Cost Of The Verizon Wireless Arena example essay topic

Building facilities like the Verizon Wireless arena and other large sporting and special event venues can be costly. The cost of the Verizon Wireless Arena cost roughly $60 million dollars to compose. Many factors go into this finalized $60 million dollar facility, such as the cost per square foot, the cost per A and B space, and operational costs. To figure out how much money goes into the arena, it is important to keep track of how much income is generated and what forms of marketing and fundraising are done to promote and create profit for the facility. The Verizon Wireless arena has 230,000 sq. feet, which makes the cost of the facility, $260.87 per square foot. There is a vast amount of costs associated with the operation of the arena, for example: The furniture, fixtures, and equipment purchases- everything from the folding chairs, tables, basketball court, hand tools in the shop, office computers, Zambonis and the scoreboard are just some of the items off a list that is seven pages long in very small print.

Other overhead costs include water, sewerage, electricity, phone service, internet access, natural gas, cable TV, staff salaries, and benefit packages. In order to upkeep all the equipment and technology the facility has daily operational costs, these include: labor and materials to repair damage, upgrading of current systems, maintain capitol equipment and perform preventative maintenance. In addition, each event within itself has its own related costs such as: labor and material that are requested by the event that are used exclusively for the event, for example: propane gases for pro special effects, business equipment the show needs that we rent locally (copiers, fax machines, etc. ), labor to convert the facility from hockey to concert mode, event housekeeping, event staff (security, ushers, supervisors, ticket takers, etc. ).

In order to stay in business a facility must make a great amount of income to flourish in its industry. There are many forms of incoming profits from many sectors of the arena. The most important form is Patron generated sales: tickets, premium seat packages these packages are VIP suites, party suites and club seating. Food and Beverage help to keep the customers satisfied while being entertained by events and is a big money maker.

Merchandise is sold at each event and the arena even has its own store for Monarch hockey gear and the football arena team the Wolves sell souvenirs as well. Some of the other items sold during events are CD's, t-shirts, posters, and programs. Advertising staff does a great job in promoting the arena and brings in a great amount of income for the facility. The hockey team also receives an income from the in-ice ads, dasher board ads, dasher board rotational ads and the ads on the Zambonis, the arena also gets income from all other advertisements in the arena. These advertisements can be seen on the overhead big screen during events, banners throughout the facility, and advertisements on the guardrail of the rink.

On the other hand Event / Show related sales bring in a huge profit for the act coming to the facility gets charged for EVERYTHING the facility does to accommodate them. Starting with facility rent, ticket surcharge, equipment usage - there is a charge for everything, if you use a forklift, if they want phone service, if they want high speed internet access, and that means everything from the chairs they sit on, the tables they work on to the washing machines and dryers they use to do their laundry and the stage they perform on. All of this is billed to the entertainment that uses the Verizon Wireless arena as a host. All of this creates a great profit for the arena however the total income generated is confidential and could not be retrieved from research. In order to keep the facility so successful the Verizon center has a strong marketing team. The team gets together and uses traditional marketing media like TV, newspapers, magazines, and radio.

Their website, local bus shelter signage, the centers marquee out on the corner of Elm St. and Lake Ave., posters in store front windows and industry publications like Poll Star, Facility Management, and Hockey Business News all help to promote the facility. The Manchester Monarchs are the main charitable organization related to the arena although many of the facilities events like the WWE, Harlem Globetrotters and Disney on Ice do personal appearances at local schools and hospitals. The Verizon center on occasion contributes tickets and / or merchandise to charitable organizations to use in raffles and the office usually walks in the Manchester March of Dimes walk-a-then every year.