OVG buys British hospitality group Rhubarb
Oak View Group (OVG) has acquired Rhubarb Hospitality Collection, a high-end hospitality group with venues in London, New York and Berlin.
Rhubarb’s 2,000-strong team caters for over five million people every year at venues including Hudson Yards (New York) and Royal Albert Hall, Ascot Racecourse, Sky Garden, 22 Bishopsgate in London. Other clients include immersive live entertainment experiences Mamma Mia! The Party and Frameless.
The company, which boasts more than 25 years in the industry, is forecasted to deliver nine-figure revenues in 2023.
OVG says the acquisition of Rhubarb will drive plans to transform the food and beverage experience at arenas, stadiums, and live entertainment venues across the UK and around the world.
The transaction represents a continuing expansion by OVG into premium hospitality, with its new food and beverage arm, OVG Hospitality, now “the fastest-growing concessions and premium hospitality platform in the live entertainment and convention industry,” according to the company.
In recent years, OVG has acquired a number of companies in the hospitality industry including Bovingdons Catering and Spectrum Catering, Concessions & Event Services.
“By adding Rhubarb we think we are now best-in-class on premium experience and hospitality”
“This acquisition, along with other companies we acquired over the last two years, gives us a platform that we think rivals or is better than any other food and beverage company out there,” says Tim Leiweke, chairman and CEO, Oak View Group.
“We feel strongly about this because we are facility owners and operators, and we see food and beverage differently than people who are simply just third-party vendors. If you look at the arenas we own and operate and you look at our upcoming ventures, like Co-op Live, by adding Rhubarb we think we are now best-in-class on premium experience and hospitality and that is in large part because of our knowledge and experiences as arena owners and operators, not just food and beverage vendors.
“We’ve always believed that fans deserve the very best, from their experience getting to and from an arena to the best possible presentation of the show they’ve chosen to see, to the food and drink they buy. It has been clear from our first meeting that the Rhubarb team shares both our vision to elevate the fan experience, as well as our focus on quality, sustainability, and the importance of a great company culture. Rhubarb and OVG are the perfect partners to design and deliver the world’s best hospitality at venues around the world.”
Pieter-Bas Jacobse, chief executive of Rhubarb Hospitality Group, adds: “This is an incredibly meaningful partnership for Rhubarb, and we are thrilled to partner with OVG. We have known the team for many years, they understand our business model, and we all see best-in-class hospitality as essential to the value proposition between venues and their fans. Together, we are determined to redefine what it means to deliver a truly exceptional and unforgettable experience in our industry.”
OVG oversees the operations of Climate Pledge Arena at Seattle Center, UBS Arena in Belmont Park, NY, and Moody Center in Austin, TX as well as arena development projects for Acrisure Arena in Palm Springs, CA; Co-op Live in Manchester, UK; and projects for Arena São Paulo in São Paulo, BZ; CFG Bank Arena in Baltimore, MD; FirstOntario Centre Arena in Hamilton, ON; a new arena and entertainment district in Las Vegas, NV; and a new arena in Cardiff, Wales.
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OVG bids to rebuild Seattle’s Memorial Stadium
Oak View Group (OVG) has submitted a bid to rebuild Seattle’s Memorial Stadium, located minutes from its Climate Pledge Arena.
The 12,000-capacity stadium opened in 1947 and hosted high school football before the World’s Fair in 1962. Since then it has hosted multiple civic events, graduations, and concerts but has fallen behind on maintenance in recent years.
Seattle Public Schools (SPS), which owns the stadium, has allocated $66.5 million for a new venue, with an additional $25 million coming from the city and state.
Private investors interested in operating the building were asked to submit bids by Thursday (4 May) with a new vision for the building.
OVG submitted a proposal under the name “One Roof Partnership” which is a nod to One Roof Foundation, the philanthropic arm of ice hockey team Seattle Kraken and Climate Pledge Arena.
Tod Leiweke, CEO of Seattle Kraken and brother to OVG CEO Tim, has been serving as the local point person on the proposal.
He would not say how much OVG would contribute if selected as the winning bidder but he told local press “If it happens, it will be the biggest commitment we’ve made to this community”.
“If it happens, it will be the biggest commitment we’ve made to this community”
An early design shows that OVG is proposing a small stadium that preserves the existing World War II Memorial Wall on the east side of the existing complex.
