Season: 2018-2019
AUDI FIELDWASHINGTON D.C.
MLS Franchise: FC Dallas
Reported Cost: $58.4 million
First Season in Renovated Facility: 2018-2019
TOYOTA STADIUMDALLAS, TEXAS
FACILITY DEVELOPMENT PROJECTS 2017 - 2021
FACILITY DEVELOPMENT PROJECTS 2017 - 2021
MLS Franchise: Minnesota United FC
Reported Cost: $200 million
Opening Year / Season: 2019-2020
ALLIANZ FIELDSAINT PAUL, MINNESOTA
MLS Franchise: TBD
Reported Cost: $275 million
Opening Year / Season: 2020-2021
NASHVILLE FAIRGROUNDS STADIUMNASHVILLE, TENNESSEE
FACILITY DEVELOPMENT PROJECTS 2017 - 2021
MLS Franchise: FC Cincinnati
Reported Cost: $200 million
Opening Year / Season: 2021-2022
FC CINCINNATI STADIUMCINCINNATI, OHIO
FACILITY DEVELOPMENT PROJECTS 2017 - 2021
NBA: Recent Renovations & New Builds
v Little Caesars Arena opened- Cost $863M
v Wells Fargo Arena announced $250M renovation
v United Center renovated
v Quicken Loans Arena $140M renovation
v Target Center $128.9M renovation
v Vivint Smart Home Arena $125M renovation
v Spectrum Center $34M renovation
v Wisconsin Sports and Entertainment center to open
- Cost $524M
v Verizon Center $40M renovation
v Philips Arena unveil $192M renovation
v Chase Center to open- Cost $1B
2017 2018 2019
FACILITY DEVELOPMENT PROJECTS 2017 - 2021
NBA Franchise: PistonsNHL Franchise: Red Wings
Reported Cost: $863 million
Opening Year / Season: 2017-2018
LITTLE CAESARS ARENADETROIT, MICHIGAN
FACILITY DEVELOPMENT PROJECTS 2017 - 2021
NBA Franchise: Jazz
Reported Renovation Cost:$125 million
First Season in Renovated Facility: 2017-2018
FACILITY DEVELOPMENT PROJECTS 2017 - 2021
VIVINT SMART HOME ARENASALT LAKE CITY, UTAH
FACILITY DEVELOPMENT PROJECTS 2017 - 2021
NBA Franchise: Timberwolves
Reported Renovation Cost:$128.9 million
First Season in Renovated Facility: 2018-2019
TARGET CENTERMINNEAPOLIS, MINNESOTA
FACILITY DEVELOPMENT PROJECTS 2017 - 2021
NBA Franchise: Bucks
Reported Cost: $524 million
Opening Year / Season: 2018-2019
WISCONSIN SPORTS AND ENTERTAINMENT CENTERMILWAUKEE, WISCONSIN
FACILITY DEVELOPMENT PROJECTS 2017 - 2021
WISCONSIN SPORTS AND ENTERTAINMENT CENTERMILWAUKEE, WISCONSIN
NBA Franchise: Hawks
Reported Renovation Cost:$192 million
First Season in Renovated Facility: 2018-2019
FACILITY DEVELOPMENT PROJECTS 2017 - 2021
PHILIPS ARENAATLANTA, GEORGIA
NBA Franchise: Golden State Warriors
Reported Cost: $1 billion
Opening Year / Season: 2019-2020
CHASE CENTERSAN FRANCISCO, CALIFORNIA
FACILITY DEVELOPMENT PROJECTS 2017 - 2021
NBA Franchise: Cavaliers
Reported Renovation Cost:$140 million
First Season in Renovated Facility: 2020-2021
QUICKEN LOANS ARENACLEVELAND, OHIO
FACILITY DEVELOPMENT PROJECTS 2017 - 2021
NFL: Recent Renovations & New Builds
v Mercedes-Benz Stadium Opens
- Cost $1.6B
v University Of Phoenix Stadium plans for $100M in renovations for Super Bowl LVII
v Ford Field $100M renovation
v LA Rams and LA Chargers move to new Inglewood Stadium
- Cost $4.96B
v Raiders relocate to Las Vegas and move into new Las Vegas Stadium
- Cost $1.9B
2018 2020
FORD FIELDDETROIT, MICHIGAN
NFL Franchise: Lions
Reported Renovation Cost:$100 million
First Season in Renovated Facility: 2017-2018
FACILITY DEVELOPMENT PROJECTS 2017 - 2021
NFL Franchise: Falcons
