Coliseum Conference 2021: Venue Development - March 26, 2021
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Coliseum
Conference 2021:
March 26, 2021
Venue
Development
What Does
HSP Do?
Owner’s rep/advisory and market, financial
feasibility & impact studies on:
§ Stadiums/Arenas
§ Entertainment Districts
§ Hotels, Convention Centers
§ Mixed-Use Districts
hunden.com | © 2020 HSP 2
Venue Trends
International Venues Database
§ The comprehensive database created by HSP includes over
400 stadiums and more than 120 arenas worldwide. For
presentation and data displaying purposes, the following criteria
was used to explain the high-level trends and developments
happening in the industry.
§ Featured in this Year’s Database (Capacity):
§ Football (50,000+)
§ Rugby (50,000+)
§ Cricket (35,000+)
§ Formula 1 (F1 Schedule)
§ Arenas (15,000+)
hunden.com | © 2020 HSP 4
Comprehensive Arena Database
§ HSP’s database tracks over 120 arenas
worldwide above 15,000 capacity (Non-
North America).
§ Analyzes trends in arena new
builds,
renovations and/or expansions,
premium spaces, and much more.
§ Details the costs and trends of the 20 arenas
that are currently under development or were
recently opened.
§ Utilizes these statistics and analytics to make
projections on the future of
arenas.
hunden.com | © 2020 HSP 5
Challenges
§ Competitive Landscape Growing
§ Safety/Security
§ COVID-19 Effects
§ Renovate or Build New?
§ Sustainability of One-Time Venues
§ Financing
hunden.com | © 2020 HSP 6
HSP Projects More Than 60 New Major
Builds in the 2020s
Number of New Major Venues Opened per Decade
60
55
50
45
40
35
30
25
20
15
10
5
0
Pre-1900's 1900's 1910's 1920's 1930's 1940's 1950's 1960's 1970's 1980's 1990's 2000's 2010's 2020's
Stadiums Arenas
7
Spending on New Facilities Increases
8
Cost per Venue Increasing
9
Sports Driving Facility Growth
10Most Facilities in Need of Renovation
11New Builds/Major Renovations - Stadiums
New San Siro Bramley-Moore Dock
Milan, Italy Liverpool, England
60,000 53,000
€1.25 Billion €505 Million
Lusail Iconic Narendra Modi (Motera)
Lusail, Qatar Ahmedabad, India
80,000 132,000
€640 Million €150 Million
hundenpartners.com | © 2020 HSP 12New Builds - Arenas
Coca-Cola Arena UROS Live
Dubai, UAE Tampere, Finland
17,000 13,500
>€800 Million €505 Million
Co-op Live Etihad Arena
Manchester, England Abu Dhabi, UAE
23,500 18,000
€350 Million €800 Million - €1.2 Billion
hundenpartners.com | © 2020 HSP 13Sports Districts
NEW! Entertainment Districts - Live/Work/Play
Distrito T-Mobile Yas Island
San Juan Abu Dhabi
Co-Op Live Mercedes Platz
Manchester Berlin
hundenpartners.com | © 2020 HSP 15San Siro District
Location: Milan, Italy
Opened: 2024
Cost: $750 million
Replaces: Giuseppe Meazza Stadium
Teams: AC Milan and Inter
§ Capacity of 60,000, down from 75,000 in
existing venue.
§ Two competing designs
§ 22-acre municipal park to include an open-air gym,
museum and running track
§ Football pitch, basketball court, zip line, climbing
wall
hundenpartners.com | © 2020 HSP 16Mixed-Use District - Yas Island, UAE
§ $40+ Billion
§ Development is 55%
completed
§ 35 residential towers
§ 56 F&B outlets scattered
on 3km of waterfront
boardwalk
§ 18,000-seat state-of-the-
art arena
§ Ferrari World Abu Dhabi
§ Yas Waterworld Abu
Dhabi
§ Warner Bros World Abu
Dhabi
Source: Miral
17ESports
Esports Stats & Trends
§ Esports viewership is projected to
grow at a 9% compounded annual
growth rate (CAGR) between 2019 and
2023.
§ A total of 454 million viewers in
2019.
§ Total investments in esports grew from
$490m to $4.5b from 2017 to
2019.
§ It is projected that the esports industry
will exceed $1 Billion in revenue
in 2021.
hundenpartners.com | © 2020 HSP 19Esports Venues
Dundee, Scotland Bristol, UK
4,000 1,500
Chongqing Zhongxian
E-Sports Stadium X-Stadium
Chongqing, China Dubai, UAE
7,000 N/A
hundenpartners.com | © 2020 HSP 20Esports Stadium Arlington & Expo Center
Location: Arlington, TX
Opened: 2018
Cost: $10 Million Renovation
Owner: City of Arlington Esports Venues LLC
Operator: NGAGE Esports
§ Esports Stadium Arlington is 100,000 square
feet and has a capacity of 2,500.
§ The facility also has an attached 48,000-square foot
exhibit hall
hunden.com | © 2020 HSP 21Esports Stadium Arlington Quick Facts
§ Operator pays the City $1M per year over 10 years.
§ Purpose-built facilities - true darkness, superior internet capabilities and easy
production capabilities.
