Finance Committee to Look at Rose Bowl Revenue Opportunities

The City Council’s Finance Committee will look at revenue opportunities for the Rose Bowl at its meeting at 2 p.m. on Thursday.

The discussion comes a month after the committee unanimously recommended that the city assume the Rose Bowl Operating Company’s $11.5 bond service debt for fiscal year 2021, along with several million additional dollars in operating expenses to aid the stadium, which is faced with the grim prospect of holding no events in the foreseeable future.

Revenue at the stadium has been devastated by the coronavirus, which forced the cancellation of major concerts, and that has left the 2020-21 college football season in jeopardy, including the Rose Bowl game in January.

Earlier this week, the Turkey Tussle, the annual homecoming game between cross-town rivals John Muir and Pasadena high schools, was canceled.

“If at all possible, we will hold the Turkey Tussle,” Rose Bowl General Manager Darryl Dunn told Pasadena Now after the CIF moved football to a December or January start provided the virus has subsided.

Some money coming in, but football

The Rose Bowl Operating Co. has successfully expanded its relationship with AEG, which has led to a contract amendment for staging music on Brookside Golf Course after the pandemic. The RBOC has also entered into a ticketing agreement with AXS (a division of AEG) that includes a $500,000 signing bonus.

The ticket deal will increase major event revenues by more than $100,000 per event and includes an upfront payment of $500,000 in January.

Since reopening, Brookside Golf Course has been generating more revenue for golf than it has in more than 10 years. If demand remains high, golf revenues will exceed expectations by about $500,000.

The Rose Bowl Legacy Foundation has received more than $800,000 in pledges during the past two months.

Despite the good news, staff still believes it is critical that college football be played this year.

Three scenarios are being considered. One would be no season and a second would be a truncated season that starts in September that would see an expected 25 percent reduction in attendance. Either 13,000 fans could attend the games, due to social-distancing guidelines, or no fans would be allowed to attend at all. Under that scenario, no Rose Bowl Game is mentioned in the staff report.

Under a third scenario, college football would begin in the spring and the Grandaddy of Them All would be held at the conclusion of the season. That scenario could also include a 25 percent reduction in attendance, 13,000 fans per game or no fans at all.

Here’s the short term

According to a report in the agenda, staff has pivoted to use the site for events that can still take place safely such as the drive-in movies being held at the stadium.

“Staff has found that there is significant interest in the Stadium site as a location for socially distanced events,” the report said. “The RBOC is currently working with the live event industry to determine what events would look like. While the stadium capacity would be dramatically reduced, [potentially under 15,000 attendees] there could be opportunities to host events such as concerts that had previously been staged in arenas or amphitheaters.”

One concept being bandied about is a Rose Bowl restaurant. It would be a partnership with local restaurants and placed on the edges of the stadium field, with capacity for more than 150 guests per seating.

This series would allow local restaurants that don’t have adequate outdoor seating to serve guests on the field level at the Rose Bowl.

Other ideas include a studio/film/streaming partnership. The RBOC is in talks with multiple studios and streaming companies looking to rent area in and around the Rose Bowl for ticketed events.

Conversations are also ongoing with groups about hosting premieres for programming that would normally take place elsewhere in the region.

Staffers have also created concepts for socially distanced enterprise events, including stadium field picnics, Final Fridays (plot assigned), golf-course tailgate events, socially distanced assigned seating in the Rose Bowl area, graduations, town halls and conferences.

Now the long term

Some projects were already under way before the pandemic to bridge the budget shortfalls facing the RBOC.

Because capital dollars will be limited in the short term and, potentially, in the long term, an emphasis has been placed on projects that are funded by outside partners/donors and/or ones that provide a positive return during the next five years.

These events focus on music, family entertainment and the Legacy Foundation.

Music is king

Before the cancellation of events, K-Pop sensation BTS was scheduled to play three concerts at the Rose Bowl. During the past several years, some of the biggest stars in the music industry, including Beyonce, Jay-Z and One Direction have played in the stadium.

According to staff, “staying relevant in the music landscape is vital to the long-term viability of the Rose Bowl Stadium.”

According to the extension with GoldenVoice/AEG the Music Festival will continue, along with smaller single-stage programming throughout the summer months.

There are also two music-event possibilities being considered, one of which would increase stadium capacity for concerts and another that would provide a semi-permanent stage for smaller events.

The South End Seating Project would increase stadium capacity for concerts while at the same time providing field-level hospitality for sporting events.

The other Arroyo Stage concept would allow for smaller- attendance music events with 8,000 to 15,000 fans throughout the summer months on a semi-permanent stage on the north end of the stadium footprint.

“It is the staff’s opinion that once there is a vaccine, there will be significant programming opportunities for smaller single-stage events and staff is working to take advantage of this market condition,” according to the staff report.

It’s a family affair

Net revenues from golf have provided the RBOC with an opportunity to supplement stadium revenue for years. However, due to the declining revenues in the golf industry and rising expenses, it is not a sustainable long-term model, even with the current increase in revenue during the pandemic.

The RBOC is considering expanding the driving range, which is too small for a 36-hole golf course. Research of similar properties has shown that increasing the range capacity from 20 stalls to 60 stalls and other modifications could bring in an additional $800,000.

The RBOC has initiated the process of an environmental review of this project and is identifying funding sources for this potential capital project.

Other potential money-makers include miniature golf, which could bring in $500,000 per year, and putting underused areas into use.

All about the Legacy

Legacy will launch The Rose Bowl Institute, which would educate youth and the community through programs related to the values of sports.

Sports has a great power to unite people, Legacy believes, and coupled with the Rose Bowl Stadium’s brand, the aim would be to inspire and empower through educational programming.

The institute will leverage the stadium’s iconic events of the past near-century to provide an educational forum to youth and community in both public and private settings about key sports values such as sportsmanship, leadership, teamwork, ethics, integrity and inclusion.

The Rose Bowl Institute is planning two educational programs for youth and community in 2020:

2nd Annual Women’s Empowerment Symposium – This will bring female students together in a private setting with female business leaders and athletes to discuss confidence, empowerment, leadership, and personal growth.

JACKIE 2020 – a public program that focuses on the life and lessons provided by Pasadena icon Jackie Robinson, who broke the color barrier in Major League Baseball, and the importance of those lessons today.

“The Rose Bowl will soon celebrate its centennial and is still as relevant and important as the day it was built,” Dunn wrote. “That is a credit to the City of Pasadena for leading it through the past 100 years. The times ahead will be difficult but with challenge comes opportunity. Through innovative thinking and community support, America’s stadium will stay vibrant and relevant for another century.”

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