ALSD International State of the Industry: 2021

ALSD International State of the Industry: 2021 Back in the Saddle! September 1, 2021
Introduction
What Does HSP Do? Master placemaking. Conduct market, financial feasibility & impact studies on:
§ Stadiums/Arenas
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Welcome to ALSD International § HSP’s 2nd year presenting the international state of the industry
for the professional venues market.
§ More than €10 billion in International Sports Projects currently finishing or underway (~€6 billion in the last three years).
§ Featured in this Year’s Presentation:
§ Updated Venue Database (Added Arenas)
§ New Builds/Major Renovation Profiles
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:
§ Football (50,000+)
§ Rugby (50,000+)
§ Cricket (35,000+)
§ 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.
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Pace of New Projects is Strong 2 Years Into the 2020’s
0 10 20 30 40 50 60 70 80 90
1909 & Before
1910's 1920's 1930's 1940's 1950's 1960's 1970's 1980's 1990's 2000's 2010's 2020's
Number of New Stadiums & Arenas per Decade
New Stadiums per Year New Arenas per Year
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€ 0
€ 500,000,000
€ 1,000,000,000
€ 1,500,000,000
€ 2,000,000,000
€ 2,500,000,000
€ 3,000,000,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Total Spend on International Venues: 2000 - 2025
Football Cricket Rugby Formula 1
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An Average of Roughly €750 Million Spent per Year on New Venues
€ 0
€ 200,000,000
€ 400,000,000
€ 600,000,000
€ 800,000,000
€ 1,000,000,000
€ 1,200,000,000
€ 1,400,000,000
€ 1,600,000,000
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Average Cost Per Facility by Year by Sport: 2000 - 2025
Football
Cricket
Rugby
2020's, 6.94%
2010's, 16.32%
2000's, 18.75%
International Facilities Built by Decade Pre 1900's - 2020's
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2020's, 9.91%
2010's, 22.52%
2000's, 26.13%
1990's, 15.32%
1980's, 10.81%
13
0 1 2 3 4 5 6 7 8 9
10 11 12
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
New International Facilities by Year and League: 2000 - 2025
Football Cricket Rugby Formula 1
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New San Siro Stadium Milan, Italy
§ Teams: AC Milan, Inter Milan, Opening Ceremony of 2026 Winter Olympics
§ Capacity: 60,000
§ Team: Everton F.C.
§ Team: Valencia C.F.
§ Opening Year/Season: 2022
§ Team: Guangzhou F.C.
§ Team: Kunshan F.C.
§ Capacity: 60,000
§ Team: Clube Atletico Mineiro
§ Team: Club León
§ Capacity: 32,000
International Cricket Stadium New Builds 2020-2025
§ Team: Gujarat Cricket Association
§ Capacity: 18,000
§ Opening Year: January 2021
§ Capacity: 23,500
§ Capacity: 15,000 § Reported Cost: €124 Million § Opening Year: December 2021
Other Relevant New Builds New Builds 2020-2025
45,000
33,000
63,000
80,000
60,000
40,000
21,282
48,000
45,350
40,000
40,000
2026
§ Capacity: 45,350
§ Reported Cost: Part of €5.5 Billion (Across all 4 facilities)
§ Opening Year: June 2020
§ Event: FIFA World Cup Qatar 2022
§ Capacity: 80,000
§ Event: FIFA World Cup Qatar 2022
§ Capacity: 40,000
§ Reported Cost: Part of €5.5 Billion (Across all 4 facilities)
§ Opening Year: 2021
Ras Abu Aboud Stadium Doha, Qatar
§ Event: FIFA World Cup Qatar 2022 § Capacity: 40,000 § Reported Cost: Part of €5.5 Billion § Opening Year: 2022
Source: SCQA
Australia, New Zealand 2023
Eden Park Auckland, New Zealand
50,000
34,500
25,800
30,748
Stadium Australia Sydney, Australia
45,000
Perth Rectangular Stadium Perth, Australia
20,500
Sydney Football Stadium Moore Park, Sydney, Australia
§ Event: FIFA Women’s World Cup 2023 § Capacity: 45,000 § Reported Cost: Part of €701 Million § Opening Year: 2022
Explosion of Esports
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.
Esports in Europe § The map details the share of
respondents who spent more time watching eSports in 2020 compared to 2019 (%)
§ Explosion in the southern region
including Spain, Portugal, Italy as well as in the UK.
§ Demand for an increase in venue development to accommodate this growth
Source: Statista
Source: Newzoo/PayPal
7,000
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.
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.
Entertainment Districts
§ 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
3,000 Aquatic Center
The Qiddiya project located west of the city of Riyadh is projected to be completed in 2030 and contain several different arena and entertainment venues that are a part of the KSA’s Vision 2030 strategic plan.
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§ Development is 55% completed
§ 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
Source: Miral
v t
The Deer District The Entertainment District component of the entire Deer District is a compelling aspect to the arena’s presence in downtown Milwaukee.
Whether or not someone has a ticket to a game or concert, the pedestrian plazas between Punch Bowl Social and the arena’s glass wall has become a needed component of creating what the city has lacked; a critical mass of dining and nightlife options.
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Fiserv Forum and the Deer District
The culmination of Milwaukee’s efforts were finally realized in July 2021 when they were playing home games against the Phoenix Suns in their first NBA Finals Championship in fifty years.
The Deer District became ground-zero for city and state- wide spirit as more fans showed up on each successive night during the series.
Bucks Training Facility
66
Fiserv Forum and the Deer District The deciding and final Game 6, in Milwaukee, brought as many as 80,000 total fans to the Deer District. Milwaukee won the best-of-seven series 4-2.
