Estimated Event Utilization and Financial Projections May 22, 2014 - PowerPoint PPT Presentation

UNLV Campus Improvement Authority Board Estimated Event Utilization and Financial Projections May 22, 2014

1 CIAB WORK SESSION 2

CIAB WORK SESSION RECAP PARTICIPANTS: KEY TAKE-AWAYS: • CIAB Members • There is a need in the market for a venue that can host large-scale events. • MGM Resorts • Overall net positive economic impact benefit to City and State given • Live Nation incremental visitors and events • Las Vegas Events • Las Vegas is a unique market that can support premium ticket prices. • LVCVA • Events most beneficial to Las Vegas impact 4 to 5 resort properties and • ESPN Events generate at least 30,000 hotel room nights. • Rugby Sevens • Proximity to the Strip is vital. • Caesars Entertainment • The stadium needs to be as flexible as possible in terms of configuration. An open-air stadium needs rigging capabilities in order • Boyd Gaming to keep promoter costs down. • Top Rank • Stadium is not anticipated to compete with existing venues for the vast • Ultimate Fighting Championship majority of events envisioned to be hosted. • UNLV Athletics • A new stadium will greatly enhance the UNLV athletics program, as • Other University Stakeholders well as student involvement and campus pride. • Other Current & Former Las Vegas • An enclosed stadium has greater potential to host non-tenant events Entertainment Executives than an open-air stadium. • Other Stakeholders • Participants were evenly spilt regarding their preference for an open- air or enclosed stadium. • Concerns regarding who and what will fund the project remain. 3

2 ESTIMATED EVENT UTILIZATION

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 5

3 STADIUM COST ESTIMATE

LAS VEGAS STADIUM Cost EstiMAtE Items Within Cost Estimate: Open-Air Open-Air With Shading System OpenJAir OpenJAir&with&Shading OpenJAir&with&Shading Domed Retractable&Roof • Demolition & Site Clearing • Site Utilities Total&Construction&Cost $392,057,717 Total&Construction&Cost $392,057,717 Total&Construction&Cost $392,057,717 Total&Construction&Cost $392,057,717 • Excavation & Foundation Soft&Costs $98,014,429 Soft&Costs 98,014,429 Soft&Costs 98,014,429 Soft&Costs 98,014,429 Total&Hard&&&Soft&Costs $490,072,146 Total&Hard&&&Soft&Costs $490,072,146 Fixed&Fabric&Roof&Premium 142,004,648 Retractable&Roof&Premium 192,004,648 • Structural Frame Project&Cost&with&Domed&Roof $632,076,794 Project&Cost&with&Retractable&Roof $682,076,794 • Roofing & Waterproofing Shading&System Project&Cost&with&40&ft&Small&Roof& $497,407,341 • Exterior Wall Project&Cost&with&75&ft&Medium&Roof& $504,770,252 • Interior Finishes Project&Cost&with&125&ft&Large&Roof& $514,172,081 • FF&E • Scoreboard Domed Retractable ¡Roof Domed Retractable Roof • Playing Field Total ¡Construction ¡Cost $392,057,717 Total ¡Construction ¡Cost $392,057,717 • Equipment and Specialties Soft ¡Costs 98,014,429 Soft ¡Costs 98,014,429 • Food Service Equipment 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 • Seating • Vertical Transportation • Plumbing Potential Added Costs: Costs To Be Determined: • Fire Protection • Add to Lower the Playing Field 25’ • Parking • HVAC below grade • Site Improvements/Infrastructure • Electrical • $10 to $20 million range • Transportation Enhancements • Audio Visual • Site Work • General Requirements 7

4 FINANCIAL OPERATIONS

LAS VEGAS STADIUM KEy AssuMPtions 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 9

LAS VEGAS STADIUM KEy AssuMPtions Revenue: Expenses: Rental Income • All operating expenses are based upon project team experience in similar facilities • Net rental income is based upon industry standards, project team experience in similar markets/facilities, and market research • Assumes most services handled on an in-house basis or sub- contracted Merchandise • Insurance expenses are based on project team’s industry clout • Assumed to be handled in-house and leverages policy rates • 10 to 15% profit margin • Utilities are assumed to be $2,250,000 (4% annual growth rate) Ticket Incentives • Expense CPI = 2.5% • Assumed to vary by event per contract • Salaries CPI = 2.5% • Based upon the type of event and ticket price • Annual Insurance Increase = 3.0% • This also includes facility income from will-call orders, mail orders and ‘at-home’ printing • Payroll Burden = 30% 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% 10

LAS VEGAS STADIUM EVENT AttEndAnCE AssuMPtions Year One Events 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 • Major Events (excluding Catered Events, UNLV • Assumptions do not include a MLS tenant Football) • Enclosed Stadium – 21 • Open Air Stadium - 11 11

LAS VEGAS STADIUM EvEnt AssuMPtions Event Assumptions Year One - Both Stadium Scenarios F&B Per Cap F&B Per Cap F&B Per Cap Novelty Ticket Facility Event Type General Club/Loge Suites Per Cap Rebates 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: • Novelty Commission – 15% • Food and Beverage Commissions • Facility Fees • General – 39% • Promoter Share – 45% • Club/Loge – 25% • Suites – 15% 12

LAS VEGAS STADIUM NET REntAl inCoME • Rental Pricing Structure: • $75,000 - Motorsports • $125,000 – Las Vegas Bowl, New Bowl Game, Neutral Site College Football • $500 – Catered Events • $100,000 – Soccer, Concerts, Signature, Major Non-Recurring • $0 – UNLV Football • $85,000 – Rugby, Boxing, UFC

LAS VEGAS STADIUM nAMing Rights & sPonsoRshiP Enclosed Stadium Open Air Stadium • 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