The Axis at Planet Hollywood in Las Vegas.
Rebranding and an emphasis on ancillary income, particularly preshow dinners and special food and drink offers, are among ways Top Stops in the Southwest have beat the heat. While many are in crossroads markets and seeking the perfect routing to draw concerts, the economy is good and visibility is picking up.
US Airways Arena, now Talking Stick Resort Arena, in Phoenix already has a new title sponsor, but management waited for the Phoenix Suns National Basketball Association season to wind down before implementing the change. “People still refer to us a America West Arena, and that was two names ago,” said Ralph Marchetta, GM there for the Suns.
Changing the whole signage package and all that goes with it will cost about $2 million, and that will be the big improvement for 2015-16. The sign goes up in early October. The announcement was made last December.
This being the second time around, Marchetta plans to make a big rebranding push, particularly in the industry. “The rebranding locally is easier because people are closer to it. The more difficult part is rebranding in the industry,” Marchetta said, saying they anticipate a sustained campaign.
Shane Cadwell, Santa Ana Star Center, Rio Rancho, N.M., is also rebranding in 2015-16, but for different reasons. His is among the buildings managed by Comcast Spectacor, which is rebranding itself. Henceforth, his management arm is Spectra Venue Management (formerly Global Spectrum), concessions is Spectra Food and Hospitality Services (formerly Ovations), and ticketing is Spectra Ticketing and Fan Engagement (formerly Paciolan).
Cadwell, who works with an operating budget of $2 million and a fulltime staff of 12, is one who has been promoting food specials, also a Comcast Spectacor initiative.
KEEPING THEM FED
“We instituted special food and beverage items at all of our events, sometimes drink, sometimes food, sometimes both,” Cadwell said. “We just did a Camila concert in July and did a special on Montejo beer. We identify an item, give it a price, and email it out to people who purchased tickets, so they can plan on it.”
It’s becoming an expectation and per caps are up, Cadwell said.
Dot Lischick, Broadmoor World Arena, Colorado Springs, Colo., has had success with preshow dinners.
“We sell out our dinners,” Lischick said. The offer is made to club members and has been available as an option for four years before any ticketed event. They have instituted a similar program at Pikes Peak Center, which Lischick manages for the county. The nonprofit group owns Broadmoor World Arena and the Ice Hall in Colorado Springs. Centerplate is her concessionaire.
“When it’s a family show, we’ll do a dinner with a meet and greet with the circus clowns and add a nose. If it’s a special holiday, we’ll give you a rose to make your dinner special,” Lischick said.
At the arena, they can accommodate 150 for preshow dinners. At Pikes Peak Center, 75. And they are constantly finding new areas to expand the program, like use of the patio at the theater for tapas and drinks under the moonlight.
To Lischick, it’s about the VIP experience. Her obsession with that experience is based on her own rebranding when the World Arena took on the Broadmoor name in April 2014. With a five-star hotel partner, they have been “loud and proud” about it. She is constantly challenging her staff to define what is a VIP experience and find ways to make all customers feel special. That includes privileged parking options, which is the newest experiment.
Lischick works with a $7-million operating budget and a full-time staff of 31 and parttime staff of 350 for three venues. She has no debt and maintains the venues with her operating income. She has been there 19 successful years.
BOOKING PROWESS
The Axis at Planet Hollywood in Las Vegas has had a stellar year and it is all based on a hybrid of the residency formula, which has worked so well at the Colosseum at Caesars Palace there. Both are owned by Caesars Entertainment, but the Axis is booked by Live Nation, the Colosseum by AEG Live.
Tex Dike, manager of the 7,000-seat Axis for two years now, started the process with a residency by Britney Spears called A Piece of Me. She will perform 71 shows in 2015. He is hoping Caesars extends the deal with Britney for another few years. To date, she has been performing 12-18 shows per run, usually Wednesday, Friday and Saturday for four or five weeks a go, with several runs a year.
On May 12, Axis announced another residency, Jennifer Lopez, who is down for 40 shows a year starting in January 2016. Hers is a three-year deal.
The first Limited Engagement will be Pitbull, announced June 23, who will perform seven shows at the end of September and in October.
But that’s not all. Stay tuned for the first announcement of a “miniresidency,” defined as 20 shows a year, in the next six to eight weeks, Dike said.
In between residencies and limited engagements, he is still able to book a few one-offs, but it’s a juggling act.
The residency model works when it serves the purpose in the early end of a career, when the act doesn’t need or want to be on the road, and/or when you can build a theater show which can’t be toured, Dike said. “The bulk of residency deals do tend to focus on artists who don’t feel a strong need to be on the road and get out there to every point of the country. Axis is redoing the model. The fan base can travel. It becomes a vacation experience.”
“We could easily end up with 120 performances in 2016, typically three or four shows per week. That’s tricky to plot out,” Dike admitted, which is why flexibility with the show count is great. “It’s all up for discussion. It’s a blank slate. That’s what we love about it.”
Kevin Bruder, Maverik Center, Salt Lake City, is looking at a solid year. “The economy is good in Utah,” he said. His 18-year-old arena is owned by West Valley City and hosted 110 special events last year. His operating budget is $3.3 million.
While he has great relationships with AEG, Live Nation and United Concerts, emphasizing networking and staying personally in touch, Bruder is also exploring expansion of limited in-house promoting.
Next up will be a mixed martial arts or boxing event tied to a charitable partner. Finding an event sponsor or partner is important. “We’ve done it once or twice a year on a regular basis, now there are 4-5 we’re vetting. We’re bullish on it, excited for the opportunity,” Bruder said.
LOOKING AHEAD
Coming down the pike is a possible new arena for Talking Stick Resort Arena. Marchetta said the Phoenix Suns are focused on another downtown site, where the old convention center building sits.
Talking Stick Resort Arena is 23 years old, city owned and leased to manage by the Suns for seven more years. “We’ve started the conversations about building a new facility,” Marchetta said. “Feedback from fans has been positive. People are excited about the potential of having a new building downtown.”
Financing is to be determined, as is the time frame. Marchetta guessed five to seven years through a public/private partnership. There has been a “dramatic shift in fan expectations in the last 25 years. The nature of the business has changed,” he added.
What’s at the top of his wish list? “It may sound strange, but number one is wider concourses,” Marchetta admitted. “The new site is bigger than our current one.”
Interviewed for this story: Tex Dike, (702) 785-5828; Kevin Bruder, (801) 988-8800; Shane Cadwell, (505) 891-7330; Ralph Marchetta, (602) 379-2049; Dot Lischick, (719) 477-2101