§ Booking windows relatively short – Difficult to book more than 12 months out.
§ Daily cost for an event can be roughly $10,000 for the space and $30,000
when production is included.
§ Esports Stadium Arlington hosted the esports awards, which attracted the top
gaming influencers as well as over 9 million worldwide viewers.
§ The average ticket price for major tournaments is upwards of $30 and fills
between 2,500 – 3,000 seats.
hunden.com | © 2020 HSP 22Fusion Arena
Location: Philadelphia, PA
Opened: 2021/22
Cost: $50 Million
Owner: Comcast Spectacor
§ Fusion Arena is 60,000 square feet and has a
capacity of 3,500.
§ Facility also has luxury boxes, broadcast areas, a
training center, and team offices.
§ Situated at South Philadelphia Sports Complex
(MLB, NBA, NFL stadiums nearby).
hunden.com | © 2020 HSP 23Fusion Arena - Philadelphia, USA
Source: Fusion Arena
24Toronto Esports Arena (Proposed)
Location: Toronto
Opened: 2025
Cost: $500 Million
Developer: OverActive Media
§ The proposed multi-purpose arena will be located
at the Canadian National Exhibition Grounds and
will have a capacity of 7,000.
§ Facility projected to host more than 200 events per
year for esports and entertainment.
§ Attached hotel complex proposed.
hunden.com | © 2020 HSP 25Chongqing Zhongxian
Location: Chongqing, China
Opened: 2018
Cost: ~$500 Million
§ Capacity of 7,000.
§ Exterior LED screens for an outside plaza space for
13,000 spectators that cannot get a seat inside.
§ Part of a complex with retail shops, a food court,
exhibition space, and a luxury hotel.
hunden.com | © 2020 HSP 26Glytch, Inc.
§ A new enterprise that combines location-based
entertainment with professional esports arenas.
§ Focused on providing essential infrastructure for an
array of live gaming experiences.
§ Recently broken ground on flagship site in Los
Angeles, USA.
§ Glytch Venues are 50,000 to 90,000 SF, with seating
capacity for thousands of fans and dynamic staging to
accommodate a wide variety of esports and other live
events. The stadium is set within a themed, immersive
atmosphere surrounded by VR simulators, escape
rooms, drone racing, classic arcade attractions, and
upscale food and beverage options.
§ Set to open its first four locations within the coming
years.
hunden.com | © 2020 HSP 27Private Equity
Private Equity Investment in Sports
Largest Private Equity Investments into Clubs & Leagues in the Past Decade
§ More than $4 Billion invested in sports
teams/organizations since 2014.
Team/League/Group Investor Deal Value Year
§ Rapid growth in sports City Football Group Silver Lake Management $500,000,000 2019
broadcasting and gaming
NZ Rugby Silver Lake Management $465,000,000 2021
revenues have the private sector
intrigued. Annual spending on sports City Football Group CMC Holdings; CITIC Capital $400,000,000 2015
broadcast rights has more than IceArizona AcquisitionCo Merion Investment Partners $152,500,000 2014
doubled in the last ten years and Liverpool FC Rhone Group $151,720,000 2010
currently sits at almost $50 billion Williams Grand Prix BCE $132,820,000 2020
worldwide. FC Girondins de Bordeaux General American Capital $114,060,000 2018
§ Three dedicated sports investment funds Olympique Lyonnais Groupe IDG Capital Partners $111,410,000 2016
launched in the past 2 years with targets Sportech PLC - Football Pools FP Acquisitions $102,060,000 2017
over $1 billion. Hertha BSC KKR $82,560,000 2014
§ Arctos Sports Partners KSV eSports Consortium $46,000,000 2019
§ Dyal HomeCourt Partners Total $2,258,130,000
Average $205,284,545
§ RedBird Series 2019
Source: Refinitiv
hunden.com | © 2020 HSP 29The Future
Future Implications & Projections
§ Facility development to continue its rapid growth, with an increased emphasis
on flexibility and security.
§ Higher Federation/League standards for new and existing facilities
§ Esports to become more of a mature, major player in arena development and
the ”sporting world.”
§ Consumers will continue to expect mixed-use environments around major
venues. Financing realities will require it.
§ An array of different investor types/groups will become involved in sports
teams and related development.
§ Internationalization of sports/leagues, improved product value
hunden.com | © 2020 HSP 31Thank You
33
Hunden Strategic Partners is a full-service real estate
development advisory practice specializing in destination assets.
With professionals in Chicago, San Diego, Indianapolis and
Minneapolis, HSP provides a variety of services for all stages of
destination development in:
- Real Estate Market & Financial Feasibility
- Economic, Fiscal & Employment Impact Analysis (Cost/Benefit)
- Organizational Development
For further information about Hunden Strategic Partners, - Public Incentive Analysis
please contact:
- Economic and Tourism Policy/Legislation Consulting
Hunden Strategic Partners - Research & Statistical Analysis
213 W. Institute Place, Suite 707
Chicago, Illinois 60610 - Developer Solicitation & Selection
312.643.2500
www.hunden.com
The firm and its principal have performed more than 800 studies
over the past 20 years, with more than $5.5 billion in built,
successful projects.
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