STATE OF THE INDUSTRY - hundenpartners.com · v Expansion team in Miami to begin play v Minnesota United FC move into new Allianz Field - Cost $200M v Expansion team in Cincinnati

STATE OF THE INDUSTRY: WHERE WE’VE BEEN,

WHERE WE ARE, WHERE WE’RE GOING

§ An Exciting Time for the Sports Facility Industry

§ $8.05 Billion in Major League Sports Projects Currently Finishing or Underway

Today we discuss

§ State of Facility Development

§ Introduction of the MLS to the Development

Database

§ Up to Date Database Statistics

§ Comprehensive list of Cities on the Verge of

Acquiring a Professional Team

Welcome to Design and Build

What does HSP do?§ Conduct market,

financial feasibility & impact studies:

§ Stadiums/arenas

§ Entertainment districts

§ Hotels, convention centers

§ Mixed-use districts

How to get our arms around this exciting industry?§ HSP and ALSD have teamed up to create the sports facility database

§ HSP had been working on a massive database of all sports facilities with more than 2,000, from college to pro

§ Teamed up with ALSD after last year’s conference to begin the process of a tailored database that focuses on data that ALSD members and vendors want and need

§ Starting with the 5 Major Leagues’ 127 venues

§ Future: College and Minor Leagues

2018What Trends are we Seeing?

0123456789101112131415161718

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

New Major League Facilities by Year and League: 1999 - 2021

NBA NFL NHL MLB MLS

Most Leagues had purpose-built venues by 1999 with modern amenities. Shift to renovations and new builds driven by new locations.

But Average Cost per New Venue by League Increasing 2018

$0

$1,000,000,000

$2,000,000,000

$3,000,000,000

$4,000,000,000

$5,000,000,000

$6,000,000,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Average Cost Per Facility by Year by League: 1999-2021

NBA NFL NHL MLB MLS

Average Cost Per League (Most recent 3 facilities)§ NBA: $795M§ NFL: $2.7B§ NHL: $500M§ MLB: $785M§ MLS: $225M

Results in Total Spending on New Venues 2018

Total amount spentper year on average($1.5B) nearly samedespite fewer venues.

$-

$1,000,000,000

$2,000,000,000

$3,000,000,000

$4,000,000,000

$5,000,000,000

$6,000,000,000

$7,000,000,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Total Spending on Major League Arenas & Stadiums: 1999 - 2021

NBA NFL NHL MLB MLS

30 facilities built in 90’s and36 built in 2000’s have notseen major renovation.

Are we in for a Major Uptick in New Facilities & Renovations?

11 facilities built 1960-198941 facilities built in 1990spressure building. Look forwave of rebuilding 1990’svenues by early 2020’s.

9 Renovations Announcedor Begun in the Last Year

1910's, 2% 1920's, 1%1950's, 1%

1960's, 2%

1970's, 3%

1980's, 3%

1990's, 35%

2000's, 31%

2010's, 20%

2020's, 2%

Major League Facilities Built by Decade

05

101520253035404550

1910's 1920's 1950's 1960's 1970's 1980's 1990's 2000's 2010's 2020's

Facilities Built by Decade & Portion Renovated in last 10 Years

Renovated Last 10 Years No Renovation Last 10 Years

Why Are the Number of New Facilities Declining?

44.2

2.7

1

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

1990's 2000's 2010's 2020's

Average Number of New Major League Venues Opened per Year

Well-located facilities haveless need to move/bereplaced. More value inupgrading existing facilities.Typically, only truly obsoletefacilities are being replaced.

Coming of Age in the MLS…

Market Analysis- MLS Attendance Exceeded 21,000

Fans Per Game in 2016- MLS Officials are Planning to Have

28 teams total, with 26 now set.- Most recent additions include LA,

Nashville, Miami and Cincinnati

Just like the NFL converted frommultipurpose to single-purposestadiums, MLS has been convertingto soccer-only facilities since 1999.Several facilities underway.

11

MLS Facility Boom

v Audi Field to open 7/14/18

- Cost $400M

v Los Angeles FC make debut at new Banc of California Stadium

- Cost $350M

v Toyota Stadium renovation

- Cost $58M

v Cincinnati projects new West End Stadium to open

- Cost $200M

v Miami projects new Miami MLS Stadium to open

v Expansion team in Nashville begin play at new Nashville Stadium

- Cost $275M

v Expansion team in Miami to begin play

v Minnesota United FC move into new Allianz Field

- Cost $200M

v Expansion team in Cincinnati begin play at University of Cincinnati

2018 2019 2020 2021

FACILITY DEVELOPMENT PROJECTS 2017 - 2021

MLS Franchise: D.C. United

Reported Cost: $195 million

Opening Year / Season: 2018-2019

AUDI FIELDWASHINGTON D.C.

