Venue Management Exam 1

In order to properly take care of promoters and agents, what is the best number of people handling booking and scheduling for a venue?

1-2

JQH Anchor tenants

1. Basketball 2. Events

JKH Revenue streams

1. Broadway shows 2. Rentals 3. Donations

JQH Highest expenses

1. Debt services 2. Utilities 3. Staffing 4. Supplies 5. Services

The 8 costs that contribute to overall venue cost

1. Expenses 2. Self- promoted event expenses 3. General and administrative expenses 4. Management salaries and benefits 5. Full-time salaries and benefits 6. Part-time wages 7. Utilities 8. Janitorial and maintenance supplies

Benefits of being a prime tenant

1. Guaranteed number of events each year 2. Increase naming and beverage rights, advertising signage, and premium seats 3. Generate media coverage & exposure for venue 4. Best/most reliable drivers of ancillary event revenues (concessions/parking)

JKH Highest expenses

1. Labor 2. Utilities 3. Maintenance

JKH Anchor tenants

1. Music department 2. Springfield symphony 3. AEG live

JQH Revenue streams

1. Seat license 2. Hammon's estate 3. Rentals

JQH Key success factors

1. Staffing 2. Relationship building 3. Fair business practices

What are the 3 distinct levels of holds

1. Tentative 2. Confirmed 3. Contracted

JQH Seating capacity

10,500

When a venue acts as an in-house ad agency, it's not uncommon to charge _________ percent agency commission.

10-15%

JKH building price

18.9 million

Complex venue

2 or more venue types, operates under a single management structure

JKH Seating capacity

2,200

JKH rental rates

2200 v. 10 & net adjusted gross, and ticket fee. (70/30 split)

JQH building price

67 million

JQH rental rates

8000 a day plus 10% net adjusted and expenses or 12,000 a day non ticketed

In all major professional sports leagues (MLB, MLS, NBA, NHL, and NFL), what is the most common ownership/management structure for the venues in which they play

A public owner and team management

________________ enables the requesting promoter to immediately gain top priority if the other promoter, with the first hold, releases it or fails to meet agreed-upon deadlines.

A second hold (challenging)

What are the core functions of the management of the concessions and catering operations?

Accounts payable and accounts receivable

The rental deal type that would require the promoter to pay a specified amount, which normally would include venue rental and staffing into one fee

All-In (Nut)

What venues could host a musical concert

Amphitheater, arena, auditorium, performing arts venue, stadium

Term used for the average amount of concession or merchandise sales per person

Ancillary Event Revenues

Members of a ________ are usually appointed by more than one elected body or officials

Authority

What a promoter might say when calling a venue to check dates and space. "What is your _______"

Avails

What reports a venue's financial status at a particular point in time and includes the venue assets, liabilities, and any applicable equity of the organization?

Balance sheet

Example of a consumer show?

Boat, home, auto shows

What are the two primary considerations when determining the duration of an event advertising campaign?

Budget and event sales history

If a venue management professional successfully completes the IAVM CFE program, he/she will have earned the designation

Certified Facilities Executive

Which public assembly venues have exhibit space, meeting rooms, banquet areas

Conference center - meeting rooms Convention / Exhibit center - all 3

The marketing and sales department is responsible for ___________, or in other words, meeting the venue's requirements as outlined in a contract with a sponsor or organization that has purchased various commercial rights within the venue

Contract fulfillment

Difference between Contract and a Rider

Contract is renting the venue Rider is the what the band, artist, production wants (green M&Ms)

CVB

Convention and venue bureau

What is the assignment of costs to one or more public assembly venue expense categories with the primary purpose of identify the cost incurred by each cost center in the production of that product or service

Cost allocation

Special event venue

Designed to to accommodate specific activities or events

What is the financial process a venue manager completes with the promoter or tenant to calculate and finalize the ticket revenue and event expenses after an event?

Event settlement

When should audits be scheduled and announced?

External: Annual occurrence Internal: Regular basis at any specific time

What is the most important tool used to determine whether or not to build a public assembly venue as well as the type and size to build?

Feasibility study

What are the different transactions / places where cash may be handled within the context of venue operations

Finance department Event contracts

In the United States a controversial event might be protected under the provision of free speech afforded by which Amendment of the Constitution?

First Amendment

Auditorium

Flat or raked floor, stage at one end, balcony on one or both ends

2 Types of traditional rent structures for a venue

Flat rate Percentage

The most common ancillary services offered to event attendees include all of the following

Food & beverage Merch sales Parking

JKH Staffing

Full - 12 Part - 80 Volunteers - 180

JQH Staffing

Full - 13 Part - 250+ Volunteers - none

Which acronym is used for the generally accepted accounting standards accountants use in recording and summarizing financial transactions and in preparing financial statements?

