Miami, FloridaMGMT 4843 Market Analysis

March 9, 2015Olivia James

Table of Contents • Geographical Information

– Location, City history and Population changes– Media/News Outlets

• 560 WQAM Sports Radio, Miami Today, WPLG Local 10 News

• Sports Analysis – Professional Level

• Miami Heat, Miami Dolphins, Miami Marlins– Collegiate Level

• University of Miami, Florida International University – City-Wide Events

• Miami Marathon & Half Marathon, Homestead Miami Speedway

• Financial Analysis – Current stadiums/facilities

• Sun Life Stadium Renovation – Sources of financing and economic support from the city of Miami

• Political Marketplace • Outlook

– Challenges and Opportunities for Miami and local sports franchises

• Summary • Sources

Geographical Information Location

•Miami is a major city in Southeastern Florida along the Atlantic Ocean

•Nestled between the Florida Everglades and the Biscayne Bay

•The Port of Miami is the world’s largest cruise ship port

•Home to many popular suburbs

•Best known for its tropical climate

•Miami Beach is #5 in National Geographic’s “Top 10 List of Beach Cities”

Geographical InformationCity History

• The Village of Miami was established on abandoned plantation after the Second Seminole War

• Official founding of the City of Miami in 1896– Same year the first railroad train arrived – Occupied both sides of Miami River– Retail district resided on Avenue D, later to be known as Miami

Avenue • The mid-1920’s brought the annexation of neighboring cities, bootlegging,

and the increase of crime and deaths in Miami and Dade County• Miami has served as the center of international activities involving the CIA

– Leading up to the Bay of Pigs Invasion and the Cuban Missile Crisis• Miami residents are known to be strong and have shown much resolve

when dealing with life threatening challenges, like damages from hurricanes and fierce drug wars.

Geographical Information Population Changes

• Miami is the largest city within the South Florida metropolitan area

• Population in the 1980-90’s was heavily driven by immigration– Although, immigration to the city has recently slowed, its growth is

due to a fast urbanization rate and high-rise construction– Since 2011, population has started an unexpected shift upward

growing 2.1% in one year• Miami is now the 6th fastest growing region in the United States

•This graphic represents the total percentages of races in Miami. Because of the massive population growth immigrating from Cuba, Miami became one of the largest urban areas in the country.

•The Hispanic race includes Cuban, Haitian, Dominican, and others.

Geographical InformationMedia and News Outlets

• 560 WQAM Sports Radio– Created in January 1923– Flagship station of the Miami Hurricanes and the Florida

Panthers • Miami Today

– Was founded in 1983, and the Miami Today website in 2000

– Largest circulated weekly mainstream publication, and one of the few that is audited and surveyed

• The Miami Herald Newspaper– Started in 1903– Since then, the Miami Herald has won 20 Pulitzer

Prizes, mostly for reporting on organized crime in Miami

Sports Analysis Miami Heat

• Miami was admitted to the NBA in 1987– Paid an entry fee of $32.5 million

• Consistent NBA Eastern Conference Power House and Playoff team since 1992

• NBA Champions 2006, 2012, 2013• Play at the American Airlines Center

(1999) • Famous Players

– Dwyane Wade, Chris Bosh, Mario Chalmers, and LeBron James (who now plays for the Cleveland Cavaliers)

– Wade, Bosh, and James were considered “The Big Three”

Sports AnalysisMiami Dolphins

• Established in 1966– Founded by Joseph Robbie– 9th member of the AFL– 6 years later, became the only NFL team to record a perfect

season• Since 1970, the Dolphins have won 13 AFC Eastern division

championships and 5 AFC titles• 9 HOF players including Larry Csonka, Dan Marino, and Don

Shula • First home stadium was the Orange Bowl

– 1987, Robbie unveiled his new privately-funded dream stadium – Currently named Sun Life Stadium – Became the site for hosting 4 Super Bowls

• 1989, 1994, 2006, and 2009 seasons

• Today, the Miami Dolphins do not get near the recognition they had in the past

Sports AnalysisMiami Marlins

• First season in 1993– Started playing in Sun Life Stadium

• Famous players: Giancarlo Stanton and Jose Fernandez

• World Series Champions – 1997 and 2003 seasons

• Marlins Park (2012) – New 37,000 seat facility that includes a

retractable roof• January 2015: Marlins sign Ichiro Suzuki as

reserve outfielder– Suzuki becomes the first Japanese-born player in

franchise history • Miami Marlins have good consistency with fan

attendance, in spite of lack of recent success

Sports AnalysisCollegiate Level

• 2 local NCAA schools– University of Miami Hurricanes – Florida International University Panthers

• University of Miami– Private research university est. in 1925– Both Men’s and Women’s sports across the board show athletic excellence

• 9 teams advanced to the postseason in 2013-14 season• Most popular sports: Football, Men’s Basketball, Baseball• Historically, Miami has one of the most predominant college football programs

