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