Maximizing the Impact & Optimizing the Performance of
Sports & Recreation Assets Jason Clement, Dev Pathik, Evan Eleff
What We Will Cover • Introductions • Define performance: Sports & Recreation Assets • New Generation of Operations and Expectations • Questions
Introduc)ons: Speakers Bio • Since 2003 -‐ Firms have produced funding documents for a por>olio
totaling over $4 Billion in sport & recrea1on venues.
• Past 3 Years – Opened more than 2 million square feet of indoor facili)es and over 800 acres of outdoor
• 2014 – Venues managed & advised hosted more than 12 million visits • 2015 -‐ Will host more than 15 million visits this year • 2014 -‐ Venues generated $20 -‐ $50 million in Economic Impact
annually to their communi)es
• Over 200 team members Improving the Health & Economic Vitality of the Communi)es We Serve
www.SportAdvisory.com
Introduc)on – About You What size of community do you represent? A. Popula)on less than 15,000 B. 15,001 – 45,000 C. 45,001 – 75,000 D. 75,001 – 150,000 E. 151,000+
Introduc)on – About You
Types of sport & recrea1on assets are your interest? A. League-‐Based Sports Programming B. Membership (Fitness, Aqua)cs, or Recrea)on Center) C. Sports Tourism D. Leisure E. Group Events (Family) Entertainment F. Start-‐Up (In Planning)
Introduc)on – About You
What interests you? A. Building economic impact from outside community B. Capital needs for asset maintenance & replacement C. Facilita)ng healthy lifestyles D. Financial Sustainability – increasing % Cost Recovery E. All of the Above
Current Sport & Recrea)on Performance
• Nearly 3 million fewer kids are playing above sports (SFIA) • Less than 1 in 3 children between ages 6-‐12 par)cipated in a high
calorie burning sport or fitness ac)vity 3 )mes/week
Current Sport & Recrea)on Performance
• Youth from homes in lowest income bracket are half as likely to play
Current Sport & Recrea)on Performance
• Lack of ac)vity links to obesity
• 40% of girls &
35% of boys are obese
• U.S. is country with highest obese youth among 15 peers
Performance – How do we define success? Cost Recovery The Great One -‐ Wayne Gretzky
“I skate to where the puck is going to be, not where it has been. A good hockey player plays where the puck is. A great hockey player plays where the puck is going to be.”
Performance – How do we define success? • Cost Recovery/Financial Performance • Quality of Programs -‐ diversity • Economic Impact • Venue Door Swings
• Ancillary development, incremental spending • Family Connec1vity and Par1cipa1on
• Family involvement • Leadership and Character Development
• Gradua1on Rates, standardized tes1ng • Philanthropic Involvement • Employment tenure, rates
• Improved Health – Mental, Physical, Social, Spiritual • Brain ac1vity, obesity rates
Performance – How do we define success? • Cost Recovery/Financial Performance • Quality of Programs -‐ diversity • Economic Impact • Venue Door Swings
• Ancillary development, incremental spending • Family Connec1vity and Par1cipa1on
• Family involvement • Leadership and Character Development
• Gradua1on Rates, standardized tes1ng • Philanthropic Involvement • Employment tenure, rates
• Improved Health – Mental, Physical, Social, Spiritual • Brain ac1vity, obesity rates
Performance – How do we ACHIEVE success? 1 of 5: Know Your Opera1onal Model
Anchor Operation Type Average Annual Revenue per Square Foot High
Sports Tourism $40
League Based (Traditional) $75
Membership Fitness $125
Group Event (Entertainment) $125
$- $10 $20 $30 $40 $50 $60 $70 $80 $90 $100
Performance – How do we ACHIEVE success? 2 of 5: Innovate and create incremental opportuni1es
Ancillary Revenue Analysis
Ancillary Revenue Service % of Operations
% of Income
Avg Income Examples
Food and Beverage 91% 11% $175,000 $1,750,000 Advertising and Sponsorships 85% 2% $40,000 $500,000
Camps Clinics 70% 7% $119,000 $1,200,000 Parties - Group Event 70% 3% $48,000 $1,500,000
Kids Programs 67% 9% $187,000 $1,000,000
• Sports Leadership Programs • Corporate & Group Programs (grad par)es, iron skillet, etc.) • Child Development – Lil’ slugger, kicker, laxers, infant swimming – cogni)ve motor skills • Corporate partnerships • Educa)onal Academies
Performance – How do we ACHIEVE success? 4 of 5: Recruit, Train, and Retain Talent
Stanford MBA Graduate � Average compensa)on: $400,000 � First Year Average: $140,000 � Average Industry GM: $70,000
ISU MBA Graduate � Average compensa)on: $125,000 � First Year Average: $65,000 � Average Industry GM: $70,000
Train for Success – not a first year posi)on � Business Development – Marke)ng, Branding, Sales � Financial Competence – Repor)ng, Cash handling, Forecas)ng � Strategic Thinking – Market awareness, Leadership � Opera)onal Excellence – Great products, service, effec)veness � Risk Management – Legal, Human Resources
Performance – How do we ACHIEVE success? 4 of 5: Recruit, Train, and Retain Talent
Reten)on Method:
Ø Engage, Educate, Equip, Energize, Empower, Elevate Ø How to create a culture of accountability:
Ø “I want you to think and make decisions like an owner”
• Trust • Clarity of vision, intent, scoreboard • Incen)ve based compensa)on
“I’ll kick you so fast I’ll look like a one legged man.” -‐ Burton R. Snook
Financial Investm
ent
High $$$
Low $
Brand Iden1ty
Marke1ng Systems
Product Appeal
Sales Process
Quality of Service
Ideal Customer Rela1onships The set of behaviors your advocates/raving fans exhibit.
SFA|SFM TARGET MODEL Performance – How do we ACHIEVE success? 5 of 5: Lead: Create a Culture of Business Development,
Service, and Accountability
Performance – How do we ACHIEVE success? 5 of 5: Lead: Create a Culture of Business Development,
Service, and Accountability q Crak and Communicate the Vision q Establish Goals for results, rela)onships, processes q Alract and inspire others to share commitment to excellence q Give feedback that improves performance – verbal & wrilen q Measure and benchmark
² Inten1onal Leadership is the Biggest Variable many can control to op1mizing the performance of the opera1on
Characteris)cs of Successful Opera)ons � Embrace opportuni)es � Innovate wisely and con)nuously � Don’t be afraid to Learn � Proven management systems & repor)ng � Invest in high achievers
� Engage, Educate, Equip, Encourage, Empower � Energize and ELEVATE
Next Genera1on of Sport & Recrea1on Assets Expecta1ons: • Cost Recovery/Financial Performance • Quality of Programs -‐ diversity • Economic Impact • Venue Door Swings
• Ancillary development, incremental spending • Family Connec1vity and Par1cipa1on
• Family involvement • Leadership and Character Development
• Gradua1on Rates, standardized tes1ng • Philanthropic Involvement • Employment tenure, rates
• Improved Health – Mental, Physical, Social, Spiritual • Brain ac1vity, obesity rates
Questions/Comments? Jason Clement
Founding Partner The Sports Facilities Advisory
The Sports Facilities Management [email protected]
727-474-3845
Dev Pathik Founding Partner
The Sports Facilities Advisory The Sports Facilities Management
[email protected] 727-474-3845
Evan Eleff Vice-President
The Sports Facilities Advisory The Sports Facilities Management
[email protected] 727-474-3845
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