Please send all questions and comments to JordanBaer1@gmail.com

Please send all questions and comments to JordanBaer1@gmail.com

Monday, December 12, 2011

Sioux Falls, South Dakota- We'll Go With 2 Arenas



All across the United States, and Canada as well, small and mid-sized cities are planning their future in the arena industry. One of those cities that is in the middle of their plan to improve their facilities is Sioux Falls, SD. Let's take a look at how Sioux Falls compares to our city...

Evansville, Indiana

Population: Roughly 116,000
Arenas of Note: Roberts Stadium: built in 1956- 11,000-12,000 seats; Ford Center; built in 2011- 9,000-11,000 seats
Proximity of Arenas: One is on the east side while the other is downtown
Referendum on New Arena? No
Indoor Football Teams- Bluecats (folded); Rage

Sioux Falls, South Dakota

Population: Roughly 153,000
Arenas of Note: Sioux Falls Arena: built in 1961- 6,000-7,500 seats; Sioux Falls Events Center- Getting ready to break ground, will open in 2014- 12,000 seats
Proximity of Arenas: They will be connected by the Sioux Falls Convention Center
Referendum on New Arena? Yes, it passed 58-41%
Indoor Football Teams- Sioux Falls Storm

Currently, Sioux Falls has one facility- The Sioux Falls Arena...

http://www.sfarena.com/



The arena, which turned 50 years old this year, has three tenants: Sioux Falls Skyforce (NBDL), Sioux Falls Storm (indoor football), and the Sioux Falls Stampede (USHL). Most notably, the arena hosts the Summit League Div I Men's Basketball Tournament each year.

Now, the arena is beginning to show its limitations in terms of attracting new business and new tenants to Sioux Falls. This prompted city officials to begin exploring their options. Like Evansville, Sioux Falls started out with 2 options: expand the current arena or build a completely new one. Immediately, it was recognized that building a new facility was the correct decision.

Then, city officials struggled with the location for the new arena. Over the past few years, the city has been split on building the facility downtown versus building it next to the current arena and convention center. In the end, it was decided that the new arena, which is now called The Sioux Falls Events Center, would be built on the other side of Sioux Falls Arena and The Sioux Falls Convention Center. If you haven't seen what the facility will look like, take a look right here...

http://www.siouxfalls.org/eventscenter



Starting out, Evansville had many advantages over Sioux Falls such as...

1. Evansville has two college basketball teams to occupy their facilities. Sioux Falls has no potential college basketball tenants.

2. The Evansville Icemen are a higher grade of hockey than the Sioux Falls Stampede.

3. Evansville will reap more economic benefits from the Ford Center due to it being in the heart of downtown.

4. Evansville's arenas aren't connected which will avoid traffic congestion for events occurring at the same time.

5. Evansville didn't need to go through a long and divisive referendum.

6. The Sioux Falls Skyforce of the NBDL are moving out of the Sioux Falls Arena in two years.

Yet in 2011, Sioux Falls, South Dakota is now positioning themselves to be in a better competitive position than Evansville in the sports industries. If you look closely at the two cities, you will notice that Sioux Falls has a completely different view and mindset about their two arenas.

Despite the Sioux Falls Skyforce announcing that they will move out of the current arena and into a nearby smaller facility, the city is still poised to keep Sioux Falls Arena even when the Sioux Falls Events Center opens up. Let's take a look at some of the quotes from the following article...

http://www.kdlt.com/index.php?option=com_content&task=view&id=13731&Itemid=57

The Skyforce will still play in the Arena for another two years. With the basketball team leaving and the new events center ready to absorb the Storm and the Stampede, some question what purpose the Arena will serve. Torkildson says he isn't worried about the Arena's future.

"It will still leave us more flexibility in bringing in some higher revenue generating events,” said Torkildson. “It's not like we are losing a team out of the community.”


Wow. Wouldn't that be nice if our city leaders saw Roberts Stadium and the Ford Center in this same light? Wouldn't it be nice if our city leaders recognized that the Ford Center is set up for higher revenue generating events while Roberts Stadium is set up for the rest of our events?

Mike Sullivan with the Sioux Falls Sports Authority agrees. Sullivan says while his main focus is to find events to put in the new events center, he says the Arena gives people looking to come to Sioux Falls more venue options.

