What the new Singapore National Stadium can do as a social convergence point

In my previous column, I emphasized the importance of the quality and consistency of the fan experience at a sporting venue. Obviously, the New Singapore National Stadium, which is part of the Singapore Sports Hub, intends to deliver just that.

What we call multipurpose arena complexes are convergence points for sporting (i.e. training, competitions), artistic (i.e. concerts, shows) and entertainment (i.e. movie theatre, shopping mall) activities which can be held and leveraged over twelve months a year, and no longer over a few months as it used to be.

In this regard, the Italian soccer club, Juventus of Turin, has opened a shopping centre in the annexe of its new stadium; likewise for the National Football League (NFL) team, the New England Patriots, with the “Patriot Place” shopping and entertainment complex (https://www.patriot-place.com/).

The VTB Bank Arena in Moscow promises to become one of the biggest multi-purpose arenas in the world (https://www.youtube.com/watch?v=Cl0_dXGwvv4&feature=player_embedded).

Moreover, according to several managers of sports teams whom we interviewed in North America and Europe, the break-even point for such stadiums is estimated at 100 major events per year, a ball park figure commonly accepted in the industry.

But how do you succeed in making a new arena a convergence point for sporting and entertainment events? Recent history has shown that there are a few guidelines:

1) The venue is essential in itself, along with its content and the experience people will enjoy. Once the novelty effect wears out, you need to provide incentives for people to come and visit all year long. As we mentioned earlier, it can be training facilities for people to do sports, entertainment shows (concerts, movies), shopping and dining options, etc.

But most importantly, people come to a venue because things happen there; it is the place to be and to be seen, the place for enjoyable socialization experiences. An extraordinary venue provides intangible benefits through unique emotions that individuals can live there.

2) In line with this first item, the arena should be as much a urban project as a commercial one (see the city of Poznan example: https://www.youtube.com/watch?v=et5RM1dV5Gc&feature=player_embedded).Often times, stadiums are being erected in districts that politicians and businesspeople hope to revitalize.

It sometimes works out that way, with the Citizens Bank Park and the Wells Fargo Center which were the catalystsbehind the new entertainment district in Philadelphia, named XFinitiy Live (https://www.youtube.com/watch?v=tGLcXtro_WI).

But it sometimes ends up being a white elephant because people do not want to change their lifestyle, no matter how grandiose the new stadium is, or because the area does not feel safe enough for a romantic evening walk (think Stade de France in St-Denis, for example or Cape Town stadium: https://www.telegraph.co.uk/news/worldnews/africaandindianocean/southafrica/9373324/South-Africas-white-elephant-stadium-should-be-converted-into-housing.html).

3) A new stadium should take into account the infrastructure already existing and the ability of consumers to spend on the variety of sporting and entertainment activities being offered. Otherwise, some options could simply be cannibalized because the supply overwhelms the demand.

And unfortunately in these days and ages, the propensity to spend on new sports infrastructures is very tempting in order to attract major events or simply to create the “wow” effect (see the Beijing 2008 and South Africa 2010 cases: https://www.bloomberg.com/video/then-and-now-the-ghost-of-beijing-s-olympic-glory-S4vfbFLATPijNEZCnaJBPA.html; ).

4) And last but not least, the challenge for managers is also to find a balance between generating revenues in corporate ticketing and keeping the events accessible to the fans.

New stadiums tend to prioritize corporate seats and lounges (what is known as the “Vipization of sports”; Desbordes and Richelieu, 2012) to the detriment of the “average” fan. You do not want to drive fans out of sports and that’s what, unfortunately, we see happening.

For instance, the average premium ticket price is US$ 189 in the Spanish Liga, US$ 144 in the Italian Seria A, US$ 90 in the English Premier League and US$ 73 in the German Bundesliga; in the National Hockey League (NHL) it is US$ 145 (Team Marketing Report, 2013; The Guardian, 2013).

Taking these issues into account, the New Singapore National Stadium should become not only a magnificent venue; but also a social point of convergence that will make generations of Singaporeans proud!

References:

Desbordes, M. and A. Richelieu (2012). Global Sport Marketing. Contemporary Issues and Practice. London, UK: Routledge Publishers.

Team Marketing Report (2013). “Fan Cost Experience in the NHL”. February 11, online edition. https://fancostexperience.com/pages/fcx/blog_entry.php?e=20. [Accessed in March 2013].

The Guardian (2013). “How do ticket prices for the Premier League compare with Europe?”. January 13, online edition, https://www.guardian.co.uk/news/datablog/2013/jan/17/football-ticket-prices-premier-league-europe. [Accessed in May, 2013].