Estimated Event Utilization and Financial Projections May 22, 2014 - - PowerPoint PPT Presentation

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Estimated Event Utilization and Financial Projections May 22, 2014 - - PowerPoint PPT Presentation

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UNLV Campus Improvement Authority Board Estimated Event Utilization and Financial Projections May 22, 2014 1 CIAB WORK SESSION 2 CIAB WORK SESSION RECAP PARTICIPANTS: KEY TAKE-AWAYS: CIAB Members There is a need in the market for a

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UNLV Campus Improvement Authority Board

Estimated Event Utilization and Financial Projections

May 22, 2014

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2

1

CIAB WORK SESSION

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3

PARTICIPANTS:

  • CIAB Members
  • MGM Resorts
  • Live Nation
  • Las Vegas Events
  • LVCVA
  • ESPN Events
  • Rugby Sevens
  • Caesars Entertainment
  • Boyd Gaming
  • Top Rank
  • Ultimate Fighting Championship
  • UNLV Athletics
  • Other University Stakeholders
  • Other Current & Former Las Vegas

Entertainment Executives

  • Other Stakeholders

KEY TAKE-AWAYS:

  • There is a need in the market for a venue that can host large-scale

events.

  • Overall net positive economic impact benefit to City and State given

incremental visitors and events

  • Las Vegas is a unique market that can support premium ticket prices.
  • Events most beneficial to Las Vegas impact 4 to 5 resort properties and

generate at least 30,000 hotel room nights.

  • Proximity to the Strip is vital.
  • The stadium needs to be as flexible as possible in terms of
  • configuration. An open-air stadium needs rigging capabilities in order

to keep promoter costs down.

  • Stadium is not anticipated to compete with existing venues for the vast

majority of events envisioned to be hosted.

  • A new stadium will greatly enhance the UNLV athletics program, as

well as student involvement and campus pride.

  • An enclosed stadium has greater potential to host non-tenant events

than an open-air stadium.

  • Participants were evenly spilt regarding their preference for an open-

air or enclosed stadium.

  • Concerns regarding who and what will fund the project remain.

CIAB WORK SESSION RECAP

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2

ESTIMATED EVENT UTILIZATION

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LAS VEGAS STADIUM EvEnt suMMARy

Event Progamming Summary

Category SBS Existing SBS Future CSL Enclosed CSL Open-Air

UNLV Football 6 6 6 6 MLS 17 17 International Soccer 1 2 1 Major Concert 2 1 Festival Rugby 1 4 4 Signature 2 Major Non-Recurring 2 Las Vegas Bowl 1 1 1 1 New Bowl Game 1 Neutral Site NCAA Football 2 1 UFC 1 Boxing 1 Motorsports 3 1 3 3 Total Events 12 8 44 34 Total Events (excluding MLS) 12 8 27 17 Total Non-Tenant Events 6 2 21 11 Total Attendance 247,000 129,000 1,435,000 982,000 Total Attendance (Exluding MLS) n/a n/a 1,129,000 676,000 Total Non-Tenant Attendance 175,000 57,000 894,000 441,000

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3

STADIUM COST ESTIMATE

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Total ¡Construction ¡Cost $392,057,717 Total ¡Construction ¡Cost $392,057,717 Soft ¡Costs 98,014,429 Soft ¡Costs 98,014,429 Fixed ¡Hard ¡Roof ¡Premium ¡ 173,921,957 Retractable ¡Roof ¡Premium 223,921,957 Project ¡Cost ¡with ¡Domed ¡Roof $663,994,103 Project ¡Cost ¡with ¡Retractable ¡Roof $713,994,103

Domed Retractable ¡Roof

LAS VEGAS STADIUM Cost EstiMAtE

Items Within Cost Estimate:

  • Demolition & Site Clearing
  • Site Utilities
  • Excavation & Foundation
  • Structural Frame
  • Roofing & Waterproofing
  • Exterior Wall
  • Interior Finishes
  • FF&E
  • Scoreboard
  • Playing Field
  • Equipment and Specialties
  • Food Service Equipment
  • Seating
  • Vertical Transportation
  • Plumbing
  • Fire Protection
  • HVAC
  • Electrical
  • Audio Visual
  • Site Work
  • General Requirements