The formal Request for Proposals asked for a minimum configuration of at least 8,000 fans, and the ability to house a stage and other staging equipment for the campus.
The school district also said the space could likely fit a 20,000-seat project, depending on the design and would be best with a connection to the International Fountain and August Wilson Way on the west side.
Leiweke said their proposal would meet the criteria and timeline. The city and district are expected to select a winner by the week of 22 May and negotiate financing after that.
It is not yet known who else may have submitted a bid by the deadline but it was reported that 113 different people or organisations signed up to tour the site during an open house last month, including ASM Global.
OVG oversees the operations of Climate Pledge Arena at Seattle Center, UBS Arena in Belmont Park, NY, and Moody Center in Austin, TX as well as arena development projects for Acrisure Arena in Palm Springs, CA; Co-op Live in Manchester, UK; and projects for Arena São Paulo in São Paulo, BZ; Baltimore Arena in Baltimore, MD; FirstOntario Centre Arena in Hamilton, ON; a New Arena and entertainment district in Las Vegas, NV; and a New Arena in Cardiff, Wales.
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OVG partners with Latin music-focused SBS Ent
Oak View Group (OVG) has inked a multi-year deal with SBS Entertainment, the entertainment arm of broadcasting company Spanish Broadcasting Systems.
The deal is described as an effort to “reimagine the live industry landscape” and an opportunity to reach new markets with Latin-focused music events.
Under the terms of the agreement, SBS events such as Mega Mezcla, Amor En Vivo, and Mega Bash, which all take place across Hispanic markets, will also be produced at OVG’s recently revamped UBS Arena at Belmont Park.
Additionally, the two companies will develop new entertainment products at other OVG-managed arenas, including Moody Center in Austin, TX; newly opened Acrisure Arena in Greater Palm Springs, CA; and in the Orlando, FL area.
“We couldn’t be more excited to expand our footprint across [OVG’s] world-class venues”
After launch, the two partners expect to expand the project to other OVG venues in North America and eventually, Europe.
“As one of the largest concert producers in the nation and trailblazers for Latin music, it is our mission to continue to build upon our legacy by creating more unparalleled live music experiences for audiences across the globe,” says Alessandra Alarcón, president, SBS Entertainment. “Our partnership with the Oak View Group is the first of its kind and we couldn’t be more excited to work with them to expand our footprint across their world-class venues and connect more Latin music fans with the artists they love.”
Francesca Bodie, president of business development, Oak View Group, says: “As the popularity and globalisation of Latin music continues to rise, we’re delighted to partner with SBS Entertainment to broaden its audience, while delivering greater diversity across our business, and bringing its iconic live events to OVG’s roster of world-class arenas. This partnership represents a foundation that we plan to grow, both nationally and internationally in the coming years, and we look forward to developing more programming with Alessandra and the SBS team.”
Founded in 2015, OVG has grown to work with more than 400 venues worldwide. The deal with SBS marks the first time they’ve teamed up with a Latin company that focuses on producing and promoting large-scale live events.
For 16 years now, SBS has produced LA’s Calibash, the best-known urban Latin festival in the US that has boasted J Balvin, Daddy Yankee and Karol G as headliners over the past few years.
A number of major companies have been capitalising on the Latam boom, including Ticketmaster which yesterday announced further expansion in the market.
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Cardiff arena costs rise by more than 50%
The cost of building Cardiff’s new arena has spiralled by more than 50%, causing significant delays to the project, according to a report.
The 17,000-cap venue, which is being developed by Robertson Group, will be operated by Live Nation and Oak View Group and is set to form part of a wider multi-million-pound regeneration of Butetown, Cardiff in Wales, UK.
However, “inflationary pressures” have seen costs rise from £180 million (€203m) to almost £280m (€316m).
“Following the pandemic, the UK economy has experienced significant volatility with abnormal levels of inflation and significant interest rate rises,” reads a Cardiff Council document. “Inflationary pressures have pushed the original design of the new indoor arena from the procured figure of £180m to close to £280m.”
The report to members of the council’s cabinet adds that, as the authority’s borrowings for the project are capped, Live Nation has taken responsibility for the price increases.