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Fiserv Forum and The Deer District
The rise from pandemic to public crowds is likely the most dramatic in Milwaukee of any city in the U.S., beginning in June.
Bucks Training FacilityThis Chart: Visits to Deer District after 5pm – shown by week
NBA FinalsNBA Playoffs
From an average of 10K people per week in February through March, to
between 100K and 150K per week by mid-June.
10,000 per week
71,000
108K
(Away)Game 1 (Away)
Game 4 (Home)
Game 5 (Away)
This Chart: Visits to Deer District after 5pm – shown by day
Game 5 was in Phoenix, but the Deer District hosted a watch party in which the total (indoor and outdoor) attendance was better than the home games 3 or 4.
Milwaukee won the last four games, contributing greatly to the daily attendance increase. NBA Finals
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Visits to Deer District after 5pm – shown by distance traveled Fiserv Forum and The Deer District
16% percent travel from 50 and 100 miles, and another 15%+ come from well over 100
miles from Milwaukee.
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This Chart: Visits to Deer District after 5pm – shown by distance traveled Fiserv Forum and The Deer District
Almost one-third of visitors to the Deer District live over 50 miles away, according to this distance chart. A
winning NBA team is helpful towards attracting out-of- towners to your fair city, however, just as important is having a dynamic and attractive development in the center of the action. One that people are sparks awe and joy in them, making them vow to return again.
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This Chart: Visits to Deer District after 5pm – shown by average annual household income
Significant diversity of household income spectrum for visitors, from $0 - $200k+
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HSP uses geo-fencing technology to read the behaviors and movements of crowds. This Map shows fans who have been to the Deer District between the times of 5pm and Midnight since February, 2021.
The total is around one million people, and most of those people did not have tickets to any event, proving that the Deer District has become the new hub of nightlife and entertainment in Metro Milwaukee, Wisconsin, and beyond.
from?
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Fiserv Forum and The Deer District – Fear the Deer Nation!
They are not the Green Bay Packers, in terms of national loyalty, but still respectable.
There are representatives from every major city that have visited the Deer District at least once in the past six months.
Wisconsin has a special relationship with Phoenix and Florida, the most popular places for retirees to keep warm in winter.
Aside from Wisconsin and Chicagoland, there is strong visitorship from the Twin Cities, St Louis, eastern Iowa and the around the Great Lakes States
And across the U.S.
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A demand-generator like an NBA arena draws people, not only on game-nights.
The red areas show that The Alleyway is very conducive to guiding fans to the area’s bars and restaurants.
Map shows where people walked during a 2-month period from April 26 to July 11, 2021.
Pedestrian Heat Map Two-Block Area
Fiserv Forum and Deer District Plaza
The Alleyway
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The red areas show where people walked with the highest frequency and the greatest numbers.
Map shows where people walked during a 2-month period from April 26 to July 11, 2021.
Pedestrian Heat Map 15-Block Area
Fiserv Forum and Deer District
Water Street
Private Equity Investment
§ There are more than 57 professional sports teams with a valuation of more than $2 Billion.
§ Rapid growth in sports broadcasting and gaming revenues have the private sector intrigued. Annual spending on sports broadcast rights has more than doubled in the last ten years and
currently sits at almost $50 billion worldwide.
§ Three dedicated sports investment funds launched in the past 2 years with targets over $1 billion.
Team/League/Group Investor Deal Value Year City Football Group Silver Lake Management $500,000,000 2019 City Football Group CMC Holdings; CITIC Capital $400,000,000 2015 IceArizona AcquisitonCo Merion Investment Partners $152,500,000 2014 Liverpool FC Rhone Group $151,720,000 2010 Williams Grand Prix BCE $132,820,000 2020 FC Girondins de Bordeaux General American Capital $114,060,000 2018 Olympique Lyonnais Groupe IDG Capital Partners $111,410,000 2016 Sportech PLC - Football Pools FP Acquisitions $102,060,000 2017 Hertha BSC KKR $82,560,000 2014 KSV eSports Consortium including New Enterprise Associates $46,000,000 2019 Total $1,793,130,000 Average $179,313,000
Source: Refinitiv
As of August 2020
10 Largest Private Equity Investments into Clubs & Leagues in the Past Decade
Private Equity Investment
§ Total annual investment in sports has trended upward over the past decade. COVID-19 severely impacted investments in 2020
§ Private equity investment continues to rise with the internationalization of sports and investment
PE Investment Total Sports Investment
Oak View Group and Spectra Merger
§ Oak View Group (OVG) and Spectra announced plans to merge to create a “leader” in the live events industry.
§ The combined company will provide industry-leading expertise in booking and creating content for the venues it manages.
§ OVG currently oversees the development UBS Arena and Climate Pledge Arena, as well as the new Co-op Live arena.
§ Spectra has positioned itself as an industry leader hosting more than 15,000 events a year across the United States, Canada and around the world. The company currently serves about 200 clients.
American Global Advisory, Development and Investment Company for Sports and Live Entertainment Industries
Venue Management and Hospitality Provider
“I think the industry desperately needs another entity that will grow this space and take the synergistic resources of OVG and Spectra and be able to redefine what this industry looks like going forward and be able to compete.” - Tim Leiweke
CEO of Oak View Group
The 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
§ Sustainability and reuse a key factor in new development of facilities for premier tournaments such as the FIFA World Cup and the Olympics
§ 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
Thank You
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:
- Economic, Fiscal & Employment Impact Analysis (Cost/Benefit)
- Organizational Development
- Research & Statistical Analysis
- Developer Solicitation & Selection
The firm and its principal have performed more than 800 studies
over the past 20 years, with more than $6.0 billion in built,
successful projects.
For further information about Hunden Strategic Partners, please contact:

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ALSD International State of the Industry: 2021