Building stadiums and arenas – but not for sports

Concerts are lucrative, lucrative enough to construct buildings with 10,000-18,000 seats primarily for shows:

Los Angeles-based Oak View Group, an entertainment and sports-facilities company backed by private-equity giant Silver Lake, is slated to develop eight new arenas over the next three years, six of which will forgo major-league teams, largely to keep their calendars clear for concerts.

An arena can generate twice as much net income from hosting a concert than a National Basketball Association or National Hockey League game, according to Oak View. Live music is expected to balloon to $38 billion industry by 2030, from about $28 billion currently, according to PricewaterhouseCoopers. Oak View said being able to schedule twice as many concerts as it would otherwise with a professional team in house is an attractive prospect in markets including Palm Springs, Calif., and Austin, Texas. And as streaming is helping artists develop larger international audiences, markets including Manchester, U.K., and Milan are ripe for more arena shows, too…

The company said the arenas are being designed with music as the primary focus, from acoustics to VIP amenities. They will include fewer suites – a pet peeve of musical performers, who typically aren’t able to sell tickets for those seats – and add more clubs within the venue to entice concertgoers to linger before or after a show.

Multiple thoughts in response:

1. The ability to tweak the venue for music in multiple ways seems like a big win for artists and audience members. Instead of being in cavernous arenas that need enough floor space for a playing surface, everything can focus on a stage. It will be interesting to see how sound quality in new arenas like this compares to multi-use facilities.

2. This is a reminder that the big money in sports is not necessarily in attendance to games but rather in television rights and other revenue sources. Could this lead to a future with smaller sports arenas that provide an upgraded experience (it is already difficult to compete with large HD televisions) and more emphasis on what is built around the stadium?

3. Sports teams often ask for public money for facilities. And many communities seem willing to provide it, even when the evidence suggests it is not a good investment. Will music arenas also be funded with public money?

4. Since many larger cities already have arenas or stadiums, it will be interesting to see what mid-sized markets get music-only facilities. Some of the locations mentioned above are places without major sports teams (like Austin). But, I could imagine some of these facilities within large metropolitan markets in order to cater to musicians (imagine such a facility in the southwest or northern suburbs of Chicago taking away business from the United Center, Allstate Arena, and the Sears Centre).

5. Just as sports stadiums and arenas have limited games, these facilities will have a limited number of concerts each year. What else could the arenas be used for?

Fewer outdoor basketball courts, more courts in private backyards

Along my regular running routes in the suburb in which I reside, I have seen something interesting in several backyards: a private basketball court. Here is one of them:

BackyardBasketball1

I can see how these might be appealing:

1. The basketball hoop is always available for use by the people who live in the home.

2. Players do not have to go to a park or facility to play; it is convenient and easier to monitor.

3. The court can be used for other sports with a little bit of work (such as hanging a net).

4. It eliminates some grass from the backyard that would otherwise require mowing.

5. An addition like this to the lot could be viewed as good for property values in the long run.

On the other hand, this turns basketball (and other sports) into private activities. It removes the players from interactions with others in a park or more public space. It turns a leisure activity with the potential to bring people together into yet another activity Americans have taken to private spaces.

Couple the addition of private courts to backyards with a wariness about constructing basketball courts in public parks (or the addition of strange courts) and basketball – like many other sports – may be more of a private or organized activity in many suburbs rather than a spontaneous and creative activity.

Sports stadiums and white flight

How the Atlanta Braves and Atlanta United went about procuring their stadiums hints at the city’s racial divides:

Accompanying the announcement, the team released a map showing where, precisely, Braves Country was—and, notably, where it wasn’t. That view of the greater Atlanta area was speckled with red dots, each one indicating the home of a 2012 ticket buyer, including season-ticket holders. Only a smattering of red appeared to the east, west and south of Turner Field, while thousands of dots congealed into a ribbon above downtown that expanded into a wide swath in the half-dozen suburban and exurban counties to the north. The new stadium would be closer to the middle of that mass, which happened to embody an older, whiter and more conservative population than the city proper. Those northern suburbs were fast diversifying, yet many in Atlanta—particularly in its black population—felt slighted by the decision, their perspectives colored by decades of racial and political tension between city and sprawl.