“Live Nation has had to undertake a detailed review of the design to identify any opportunities to make savings”
“Live Nation remains committed to the project and has secured board level approval to cover the costs,” it continues. “Nonetheless, Live Nation is now working to reduce the level of cost increase through a review of the arena design and reconsideration of site infrastructure requirements.
“The cost of delivering the new indoor arena project has risen by more than 50%. Consequently, Live Nation has had to undertake a detailed review of the design to identify any opportunities to make savings. This has caused a significant delay to the programme. It is now anticipated that the final contract will be signed in July 2023 with a start on-site programmed for January 2024.”
The arena was originally scheduled to open in 2025, but is not now set to be completed until the following year, according to Wales Online.
Live Nation already runs the existing 7,500-cap Motorpoint Arena Cardiff, as well as converted warehouse venue Titan Warehouse. OVG, meanwhile, is currently constructing the UK’s first all-electric arena, Co-op Live, in Manchester.
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OVG launches global venue sustainability membership
Oak View Group (OVG) is launching a global venue sustainability membership programme to “accelerate the sports and entertainment industry’s response to the climate crisis”.
Under the banner GOAL (Green Operations & Advanced Leadership), the international venue operator is providing a broad set of sustainability standards specifically designed for venues.
This includes a tactical roadmap for achieving the standards, a customised tracking tool for long-term accountability, a library of resources, and access to like-minded operators, vendors, and sponsors who are committed to operating more sustainably.
Launched in partnership with the Atlanta Hawks & State Farm Arena, Fenway Sports Group and Jason F. McLennan, the initiative is said to have 20 founding members and is open to venues around the world.
According to OVG, member venues will have the opportunity to track their performance against scientifically backed standards with aspects such as energy and water use, greenhouse gas emissions, waste management, indoor air quality, and health and wellbeing.
Kristen Fulmer, the founder of front-office sustainability consultancy Recipric, will lead GOAL as OVG360’s new sustainability director. “By focusing our mission on operational sustainability, GOAL has the unique opportunity to redefine the priorities within our industry, which is up against intersecting climate and social crises,” says Fulmer.
“We want to work with leading, like-minded venues to determine the most feasible, yet ambitious sustainability solutions”
“We want to work with leading, like-minded venues to determine the most feasible, yet ambitious sustainability solutions. I am committed to proving that any venue can integrate win-win sustainability solutions that reduce the operating costs of the venue while avoiding negative environmental impacts and increasing positive social impacts.”
Chris Granger, president of OVG360, adds: “My hope is that GOAL becomes the sports and entertainment industry’s internal conscience as it relates to creating a more sustainable future. We’re seeing countless venues, leagues, teams, municipalities, and leaders – often driven by the demands of their fans, guests, clients and communities – who want to develop a more sustainable strategy but don’t know where to begin.
“We hope GOAL will provide that roadmap and be that guide for their sustainability journey. Fenway Sports Group and State Farm Arena are the perfect partners to champion a sustainable future industry-wide, and we are delighted to have Kristen on board to pinpoint the intersectionality of sustainability with all aspects of a venue’s operations – from F&B to parking to partnerships.”
OVG has put continually put sustainability at the forefront of its business, with co-founder and chief executive Tim Leiweke telling IQ that “climate change is the fight of our lives”.
The company oversees the operations of Climate Pledge Arena at Seattle Center, UBS Arena in Belmont Park, NY, and Moody Center in Austin, TX as well as arena development projects for Acrisure Arena in Palm Springs, CA; Co-op Live in Manchester, UK; and projects for Arena São Paulo in São Paulo, BZ; Baltimore Arena in Baltimore, MD; FirstOntario Centre Arena in Hamilton, ON; a New Arena and entertainment district in Las Vegas, NV; and a New Arena in Cardiff, Wales.
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Oak View Group hires venues veteran Wesley Cullen
Oak View Group (OVG) has hired venues veteran Wesley Cullen as VP of international venue development.
San Juan, Puerto Rico-based Cullen, who was previously MD of entertainment for Loud and Live, will be tasked with helping to expand the company’s venue portfolio worldwide.
“We are thrilled to have Wesley join our international venue development team,” says Brian Kabatznick, OVG’s EVP business development, facilities international. “As a highly respected arena executive we welcome her management expertise, passion to support OVG’s environmental initiatives and commitment to working in wonderful global cities.”