"Things that find the events center too expensive or too big or whatever their case may be, then we will move them down into the Arena,” said Sullivan.

"It opens up time, dates, easier conversions and it will open it up for Mike Sullivan to book for those regional and even some of those national events,” said Torkildson.


Bingo! We heard from Mr. Scott Schoenike of VenuWorks and the Ford Center in last month's News4U that they would have to push events out as their schedule was already tight. Why don't we keep Roberts Stadium for those events that will still turn a profit even if it doesn't make as much money as the Ford Center needs it too? Keep in mind, the operating costs of Roberts Stadium are lower and specifically geared for lower revenue events just like Sioux Falls Arena.

Sullivan and Torkildson agree that although the Arena may not be used the same way as it is now, it won't sit empty.

"It's an old building but it's useful,” said Sullivan. “There is a lot of floor space and a lot of seating capacity in there so it will be used for things I am sure. It just gives us another option for when we go out and recruit events. I think it's a great thing for Sioux Falls.”

Officials say when the Skyforce moves to the Sanford Pentagon, it will free up a total of 24 dates at the Arena, which will be open to other events.


I sure wish these guys lived here in Evansville. In fact, I think mayor-elect Lloyd Winnecke needs to give these guys a call before he makes a decision on Roberts Stadium. We have two college basketball teams, a better hockey team, the same operator as Sioux Falls Arena (SMG), and an investor (Mr. Chip Rosetti) who wants to bring indoor football, minor league basketball, professional lacrosse, professional inline skating, and mid-sized concerts that we can pair with high school basketball tournaments, college basketball tournaments, small trade shows, and youth sports tournaments. It's all about mindset!

So why does Sioux Falls have a better mindset towards their two arenas than Evansville? Why do they refuse to set the two facilities as competitors? The answer to those questions is very simple: They want to compete with other cities not start a civil war with their own city. Let's look at another link that talks about this...

http://www.ktiv.com/story/15981346/new-events-center-in-sioux-falls-on-the-ballot-tuesday

"Voters in Sioux Falls, South Dakota are going to the polls to vote on whether to fund a new events center to compete with the Tyson."

Note: The Tyson Events Center is in nearby Sioux City.

"We're not getting any new business until we get a facility built," Sioux Falls, SD Sports Authority's Mike Sullivan said during an announcement of support from the Sioux Falls Chamber of Commerce.

Business leaders are pushing to replace their 45-hundred seat facility with a 12,000 seat arena to compete with Omaha, Minneapolis, and Sioux City, which typically holds around seven-thousand people.

"The economic impact of $36-$37 million a year is something we just cannot ignore," Sullivan said.

The above quotes are priceless when it comes to showing the difference between Sioux Falls and Evansville. Sioux Falls realizes that they must compete with Omaha, Minneapolis, and Sioux City and refuses to pit their own two arenas against each other. On the flip side, Evansville refuses to recognize that they are competing with Indianapolis, Louisville, Nashville, St.Louis, and soon to be Owensboro. Instead, they have pitted their own two arenas against each other. What city has ever won a civil war against itself?

What I have been saying on this blog since day 1 is what any educated professional in the sports management industry will tell you. What we do with Roberts Stadium and what we do with the Ford Center do not compete with each other. Rather, they should work hand-in-hand.

Instead of demolishing Roberts Stadium, why don't we move the tenants in that I have identified an investor for who will never be able to afford the Ford Center? Why don't we go after college basketball tournaments such as the Summit League Men's Basketball Tournament? Why don't we give USI a chance to grow? Why don't we move the lower revenue generating events out of the Ford Center and into Roberts Stadium so that our Ford Center is free to bring in higher revenue events?

If we have any desire to grow our city, we must think like Sioux Falls, South Dakota. Our competitors are our neighboring cities, not our neighboring residents. As nearby cities such as Owensboro grow, they will give Evansville a run for its money in the sports industry. Instead of shooting ourselves in the foot, we need to work together to improve our city. Pitting Roberts Stadium and the Ford Center against each other is no way to build a city.

Let's think like Sioux Falls, LET'S SAVE ROBERTS STADIUM!

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