Five months later MLS commissioner Don Garber, Falcons owner Arthur Blank and then-mayor Kasim Reed proclaimed in their own press conference that downtown Atlanta would be home to MLS’s 22nd franchise, and the new club, Atlanta United, would take the pitch in 2017, the same year the Braves headed to Cobb. The soccer team would play in the same new $1.6 billion stadium the Falcons would soon call home, but United would be no afterthought. The facility would be designed to accommodate the beautiful game from the start. Pushing back against skepticism and pointing to an influx of young professionals near Atlanta’s urban core, Blank assured MLS’s leaders he could fill the massive venue, even in a market known for lukewarm enthusiasm toward pro sports. Reed boasted that his city’s foreign-born (and, seemingly implied, soccer-loving) population was growing at the second-fastest rate in the U.S. Garber himself insisted these factors combined to make downtown an ideal MLS incubator. The city “embodies what we call a ‘new America,'” he said, “an America that’s blossoming with ethnic diversity.”

Fast-forward five years, and Atlanta United’s ticket-sales map, while not a direct inverse, is considerably more centralized than Braves Country (or even, says United president Darren Eales, a depiction of the Falcons’ fan base). United, meanwhile, aided no doubt by winning the 2018 MLS Cup, has led MLS in attendance in each of its three seasons, averaging 53,003 fans in ’19, among the highest in the world. This echoes the success the Braves found when they chased their audience to the north, the farthest any MLB team had ventured from its city center in 50 years. The Braves’ average home attendance, aided too by on-field success, reached 32,779 fans this season, up 31% from their last year at Turner Field…

Kruse, the Princeton history professor, is blunt in his assessment of such feelings. “These ideas about downtown being a dangerous place are really about the people downtown,” he says. For years he thought that “suburbanites want nothing to do with the city except to see the Braves.” But today? “That last connection has been severed. I see this movement of the stadium as the culmination of white flight.”

Trying to connect with particular fan bases or contributing to decades-long processes of residential segregation and white flight? How about both?

Three additional thoughts:

  1. More could be made here of the public money the Braves received from Cobb County. Plus, they could develop land around the new stadium, now a common tactic to generate more revenue beyond fan attendance. Yes, fan attendance is important but the long-term money may be in investing money in land surrounded by whiter and wealthier residents. Stadium development then just continues the process of limited capital investment in neighborhoods that could really use it and concentrates it in places where wealth is already present.
  2. Baseball is widely regarded as having an older and whiter fan base. Soccer is said to have a more diverse and younger fan base. In addition to the demographics of the Atlanta area, the sports themselves try to appeal to different audiences (even as they might work to reach out to different groups).
  3. It will be interesting to see how many sports teams in the next few decades move to more niche locations while still claiming to be from the big city. Civic identity is often tied to sports teams as most metro areas can only support one team from the major American sports. Can big city politicians still lose when the team from the area decides to move to a suburb (see a recent example in the Las Vegas area) but takes that revenue out of the big city? Can a team that locates in one particular area of the metropolitan region still easily represent the entire region?

Finding the second cities in tickets sales for NFL teams

Vivid Seats looked at ticket sales for NFL teams by location and found the place with the second-most ticket sales could vary:

Naperville represents the No. 2 most popular market for the fan base of a certain team from a certain town, known as Da Bears, according to ticket sales from Vivid Seats

It should come as no surprise that outside Green Bay, Milwaukee has the biggest fan base of Packers fans…

According to Vivid Seats, the second city with the highest overall percentage of ticket orders for its team was Colorado Springs, Colorado…

The Patriots’ fan base spans across New England, and Vivid Seats reports Quincy, Massachusetts, is the team’s second city. Providence, Rhode Island, isn’t far behind, and Nashua, New Hampshire, and Saco, Maine, are other hotbeds of Patriots fans…

For the Oakland Raiders, its No. 2 city is Sacramento, California, and Erie, Pennsylvania, comes in second to Pittsburgh for the Steelers.

A quick hypothesis: the distribution of ticket sales by NFL team is largely a function of the population of communities and distance from the home city of the team or the city where the team’s stadium is located.

These factors could be mediated by other influences. The relative wealth of communities could matter as NFL tickets are not cheap. The distance from the stadium may not be the best measure compared to access or time needed to get to the venue. Furthermore, the analysis suggests some fan bases draw from secondary cities in a region, like Providence for the Patriots or Sacramento for the Raiders.

With these factors at play, would the distribution of NFL ticket buyers largely reflect inequality across metropolitan regions or do ticket sales cut across racial, ethnic, and class divides?