Total&Construction&Cost $392,057,717 Total&Construction&Cost Soft&Costs $98,014,429 Soft&Costs Total&Hard&&&Soft&Costs $490,072,146 Total&Hard&&&Soft&Costs Shading&System Project&Cost&with&40&ft&Small&Roof& Project&Cost&with&75&ft&Medium&Roof& Project&Cost&with&125&ft&Large&Roof&

OpenJAir OpenJAir&with&Shading

$392,057,717 Total&Construction&Cost $392,057,717 Total&Construction&Cost $392,057,717 98,014,429 Soft&Costs 98,014,429 Soft&Costs 98,014,429 $490,072,146 Fixed&Fabric&Roof&Premium 142,004,648 Retractable&Roof&Premium 192,004,648 Project&Cost&with&Domed&Roof $632,076,794 Project&Cost&with&Retractable&Roof $682,076,794 $497,407,341 $504,770,252 $514,172,081

OpenJAir&with&Shading Domed Retractable&Roof

Potential Added Costs:

  • Add to Lower the Playing Field 25’

below grade

  • $10 to $20 million range

Costs To Be Determined:

  • Parking
  • Site Improvements/Infrastructure
  • Transportation Enhancements

Retractable Roof Domed Open-Air With Shading System Open-Air

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4

FINANCIAL OPERATIONS

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General:

Seating Capacities:

  • Enclosed – 50,000 Football / 800 Banquet & Meetings
  • Open Air – 50,000 Football / 700 Banquet & Meetings

Premium Seating Inventory:

  • Luxury Suites – 50 suites, 1,000 seats
  • Loge Boxes – 30 boxes, 120 seat
  • Club Seats – 2,500 seats

Parking

  • Revenues from parking have not been included in this analysis
  • Further information related to the potential stadium site will be needed prior to estimating parking revenue

Management of Stadium

  • Internal
  • Third Party

LAS VEGAS STADIUM KEy AssuMPtions

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Revenue:

Rental Income

  • Net rental income is based upon industry standards, project team

experience in similar markets/facilities, and market research

Merchandise

  • Assumed to be handled in-house
  • 10 to 15% profit margin

Ticket Incentives

  • Assumed to vary by event per contract
  • Based upon the type of event and ticket price
  • This also includes facility income from will-call orders, mail
  • rders and ‘at-home’ printing

Facility Fees

  • Assumed to vary based on the event
  • Maximum of $2.00 per ticket for concerts and motorsports event
  • The facility fee collected would be determined by the Board

Revenue CPI = 3%

Expenses:

  • All operating expenses are based upon project team experience

in similar facilities

  • Assumes most services handled on an in-house basis or sub-

contracted

  • Insurance expenses are based on project team’s industry clout

and leverages policy rates

  • Utilities are assumed to be $2,250,000 (4% annual growth rate)
  • Expense CPI = 2.5%
  • Salaries CPI = 2.5%
  • Annual Insurance Increase = 3.0%
  • Payroll Burden = 30%

LAS VEGAS STADIUM KEy AssuMPtions

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11

  • Major Events (excluding Catered Events, UNLV

Football)

  • Enclosed Stadium – 21
  • Open Air Stadium - 11
  • Assumptions do not include a MLS tenant

Year One Events

LAS VEGAS STADIUM EVENT

AttEndAnCE AssuMPtions

Enclosed Stadium Open Air Stadium

Event Type Number of Events Average Attendance Total Attendance Number of Events Average Attendance Total Attendance

International Soccer 2 40,000 80,000 1 40,000 40,000 Concerts 2 27,000 54,000 1 27,000 27,000 Rugby 4 23,000 92,000 4 23,000 92,000 Las Vegas Bowl 1 55,000 55,000 1 55,000 55,000 New Bowl Game 1 55,000 55,000

  • Neutral Site CFB Game

2 55,000 110,000 1 55,000 55,000 Catered Events 100 500 50,000 75 500 37,500 Signature 2 40,000 80,000

  • Motorsports

3 45,000 135,000 3 45,000 135,000 Boxing 1 39,000 39,000

  • UFC

1 45,000 45,000

  • Major Non-Recurring

2 50,000 100,000

  • UNLV Football

6 39,000 234,000 6 39,000 234,000 Total 127 40,000 1,129,000 92 36,000 676,000

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Event Assumptions

Year One - Both Stadium Scenarios

Event Type F&B Per Cap General F&B Per Cap Club/Loge F&B Per Cap Suites Novelty Per Cap Ticket Rebates Facility Fees

