Corporation of the City of Oshawa 2016 Budget General Motors Centre
INDEX
Page No.
Business Plan ...... 1
Program/Budget Summaries:
General Motors Center ...... 36 General Motors Centre
99 Athol SL East, Oshawa, ON L1H 1J8 p. 905.436.8881 f. 905.432.2372 www.generalmotorscentre.com
1 14 h December 2015
Spectra Venue Management 2016 Operating Budget and Business Plan
Please find as part of this submission the Executive Summary, Marketing and Communications Plan, the 2016 Operating Budget, and Maintenance Performance Plan for the General Motors Centre.
This Executive Summary to review the highlights of 2015 and outlines the strategy for 2016 as we continue to move towards our goal of providing a cost neutral or profitable facility. The General Motors Centre continues to contribute as one of the key elements as a part of the Plan 20 Twenty downtown rejuvenation strategy and is the epicentre of sports and entertainment in the Durham Region. At the time of this report, the General Motors Centre had held 94 events and is forecasted to have hosted 103 events by years end, and will have welcomed such notable artists and events as Jerry Seinfeld, The Tragically Hip, Theresa Caputo, The World Wrestling Federation, the Toronto 2015 Pan Am Games, the National Pinty's Grand Slam of Curling, Paul Brant and Dean Brody, and Tim Hicks. As of the end of November, in 2015, the GM Centre has greeted over 334,000 guests through its doors and by years end it is anticipated that we will break the 376,000 annual guest barrier. The General Motors Centre continues to enjoy a stellar reputation within the sports and entertainment industry and has carved out its place w ith promoters and artists as a desired show destination when Toronto and/or Casino Rama plays are not a factor. The GM Centre on occasion will be excluded for an event play when a show selects Toronto as its GTA destination or when a show is lost to Casino Rama who normally provides much larger monetary incentives to artists to play the casino. Spectra Venue Management were also honoured locally in 2015 as a recipient of a Greater Oshawa Chamber of Commerce Business Excellence Award.
Currently, the GM Centre is currently positive to budget by $100,000. This positive financial outcome in part is a combined result of luxury suites being fully leased this season, increased ad hoc ice rentals, a successful hosting of the Toronto 2015 Pan Am games, and a remarkable Oshawa Generals 2014/2015 hockey season which fittingly culminated in a Memorial Cup victory in Quebec City, and which greatly contributed to overall event and ancillary income through the contesting of an additional 10 playoff games to budget. Another key area which experienced revenue growth and contributed to success in 2015 was exclusivity rights for pizza, soft drink and beer providers which were grown through renewals in 2015 by a combined 106%. As part of the rights agreements capital was set aside to fund the addition of a new serving area in the East Medallions as well as a complete renovation of the south suites bar and a makeover of the upper prospects bar. These modifications will greatly enhance the facility while enhancing our efficiencies while increasing our service volumes. Having solid footing on the live event and operational front the General Motors Centre is now poised to address the final two components
Page 1 which are believed to hold significant revenue potential and will greatly contribute to the overall financial success of the facility.
With the naming rights agreement with General Motors set to expire Oct 3!11 2016, the Naming Rights renewal process has begun through Spectra Marketing (formerly Front Row Marketing). Preliminary discussions have begun with General Motors but interest in the naming rights asset has also be expressed by several other companies and the negotiation process continues. Currently the City receives $80,000 annually for naming rights for the GM Centre and it is hoped that a figure more reflective of the Centre's growth and true market value will be achieved which is estimated at $250,000 to $300,000 annually. The other agreement which is set to expire in November 2017 is the Shared marketing Agreement which currently exists between the City and the Oshawa Generals. The sales responsibility for this area is directly overseen by the Oshawa Generals and unfortunately over the life of the agreement there has been little to no growth over the past seven years. It is believed that this is an area where there is further room for revenue growth and during the 2015/2016 season there have been signs that growth is beginning to occur. The City, Spectra Venue Management and the Oshawa Generals continue to have open dialogue on this matter as we work together to develop a plan and revenue expectations that are agreeable to all parties. We are entering the last year of the agreement and mutual discussions/negotiations will take place to determine the most appropriate sales agency agreement to maximize revenue opportunities for all stakeholders.
