Download pdf - UNLV Campus Improvement Authority Board Estimated Event ...UNLV Campus Improvement Authority Board Estimated Event Utilization and Financial Projections May 22, 2014. 2 1 CIAB WORK

UNLV Campus Improvement Authority Board

Estimated Event Utilization and Financial Projections

May 22, 2014

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1 CIAB WORK SESSION

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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

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LAS VEGAS STADIUM EvEnt suMMARyEvent Progamming Summary

Category SBS Existing SBS Future CSL Enclosed CSL Open-AirUNLV Football 6 6 6 6MLS 0 0 17 17International Soccer 1 0 2 1Major Concert 0 0 2 1Festival 0 0 0 0Rugby 1 0 4 4Signature 0 0 2 0Major Non-Recurring 0 0 2 0Las Vegas Bowl 1 1 1 1New Bowl Game 0 0 1 0Neutral Site NCAA Football 0 0 2 1UFC 0 0 1 0Boxing 0 0 1 0Motorsports 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

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

Domed Retractable Roof

LAS VEGAS STADIUM Cost EstiMAtEItems 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&CostSoft&Costs $98,014,429 Soft&CostsTotal&Hard&&&Soft&Costs $490,072,146 Total&Hard&&&Soft&Costs

Shading&SystemProject&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 $392,057,71798,014,429 Soft&Costs 98,014,429 Soft&Costs 98,014,429

$490,072,146 Fixed&Fabric&Roof&Premium 142,004,648 Retractable&Roof&Premium 192,004,648Project&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

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General:Seating Capacities:

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

• Open Air – 50,000 Football / 700 Banquet & MeetingsPremium Seating Inventory:

• Luxury Suites – 50 suites, 1,000 seats

• Loge Boxes – 30 boxes, 120 seat

• Club Seats – 2,500 seatsParking

• 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 revenueManagement 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 researchMerchandise• 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 BoardRevenue 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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• 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 StadiumEvent Type Number of Events Average Attendance Total Attendance Number of Events Average Attendance Total AttendanceInternational 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

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Event AssumptionsYear 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 $1.00Concerts 20.00 25.00 50.00 15.00 5.00 2.00Rugby 10.00 15.00 30.00 7.50 2.00 1.00Las Vegas Bowl 10.00 15.00 30.00 5.00 2.00 1.00New Bowl Game 10.00 15.00 50.00 5.00 2.00 1.00Neutral Site CFB Game 10.00 15.00 50.00 5.00 2.00 1.00Catered Events n/a 35.00 n/a n/a 0.00 0.00Signature 20.00 30.00 50.00 5.00 2.00 1.00Motorsports 10.00 15.00 25.00 5.00 1.00 2.00Boxing 20.00 30.00 50.00 15.00 2.00 2.00UFC 20.00 30.00 50.00 15.00 1.00 2.00Major Non-Recurring 20.00 30.00 50.00 5.00 1.00 2.00UNLV 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 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 & sPonsoRshiPEnclosed Stadium Open Air Stadium

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

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


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


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


LAS VEGAS STADIUM nEt oPERAting inCoMEEnclosed 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


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Las Vegas / UNLV MULti-PUrPose STADIUM MATRIx

50,000 50,000 50,000 50,00050 50 50 5030 30 30 30

2,500 2,500 2,500 2,500900,000 900,000 900,000 900,000

6 6 6 617 17 17 171 1 2 22 2 1 10 0 0 04 4 4 42 2 0 02 2 0 01 1 1 11 1 0 02 2 1 11 1 0 01 1 0 03 3 3 3

44 44 34 34totaL - eXCLUDiNg MLs

totaL - NoN-teNaNt2721

2721

1711

1711

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-AirDomed Open-Air

With Shading System

Total Events

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39,000 39,000 39,000 39,00018,000 18,000 18,000 18,00040,000 40,000 40,000 40,00027,000 27,000 27,000 27,000

0 0 0 023,000 23,000 23,000 23,00040,000 40,000 0 050,000 50,000 0 055,000 55,000 55,000 55,00055,000 55,000 0 055,000 55,000 55,000 55,00045,000 45,000 0 039,000 39,000 0 045,000 45,000 45,000 45,000

1,435,000 1,435,000 982,000 982,000totaL - eXCLUDiNg MLs

totaL - NoN-teNaNt1,129,000894,000

1,129,000894,000

676,000441,000

676,000441,000

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


With Shading System

Average Attendance

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23.1M 23.1M 15.8M 15.8M11.0M 11.0M 8.9M 8.9M12.0M 12.0M 7.0M 7.0M

616.0M 566.0M 416.2M 392.1M98.0M 98.0M 98.0M 98.0MTBD TBD TBD TBDTBD TBD TBD TBDTBD 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


With Shading System

5 NEXT STEPS

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NEXT stEPsdElivERAblE sChEdulE

On or before June 19th 1. Economic and Fiscal Impacts2. Funding Model3. Recommendation on Overall Feasibility4. Development of Legislative Recommendations

On or before July 24th 5. Draft Report Delivered

On or before September 25th 6. Final Report Delivered

Thank you