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?

The different demographics of viewers of America’s major sports

Derek Thompson highlights the varied demographics of viewers of the major sports in the United States:

  • The NBA has the youngest audience, with 45 percent of its viewers under 35. It also has the highest share of black viewers, at 45 percent—three times higher than the NFL or NCAA basketball.
  • Major League Baseball shares the most male-heavy audience, at 70 percent, with the NBA.
  • The NHL audience is the richest of all professional sports. One-third of its viewers make more than $100k, compared to about 19 percent of the general population.
  • Nascar’s audience has the highest share of women (37 percent) and highest share of white people (94 percent).
  • The Professional Golfers Association has the oldest audience by multiple measures: smallest share of teenagers; smallest share of 20- and early 30-somethings; and highest share of 55+ (twice as high, in the oldest demo, as the NBA or Major League Soccer).
  • Major League Soccer has the highest share of Hispanics by far (34 percent; second is the NBA at 12 percent) and the lowest income of any major sports audience. Nearly 40 percent of its fans make less than $40k.
  • The NCAA demographics for football and basketball are practically identical but they are surprising old (about 40% over 55+) and surprisingly white (about 80%), which clearly has as much to do with who owns a TV rather than who follows the sports.

There are much smaller demographic differences – say across gender as all of these sports have primarily male viewers – and larger ones, particularly across race and ethnicity, income, and race.

I wonder if this could all be easily deduced by watching the commercials that play during the games. While the average fan may not be aware of these demographic splits, advertisers most certainly are and target the audience accordingly. Yet, I can’t say I quickly can name notable advertisement differences between the NFL, NBA, MLB, and NHL off the top of my head in the same way I quickly notice a difference in advertisements when turning on the network news at night (a very rare occurrence).

Using algorithms for better realignment in the NHL?

The NHL recently announced realignment plans. However, a group of West Point mathematicians developed an algorithm they argue provides a better realignment:

Well, a team of mathematicians at West Point set out to find an algorithm that could solve some of these problems. In their article posted on the arXiv titled Realignment in the NHL, MLB, the NFL, and the NBA, they explore how to easily construct different team divisions. For example, with the relatively recent move of Atlanta’s hockey team to Winnipeg, the current team alignment is pretty weird (below left), and the NHL has proposed a new 4-division configuration (below right):

Here’s how it works. First, they use a rough approximation for distance traveled by each team (which is correlated with actual travel distances), and then examine all the different ways to divide the cities in a league into geographic halves. You then can subdivide those portions until you get the division sizes you want. However, only certain types of divisions will work, such as not wanting to make teams travel too laterally, due to time zone differences…

Anyway, using this method, here are two ways of dividing the NHL into six different divisions that are found to be optimal:

My first thought when looking at the algorithm realignment plans is that it is based less on time zones and more on regions like the Southwest, Northwest, Central, Southeast, North, and Northeast.

But here is where I think the demands of the NHL don’t quite line up with the goals of the algorithm to minimize travel. The grouping of sports teams is often dependent on historic patterns, rivalries, and when teams entered the league. For example, the NHL realignment plans generated a lot of discussion in Chicago because it meant that the long rivalry between the Chicago Blackhawks and the Detroit Red Wings would end. In other words, there is cultural baggage to realignment that can’t only be solved with statistics. Data loses out to narratives.

Another way an algorithm could redraw the boundaries: spread out the winning teams across the league. What teams are really good tends to be cyclical but occasionally leagues end up with multiple good teams in a single division or an imbalance of power between conferences. Why not spread out teams by records which then gives teams a better chance to meet in the finals or other teams in those stacked divisions or conferences a chance to make the playoffs?b

The sport of hockey has a sociology department?

Here is a quick look at recent happenings of sociological import within the sport of hockey:

Hockey’s sociology department is really having a hell of a year. There was the banana thrown at Wayne Simmonds of the Philadelphia Flyers, a black player, during a pre-season game in London. Ont.; there was Simmonds caught on camera calling Sean Avery of the New York Rangers a “faggot” a couple days later. If you wanted to go further, there is the visor debate, which boils down to a sort of libertarian approach to personal safety, much as, say, seatbelts did. We all know how that one turned out.

And then Sunday, there was Raffi Torres and Paul Bissonnette. Bissonnette, the Phoenix Coyotes forward who has become a Twitter celebrity as @BizNasty2point0, who has over 150,000 followers, put a picture of his Coyotes teammate and his wife in their Halloween costumes as Jay-Z and Beyoncé. They had coloured their skin to appear black…

Hockey is a closed society, in a lot of ways. Diversity exists – Russians, Finns, Swedes, Czechs, etc. – but racially, it remains the least diverse major sports league, unless you get into NASCAR, tennis, or golf. That’s demographics as much as anything, and it is slowly changing. Bissonnette’s mother is half-black, but Canada has no notable tradition of blackface, and it is not exactly taught in our schools. For many Canadians, how would we know?…

Some jokes never get funny. Here’s one more chance to learn.

It sounds like some hockey players could benefit from a social education. Also, they might want to discuss what exactly they do in public or voluntarily post online.

I wonder how much all of the major sports do this kind of training. I know some have increased training for rookies and young players in recent years but how much involves social issues such as race, social class, and gender?