– Gained most success and popularity in 1980-90’s decades

• Florida International University – Miami’s first and only public research university est. in 1972– Although a still young football program, they have had much recent success in the past

decade • 4 players drafted into the NFL• First conference championship in 2010• 2 Bowl appearances • Moving up twice to better conferences, currently in Conference USA

Sports AnalysisSmaller Market Events

• Frankie Ruiz is the co-founder of the ING Miami Marathon– Started it 10 years ago, was first called Miami Tropical

Marathon – In the first year, 3,400 runners registered– Currently, there are around 25,000 runners – 3 options: 26.2 mile full marathon, 13.1 mile half marathon,

or the 3.1 mile Tropical 5K • The Miami Marathon generates millions each year for

the city – more competitive than other marathons because of the

destination/ others reasons to travel to Miami • Homestead Miami Speedway

– Opened in 1995 to revitalize the city after destruction from Hurricane Andrew

– Recently have hosted the NASCAR Sprint Cup Series, GRAND-AM Rolex Sports Car Series, and others

Financial Analysis Current Stadiums/ Facilities

• American Airlines Arena opened in 1999• Marlins Park opened in 2012• Sun Life Stadium opened in 1987

– Miami Dolphins, Miami Hurricanes, and the Marlins all shared this facility at one point

– Dolphins and Hurricanes still share to save on cost• All of the stadiums/arenas are for multi-purpose use to gain more revenue • The Miami community, because of the size of income within large lower class

areas, used to not be supportive of the development and further renovation of these athletic facilities but have recently opened up to tax increases

Financial AnalysisStadium Financing and Renovation

• Miami Dolphins owner Joe Robbie sold $85 million in tax exempt bonds to finance Sun Life Stadium in 1987 – The City of Miami voters shut down all tax increases to renovate the Orange Bowl

or build a new stadium – Over the next two years, current Dolphins owner Stephen Ross will privately fund

a $400 million project to renovate/modernize Sun Life Stadium • American Airlines Arena was

publicly financed and is currentlyowned by the City of Miami

• Marlins Park $515 million – Miami-Dade County contributed

to majority of construction costs– City of Miami contributed $13M– Miami Marlins franchise

contributed $155M

Political Marketplace

• In the 1980-early 90’s multiple proposals for taxes to finance the Orange Bowl and a new Dolphins Stadium were rigorously shut down

• Most of the opposition was not centered toward athletics or the community, just financial income at the time

• By 1999, the citizens of Miami accepted increase taxes to finance only the American Airlines Arena

• Currently, private funding is still more popular for sports facilities in the area

OutlookChallenges

• Heat’s success after LeBron’s decision to leave– Less excitement, entertainment, and popularity for

the Miami culture and community towards the Heat – The franchise must look at the big picture, maybe it

is time for a rebuilding process of the roster?• Reconstruction and building challenges due to

tropical storms and hurricanes • Miami is still an area containing high amounts of

sex offenders and daily crime

OutlookOpportunities

• Improve Dolphins success– With new renovation of Sun Life Stadium, better opportunity to

promote new prospects in order to claim a better stake in the NFL – Bidding for the upcoming Olympic games to be hosted at Sun Life

Stadium• More popularity and recognition for the stadium and community • The more profit the City of Miami gains, the more willing the community

will be towards tax increase financing

• With the community more willing to pay higher taxes for sport stadium financing, will the University of Miami be next?– The new Sun Life Stadium will be packed with events, possibly the

Olympics, so maybe a new project launching UM’s own football stadium could be on its way

Summary• Miami is a prime and wealthy location for sports and

financing– Although in Florida, sports is competitive due to large markets

nearby • Miami is a large tourist area for sports, beaches, resorts,

and other offerings• Different landscapes and consistent weather offer a

premier sports variety – Speedways, water sports, sand sports

• If Miami can keep a steady community tax support, it will remain a major sports capital for the nation

Sources • http://www.aaarena.com/arena-information• http://www.ballparksofbaseball.com/nl/MarlinsPark.htm• http://www.baseball-reference.com/teams/FLA/• http://www.10best.com/destinations/florida/miami/neighborhoods/• https://www.facebook.com/WQAM560/info?tab=page_info• http://www.fiu.edu/about-us/history/index.html• http://www.homesteadmiamispeedway.com/About/Track-History.aspx• http://hurricanesports.com/fls/28700/201314annualreport.pdf?DB_OEM_ID=28700• http://www.miami.edu/index.php/about_us/• http://www.miamiherald.com/customer-service/about-us/• http://miami.marlins.mlb.com/mia/history/index.jsp• http://www.miamitodaynews.com/about/• http://www.nationsonline.org/oneworld/map/google_map_Miami.htm• http://www.nba.com/heat/history• http://www.nbcmiami.com/news/local/10-Years-In-ING-Miami-Marathon-Keeps-Growin

g-138017878.html#• http://news.fiu.edu/2012/08/a-look-back-at-10-years-of-fiu-football/43361• http://www.profootballhof.com/history/team/miami-dolphins/• http://www.u-s-history.com/pages/h3901.html• http://worldpopulationreview.com/us-cities/miami-population/