International Soccer $10.00 $15.00 $30.00 $10.00 $2.00 $1.00 Concerts 20.00 25.00 50.00 15.00 5.00 2.00 Rugby 10.00 15.00 30.00 7.50 2.00 1.00 Las Vegas Bowl 10.00 15.00 30.00 5.00 2.00 1.00 New Bowl Game 10.00 15.00 50.00 5.00 2.00 1.00 Neutral Site CFB Game 10.00 15.00 50.00 5.00 2.00 1.00 Catered Events n/a 35.00 n/a n/a 0.00 0.00 Signature 20.00 30.00 50.00 5.00 2.00 1.00 Motorsports 10.00 15.00 25.00 5.00 1.00 2.00 Boxing 20.00 30.00 50.00 15.00 2.00 2.00 UFC 20.00 30.00 50.00 15.00 1.00 2.00 Major Non-Recurring 20.00 30.00 50.00 5.00 1.00 2.00 UNLV Football 5.00 10.00 15.00 0.00 2.00 1.00

Note: Ticket Rebates and Facility Fees are applied on a per-ticket basis

Other Assumptions:

  • Food and Beverage

Commissions

  • General – 39%
  • Club/Loge – 25%
  • Suites – 15%
  • Novelty Commission – 15%
  • Facility Fees
  • Promoter Share – 45%

LAS VEGAS STADIUM EvEnt AssuMPtions

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LAS VEGAS STADIUM NET REntAl inCoME

  • Rental Pricing Structure:
  • $125,000 – Las Vegas Bowl, New Bowl Game, Neutral Site College Football
  • $100,000 – Soccer, Concerts, Signature, Major Non-Recurring
  • $85,000 – Rugby, Boxing, UFC
  • $75,000 - Motorsports
  • $500 – Catered Events
  • $0 – UNLV Football
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  • Naming rights and sponsorship revenues are projected to be higher in a closed roof stadium
  • Naming rights revenues start at $3.5 million (closed roof stadium) and $3.0 million (open air stadium) in year 1 and grow by 5% annually
  • Sponsorship revenues start at $3.5 (closed roof stadium) and $3.0 million (open air stadium) in year 1, grow by 5% in years 2 and 3, and

by the CPI (3%) in years 4 and 5

LAS VEGAS STADIUM nAMing Rights & sPonsoRshiP

Enclosed Stadium Open Air Stadium

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LAS VEGAS STADIUM PREMiuM sEAting

  • Suites
  • 50 suites (2 dedicated to owner/

sponsors)

  • 45 sold (94% sell through)
  • Annual Lease Price
  • Closed Roof = $75,000
  • Open Air = $50,000
  • Access to all events
  • Loge Boxes
  • 30 loge boxes (4 seats/box)
  • 30 sold (100% sell through)
  • Annual Lease Price
  • Closed Roof = $20,000
  • Open Air = $10,000
  • Access to all events
  • Club Seats
  • 2,500 club seats
  • 2,375 sold (95% sell through)
  • Annual Lease Price
  • Both Scenarios = $1,500
  • Cost Per Ticket Per Game = $35

Enclosed Stadium Open Air Stadium

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LAS VEGAS STADIUM AnCillARy inCoME

  • Food and Beverage per caps:
  • General - $5.00 to $20.00
  • Club/Loge - $5.00 to $30.00 (excluding “Catered Events”)
  • Suites - $15.00 to $50.00
  • Novelty per caps range from $0.00 to $15.00

Enclosed Stadium Open Air Stadium

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LAS VEGAS STADIUM othER EvEnt RElAtEd inCoME

  • Facility Fees
  • Range from $1.00 to $2.00, depending on event
  • Promoter Share – 45% (on applicable event types)
  • Ticket Incentives
  • Range from $1.00 to $2.00 (excluding concerts)
  • Concerts assume a $5.00 ticket incentive

Enclosed Stadium Open Air Stadium

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LAS VEGAS STADIUM indiRECt ExPEnsEs

