From Deseret News archives:
Utah stadiums compete to host lucrative concerts
During a Friday session at the Urban Land Institute conference, three panelists spoke on the economic impact of sports facilities. The speakers agreed that sponsorship, multiple uses and a private-public partnership were all important for the success of a sports venue. However, some facilities are struggling to get a steady revenue stream by hosting concerts in multimillion-dollar medium to large venues.
"I would love for our building to be open every single night, but there's just not enough activity for it," said Dennis Haslam, president of Larry Miller Sports and Entertainment in Salt Lake City, which owns the Delta Center. The successful downtown arena is home to the NBA's Utah Jazz. "For Salt Lake City, there are not enough concerts to support the venues. We have a lot of dark nights."
Competition for similar acts, especially in the summer, could become more difficult for places like the Delta Center. Real Salt Lake soccer is proposing to build an outdoor multi-use stadium in the south valley suburb of Sandy.
"We're not afraid of competition," Haslam said. "But I don't think there are 15 or 20 events that go to USANA.
"They will be competition," he said of the proposed soccer stadium.
USANA, the outdoor amphitheater in West Valley City, is just one of the facilities in Utah that competes for national acts to host concerts. The E Center and University of Utah also provide two medium-sized venues for fans to hear their favorite artist play.
And according to Gary Smith, chief operating officer of Polstar, which measures market performance of such facilities, concert revenue is dropping.
"The arena-level acts that are occurring, what a lot of people in the music business call the dinosaurs of the music business, those are the ones that are sustaining the music business," he said.
Acts like the Rolling Stones and Madonna are the most popular concerts, but many complain they aren't being replaced by new acts that draw such huge crowds, Smith said.
The answer, Haslam said, is going after other major events. For example, the Delta Center hosts Disney on Ice, Ringling Brothers Circus and numerous conventions. The Delta Center also hosts 120-150 minor events a year, Haslam said.
"There's great debate about whether it's an economic driver for the community," he said of building sports venues. "Certainly, the quality of life and the pride communities have is important."
As for publicly financing a sports venture, Haslam said the notion of using redevelopment-agency funds for the Delta Center worked. It brought new life to a dead part of downtown that had been dominated by rail yards. The basketball arena was funded by $66 million in private money and $20 million from RDA funds, which many cities use to divert property tax into a rejuvenation project.
Regarding publicly financed stadiums, Haslam said, "It's important for taxpayers to support it at some level, and taxpayers need to decide on the support."
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