City Council OKs New Music Festivals Contract Which Could Earn Rose Bowl Stadium Millions Every Year

The City Council on Monday approved an amended contract between the Rose Bowl Operating Committee’s (RBOC) and music entertainment presenter AEG which would authorize the increase of musical festivals allowed in the Rose Bowl stadium and the Brookside Golf Course per year.

By one estimate, the additional events could generate $11 million in revenue per year.

In the same meeting, the City Council has also required RBOC to come back no later than April to discuss further information including its long term plans for the Rose Bowl, capital and revenue opportunities, as well as details about the reduction of the projected general fund distribution to the Rose Bowl in the upcoming years as result of the deal.

Representatives of surrounding community associations were asked to submit comments. The Linda Vista-Annandale Association expressed concern about the increase in the number of allowed activities. The East Arroyo Residents Association (EARA) said in a letter to the Council that it supported the RBOC’s request for additional temporary displacement events due to the stadium’s pressing financial needs.

The EARA asked that a task force be convened to review the operations of RBOC and “how it is required to fund its operations,” and to make definitive recommendations.

The Arroyo Public Lands Ordinance, which establishes guidelines and policies related to the administration of the Arroyo Seco, including the Rose Bowl, limits the events that displace recreation in the stadium and the Brookside Golf Course to no more than 15 in any calendar year to achieve a balance between the use of these facilities and the impact of such use on surrounding residential areas.

Concerts, or football games that exceed 20,000 attendees are labeled as displacement events.

Currently, the RBOC is allowed to host up to nine football games and six music festival events every year but with the council’s approval of the deal, the RBOC can now host up to 10 music festival events per year.

Additionally, the approval of the deal will allow the RBOC to continue its existing contract with AEG on enhanced terms, specifically an increase in the minimum rent from $2 million in the previous agreement to $3 million per year and an increase in the contract term, from two years to five years.

The RBOC said the new percentage of rent calculation and the higher frequency of musical festivals could result in millions in net revenues.

According to RBOC staff, the additional events will not create undue conflicts with the Arroyo Seco activities taking place at the same time and the surrounding residential areas, considering that these events are considered “mid-sized” events with a capped capacity of up to 50,000 attendees.

In comparison, attendance for football games ranges from 60,000 to 85,000 or more.