  • Expenses grown at 2.5% annually
  • Salaries grown at 2.5% annually
  • Utilities grown at 4.0% annually
  • Overall payroll burden = 30%
  • Does not include UNLV football

game day staffing expenses

  • Assumed equal for both scenarios
  • Year 1 = $2.3M
  • Grown at 3.0% annually

Enclosed Stadium Open Air Stadium

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LAS VEGAS STADIUM nEt oPERAting inCoME

Enclosed Stadium:

  • Total Facility Income:
  • $23.1M to $26.3M
  • Total Expenses:
  • $11.0M to $12.4M
  • Net Operating Income
  • $12.0M to $13.9M

Open Air Stadium:

  • Total Facility Income:
  • $15.9M to $18.1M
  • Total Expenses:
  • $8.9M to $9.9M
  • Net Operating Income
  • $7.0M to $8.3M

Enclosed Stadium Open Air Stadium

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LAS VEGAS / UNLV MULTI-PURPOSE STADIUM MATRIX

50,000 50,000 50,000 50,000 50 50 50 50 30 30 30 30 2,500 2,500 2,500 2,500 900,000 900,000 900,000 900,000 6 6 6 6 17 17 17 17 1 1 2 2 2 2 1 1 4 4 4 4 2 2 2 2 1 1 1 1 1 1 2 2 1 1 1 1 1 1 3 3 3 3 44 44 34 34

TOTAL - EXCLUDING MLS TOTAL - NON-TENANT

27 21 27 21 17 11 17 11

Building Program

  • Capacity
  • Suites
  • Loge Boxes
  • Club Seats
  • Square Footage

Event Programming -

  • UNLV
  • MLS
  • International Soccer
  • Major Concerts
  • Festivals
  • Rugby
  • Signature
  • Major Non-Recurring
  • Las Vegas Bowl
  • New Bowl Game
  • Neutral Site College Football
  • UFC
  • Boxing
  • Motorsports

TOTAL

Retractable Roof

Open-Air

Domed Open-Air With Shading System

Total Events

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LAS VEGAS / UNLV MULTI-PURPOSE STADIUM MATRIX

39,000 39,000 39,000 39,000 18,000 18,000 18,000 18,000 40,000 40,000 40,000 40,000 27,000 27,000 27,000 27,000 23,000 23,000 23,000 23,000 40,000 40,000 50,000 50,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 45,000 45,000 39,000 39,000 45,000 45,000 45,000 45,000 1,435,000 1,435,000 982,000 982,000

TOTAL - EXCLUDING MLS TOTAL - NON-TENANT

1,129,000 894,000 1,129,000 894,000 676,000 441,000 676,000 441,000

Event Programming -

  • UNLV
  • MLS
  • International Soccer
  • Major Concerts
  • Festivals
  • Rugby
  • Signature
  • Major Non-Recurring
  • Las Vegas Bowl
  • New Bowl Game
  • Neutral Site College Football
  • UFC
  • Boxing
  • Motorsports

TOTAL

Retractable Roof

Open-Air

Domed Open-Air With Shading System

Average Attendance

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LAS VEGAS / UNLV MULTI-PURPOSE STADIUM MATRIX

23.1M 23.1M 15.8M 15.8M 11.0M 11.0M 8.9M 8.9M 12.0M 12.0M 7.0M 7.0M 616.0M 566.0M 416.2M 392.1M 98.0M 98.0M 98.0M 98.0M TBD TBD TBD TBD TBD TBD TBD TBD TBD TBD TBD TBD 714.0M 664.0M 514.2M 490.1M

Financials

  • Stadium Revenues
  • Stadium Expenses
  • Stadium Net Operating Income

Building Costs

  • Hard Construction
  • Soft Costs
  • Parking
  • Land
  • Other
  • Total Project Costs

Impacts

  • Direct Spending
  • Ancillary
  • Resort Spending
  • Taxes
  • Sales
  • Hotel
  • Car Rental

Funding Options

  • Public Funding
  • COI
  • Private Donations
  • Resort Industry
  • Other

Retractable Roof

Open-Air

Domed Open-Air With Shading System

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5

NEXT STEPS

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24

NEXT stEPs

dElivERAblE sChEdulE

On or before June 19th

  • 1. Economic and Fiscal Impacts
  • 2. Funding Model
  • 3. Recommendation on Overall Feasibility
  • 4. Development of Legislative Recommendations

On or before July 24th

  • 5. Draft Report Delivered

On or before September 25th

  • 6. Final Report Delivered
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Tiank y

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