Prior to joining Loud and Live last year, Cullen was general manager of Puerto Rico tourist attraction Casa Bacardi.
“It is an exciting time to join this talented team to lead the industry in sustainability and inclusion as we positively disrupt this field we are so passionate about,” says Cullen. “I am honoured to work alongside Brian and learn from one of our industry’s masters of international development. OVG is phenomenal at opening doors for others and has built a team of superstars that I feel privileged to join.”
“Wesley is known as a positive disruptor and community leader who is passionate about the power of diversity and making good things happen”
Cullen brings nearly 25 years of experience in touring, venue management, experience design, hospitality, brand building and international expansion.
Her other previous roles include general manager of the Coliseo, Puerto Rico’s largest entertainment venue, where she helmed all venue management and operations, including booking, ticketing, marketing, production and logistics.
Earlier in her career, Cullen managed international live events for WWE in the US, Europe, Africa, Asia, Australia and Latin America.
“Wesley is known as a positive disruptor and community leader who is passionate about the power of diversity and making good things happen,” adds Francesca Bodie, OVG’s president of business development. “I’m pleased to welcome her to our world-class team and excited to see her effectively accelerate our global growth.”
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OVG acquires Spectrum Catering
Oak View Group has grown its hospitality division with the acquisition of leading food service and hospitality company Spectrum Catering, Concessions & Event Services.
The Houston, Texas-headquartered firm specialises in music festivals, and artist and tour catering, in addition to major sporting events.
The company has worked on festivals including Bonnaroo, Burning Man and Governor’s Ball, as well as serving as touring with the Eagles and managing tour rehearsals for artists like Madonna and Aerosmith.
“The fact that Spectrum’s growth has been driven by referrals, word-of-mouth, reputation and top talent speaks to the stellar organisation [Spectrum founder and CEO] Dave Smalley has built over the last 30 years,” says OVG Hospitality president Ken Gaber.
“Bringing on the Spectrum team will allow OVG Hospitality to grow our business in non-traditional avenues”
“Whether his team is designing precise event layouts or working closely with cities, municipalities, promoters, producers, artists and nonprofits, they know the ins and outs of planning and executing food and hospitality at some of the world’s largest live events. Bringing on the Spectrum team will allow OVG Hospitality to grow our business in non-traditional avenues.”
The announcement comes eight months after OVG’s acquisition of Spectra, one of the industry’s leading food and beverage providers, in November 2021 to create a leading full-service live events company.
“Dave and his team have been positively disrupting the food and hospitality space for three decades now, which is a concept Oak View Group can relate to,” adds Oak View Group CEO Tim Leiweke. “Just as Dave looked outside the four walls of restaurant life to create Spectrum, his company continued to transform the food and hospitality industry with cutting-edge ideas and set the standard for live event experiences. We look forward to watching OVG Hospitality continue to grow with this exciting new partnership.”
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Oak View Group launches OVG Canada
Global sports and entertainment company Oak View Group has announced the launch of OVG Canada.
The new division will offer strategic services in venue development and management, booking and content development, sponsorship brand consulting and third-party partnership sales.
Led by president Tom Pistore, the leadership team also includes SVP of partnerships & brand consulting Josh Epstein and SVP of partnerships & revenue Zach Feldman.
“You cannot develop, operate, or sell Canadian facilities or assets from the US, and therefore it’s critical for us to be a part of Canada,” says Oak View Group chairman and CEO Tim Leiweke. “We want to create the best sports and facility sales organisation in Canada. Very few companies in our industry have the infrastructure that we have now in Canada and the US to serve our Canadian clients, giving OVG the competitive edge to deliver best in class results.”
“Oak View Group Canada will leverage our diverse experience, deep understanding of the Canadian marketplace and the strength of our global leadership team to provide industry-leading solutions and opportunities”
Pistore was most recently president of UBS Arena, while Epstein led Bank of Montreal’s North American sponsorship strategy and Feldman was previously SVP of partnerships & revenue at the Premier Lacrosse League.
