Estimated Event Utilization and Financial Projections May 22, 2014

UNLV Campus Improvement Authority Board
Estimated Event Utilization
and Financial Projections
May 22, 2014
1
CIAB WORK SESSION
2
CIAB WORK SESSION RECAP
KEY TAKE-AWAYS:
PARTICIPANTS:
• There is a need in the market for a venue that can host large-scale
events.
• CIAB Members
• Overall net positive economic impact benefit to City and State given
incremental visitors and events
• Live Nation
• 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.
• MGM Resorts
• Las Vegas Events
• LVCVA
• ESPN Events
• Proximity to the Strip is vital.
• Rugby Sevens
• 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.
• Caesars Entertainment
• 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.
• Boyd Gaming
• Top Rank
• Ultimate Fighting Championship
• UNLV Athletics
• Other University Stakeholders
• An enclosed stadium has greater potential to host non-tenant events
than an open-air stadium.
• Other Current & Former Las Vegas
Entertainment Executives
• Participants were evenly spilt regarding their preference for an openair or enclosed stadium.
• Other Stakeholders
• Concerns regarding who and what will fund the project remain.
3
2
ESTIMATED EVENT
UTILIZATION
Las Vegas Stadium Event
summary
Event Progamming Summary
Category
SBS Existing
SBS Future
CSL Enclosed
CSL Open-Air
UNLV Football
MLS
International Soccer
Major Concert
Festival
Rugby
Signature
Major Non-Recurring
Las Vegas Bowl
New Bowl Game
Neutral Site NCAA Football
UFC
Boxing
Motorsports
6
0
1
0
0
1
0
0
1
0
0
0
0
3
6
0
0
0
0
0
0
0
1
0
0
0
0
1
6
17
2
2
0
4
2
2
1
1
2
1
1
3
6
17
1
1
0
4
0
0
1
0
1
0
0
3
Total Events
12
8
44
34
Total Events (excluding MLS)
12
8
27
17
Total Non-Tenant Events
6
2
21
11
247,000
129,000
1,435,000
982,000
n/a
n/a
1,129,000
676,000
175,000
57,000
894,000
441,000
Total Attendance
Total Attendance (Exluding MLS)
Total Non-Tenant Attendance
5
3
STADIUM COST ESTIMATE
Las Vegas Stadium Cost
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
Estimate
Open-Air
OpenJAir
Total&Construction&Cost
Soft&Costs
Total&Hard&&&Soft&Costs
Open-Air
With Shading System
OpenJAir&with&Shading
$392,057,717
$98,014,429
$490,072,146
Domed
Domed
Total Construction Cost
Soft Costs
Fixed Hard Roof Premium Project Cost with Domed Roof
Total&Construction&Cost
Soft&Costs
Total&Hard&&&Soft&Costs
$392,057,717
98,014,429
$490,072,146
Shading&System
Project&Cost&with&40&ft&Small&Roof&
Project&Cost&with&75&ft&Medium&Roof&
Project&Cost&with&125&ft&Large&Roof&
$497,407,341
$504,770,252
$514,172,081
Dome
Total&Construction&Cost
Soft&Costs
Fixed&Fabric&Roof&Premium
Project&Cost&with&Domed&Roof
Retractable Roof
Retractable
Roof
$392,057,717
98,014,429
173,921,957
$663,994,103
Potential Added Costs:
• Add to Lower the Playing Field 25’
below grade
• $10 to $20 million range
Total Construction Cost
Soft Costs
Retractable Roof Premium
Project Cost with Retractable Roof
$392,057,717
98,014,429
223,921,957
$713,994,103
Costs To Be Determined:
• Parking
• Site Improvements/Infrastructure
• Transportation Enhancements
• Site Work
• General Requirements
7
4
FINANCIAL OPERATIONS
Las Vegas Stadium Key
Assumptions
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
9
Las Vegas Stadium Key
Revenue:
Assumptions
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
Expenses:
• All operating expenses are based upon project team experience
in similar facilities
• Assumes most services handled on an in-house basis or subcontracted
• 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)
• Assumed to vary by event per contract
• Expense CPI = 2.5%
• Based upon the type of event and ticket price
• Salaries CPI = 2.5%
• This also includes facility income from will-call orders, mail
orders and ‘at-home’ printing
• Annual Insurance Increase = 3.0%
Facility Fees
• Payroll Burden = 30%
• 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%
10
Las Vegas Stadium Event
Attendance Assumptions
Year One Events
Enclosed Stadium
Event Type
Open Air Stadium
Number of Events
Average Attendance
Total Attendance
Number of Events
Average Attendance
Total Attendance
International Soccer
Concerts
Rugby
Las Vegas Bowl
New Bowl Game
Neutral Site CFB Game
Catered Events
Signature
Motorsports
Boxing
UFC
Major Non-Recurring
UNLV Football
2
2
4
1