Reported Cost: $1.6 billion
Opening Year / Season: 2017-2018
MERCEDES – BENZ STADIUMATLANTA, GEORGIA
NFL Franchise: Falcons
Reported Cost: $1.6 billion
Opening Year / Season: 2017-2018
FACILITY DEVELOPMENT PROJECTS 2017 - 2021
NFL Franchise: Raiders
Reported Cost: $1.9 billion
Opening Year / Season: 2020-2021
LAS VEGAS STADIUMLAS VEGAS, NEVADA
FACILITY DEVELOPMENT PROJECTS 2017 - 2021
NFL Franchise: LA Rams / Chargers
Reported Cost: $4.96 billion
Opening Year / Season: 2020-2021
INGLEWOOD STADIUM/LOS ANGELESLOS ANGELES, CALIFORNIA
FACILITY DEVELOPMENT PROJECTS 2017 - 2021
MLB: Recent Renovations & New Builds
v SunTrust Park opened in Atlanta, Georgia
- Cost $622M
v Tropicana Field announced $85M renovation if MLS team decides to move in
v Petco Park $2M renovation
v Miller Park $10.3M renovation
v Citizens Bank Park plan $30M renovation
v Globe Life Field to open in Arlington, Texas
- Cost $1B
2017 2018 2021
MLB Franchise: Braves
Reported Cost: $622 million
Opening Year / Season: 2017-2018
SUNTRUST PARKATLANTA, GEORGIA
FACILITY DEVELOPMENT PROJECTS 2017 - 2021
MLB Franchise: Phillies
Reported Renovation Cost:$30 million
First Season in Renovated Facility: 2021-2022
CITIZENS BANK PARKPHILADELPHIA, PENNSYLVANIA
FACILITY DEVELOPMENT PROJECTS 2017 - 2021
MLB Franchise: Rangers
Reported Cost: $1 billion
Opening Year / Season: 2021-2022
FACILITY DEVELOPMENT PROJECTS 2017 - 2021
GLOBE LIFE FIELDARLINGTON, TEXAS
NHL: Recent Renovations & New Builds
2017
v Little Caesars Arena opened
- Cost $863M
v Wells Fargo Arena announced $250M renovation
v Bridgestone Arena $6M renovation
v United Center renovated
v Nassau Veterans Memorial Coliseum $165M renovation
v Scottrade Center plans $160M renovation
2016
v Seattle announces plan to attain team
2018
NHL Franchise: St. Louis Blues
Reported Renovation Cost:$160 million
First Season in Renovated Facility: 2016-2017
SCOTTRADE CENTERST. LOUIS, MISSOURI
FACILITY DEVELOPMENT PROJECTS 2017 - 2021
NASSAU VETERAN’S MEMORIAL COLISEUMUNIONDALE, NEW YORK
NHL Franchise: Former Islanders Stadium
Reported Renovation Cost:$160 million
First Season in Renovated Facility: 2017-2018
FACILITY DEVELOPMENT PROJECTS 2017 - 2021
What Cities Can Host Their First Team? Or Another?§ HSP assessed the market conditions for cities and their ability to support a Major League Franchise
§ Three Key Factors§ Market Power§ Committed, Financed Ownership Group§ City willing to Finance a Facility
§ HSP Focused on Market Power Primarily§ TV Market Size/Wealth§ Growth In Population§ Large Companies§ Household Income (# of HH’s over $100k)§ GDP§ Presence of Existing Major or Minor League Teams§ Presence of Major College Programs§ Las Vegas Effect: Adult Tourism § Central City/Primary Draw
1. Seattle2. Portland3. San Diego4. San Antonio5. Montreal6. Houston7. Sacramento8. Charlotte9. Vancouver
1. San Antonio or Austin
2. Norfolk/Virginia Beach or Richmond
3. Portland
4. Toronto/Vancouver
5. Sacramento
6. London/Mexico City*
1. Phoenix
2. San Diego
3. Raleigh-Durham
4. San Antonio
5. TIE: Indianapolis; Tampa Bay/St. Pete; Charlotte
§ Des Moines
§ Greenville, South Carolina
§ Omaha
§ Madison
§ Grand Rapids
§ Boise
§ Charleston, South Carolina
§ Northwest Arkansas