Today we are focusing on two very important aspects of the stadium debate, corporate support and competitive facilities. Both of these areas can have very significant impacts on this decision. Corporate support affects areas such as ticket purchases, premium seating, naming rights, and other areas. Other competitive facilities will affect the viability of a new stadium as well. Let’s start by covering the corporate landscape with in the Treasure Valley.
As previously mentioned, corporate support will have an impact in the areas of premium seating, possible naming rights, advertising, sponsorship, and of course ticket purchases. More and more we are seeing major corporations all over the country purchasing the naming rights of stadiums, arenas, and other event venues. Examples such as Bank One Ballpark, home of the Arizona Diamond Backs, Fed Ex Field home of the Washington Redskins, Staples Center home of the Los Angeles Lakers, Clippers, Kings, and Sparks. The list of corporate named stadiums goes on and on. In the example of Fed Ex Field, the naming rights are owned by Federal Express. They pay the Washington Redskins $7.6 million every year through 2025. Do the math, just from 2012 to 2025, 14 years, that totals $106.4 million. Let’s be real though, no corporation in the Boise market is going to pay that kind of money. Federal Express is one of the larger deals you will find; however, you can certainly see where naming rights becomes very important to stadium construction.
Let’s take a look at the corporate landscape of our market here in Boise. Currently, CenturyLink owns the naming rights to CenturyLink Arena, formerly Qwest Arena. It would certainly be feasible to sale the naming rights of a new Hawks stadium and my guess is the contract will be comparable. That said, Boise State University tried to sale the naming rights of Bronco Stadium but had no suitors. A Broncos football ticket is one of the most sought after tickets in Boise, which is why it is important a new Hawks stadium be designed to host other events outside of the baseball games. Our little market here is home to more than 25,000 corporate headquarters and branches with over 1,500 exceeding annual sales of $1 million. Of those 1,500, more than 300 exceed annual sales of $5 million.
There are several competitive facilities in the Boise-Nampa area. Such facilities as CenturyLink Arena and Taco Bell arena, notice the naming rights, are probably two of the larger competitors; however, both are indoor facilities and would not be in the market for outdoor events. There are eleven current facilities which could provide competition. Some of the more known facilities include those previously mentioned but also include the Idaho Center, the Idaho Center Amphitheater, and the soon to be constructed Dona Larsen Park.
The greater impact in terms of facility competition will come from the concert market. The Boise-Nampa area currently as three arenas, a large amphitheater, and three small scale amphitheaters all competing for various concert events. The unfortunate part is the concert opportunities are limited in terms of the number of concert tours hosted in the market. Also, the addition of Dona Larsen Park will bring in a new competitor in the area, as well as local high school and amateur sporting events.
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