This is Buying Sideline — the only newsletter that focuses solely on the business of sports hospitality.
Big week. Let’s get to it.
In the email today:
🎡 The US Open To Become Tennis Disneyland
USTA CEO Craig Tiley has big plans for Tennis’ final major. "Tennis Disneyland" Tiley said in his opening press conference. Expanding on his comments, the future growth of the Slam will “not necessarily [come from] increasing the length of an event, but there’s more opportunity within the event to develop activities and activations."
Now you’ve seen headlines about the event’s sticker shock, but what you won’t see many writing about is the demand. The USTA’s financials show just how popular the event has become in a short time:
Broadcast Revenue
2021: $149.1M , 2024: $145M (-2.6% decrease)
Ticket Revenue
2021: $151.7m , 2024: $208.5m (+37% increase)
Hospitality Revenue
2021: $41M , 2024: $83.3M (+103% increase)
The new opportunities that will continue to inflate these numbers consist of viral food options like Salt Hank’s French Dip, 2,000+ new courtside seats, and a re-designed Emirates hospitality suite to mark their 15th year sponsoring the event.
The US Open has also created a giant ecosystem that doesn’t just fit inside its four walls in Queens. Hotels like the Waldorf Astoria turned their Grand Ballroom into a full-sized tennis court for one night only and offered premium experiences to watch the best in tennis play, unlimited F&B, and other VIP experiences like meet-and-greets starting at $1,500.
Our Take: I was at the US Open on Tuesday for the first time ever and after experiencing a day at Flushing Meadows, Tiley’s “Tennis Disneyland” vision makes total sense. The place is a F&B paradise, luxury brand activations cover the grounds, and I fully understand the hype of the Honey Deuce. We bounced between matches, merchandise tents, a Cadillac showroom, fan experiences, and lounges for 8 hours. That all helps explain USTA’s numbers above.
As broadcast revenues stay stagnant or, in this case, decline, you’re going to see more right holders focus on monetizing those who do show up. And they’re showing up.
But this revenue chart is a real standout here, and something other right holders will quickly learn from:
Broadcast rights headwinds, but BOOMING ticket and premium sales. IRL is real, and it’s spectacular.
More: I didn’t buy premium hospitality, but I did get into the Amex lounge for an hour (video to follow in Friday’s newsletter). Though the reservation process was a bit hectic the food by chef Mike Solomonov was excellent, the complimentary tote was loaded with amenities, and it might’ve been all worth it just to get away from the rain and crowds for an hour and relax. That last part shouldn't be overlooked. At a massive event, comfort, convenience and access are increasingly becoming products. When you explore the grounds and see virtual queues managing demand, clubs and restaurants getting people in earlier and making them stay longer, and brands providing experiences rather than just showing up with signage, you understand that the US Open has become a hospitality and entertainment platform that happens to have a tennis tournament at its center.
🏈 Chiefs To Develop Mixed-Use Projects Around New Stadium, Team Facility
The Hunt family, owners of the Kansas City Chiefs, announced the formation of a new company that will lead two development projects around the franchises’s future stadium and team facility.
Two-Point Development — a nod to Lamar Hunt’s championing of the NFL to adopt the two-point conversion — brings the Chiefs together with Hunt Midwest, the family’s real-estate business.
The company will look to both design and develop a mixed-use district around the Chiefs’ future Kansas City, Kansas home (set to open in 2031), featuring hotels, restaurants, housing, and gathering spaces.
A second project around the Chiefs’ future headquarters in Olathe, Kansas will include team-anchored public gathering and living spaces.
“This partnership will create two dynamic districts, provide memorable experiences for residents and visitors, spur meaningful economic growth, and fundamentally transform the footprint of the Kansas City metro area,” Chiefs chairman and CEO Clark Hunt said in a release.
Our Take: The formation of Two-Point Development is the latest example of professional sports franchises and big-time college athletics expanding well beyond the game day experience. Like The Battery Atlanta, a mixed-use district planted around the Braves and Truist Park, the Chiefs view their new stadium project as an opportunity to create a team-led, year-round destination — an ecosystem formed around the franchise, if you will.
Coming to a city near you, too.
🚧 ALUM Announces Plans For Oklahoma Expansion
We’ve been keeping a close eye on Alum, the college-driven hospitality and real estate company, that is looking to bring luxury hotel suites, condos and members-only clubs to prominent universities around the country.
With plans already underway in Tuscaloosa, AL, home of the University of Alabama, Alum announced earlier this week plans to build in Norman, OK, home of the University of Oklahoma.
Boomer Sooner.
Plans for the project, which targets a spring 2027 start date, include:
Rooftop spaces with views of Gaylord Family Oklahoma Memorial Stadium
50 to 75 one-to-three bedroom suites
4,000-square-foot fitness facility
300-person event space
Podcast and media studio
A ground-level cafe (open to students and the general public)
“Norman has been one of the great college towns in America since 1890,” Alum CEO David Vialli said upon announcing the planned project. “Our goal is to create a year-round home for the OU family — not just a place to stay, but a place to belong.”
An exact location for the proposed project, which remains subject to city approval, has not been announced. It’s also currently unclear if the latest project will include an ability to outright purchase luxury residences, which is a core concept of Alum’s larger business model.
Current available Tuscaloosa listings range from $819,000 to $1,689,900.
Our Take: Alum’s expansion plans include Ann Arbor (University of Michigan), South Bend (University of Notre Dame), and Eugene (University of Oregon), but it’s coming out of the gates with a pair of SEC plays. That’s not a bad bet considering SEC schools not only boast rabid fan bases, they also boast an increasingly large out-of-state student body and alumni populations. Those two factors are a perfect combination for Alum’s business model.
📝 News And Notes: California Style
BMO Bank named the Official Bank of the Los Angeles Lakers. The partnership includes sponsorship on the Courtside Reserve floor seats and a club on the event level to support a new premium gameday experience. Lakers CBO Lon Rosen said, “This landmark partnership signals a paradigm shift for how the Lakers will partner with brands moving forward, building and curating impactful programs to engage fans and serve shared businesses."
An insider report on Elevate and UCLA’s ticketing partnership shows how a venue change can unlock premium inventory. Elevate is betting on UCLA to move from the Rose Bowl to SoFi Stadium for more “modern premium inventory and corporate base.”
Stanford athletics announces naming rights deal with Fortinet. The cybersecurity firm will sponsor the Director’s Level premium hospitality area during home football games.
Levy was tapped by Sacramento Republic FC to be the hospitality partner for their new stadium. The all-inclusive hospitality experience will reflect the theme of “Sacramento Elegance” which influenced the design of all clubs, lounges and suites throughout the venue.
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See you on the field.