When the Arena Management Conference meets in Toronto, Sept. 8-11, the music and sports industry for their host country will look quite different than one year ago when the facilities group that's part of the International Association of Venue Managers met in Las Vegas.
Canada’s largest sports and entertainment company is now helmed by an American executive, while one of Canada’s biggest independent promoters, Ron Sakamoto, has reinked a deal with Live Nation to promote country shows through 2023. Global Spectrum has solidified its network of secondary markets across the country with management contracts for Copps Coliseum and the two-theater Hamilton Place performing arts center, about an hour south of Toronto in Ontario. SMG is planning to open the 7,000-seat St. Catharine's Spectator Facility in Niagara, Ontario, in September 2014 while Ticketfly has made its own entrance into the market with deals for Union Events and Collective Concerts, along with the acquisition of Calgary, Alberta ticketing company Prime Box Office.
“We just checked our numbers for Union and Collective” and they’re in the top 20 promoters for ticket sales at TicketFly, explained company president Andrew Dreskin. “Business in Canada is exceeding our expectations since we entered the market in January.”
So what’s driving this confidence in Canada? One reason could be the move of former AEG CEO Tim Leiweke to Maple Leaf Sports & Entertainment following his public split from AEG Chairman Phil Anschutz in March. Leiweke will address the Arena Management Conference with a keynote speech on Monday at 9 a.m.
In July, Leiweke told Venues Today publisher Linda Deckard that he planned to double the size and value of MLSE in five to seven years, saying “we want to be known as an organization that is energetic, enthused, focused and driven. And I want everybody in the organization — players, coaches, management staff, trainers, equipment managers —to have a new culture here about winning, about a drive and about an energy.”
It’s that optimism, coupled with a strong economy and renewed strength in Canada’s growing tertiary markets that has many in the industry feeling optimistic about the country’s prospects.
“Canada didn’t experience the same economic downturn that the U.S. felt, largely because there are far stricter rules on the banking system that limit their ability to leverage themselves,” said Canadian Agent Ralph James, who runs the Toronto offices for The Agency Group and oversees the careers of Canadian acts like Nickelback and Rival Sons. James is speaking on the Agents & Promoters Panel titled “Hot Acts and Cool Cash” on Tuesday at 3:50 p.m.
More importantly, James pointed out, is the growth of smaller market cities with non-NHL arenas — buildings like the Abbottsford Entertainment Centre in Western B.C. or Mosaic Place in downtown Moose Jaw, Saskatoon.
“If you bring a show to any of these towns for the first time, it’s going to be a hit,” said James. “If a fan can see a show in their hometown without having to drive 300 miles, they’re going to be very happy about it.”
He added that the growth of firm Global Spectrum in Canada has enabled artists to get more multishow deals from Brock Jones, VP of Booking at Global Spectrum, and partners like Invictus Entertainment, run by promoter Jim Cressman.
“Canada is a big country and if you can add more dates for the artist, you can make a compelling case for why they should tour Canada and demonstrate how the artist can make more money,” James said.
One of those buildings is Copps Coliseum, which is wrapping up a $1.5-million arena upgrade that includes replacing the video ribbon board, repainting the interior and several other repairs. Global Spectrum is managing the building in a special partnership with Live Nation, explained General Manager Scott Warren.
“I think it sends a strong message from Live Nation that there are a lot of opportunities in Ontario. Their commitment tells promoters that it does make sense to play Ontario cities like London, Hamilton and Oshawa rather than just playing one night in Toronto,” Warren said. “There’s a lot of demand here in the market, and just about everything works. We do a great rock business, a great college business and great country numbers, too. And comedy is doing incredible here. We’ve had a ton of success with guys like Ralphie May.”
Live Nation is also expecting its country business to pick up after re-signing a 10-year deal with Sakamoto, who is also speaking on the Agents & Promoters Panel.
“I had been with them for 17 years, I went off on my own for about three months and then I got a call from the president of the company to come back,” he joked.
Sakamoto said he’s bullish on country music in Canada because the genre does a bang-up job in secondary markets, where Sakamoto got his start. In the last 15 years, Sakamoto said he’s only lost money on three tours.
“What’s best is that the rider for country is half the size of a rock rider and the demands are pretty reasonable compared to the rock stuff you see,” he said.
Interviewed for this article: Andrew Dreskin, (877) 435-9849; Ralph James, (416) 368-5599; Scott Warren, (905) 546-2601; Ron Sakamoto, (403) 308-4478