Venue Detail
Miami Heat
Revenues From Sports Venues Pro Facilities Report
February, 2012
Miami Heat
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1 SE Third Ave Ste 23 Miami, FL 33131 Phone: 786-777-1000 Fax: 786-777-1607 URL: www.nba.com/heat Owner: Mickey Arison League: National Basketball Association, Eastern Conference, Southeast
Venue
American Airlines Arena, 601 Biscayne Blvd, Miami, FL 33131 Owner: Miami/Dade County Managed by: AEG Facilities Built: 1999 Capacity: 19,600 Permanent concession stands: 16 Concessionaire: The Levy Restaurants Suite caterer: The Levy Restaurants Soft drink: Coca Cola Beer: Multiple
Naming rights
Sold to: American Airlines Price: $42,000,000 Term: 20 years Expires: 2019
Ticket prices
Season tickets range from $430 to $11,395 Single tickets range from $10.00 to $375.00
Attendance
2009 average attendance: 18,150 2010 average attendance: 17,730 2011 average attendance: 19,778
Suites
Quantity: 20 Term: 5 to 10 years Price: $130,000 to $200,000 Seats: 12 to 18 Includes: The five party suites hold 36 persons.
Club seats
Quantity: 1,500 Term: 5 to 10 years Price: $6,560 to $6,560 Includes: Prices are for four tickets in the Flagship Loge Seats at center court.
Financing
The $213 million venue was about $10 million over budget. The venue is being funded with $185 million in bonds sold by the team with the team itself as collateral. Owner Mickey Arison put in $40 million of his own capital.
The city will invest $6.4 million a year for maintenance, primarily coming from a hotel/motel tax. The county will own the building and get five percent of annual ticket sales revenue and $100,000 a year from the naming rights earnings. The team signed a 30-year lease. The city and county contributed the land in a donation estimated at $34 million.
The Heat's 20,000-seat waterfront arena opened in 1999. It is called the American Airlines Arena and the company paid $42 million over 20 years for the privilege.
The new venue features the image of a life-sized airplane on its roof. The arena features 55 loge boxes seating four to six persons each. They are priced at $40,000 to $60,000. Two large suites seating 36 persons will be leased for $200,000 annually. Five others will be leased on a game by game basis.
The team also paid the city $22,000 per game in its first year in the new venue to make up for lost concession revenue because of the team's early departure from Miami Arena.
The team will generate about $14 million a year each from sponsorship and luxury seat sales and it will manage the venue. The Heat must also pay arena expenses and debt on its bonds. The team is required to pay 40 percent of all earnings over $14 million a year to the county.
While the Heat gets nearly all the new arena's revenue, it must pay back to the city five percent of its ticket earnings. (Basketball, Facilities, Financial, NBANBA, Professional Sports)