Venue Detail
Los Angeles Lakers
Revenues From Sports Venues Pro Facilities Report
February, 2012
Los Angeles Lakers
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555 N Nash St El Segundo, CA 90245 Phone: 310-426-6000 Fax: 310-419-4523 URL: www.lakers.com Owner: Jerry Buss League: National Basketball Association, Western Conference, Pacific
Venue
Staples Center, 1111 S Figueroa, Los Angeles, CA 90015 Owner: L.A. Arena Company Built: 1999 Capacity: 18,997 Permanent concession stands: 22 Concessionaire: The Levy Restaurants Suite caterer: The Levy Restaurants Soft drink: Coca Cola Beer: Multiple
Naming rights
Sold to: Staples, Inc. Price: $100,000,000 Term: 20 years Expires: 2019
Ticket prices
Season tickets range from $903 to $6,880 Single tickets range from $10.00 to $260.00
Attendance
2009 average attendance: 19,268 2010 average attendance: 18,997 2011 average attendance: 18,997
Suites
Quantity: 160 Term: 3 to 10 years Price: $250,000 to $475,000 Seats: 8 to 14 Includes: Tickets.
Club seats
Quantity: 2,500 Term: 2 to 4 years Price: $14,850 to $18,500 Includes: Parking and in-seat wait service.
Financing
The Staples Center was privately financed.
The Staples Center is the home of the NBA Lakers, WNBA Sparks, NBA Clippers and NHL Kings. That's no mistake; the venue hosts two NBA teams and an NHL team. It also made history as the first naming rights deal to break the $100 million barrier. The agreement with office supplier Staples features both indoor and outdoor signage, suites and a community-based foundation. The deal was negotiated by ProServ.
In 2009, the deal marked another milestone. Staples Inc. converted its 20-year naming rights deal into a lifetime agreement. Terms of the deal with venue owner AEG were not announced.
The building, like some newer ballparks, is carved 20 feet into the ground to reduce scale and allow fans to enter from the street onto the main level. The 900,000 square foot building seats 20,000 for basketball and 19,000 for hockey. It has 22 concession stands over 5 concourses, a six-sided video scoreboard and a 20,000 square foot plaza entrance with a large, digital screen to greet visitors.
Suites are arranged in three levels in the center of the bowl. A private 500-person Arena Club restaurant is available to suite holders and club seat holders while another restaurant, the Premier Club, is available to members only. The club takes only 200 members and they pay $10,500 annually for the privilege. The club also has access to a private wine cellar and humidors. The Arena Club seats 500 and features menus and prices to match the city's top restaurants. Food is prepared by a renowned chef. Only suite holders and club seat holders are allowed to make reservations.
A separate sports bar and restaurant is open to the public. Levy offers themed menus, grilled specialties along with Asian and Italian offerings in its service to club seat and suite customers.
For club seaters, in-seat service is available. The center was designed by NBBJ Sports and Entertainment. The building also has retail and team office space.
For 2005, the Staples Center in Los Angeles got a $10 million upgrade program intended to keep the building exciting for its guests. The work included new video boards, improved seats and better carpeting.
The building has seen about $1 million a year in upgrades in each of its six years of life. The venue is also expected to be an anchor for a new entertainment district the firm is developing around the building and the city's convention center. AEG is building a new 1,200-room hotel and a 7,000-seat theater as part of that district.
Officials say the building hosts about 240 events a year.
The venue was built by Kings owners Edward Roski Jr. and Philip Anschutz. Rupert Murdoch's Fox broadcasting group purchased a 40 percent stake in the building along with an option to buy a 40 percent share of the NHL Kings. Anschutz and Fox also signed a letter of intent to buy a 25 percent interest in the NBA Lakers owned by Jerry Buss. Fox has since sold its shares.
According to a case study done by George Foster, a professor at the Stanford University Graduate School of Business, the Lakers and Kings get equal shares of revenue from the luxury suites at the building, plus a share of ticket revenues. The Clippers receive a per-seat allocation based on non-premium seating prices, but do not get a share of suite revenues.
The study says each team gets a per-ticket allocation of premium seats sold. The Lakers and Kings each received a fixed percentage of the total premium seat revenue and together get 50 percent of all net proceeds from premium seating. The balance goes to the building. The building takes all revenues from naming rights and fixed advertising. The teams claim revenues for temporary advertising.
Other reports in 2003 say the Kings pay 8 percent of gross ticket sales as rent. That amounts to about $1.9 million a year. The reports say the Lakers pay the same percentage. The Kings also reportedly get 25 percent of club and luxury suite revenue from the center, as do the Lakers. The Kings also get 25 percent of gross merchandise sales receipts as a licensing fee. That brings in about $300,000 per year. Parking revenues on land owned by Anschutz Entertainment Group totals about $800,000 per year. Per caps for concession sales at Kings games are $6.50 per person.
We do know the number of sponsors are limited and they pay $2 million to $3 million for the privilege. No signs are sold individually. (Basketball, Facilities, Financial, NBANBA, Professional Sports)