Unit 1 Venue MGMT Test

What are the key management skills?

- ability to negotiate - ethics - managerial leadership - team building - balance costs with earning a profit - entrepreneurial instincts - ability to communicate effectively

What are the advantages of private management?

- fewer bureaucratic controls - may provide investment dollars to the venue - industry connections to drive event bookings

auditorium

- flat floor - stage at one end - balcony on one or both ends

Complex

- includes two or more venue types - operates under one single management structure

Convention center

- large indoor venue - various meeting room sizes

sources of part-time laborers

- managed in-house - contracted out to private companies (security) - contracted out to a union (stagehands/rigging)

stadium

- open air or domed - fixed seats or bleachers surrounding the field

Conference center

- state of the art meeting rooms - home to small scale meetings and conferences

examples of special event venues?

- tennis stadiums - natatoriums - motor speedways

Why is cash management important?

-Sales and Profits are not the only critical concerns for a family business -CASH FLOW can determine the success or failure of the business regardless of sales and profits! -Working capital management is critical -Look to the balance sheet for working capital

Types of Venue Ownership

1. public ownership 2. private 3. ownership by academic institutions 4. ownership by non-profits

What are the four stages of the operating budget process?

1. research 2. presentation to senior mgmt 3. approval by way of voting 4. execution (putting the $$ to work)

what are the merch splits for soft items?

80/20

what are the merch splits for hard items?

90/10

fiscal year

A one-year accounting period that does not correspond to a calendar year

example of a complex?

Cannery complex (w/ mercy lounge, high watt)

Why are time and space important?

Determines how many and which events that you can have -- which in turn influences how much revenue is made

Why was it important to do settlement the night of the show back in the day?

Everything was cash and if you didn't do it the night of, you could get stiffed or miss out on monies

T/F. Audits should always be scheduled and announced to make sure employees are not surprised.

False. You audit to make sure that no is stealing and to identify inconsistencies so it is beneficial to do surprise ones

Why do venues typically contract out stagehands and riggers for show?

For a quality job, certainty of safety, and for liability reasons

What is an example of an auditorium?

Nashville Municipal Auditorium

amphitheater

Open air venue with a permanent stage. Has both permanent and lawn seating

Performing Arts Venue

Permanent stage and seats - Sloped floor

Scaling the House

Pricing tickets differently based on location of seat and/or time of purchase

reports the financial performance of a venue for a specific period of time

Profit and loss statement

physical plant

Refers to the equipment commonly associated with the heating, ventilation and air condition (HVAC) system, electrical distribution system, plumbing/sewage system, etc. within a public assembly facility.

What does "RFP" stand for?

Request for Proposal

Transient Occupancy Tax (TOT)

Tax placed on hotel/motel room rentals. Generally part of this revenue is used to market the destination and may be used for financing the operation of convention facilities. Also called BED TAX, ROOM TAX.

Name an example of an amphitheater

The Hollywood Bowl, Ascend, Red Rocks, etc

overhead costs

The costs not directly related to the production or selling of goods.

Debt Service

The schedule for repayment of interest and principal on a debt security

Who is responsible for handling all ticket revenue from the point of sale until the settlement?

The ticket office at the venue

What is the goal of event management?

To provide a positive event experience for both guests and clients

T/F. You are selling your venue not just to the audience, but also to the artist who is playing?

True. FOH and BOH are both important and influence the overall success/mood of the show/event

T/F. tour accountants are typically travel with the tours they work for

True. They stay with the tour at each stop and do all of the counts

operating budget

a budget for day-to-day spending needs

Request for Proposal (RFP)

a document that identifies the needs of the issuing entity and required capabilities, experience, and projected costs necessary to complete a project

settlement sheets

a document that provides a detailed itemization of an event's revenues/expenses. Outlines distribution of monies to promoter and venue

All in rental structure

a flat rate includes rent and most other expenses

cost accounting

a method of accounting that emphasizes determination and the control of cost, particularly the costs of production and the final product

incremental budgeting

a method of budget making that involves adding new funds (an increment) onto the amount previously budgeted (in last year's budget)

balance sheet

a statement of the assets, liabilities, and capital of a business or other organization at a particular point in time, detailing the balance of income and expenditure over the preceding period.

Mission Statement

a statement of the organization's purpose - what it wants to accomplish in the larger environment

feasibility study

a study conducted to see if a certain building project would increase tourism revenue. ie. is the investment worthwhile?

How far in advance are convention centers usually booked?

about 2-3 years

capital expenditures

amounts set aside for real estate, equipment, furniture and fixtures, and certain major repairs

production rider

an addendum to the event contract detailing an event's specific requirements in terms of stage location and size, sound and lighting equipment, mix locations, catering requirements, and other pertinent information

Private Management

an outside operator who specializes in the management, marketing, and operation of public assembly venues who has been contracted by the venue owner to provide day-to-day management of the venue

capital improvements

an upgrade, addition, or replacement of a venue asset. These upgrades may be to the venue, its vehicles, equipment, or other assets with a significant dollar value and an extended life cycle

capital expenditures report

annual report that shows capital improvements made during the year so that the stakeholders can see how their money is being used to upgrade and improve the venue

tax increment financing

assessed to a local business that directly benefit form events in a venue

variable rent based on space used

based on square footage of events

Build out the experience in FOH and BOH in order to make your venue more ________

competitive

Promoters

contracted persons or companies responsible for expenses, production, and promotion of an event

What type of venue is the Music City Center?