“Oak View Group Canada will leverage our diverse experience, deep understanding of the Canadian marketplace and the strength of our global leadership team to provide industry-leading solutions and opportunities to the Canadian market,” adds Pistore. “After an exciting journey launching UBS Arena in New York, I could not be more excited to launch OVG Canada alongside a best-in-class leadership team that will deliver incredible results for our present and future partners.”
Oak View Group made its first foray into Canada last year via a partnership with Hamilton Urban Precinct Entertainment Group (HUPEG) on the redevelopment of the downtown arts and entertainment district in Hamilton, Ontario.
The link-up served as the launching point for the Canadian office and will include the renovation of the 19,000-cap FirstOntario Centre, which will be privately funded with more than CA$50 million. Construction is anticipated to begin in the autumn.
In addition to Leiweke, OVG Canada will be supported by an executive team, including OVG co-founder Irving Azoff, OVG360 co-chair Peter Luukko, OVG business development president Francesca Bodie and OVG360 and Arena Alliance president Chris Granger, who also oversees all venue and hospitality operations in Canada.
“We are committed to putting capital to work in Canadian live entertainment facilities as we’ve done elsewhere around the world and are thrilled for our project in Hamilton to come to life,” says Bodie. “We look forward to expanding and growing the OVG platform with additional owned-and-operated facilities across Canada.”
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Boom time predicted for mid-size venue market
Mid-size arenas will provide the new “battlefield” for venue operators in the post-pandemic touring business, it has been claimed.
ILMC’s New Builds: The venue boom panel looked at the growing number of new buildings coming online, from Swansea Arena to Seattle’s Climate Pledge Arena, along with future projects such as Manchester’s Co-op Live.
With investment in the bricks-and-mortar side of the live music business reaching record levels, leading venue operators stepped up to discuss the arenas and big buildings of the future.
Tom Lynch, ASM Global’s commercial director & SVP, Europe, brought up the company’s management of Olympia London, which includes a 4,400-cap live music venue and 1,575-seat performing arts theatre, and is scheduled to be completed in 2024. He also referenced the firm’s involvement in the 3,500-cap Wolverhampton Civic Halls and Derby arena schemes, which are both in development.
“We think more of these mid-sized venues will come to the market and help the industry grow”
“It’s reflective of where we think there’s some growth in the market,” said Lynch. “It’s great to build new arenas and stadiums, but actually, you look all across Europe and there are venues that cap out at 2,000 in every single city, and the next step is 10,000 to 15,000 capacity arenas.
“That’s a problem. It’s a limitation on shows and we think more of these [mid-sized] venues will come to the market and help the industry grow and sell more tickets, rather than saturate or steal tickets. We want to create venues where there aren’t venues and try and drive economic impact that way.”
DEAG executive Detlef Kornett agreed: “The new battlefield will be mid-size arenas… It’s very important to fill that gap between 2,000 and 23,000.”
Kornett said there was an increasing realisation that music events were no longer just attended by fans of the artist.
“Our industry had grown a lot over the last few years because of the baby boomers. Then we had a pandemic and that group is a bit hesitant to come back”
“It’s very similar to what happened in sports and that’s where the premium offerings and the diversification kicks in,” he said. “People come for more reasons than just listen to the music: they want to socialise, they want to have a good time prior and after, and they want to communicate on socials that they were at the event. New arenas have the ability to provide for that.
“Our industry had grown a lot over the last few years because of the baby boomers. Then we had a pandemic and it’s very clear now that group is a bit hesitant to come back. So all of the efforts of the new venues to take that anxiety away, will be very important. Once we’re out of this pandemic, if that ever is the case, you will see a lot of pent-up demand.”
Lynch explained the pros and cons of refurbishing an existing building compared to pressing ahead with a new build – referencing ASM’s 12,500-cap Newcastle Gateshead Quays arena scheme, which will succeed the city’s near 30-year-old Utilita Arena.
“Once you’ve built a venue, there’s so much carbon, trying to be sustainable from that point on is damage limitation,” he said. “You can do great things in energy consumption, and just the way that you interact with the community, but you need to be really conscious of the decision you’re taking.
“Newcastle Gateshead is a good example of where we’ve actively looked at renovating what’s there, rather than changing and building new. The reality for us was that it was built for £10 million in 1994, so it’s a shed, it’s not even an aircraft hangar. It’s been an incredibly successful venue. And we’ve evolved it over the years, but actually trying to renovate something that is all metal and was built for £10m, so long ago, is counterproductive.”