Finding an incomplete (circular) basketball court in the suburban wild

Years ago, I wrote a piece about how communities build small, unusually-shaped, or incomplete basketball courts in an effort to limit basketball players from congregating. I recently drove by one such court in Naperville – see the unique shape of this basketball surface.

BasketballCourtCircle

The park has a circular court with three hoops. Each 120 degree segment barely has enough room before its three-point lines coincide with the lines of the other segments.

The setting of the park: surrounded on all four sides by nice houses; multiple baseball fields; a soccer field in the middle.

Why set it up this way when the park appears to have plenty of room for a larger court (I would guess there is room for at least one full-size court roughly parallel to the east-west road)? Such a court limits play largely to shooting around as any game with more than two people per side is likely going to infringe on other parts of the court. It is very difficult to use two hoops for a game.

There could be multiple answers to this. The park district wanted to make sure multiple sports were available in the park and a larger basketball court would infringe on this. Other parks provide larger basketball courts. One request for public comment from the Naperville Park DistrictOne request for public comment from the Naperville Park District suggests 13 neighborhood parks have basketball facilities (including the one depicted above). Perhaps more basketball players prefer indoor facilities (understandable given the Chicago region’s climate).

It still is an unusual court. Could a community build an irregular shaped baseball field or tennis court and get away with it?

 

 

Baseball teams going with smaller stadiums, more mixed-use development

As fewer fans may be willing to go to baseball games, teams are moving toward focusing on development around the stadium:

The Atlanta Braves and Texas Rangers, leaning significantly on public funding that came without taxpayer referendums, ditched parks built in the 1990s for smaller digs framed by the game’s new revenue engine – mixed-use developments at least partially controlled by the team. The Braves are in their third season at SunTrust Park (capacity, 41,000, replacing Turner Field’s 53,000) while the Rangers in 2020 will open Globe Life Field, a retractable-roof facility that will seat 40,000 compared to its predecessor’s 49,000-seat capacity…

For the Diamondbacks, A’s and perhaps a significant number of clubs that may replace – or revamp – their Camden Yards-era parks, finding the sweet spot of atmosphere, accessibility and inclusion will be paramount in a sport with an aging and occasionally alienated fan base.

The primary focus of the article is on how teams are trying to attract more fans to altered ballparks that offer a more exciting in-game experience. But, I find the passage above more interesting: as fans become fickle regarding attendance, the big long-term money may just be in the real estate surrounding the park. Even at high levels of attendance, a sports stadium only generates revenue a certain number of dates a year. Baseball has a lot more dates than football but the stadium still sits empty for more than 75% of the year.

Many teams and park owners have already shifted toward stadiums as concert venues as well as homes to other sports in the off-season. But, imagine the sports stadium more like an exciting shopping mall where people come to hang out in an exciting and safe space and they consume. Just like the shopping mall that features food, entertainment, and retail, the stadium could become a year-round home for entertainment, food, and shopping that has a great draw at the center: a professional sports team that happens to play there for part of the year.

One piece that may be missing from a number of ballparks as well as shopping malls: adding residential units near the facility could help boost the customer base and create a neighborhood feel. A number of stadiums are surrounded by parking lots. At least a few are located right next to other stadiums of professional teams so the stadiums can share parking lots. Instead, imagine apartments and condos right near stadiums: some residents would be excited to live right near the energy of a stadium and these residents also would partake of local businesses. This does not have to look like the neighborhood around Wrigley Field but there is certainly a lot of room for more neighborhoods to generate revenues for tams long after the games are over.

And then there can be conversations about whether public money should be used to finance real estate development in addition to sports stadiums. Do communities benefit from mixed-use developments around stadiums or does the money line the pockets of owners?

A reminder of the absurdity of sports

The MVP Machine is a good look at the data feedback player development angle in Major League Baseball today. Roughly two-thirds through the book, there is a reminder about what sports actually are:

It also strikes me as silly that I’m so excited about being a bit better at hitting a ball covered in cowhide with a wooden stick, an ultimately meaningless activity that American culture collectively decided would be worth many millions of dollars when performed with a certain skill. Rational or not, though, the fulfillment is real.

Similar descriptions could render all major sports as absurdist activities. And yet, they are viewed by millions, they are tied to local status and civic togetherness, and there are billions of dollars tied up in them. Sports today are big business, big entertainment, and big stakes for fans all rolled up into one. But, I imagine some sports moments could be made better with this reminder of what sports are at their most basic level.