KC Arena a model for Sacramento

[Livinthedream]

We need our city government to stand up to the "naysayers" like they did in KC.


http://www.sacbee.com/2011/05/22/3642756/kc-masterpiece-does-it-offer-a.html

 

[kennadog]

I thought this was interesting:

AEG, which controls the Staples Center in Los Angeles and other venues worldwide, eventually offered to invest $53.2 million in the construction of an arena in Kansas City in return for a 35-year management contract. The unique agreement called for AEG to assume all of the risks of managing the arena – and virtually all of the profits.

It does say they done well beyond their wildest dreams and have actually been able to share profits over 16% in a 50-50 split over hte last few years. They thought 16% would be impossible.

This is a critical difference between Sacramento and Kansas City

Fans travel from surrounding states and beyond to fill the seats and suites.

We are just too close to SF and the bay area. That will make it harder to produce like theb Sprint Center has. Some arenas just don't have a lot of competition, because of where they are located. Like Salt Lake City or Denver.

 

[Agent23]

The Sprint Center looks spectacular.

 

[kupman]

I thought this was interesting:



It does say they done well beyond their wildest dreams and have actually been able to share profits over 16% in a 50-50 split over hte last few years. They thought 16% would be impossible.

This is a critical difference between Sacramento and Kansas City



We are just too close to SF and the bay area. That will make it harder to produce like theb Sprint Center has. Some arenas just don't have a lot of competition, because of where they are located. Like Salt Lake City or Denver.

The "pull" that KC has from other areas is pretty funny and over-stated for me. The pull from where? Kansas and Nebraska? Actually, Nebraskans will probably just go to the Quest in Omaha. If you travel very far east people start going to St. Louis. You go very south and people start going to Okie city and possibly DFW.

The metro area of KC is just a bit over 2 million. If you draw a 3-4 hour radius around KC that may increases the population by 1/2 million and I am not sure how many of the 1/2 million is willing to travel 4 hours to see a concert.

 

[kennadog]

The Sprint Center looks spectacular.

Yes....yes it does. And if you look at the map, you can see all the development around it.

 

[Capt. Factorial]

It does say they done well beyond their wildest dreams

I hate to correct your grammar but I think that's supposed to be "they done good..."

 

[kennadog]

Hey...it's Monday morning and I haven't finished even half my first cup of coffee. ;-)

(I do that more and more. I change how I want to say something and then don't go back and re-read what I wrote. These days, I blame it on getting old. )

 

[The Hammer]

I thought this was interesting:



It does say they done well beyond their wildest dreams and have actually been able to share profits over 16% in a 50-50 split over hte last few years. They thought 16% would be impossible.

This is a critical difference between Sacramento and Kansas City



We are just too close to SF and the bay area. That will make it harder to produce like theb Sprint Center has. Some arenas just don't have a lot of competition, because of where they are located. Like Salt Lake City or Denver.

Kind of agree with other poster who said pull from other states around KC, SLC, etc. was overrated compared to Sac.

You gotta remember there's Tahoe/Reno, Carson City, Chico, Central Valley, etc. arena/concert business that Sac is totally missing out on. Much easier to go to Sac to see Prince than Oakland, if you live in Stockton. Sac basically intercepts a whole lot of traffic if there's an arena. I have a feeling it would do well beyond wild dreams as well. That's not to mention more political people etc. flying in people to show off the new hometown arena.

In addition to the 2.5 million in the greater Sac area, if you draw a 2 hour drive time radius to the north, east, and south, that number jumps substantially more than if you do a similar thing in KC, Salt Lake, etc. Chico metro is up to almost a quarter million, Stockon is what 400K, then Modesto (coming to Sac from Modesto much easier than going to Oakland)... plus all the other small to medium towns, Nevada City, etc. California is just populated. This thing's gonna be a huge success, and will really help put Sac on the map a bit more.

 

[Spike]

My family drove from Orland/Hamilton City/Chico to Arco all the time for games/concerts. I'd imagine that's a noticeable pull from surrounding communities. It doesn't have to be Bay Area traffic.

 

[Purple Reign]

This was one of the best stories written about the whole arena process. What makes the Kansas City Model so intriguing to me is the relationship with AEG. They are the premier arena management firm in the world. If they could come into Sacramento and set up shop with money to invest into the project, i don't think we could ask for much more. A combination of....

AEG Investment Funds
Rental Car, Hotel tax
Ticket Surcharge
Arena Naming Rights

could go a long way in making this thing happen. PLUS, the top of the line entertainment acts associated with AEG and their reputation of encouraging off site entertainment districts, particularly LA Live around the Staples Center (new Marriotts, Nokia Center, restuarants, shops, etc...)

From Wikipedia...

The Anschutz Entertainment Group (AEG) is a sporting and music entertainment presenter and a subsidiary of The Anschutz Corporation. It is the world's largest owner of sports teams and sports events, the owner of the world’s most profitable sports and entertainment venues, and under AEG Live the world's second largest presenter of live music and entertainment events after Live Nation. It owns and operates the Staples Center and the Home Depot Center, and manages the XL Center, the Rose Garden, and Rentschler Field. In England, it owns the Manchester Evening News Arena, and currently operates the The O2 which includes a 20,000 capacity arena. In Turkey, AEG will operate Turk Telekom Arena which includes a 52,695 capacity arena. As part of the development of the O2, Anschutz also purchased the London river service company Thames Clipper, and supported the development of the nearby David Beckham Academy (which also has a branch at the Home Depot Center). The company has its headquarters in Downtown Los Angeles.http://en.wikipedia.org/wiki/Anschutz_Entertainment_Group#cite_note-2

 

[kennadog]

The head of the Sacramento Convention and Tourism Board said Sacramento will draw more and bigger conventions with a downtown arena. He said he gets calls all the time from convention groups asking if Sacramento is going to get a downtown arena. They want something close to the existing convention center and the higher quality downtown hotels.

Notice that both Kansas City's and LA's convention centers are right near the arenas. LA's proposed football stadium will be in the same neighborhood as Staples, too.

 

[bajaden]

The "pull" that KC has from other areas is pretty funny and over-stated for me. The pull from where? Kansas and Nebraska? Actually, Nebraskans will probably just go to the Quest in Omaha. If you travel very far east people start going to St. Louis. You go very south and people start going to Okie city and possibly DFW.

The metro area of KC is just a bit over 2 million. If you draw a 3-4 hour radius around KC that may increases the population by 1/2 million and I am not sure how many of the 1/2 million is willing to travel 4 hours to see a concert.

Well Topeka, a town of around 200 thousand is only an hour away. Jefferson city Mo. is just a little over 2 hours away. St Joesph Mo., a town of 75 thousand people is less than 50 miles to the north.

Branson Mo. is not far from the Missouri/Kansas/Oklahoma border, and is basicly in the middle of nowhere, however, as a touist stop, its packed regularly with people, with the closest towns being Joplin Mo. and Tulsa Oklahoma. So I don't think what they stated is as overstated as you might think.