SPORTS DEVELOPMENT PROFILE

from PUSH Magazine, Volume 1, Issue 2

8 REASONS TO TAKE A VACATION

JASON CLEMENT

What is your title? CEO, Founding Partner, Sports Facilities Advisory, Sports Facilities Development, Sports Facilities Management

Having three areas of focus, describe your current organizational structure.

SFA, SFD, SFM are all separate LLC partnerships. We have 4 members (partners) of which I am Managing Member. The “Sports Facilities Companies” meet monthly as an ownership group with our executive leadership team. Each of our managed venues have standing meetings with facility owners, and their frequency is based on the age of the operation. Newly opened venues typically have weekly and monthly meetings. More mature operations meet monthly or quarterly and in some cases semi-annually if the building owner desires.

How do you package construction financing and forecast facility revenue?

Each venue’s revenue breakdown is unique. We build the operating model and revenue strategies based on the goals for that particular complex. The construction financing includes tourist development tax, hotel tax, new market tax credits, various state incentives, based on the community needs some federal funding sources, and more. Operating incomes include tournament, event, food and beverage, sponsorship, marketing partnership, unique programming and some innovative solutions related to use fees we bring as part of the SFM Network.

How do you plan around a facility’s focus?

Our mission is to “Improve the health AND economic vitality of the communities we serve.” We best accomplish the mission by creating a hybrid model custom blended based on the unique market conditions and goals of each community. We manage a variety of venues focused on sport tourism, event production, local recreation and fitness. They include traditional turf, courts, ice, aquatics, climbing, family entertainment, fitness, sport performance and more. Each venue’s unique attributes and community needs require serious attention to both the qualitative and quantitative objectives for the development.

Do you have any examples of how your facilities were used in non-traditional ways?

Our goal is to provide an exceptional guest experience no matter the activity in order to accomplish the initial goals for developing the property. The programming scales beyond sports to concerts, black-tie banquets, conferences, tradeshows, e-gaming, and a wide variety of other nonsport activities.

Specific examples of these events not originally anticipated as the typical purpose of the venue include hosting a 5k/10k fun run and beer festival at our Hoover Met Complex. During the 2018 Gatlinburg fires our facility was temporarily adapted into a headquarters for emergency responders and displaced families – in fact our team held a Christmas party complete with Santa Claus for those displaced families.

We do our best to get creative and make happen whatever is in our client’s best interest, support the local community, and in-line with the goals of the facility.

How closely do you work with DMOs/Sports Commissions on scheduling events at the facilities you oversee?

This varies depending on the community. In some venues, the CVB/DMO/Sports Commissions have a lot of experience and are great partners. In other locations, we essentially play the role of the DMO or Sports Commission. In either

scenario, we leverage the SFM Network of qualified and proven rights holders, promoters, and event providers. The SFM Network either fills the venue completely or rounds out the edges and fills the gaps provided by DMO’s and Sports Commissions. We collaborate very well because we align our goals with the property owner. We celebrate collaborative success because we enjoy working as a team.

SFD is a relatively new venture for your overall portfolio, how has this effort evolved and did you see an area of focus due to past positive and negative experiences during the project design phase?

Our venue planning, procurement, and owner’s representation services during the design and construction cycle are a direct result of recognizing a need in the industry.

At times, we have been called in to manage after a complex has opened or during construction after many of the design decisions have been made. In those instances, unfortunately the operation was saddled with less-than-optimal lay-outs, space adjacencies, and minimal working capital because too much was spent on construction elements or equipment. So we formalized the services where we either represent the owner, advise the owner, or saddle up to design-build teams in order to set the project up for the best shot at success. This includes utilizing our buying power on sport-specific fixtures, finishes or equipment to get the very best value on behalf of our clients which may be realized in savings or re-investment in other areas of the facility. We are also advising the owner/architect/contractor on critical decisions and building efficiencies saving hundreds of thousands on downstream staffing, maintenance, or utility costs.

When using your revenue per square foot analysis, how are you able to plan for opportunities during the SFD phase of a project? Are these opportunities sports specific, merchandising or rental fee oriented, etc?

I would answer this in two ways: The first is cost containment in reducing the construction per square foot cost due to our experience, network of quality vendors, minimizing design-construction time and reducing operating costs. Smart design-build equates to more efficient staffing, energy, and maintenance models.

The second is maximizing the revenue per square foot by proper placement and design of revenue generating spaces. Examples include food and beverage offerings, family entertainment activities, technology trends to activate sponsorships and gaming opportunities, right-sized retail, and vending. Additionally, the specifications for the design of the sport activity and spectator areas are evolving in order to create the most flexible environment to host the

JASON’S TOP 3

1What do you enjoy doing when you are not working?

2Spending time with my family. Riding in the annual RAGBRAI bike ride across my home state of Iowa. In 2019, I joined a group of 13 guys by climbing Mt. Kilimanjaro to raise funds for orphan-care. We are going again in February of 2021 if you are interested! What is your favorite annual sporting event?

The SEC Baseball Tournament.

This tournament is special to me for a few reasons: 1) I love college baseball and the SEC is as good as it gets. 2) The event is played at the Hoover Met Stadium, and the environment that week is like a carnival where baseball happens to break out. 3) My brother is the hitting coach at Ole Miss so it is a great opportunity to spend time with family.

3What are three things you always travel with?

My running shoes/attire, my iPad, and the Bible.

next generation of sports and non-sport activities. The right technology infrastructure is important as well in order for the venue to remain relevant. To the best of our ability, we are thinking beyond the first five years to the next couple of decades.

Jason, it seems as though the Hoover Met Complex is thriving, what can you tell us about SFM’s involvement? Have there been any challenges along the way?

We have just finished the first full fiscal year at the Hoover Met Complex with all areas built out.

This complex includes a 30+ year old meticulously maintained 10,000 seat stadium; 160,000 sf event center; a 100+ RV park, accessible playground, splash pad, 12 tennis courts, and numerous outdoor turf baseball, softball and soccer fields.

Aside from the stadium, the other areas opened up over the course of the last two years and represent a significant investment by the City and its taxpayers. Blending the local usage with sports tourism events in a manner that served their financial goals while providing access for parks & recreation as well as school usage was a challenge.

At the end of the first fiscal year with full operations, SFM reported 250,000 local participants in sport playing surface, splash pad/playground, and family climbing/entertainment usage. This was balanced by driving over $50 million in direct visitor spending thanks to sports tourism usage while we achieved the bottom line as approved by city council. Balancing the i) local usage - much of which is free, ii) achieving bottom line budget, and iii) driving $50 million in economic impact with multiple stakeholders has been a fun challenge and only possible by a collaborative effort with strong city leadership.