“New builds are a fantastic anchors for a regeneration project”
Opening in 2024, the arena is the centrepiece of a £260m regeneration scheme which will include a conference and exhibition centre, restaurants, a hotel and large areas of ‘outdoor realm’ and performance space on the same site.
“We’re shutting down one venue and bringing something new to market with other event venue aspects to it which we think, in turn, is more sustainable and better for the environment,” explained Lynch. “It brings more people in from different walks of life. What we’re aiming to get to in the end is not just one customer base or demographic, but a cross-section of society.”
John Rhodes, design director of HOK London Studio, whose past work includes Leeds’ First Direct Arena and recently recently completed the 18,000-cap Etihad Arena on Abu Dhabi’s Yas Island Arena, outlined the wider economic benefits of new arena developments.
“They’re fantastic anchors for a regeneration project,” he said. “The footfall that these buildings attract just reinvigorates districts. You can see that in Leeds where the the amount of private investment around there, after we built the arena, is just incredible. Having 12,000 people going every week ensures that all of the local community, shops and bars and such like, have that footfall to survive from.
“There’s great opportunity for these buildings to be actually engaged in the community to actually become an anchor and facility for community activities and such like. The ’00s was about an experiential economy: buying stuff, buying experiences. I think the next generation is going to be buying experiences that improve us. And part of that is our cultural footprint – how we engage with these venues, how we engage with our communities – and we need to create buildings that allow you to do that.”
“We’re seeing much bigger event floors now. Everyone loves a mosh pit”
Rhodes quipped that the quest to design a bowl that is as large as possible but still capable of providing an intimate experience remained “the Holy Grail”.
“How can it be scalable to 6,000-7,000 – where you have a completely authentic experience without feeling like you’re in an empty venue? There are ways of doing that,” he said. “The size and scale of the event floor is key. We’re seeing much bigger event floors now. Everyone loves a mosh pit, so let’s make these mosh pits bigger. And you can flex in relation to that.
“There is technology there in terms of curtaining and such like, but I’m particularly interested in the super-theatre model, which ties in with that smaller scale arena, where you actually force the short stage configurations to create walls of people for the performers. The bowls have been tailored to create that Liverpool FC Kop or Borussia Dortmund Yellow Wall-type feel.”
“The driver of our business is music – and it took us a long time to figure that out”
Guy Dunstan, MD of ticketing and arenas for Birmingham-based NEC Group, spoke about the evolution of arenas, most notably in regards to the customer experience.
“I think of what the venues were like 20, 30 years ago and they’ve evolved significantly,” he said. “Venues back then were very much concrete, soulless spaces, and it was about getting people in, getting them to their seat, watching the show and maybe grabbing a beer. But as we’ve developed our facilities, we’ve elevated that whole experience. And what we’ve also done is open up the premium opportunity.”
Asked directly about return on investment by panel chair Stephanie Bax of CAA Icon, Oak View Group (OVG) UK’s Brian Kabatznick said 60% of revenues came from VIP offerings, naming rights and sponsorship deals.
“If you look at the revenue generation for New York, Seattle, Manchester, you’re basically driving your revenues by having a naming rights partner that’s engaged in the local community and wants to be associated with a quality venue that touches their consumer base – and they’re willing to pay for that,” he said.
“We all know that the VIP product, 10 and 15 years ago, was VIP boxes. Well, that’s over – people want to be communal, and they want diversity of product. So in all of our buildings, you have roughly 10 to 15 different price points, locations and amenities to cater to specific corporate and non corporate customers. So if you get sponsorship right, and if you get premium right, that solves it. But at the end of the day, we all know that it all comes down to content.”
He added: “In the old days, you’d have operators building arenas arenas around a hockey rink or a basketball court, but ultimately, let’s be honest, the driver of our business is music – and it took us a long time to figure that out.
“Getting out of the pandemic, it was strange timing that we just opened in four new buildings. But we’re pretty clear that the return on investments have been very successful.
“Moving forward, I think we’ll be a little bit more challenged with the supply chain and materials and the rising inflation rate. But we know that more people are listening to music before and more people are playing music than ever before. And our partners seem to be pretty pleased with what we’re doing, which is why we’ve got 10 other venues under development.”
