UNLV Campus Improvement Authority Board Estimated Event ... UNLV Campus Improvement Authority Board

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  • UNLV Campus Improvement Authority Board

    Estimated Event Utilization and Financial Projections

    May 22, 2014

  • 2

    1 CIAB WORK SESSION

  • 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

  • 2 ESTIMATED EVENT UTILIZATION

  • 5

    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 0 0 17 17 International Soccer 1 0 2 1 Major Concert 0 0 2 1 Festival 0 0 0 0 Rugby 1 0 4 4 Signature 0 0 2 0 Major Non-Recurring 0 0 2 0 Las Vegas Bowl 1 1 1 1 New Bowl Game 0 0 1 0 Neutral Site NCAA Football 0 0 2 1 UFC 0 0 1 0 Boxing 0 0 1 0 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

  • 3 STADIUM COST ESTIMATE

  • 7

    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 RoofDomed

    Open-Air With Shading SystemOpen-Air

  • 4 FINANCIAL OPERATIONS

  • 9

    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

  • 10

    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 orders 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

  • 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 0 -- -- 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 0 -- -- Motorsports 3 45,000 135,000 3 45,000 135,000 Boxing 1 39,000 39,000 0 -- -- UFC 1 45,000 45,000 0 -- -- Major Non-Recurring 2 50,000 100,000 0 -- -- UNLV Football 6 39,000 234,000 6 39,000 234,000

    Total 127 40,000 1,129,000 92 36,000 676,000

  • 12

    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

  • 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

  • • 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 stadi