MLS Franchise: FC Dallas

Reported Cost: $58.4 million

First Season in Renovated Facility: 2018-2019

TOYOTA STADIUMDALLAS, TEXAS



MLS Franchise: Minnesota United FC



ALLIANZ FIELDSAINT PAUL, MINNESOTA

MLS Franchise: TBD



NASHVILLE FAIRGROUNDS STADIUMNASHVILLE, TENNESSEE


MLS Franchise: FC Cincinnati



FC CINCINNATI STADIUMCINCINNATI, OHIO


Recent Renovations & New BuildsFour Major Leagues

NBA: Recent Renovations & New Builds

v Little Caesars Arena opened- Cost $863M

v Wells Fargo Arena announced $250M renovation

v United Center renovated

v Quicken Loans Arena $140M renovation

v Target Center $128.9M renovation

v Vivint Smart Home Arena $125M renovation

v Spectrum Center $34M renovation

v Wisconsin Sports and Entertainment center to open

- Cost $524M

v Verizon Center $40M renovation

v Philips Arena unveil $192M renovation

v Chase Center to open- Cost $1B

2017 2018 2019


NBA Franchise: PistonsNHL Franchise: Red Wings



LITTLE CAESARS ARENADETROIT, MICHIGAN


NBA Franchise: Jazz

Reported Renovation Cost:$125 million



VIVINT SMART HOME ARENASALT LAKE CITY, UTAH


NBA Franchise: Timberwolves

Reported Renovation Cost:$128.9 million


TARGET CENTERMINNEAPOLIS, MINNESOTA


NBA Franchise: Bucks



WISCONSIN SPORTS AND ENTERTAINMENT CENTERMILWAUKEE, WISCONSIN


WISCONSIN SPORTS AND ENTERTAINMENT CENTERMILWAUKEE, WISCONSIN

NBA Franchise: Hawks




PHILIPS ARENAATLANTA, GEORGIA

NBA Franchise: Golden State Warriors

Reported Cost: $1 billion


CHASE CENTERSAN FRANCISCO, CALIFORNIA


NBA Franchise: Cavaliers



QUICKEN LOANS ARENACLEVELAND, OHIO


NFL: Recent Renovations & New Builds

v Mercedes-Benz Stadium Opens

- Cost $1.6B

v University Of Phoenix Stadium plans for $100M in renovations for Super Bowl LVII

v Ford Field $100M renovation

v LA Rams and LA Chargers move to new Inglewood Stadium

- Cost $4.96B

v Raiders relocate to Las Vegas and move into new Las Vegas Stadium

- Cost $1.9B

2018 2020

FORD FIELDDETROIT, MICHIGAN

NFL Franchise: Lions




NFL Franchise: Falcons

Reported Cost: $1.6 billion


MERCEDES – BENZ STADIUMATLANTA, GEORGIA

NFL Franchise: Falcons




NFL Franchise: Raiders



LAS VEGAS STADIUMLAS VEGAS, NEVADA


NFL Franchise: LA Rams / Chargers



INGLEWOOD STADIUM/LOS ANGELESLOS ANGELES, CALIFORNIA


MLB: Recent Renovations & New Builds

v SunTrust Park opened in Atlanta, Georgia

- Cost $622M

v Tropicana Field announced $85M renovation if MLS team decides to move in

v Petco Park $2M renovation

v Miller Park $10.3M renovation

v Citizens Bank Park plan $30M renovation

v Globe Life Field to open in Arlington, Texas

- Cost $1B

2017 2018 2021

MLB Franchise: Braves



SUNTRUST PARKATLANTA, GEORGIA


MLB Franchise: Phillies



CITIZENS BANK PARKPHILADELPHIA, PENNSYLVANIA


MLB Franchise: Rangers

Reported Cost: $1 billion



GLOBE LIFE FIELDARLINGTON, TEXAS

NHL: Recent Renovations & New Builds

2017

v Little Caesars Arena opened

- Cost $863M

v Wells Fargo Arena announced $250M renovation

v Bridgestone Arena $6M renovation

v United Center renovated

v Nassau Veterans Memorial Coliseum $165M renovation

v Scottrade Center plans $160M renovation

2016

v Seattle announces plan to attain team

2018

NHL Franchise: St. Louis Blues



SCOTTRADE CENTERST. LOUIS, MISSOURI


NASSAU VETERAN’S MEMORIAL COLISEUMUNIONDALE, NEW YORK

NHL Franchise: Former Islanders Stadium




ALSD Cities on the VergeFive Major Leagues

What Cities Can Host Their First Team? Or Another?§ HSP assessed the market conditions for cities and their ability to support a Major League Franchise

§ Three Key Factors§ Market Power§ Committed, Financed Ownership Group§ City willing to Finance a Facility

§ HSP Focused on Market Power Primarily§ TV Market Size/Wealth§ Growth In Population§ Large Companies§ Household Income (# of HH’s over $100k)§ GDP§ Presence of Existing Major or Minor League Teams§ Presence of Major College Programs§ Las Vegas Effect: Adult Tourism § Central City/Primary Draw

1. Austin

2. Louisville

3. Norfolk-Virginia Beach

4. Richmond

5. Birmingham

1. Seattle2. Portland3. San Diego4. San Antonio5. Montreal6. Houston7. Sacramento8. Charlotte9. Vancouver

1. San Antonio or Austin

2. Norfolk/Virginia Beach or Richmond

3. Portland

4. Toronto/Vancouver

5. Sacramento

6. London/Mexico City*

1. Portland

2. Montreal

3. Charlotte

4. Austin/San Antonio

5. Norfolk/Virginia Beach and Richmond

1. Seattle

2. San Diego

3. Vancouver

4. Louisville

5. Norfolk-Virginia Beach or Richmond

1. Seattle

2. Houston

3. Quebec City

4. Portland

5. San Diego

1. Phoenix

2. San Diego

3. Raleigh-Durham

4. San Antonio

5. TIE: Indianapolis; Tampa Bay/St. Pete; Charlotte

§ Des Moines

§ Greenville, South Carolina

§ Omaha

§ Madison

§ Grand Rapids

§ Boise

§ Charleston, South Carolina

§ Northwest Arkansas

THANK YOU!

HAVE A GREAT CONFERENCE!

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STATE OF THE INDUSTRY - hundenpartners.com · v Expansion team in Miami to begin play v Minnesota United FC move into new Allianz Field - Cost $200M v Expansion team in Cincinnati