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Execs talk investment opportunities in live music
A trio of leading live music executives have shared their views on the areas of the business most ripe for investment.
With the market bouncing back internationally following the Covid shutdown, Mumford & Sons musician and venue boss Ben Lovett, Oak View Group (OVG) International’s Jessica Koravos and Jarred Arfa, COO of Artist Group International, weighed in on the biggest opportunities for the industry.
Speaking during the Industry Investment: Field notes panel at the recent ILMC in London, US-based Arfa suggested the concept of Live Nation’s upcoming “emo nostalgia” festival When We Were Young in Las Vegas, which has expanded to three days due to demand, pointed a way forward for the industry.
“There are obviously so many festivals out there, but we’re seeing a lot of success where they’re focusing on specific niches,” he said. “People want to be part of that moment in time and relive that, as opposed to, ‘Let’s give everyone a little flavour of everything.’ Those that are focusing on specific genres, or overfeeding one time period, are seeing some success and a point of distinction.”
“The pandemic has made people really appreciate those coming together moments that maybe they took for granted before”
Koravos, who is also president of Andrew Lloyd Webber’s Really Useful Group, which oversees some of the world’s biggest theatrical titles, said Covid-19 has prompted a change of mindset in the public when it comes to live shows.
“One thing that pandemic has absolutely done is made people really appreciate those coming together moments that maybe they took for granted before,” she said. “Flipping hats and talking about the West End and theatre for a second, what’s very interesting to me is that what’s very successful in the West End right now is the shows that have been there the longest.
“I see it with Phantom of the Opera, which has flipped its age demographic down by 10 years over the course of the pandemic, and I think it’s because of exactly that – you take for granted that something that’s always been there will keep being there. But I don’t think that’s the assumption anymore.
“People want to go see Billy Joel at [Madison Square] Garden. They want to go see Phantom of the Opera. They want to make sure they are appreciating the things that might not always be there.”
“There are just not enough good venues. It’s really that simple”
TVG Hospitality co-founder Lovett urged would-be investors to put their faith (and finances) in the independent sector.
“I would back indie promoters,” he said. “Everything’s getting so algorithmic, we could end up with pretty watered down creative inputs into our lives unless those indie promoters go and stick their neck out. So I would say, invest money into those indie promoters… If we can get some great promoters coming through, it’s going to be good for everyone.”
Earlier this year, TVG Hospitality announced the closing of $50 million in new funding to expand its team and venue portfolio in the UK and US, backed by a heavyweight list of investors including OVG, founded by Tim Leiweke and Irving Azoff.
TVG is bidding to create the next generation of music venues alongside elevated hospitality offerings in order to enhance the artist and fan experience and create gathering spaces as community assets. The company’s current portfolio includes London music venues, Omeara, Lafayette and the Social, and broader hospitality offerings at Flat Iron Square and Goods Way.
“This is going to be the most exciting few years”
“Across the board, I think what Tim and Irving saw – and the same issue that we were trying to solve – is there are just not enough good venues. It’s really that simple,” said Lovett, whose latest project – the 8,000-cap Orion Amphitheater in Huntsville, Alabama – opened earlier this month.
“For the last couple of decades there just hasn’t been enough investment into truly inspiring places,” continued Lovett. “There are people buying incredible bars and restaurants and hotels, and there’s lots of other things that are being constantly being reimagined and the envelope is being pushed. But when it comes to music venues it’s just stagnated. And this is going to be the most exciting few years where all of these new venues are going to [launch].”
OVG has already opened the Climate Pledge Arena in Seattle, Moody Center in Austin and the UBS Arena in Long Island, New York, with schemes also on their way in Manchester, Baltimore, Coachella Valley and Cardiff.
“Venues are very expensive,” added Koravos. “The 2,000 seaters are expensive, the 20,000 seaters are super-expensive, so investment is a crucial part of getting those off the ground. But the whole point of Oak View Group is really just looking around at the fact that, around the world, the big music venues are actually all buildings that were built 20 years ago or more, for the most part.
“They were built for sports for the most part, not by anybody who knew anything about the content about what needed to go in them and what the fan needed to experience. So at Oak View, our whole reason for being is to build the best experience in the best markets.”
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