1
2
100
2
3
1
1
2
6
40,000
27,000
23,000
55,000
55,000
55,000
500
40,000
45,000
39,000
45,000
50,000
39,000
80,000
54,000
92,000
55,000
55,000
110,000
50,000
80,000
135,000
39,000
45,000
100,000
234,000
1
1
4
1
0
1
75
0
3
0
0
0
6
40,000
27,000
23,000
55,000
-55,000
500
-45,000
---39,000
40,000
27,000
92,000
55,000
-55,000
37,500
-135,000
---234,000
Total
127
40,000
1,129,000
92
36,000
676,000
• Major Events (excluding Catered Events, UNLV
Football)
• Assumptions do not include a MLS tenant
• Enclosed Stadium – 21
• Open Air Stadium - 11
11
Las Vegas Stadium Event
Assumptions
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
$10.00
20.00
10.00
10.00
10.00
10.00
n/a
20.00
10.00
20.00
20.00
20.00
5.00
$15.00
25.00
15.00
15.00
15.00
15.00
35.00
30.00
15.00
30.00
30.00
30.00
10.00
$30.00
50.00
30.00
30.00
50.00
50.00
n/a
50.00
25.00
50.00
50.00
50.00
15.00
$10.00
15.00
7.50
5.00
5.00
5.00
n/a
5.00
5.00
15.00
15.00
5.00
0.00
$2.00
5.00
2.00
2.00
2.00
2.00
0.00
2.00
1.00
2.00
1.00
1.00
2.00
$1.00
2.00
1.00
1.00
1.00
1.00
0.00
1.00
2.00
2.00
2.00
2.00
1.00
International Soccer
Concerts
Rugby
Las Vegas Bowl
New Bowl Game
Neutral Site CFB Game
Catered Events
Signature
Motorsports
Boxing
UFC
Major Non-Recurring
UNLV Football
Note: Ticket Rebates and Facility Fees are applied on a per-ticket basis
Other Assumptions:
• Food and Beverage
Commissions
• General – 39%
• Novelty Commission – 15%
• Facility Fees
• Promoter Share – 45%
• Club/Loge – 25%
• Suites – 15%
12
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
Las Vegas Stadium
Naming Rights & Sponsorship
Enclosed Stadium
Open Air Stadium
• 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 Premium
Enclosed Stadium
• 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
Seating
Open Air Stadium
• 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
Las Vegas Stadium Ancillary
Enclosed Stadium
• 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
Income
Open Air Stadium
Other Event Related Income
Las Vegas Stadium
Enclosed Stadium
• Facility Fees
Open Air Stadium
• Ticket Incentives
• Range from $1.00 to $2.00, depending on event
• Range from $1.00 to $2.00 (excluding concerts)
• Promoter Share – 45% (on applicable event types)
• Concerts assume a $5.00 ticket incentive
Las Vegas Stadium Indirect
Enclosed Stadium
Expenses
Open Air Stadium
• 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
Las Vegas Stadium
Net Operating Income
Enclosed Stadium
Open Air Stadium
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
Las Vegas / UNLV Multi-Purpose
Retractable
Roof
Building Program
• Capacity
• Suites
• Loge Boxes
• Club Seats
• Square Footage
50,000
50
30
2,500
900,000
Event Programming - Total Events
• 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
TOTAL - EXCLUDING MLS
TOTAL - NON-TENANT
6
17
1
2
0
4
2
2
1
1
2
1
1
3
44
27
21
Stadium Matrix
Open-Air
With Shading
System
Open-Air
50,000
50
30
2,500
900,000
50,000
50
30
2,500
900,000
50,000
50
30
2,500
900,000
6
17
1
2
0
4
2
2
1
1
2
1
1
3
44
27
21
6
17
2
1
0
4
0
0
1
0
1
0
0
3
34
17
11
6
17
2
1
0
4
0
0
1
0
1
0
0
3
34
17
11
Domed
20
Las Vegas / UNLV Multi-Purpose
Retractable
Roof
Event Programming - Average Attendance
• 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
TOTAL - EXCLUDING MLS
TOTAL - NON-TENANT
39,000
18,000
40,000
27,000
0
23,000
40,000
50,000
55,000
55,000
55,000
45,000
39,000
45,000
1,435,000
1,129,000
894,000
Domed
39,000
18,000
40,000
27,000
0
23,000
40,000
50,000
55,000
55,000
55,000
45,000
39,000
45,000
1,435,000
1,129,000
894,000
Stadium Matrix
Open-Air
With Shading
System
Open-Air
39,000
18,000
40,000
27,000
0
23,000
0
0
55,000
0
55,000
0
0
45,000
982,000
676,000
441,000
39,000
18,000
40,000
27,000
0
23,000
0
0
55,000
0
55,000
0
0
45,000
982,000
676,000
441,000
21
Las Vegas / UNLV Multi-Purpose
Financials
• Stadium Revenues
• Stadium Expenses
• Stadium Net Operating Income
Stadium Matrix
Domed
Open-Air
With Shading
System
23.1M
11.0M
12.0M
23.1M
11.0M
12.0M
15.8M
8.9M
7.0M
15.8M
8.9M
7.0M
616.0M
98.0M
TBD
TBD
TBD
714.0M
566.0M
98.0M
TBD
TBD
TBD
664.0M
416.2M
98.0M
TBD
TBD
TBD
514.2M
392.1M
98.0M
TBD
TBD
TBD
490.1M
Retractable
Roof
Open-Air
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
22
5
NEXT STEPS
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
24
Thank You