GAAP (Generally Accepted Accounting Principles)

Typical responsibilities of a venue's managing authority or commission

Hiring and firing venue manager Annual operating and capital budget approval Setting booking and usage policies along with rental rates Approving tenant lease agreements Providing direction for overall marketing strategies Overseeing risk management programs and insurance coverage Approving inter-agency or inter-jurisdictional mutual aid agreements

What used to be known as skyboxes and luxury suites have been renamed to __________ suites for tax purposes and shareholder concerns.

Hospitality

Another name for transient occupancy tax

Hotel/motel bed tax

The first domed stadium that opened in 1965

Houston Astrodome

In addition to a base management fee, a "private management agreement" (contract) often includes the potential for earning _________

Incentive income

Convention / Exhibition center

Indoor venue, large exhibit areas, various meeting room sizes

IAVM

International Association of Venue Managers

The financial systems used to track the significant amount of supplies and equipment used in a public assembly venue on a day-to-day and event-to-event basis

Inventory control

What is conversion / changeover

Labor and procedures required to change from one set-up to another

When do settlements take place for a theatre?

Local events: 1 business day Multi day events: After final performance

When do settlements take place for a convention center

Meetings/Conferences: Within 1 month Trade shows: Within 1 month Banquets: Within 1 week

What provides a basis for the governing body when making policy decisions regarding booking priorities, tenant oversight, reporting, and budget development?

Mission statement

NAGBOR

Net Adjusted Gross Box Office Receipts

What is the venue revenue remaining after expenses have been deducted? It may contribute to funding venue operating expenses, used for capital expenditures, or placed in reserve

Net income

When do settlements take place at an amphitheater?

Night of event

Do promoters always make profits in large capacity arenas?

No

Do promoters pay a fee to access the venue's customer database to promote their event?

No

Flat rate rent

One-time rent fee

Stadium

Open air or domed, fixed seats or or bleachers

Primary characteristics of an arena

Open floor Permanent or portable seating Permanent or portable stage

What is it called when you give away free tickets to fill the venue

Packing the house / Comp tickets

Percentage rent

Pay the venue a percentage of the ticket sales

Venue ownership by a non-profit is more likely to occur in?

Performing arts center

Performing arts venue

Permanent stage and seats, sloped floor

Amphitheater

Permanent stage, open air, both permanent and lawn seating

What does PSL stand for

Personal Seat License

In many university venues the university's __________ may provide support services such as utilities, maintenance, and grounds keeping

Physical plant

Sale of _______ _________ may represent a substantial percent of the venue's revenues including suits and club seats

Premium access

Which rental/lease model is the most popular with venue managers because it represents the greatest opportunity to make the most money

Prime tenant

What trend relates to professional sports team and the management of venues?

Pro sports teams manage stadiums where they are the prime tenants

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

Profit and loss statement (P&L)

In a standard flat rental deal, who is responsible for paying the rental fee and bears the bulk of the financial risk when an event is held in a public assembly venue?

Promoter

Who establishes the promoters advertising budget for each event?

Promoters

Are most public venues built with private or public funding

Public

What is publicity compared to advertising?

Publicity is unpaid

What is the most common type of ownership/management structure for public assembly venue?

Publicly owner venues managed by public employees

Which aspect of the booking process determines the viability of an event?

Qualifying the event

Another name for a sloped floor

Raked floor

JQH booking arrangements

Rental

JKH booking arrangements

Rental, used to be a promoter

RFP

Request for proposal

ROP

Run of press

ROS in relation to media buys

Run of schedule

What is it called when coming up with different ticket prices for different seating locations

Scaling the house

Conference center

State of the art meeting rooms, may provide sleeping rooms, common in a hotel

A road term used to describe merchandise sold on tour

Swag or Merch

T.I.F

Tax increment financing

When do settlements take place for a stadium?

Tenants: Monthly Concerts: Night of event Bowl games: Within 1 month

When do settlements take place for an arena?

Tenants: Monthly Concerts: Night of event Tournaments: Within 1 month

A promoter challenge may be issued during which level of hold

Tentative hold

First tier city, second tier city, and third tier city or market is commonly referred to as

Tertiary markets

What can a promoter assume based on a tentative hold agreed by the booking manager and the promoter?

The promoter is interested in leasing the venue

Which entity controls the money from ticket sales between the time the tickets are sold and settlement the night of the event?

The venue

How important is the venue's ancillary revenue sources with management?

They enhance event experience and help generate additional income for the venue

JKH & JQH Vendors

Tickets.com (tickets) and Ovations (food)

2 most important commodities for a venue

Time and space

What is the function of venue data protection policies

To have financial success and not schedule similar events close together

Which special tax is assessed to out of town visitors, saving local citizens the need for any additional tax?

Transient occupancy tax

To avoid comparable events being booked within a short time period, a venue may establish a ______________ to avoid confusion in the market place

Venue date protection policy

The different variables that help determine the appropriate event mix for a venue

Venue purpose Market Social and Economic Climate Common Demographics Availability of events Venue Capabilities

At which point in the booking process should the venue manager place an event on sale?

When it is contracted