5 trends to keep you ahead of the game
Whether in sports, or life in general, successful individuals rarely strive to keep up with others; rather, they discover a new path or set the pace.
The very best sports commissions are led by teams who share this perspective. Throughout the sports tourism industry, I have met a number of leaders who are asking questions about how to lead the way and make sure their cities are great sports destinations. Not just now, but into the next decade. They want to know what to build and how much to build to how to respond to the increasingly competitive youth and amateur sports marketplace.
In cities across the country and around the world, sports commissions, CVB’s, facility owners, and rights holders/event owners are seeking ways to be better.
Here are a few major trends in sports facility management to assist you in setting the pace for your near- and long-term planning.
Trend 1 – New Facilities
New sports tourism destinations will come on line in the next five years will have playing surfaces, lighting, concessions, and professional management to rival university and professional-level playing environments. Think quality!
Trend 2 – Wall Street-Level Planning
The quality and expense of these new complexes now requires detailed financial modeling. Financing continues to be challenging and that has impacted the research and analysis requirements for new facility financing documents. These forecasts should have accurate construction and start-up costs and detailed revenue/expense projections that are based on market research combined with real-world comparable operations.
You need to be sure that your projections are in line – utilizing comparable data, benchmarks, and key performance indicators (KPI’s) – with real-world examples from currently operating successful facilities. This requires a specialist that possesses insight related to the actual management and operations of multi-purpose venues.
Trend 3 – Privatization of Management
In line with Trend 2, financing sources are hesitant to lend money to projects unless the project will be managed by a professional operations team with a proven track record. There is no “fake it until you make it” option with projects that require tens to hundreds of millions of dollars.
Trend 4 – Demand for Reliable Information and Education
As the youth and amateur sports tourism market matures, the need for city and state officials to understand the economic impact and value of these operations is increasing. Officials who once thought of sport and recreation as an expense are now realizing that sports assets can be critical economic drivers. From jobs creation to direct spending, public officials need reliable data if they are going to promote government involvement or public-private partnerships. Destination marketing entities therefore need to improve their reporting and measurement of impact of their sports marketing efforts.
Trend 5 – Remembering the Purpose
Communities are not just talking about economic benefits; they are increasingly discussing the health, educational, and social benefits associated with new facility developments. We see an increase in the level of dialogue about sports as a platform for character, leadership, obesity prevention, and scholastic development. This is great news as it is leading to better program quality.
Remember, it starts with the knowledge, resolve, vision, and thoroughness of a dedicated team to effectively plan for success in your sports tourism destination. Once the committee is in place and the vision is fully understood, the strategy can be discussed and the implementation plan enacted. Addressing these trends and partnering with the right analysts, management companies, and event owner/tournament organizations will go a long way in turning the vision into the reality of a true community asset and successful sports tourism destination.
By Dev Pathik