convention center

event management

coordination of all event related activities

_________ is the assignment of costs to one or more public assembly venue expense categories.

cost allocation

assignment of costs to one or more public venue assembly venues is...

cost allocation

The financial process a venue manager completes with the promoter or tenant to calculate and finalize the ticket revenue and event expenses after the event is referred to as the... a. audit b. closing c. financial summary d. settlement

d. settlement

per person rental structure

determined based on fixed amount per person

cost allocation

division of cost of goods/services over a number of cost centers, such as the ticket office

exhibitions

event at which products and services are displayed

trade shows

expositions held for members of a common or related industry, which may not be open to the general public

T/F. The success of a public assembly venue is not dependent upon effective business and financial operations

false, IT IS

T/F. Promoters always make a profit on concerts in large-capacity arenas (18,000+ capacity).

false, all expenses must be covered before the promoter gets their cut and sometimes shows don't break even

T/F. Most public assembly venues are built with private money

false, money comes from taxes or other public funds

T/F. Venue ownership by non-profit organizations is more likely to occur in multi-purpose arenas.

false. more likely to operate

what is the most important tool when deciding whether or not to start building a venue or raising capital for its production?

feasibility analysis

___________ is needed to for a venue to be competitive

flexibility

changeovers

frequent changing between multiple events at venues (ex: basketball, hockey, concerts, exhibitions, rodeos, etc.)

rigging

general term for the ropes, chains, and gear used for the supporting and operating mast, yards, booms, gaffs, and sails

stagehands

generic term for backstage personnel- often secured through local union

what is the difference between hard merch and soft merch?

hard = music and physical music, soft = merch, hoodies, t-shirts, wristbands, etc

governing body

highest authority of a venue's ownership

first domed stadium opened in 1965?

houston astrodome

Net Income

income minus expenses for a specified accounting period or for a particular activity

runners

individuals familiar with the community who are employed locally by the act or promoter to provide a means of transportation for crew members and serve as a "gofer" for the day

Arena/Coliseum

indoor venue with fixed/portable seats surrounding open floor area and permanent/portable stage trade shows, meetings, concerts

Co-promotion

joint participation in the revenues/expenses and profit/loss from an event

Fixed assets are ______ and _______ over time

long-term, depreciate

Accounts Receivable

money owed a company by its clients or customers who have promised to pay for the products at a later date

Capital Reserve Fund

monies reserved for long-term capital improvement projects or any other large and anticipated expense that will be incurred in the future of the venue

Role of the finance department

monitor, report and forecast all financial activities of venue

premium seating

offering seating that is more desirable at an additional cost for consumers who have a higher demand with the means to attend a particular event

Booking the venue is sometimes _____ to promoters instead of being done in-house

outsourced

Crowd Management

proactive organizational strategy which guides venue personnel in providing and maintaining the desired event environment

risk assessment

process of evaluating security and frequency of loss associated with a particular activity or event

Risk Management

process of identifying risk and the analysis of the likelihood, frequency, and severity of the risk

___________ takes on the financial risk in booking shows

promoter

Tax Increment Financing (TIF)

public financing method that is used by local government to fund redevelopment, infrastructure and other community development projects

most common type of ownership/mgmt structure for public assembly venues is

public ownership/public management

Line-item budgeting

puts primary emphasis on objects of expenditure for control purposes

per person rental structure + expenses

rate determined upon fixed amount per person in attendance PLUS expenses

Accounts Payable

refers to balances owed to others

audit

review of venue finances, operations, mgmt process and practices

Ancillary Services

services like food/beverages, merchandising, novelty sales, parking that provide additional revenue sources for the venue

flat rate and expenses

set amount and event costs included in the settlement

PCI Compliance (Payment Card Industry)

set of requirements designed to ensure that all companies that process, store, or transmit credit card info maintain a secure environment

Percentage of Ticket Sales

sometimes called co-promotion or co-production

point of sale (POS)

specific location where a customer makes payment in exchange for goods/services

Profit and Loss Statement (P&L)

summary of a company's revenues, costs, and expenses within an accounting period

what is a mgmt trend in the sports realm?

teams manage the venue

Front of House (FOH)

the areas of a venue to which the public typically has access

ingress

the entering of people or vehicles from designated areas

egress

the exiting of people or vehicles from designated areas

Zamboni

the large machine that cleans the surface of the ice hockey rink

event production

the process of providing the services and equipment necessary to properly stage an event

what venue type typically has a sloping floor?

theater, performing arts center

secondary resale market

ticket market that exists between fans or customers and brokers of event tickets after they have been purchased from a primary ticket market (can be facilitated through authorized broker)

What are the two main commodities of a public assembly venue?

time and space

T/F. Cities typically own the venue, but promoters book and control the calendar

true

T/F. The cost of private management may be offset by increasing revenues and decreasing revenues

true

T/F. Venues may withhold rent and expenses from ticket receipts or collect an amount equal to the promoter's financial obligation to the venue

true

There is no standard, single form of organizational structure within venue management industry

true

T/F. For most venues, the largest expense category is personnel

true - lots of ppl to employ

T/F. The venue manager must develop a cohesive relationship with the director of finance to create and successfully manage the venue's annual operating budget

true!

T/F. Venue mgmt is responsible for org's nine core functions

true!

T/F. well delivered ancillary services can enhance the event experience while elevating the bottom line

true!!

Event Operations

various units needed to operate the event and venue such as technical staff, sound and lighting operators, laborers, electricians, changeover crews, maintenance staff

event contracts exist between the _______ and the _________

venue, promoter