Tenants:
The Oshawa Generals enjoyed a season to remember in 2014/2015 spending most of the year ranked as the #1 team in Canada, marching through the Eastern Conference on route to a dream matchup against Connor McDavid and the Erie Otters for the OHL title. The Generals prevailed earning the right to represent the Ontario Hockey League at the MasterCard Memorial Cup in Quebec City where they emerged as national champions. The 2015/2016 will be the first ofa series of rebuilding years to reclaim the draft picks they surrendered to assemble their championship team which will mean modest expectations for any post season play. Last season's success has had a positive effect on the fan base and 2015/2016 attendance to date as the Generals have averaged 545 more paid tickets and 326 stile count per game to date. Discussion have occurred with the Team on the possibilities of submitting interest in hosting IIHF World Junior Hockey Championships pre competition games in 2017 when the tournament will be hosted in Toronto and Montreal and in 2018 when Buffalo will play host to the tournament.
The Durham Turfdogs as part of the Canadian Lacrosse League (Clax) called the General Motors Centre home for 4 games in 2015 where they experienced 359 tickets issued per game average and 279 per game stile which was an increase over the previous season. The team and league are struggling to increase their fan base which could be being impacted by constant turn over in a number of key league positions as well as no discernible strategic growth and/or marketing plan. The Turfdogs are committed to returning for a five game schedule in 2016.
Upkeep and Maintenance:
The General Motors Centre is now in its 9th season and is starting to show signs that reflect its age. For the 2015 budget year, operational repairs and maintenance costs for mechanical apparatus such as Heating Ventilation and Cooling units {HVAC), and refrigeration {ice plant and food services pushed
Page2 repair expense lines ($111,000) negative to budget. A more comprehensive report on operations is contained in the Maintenance Performance Plan which forms part of the budget binder submission.
Spectra Venue Management Staff continue to work closely with the City to ensure all opportunities for shared services are taken advantage of for cost efficiencies. Wherever possible a standardized approach to service contracts, regular maintenance scheduling and record keeping is adopted. Both groups have worked together to develop a comprehensive 50 year Capital Plan with a 30 year focus for the GM Centre to assist the City in forecasting and addressing capital investments required to protect the City's assets and maintain the level of standards expected. For 2015, the capital investment for the General Motors Centre was $220,000 which was dispersed as follows:
,. $20,000 annual contribution to the fleet reserve fund for ice resurfacer replacement ;.. $19,000 in concrete repairs to the Gate 1 courtyard ,. $87,000 year 1 of a 3 year investment in a new Point of Sale system for food services ,. $12,000 IT investment in a server back up and wiring upgrades ,. $28,500 Digital display as part of the new POS system ,. $20,000 Upgrade from tube TV's to flat screens throughout the venue ;.. $3,000 Replacement of the sound board ,. 30,500 year 1 ofa 2 year Building Automation System (BAS} replacement
For 2016, a capital investment of $395,918 is forecasted with the following items identified for next season:
,. $2,560 Concrete and asphalt work {line painting) ,. $57,902 HVAC (second installment for new BAS system) ,. $8,533 Refrigeration and ice making (edger) ,. $7,314 Arena equipment (replace AED) ,. $201,134 Interior finish {replace existing carpet) ,. $30,475 Housekeeping (garbage can and recycling container replacement) ,.. $88,000 Restaurant Point of Sale system (second installment of a 3 year payment plan}
2016 Budget Objectives:
The following is a list of revenue generating objectives aimed at continuing to maximize all possible operational and sponsorship revenue opportunities:
• Continue to work with the City and Oshawa Generals to find ways to maximize revenue generation as part of the Shared Marketing Agreement. Since its inception, the City' share of the Shared Marketing revenues has remained relatively flat. It is believed that rate card values may be undervalued so there is potential for revenue growth in this area. The Generals are currently conducting an exercise to compare our rate card values for like assets from comparable markets to ascertain whether a rate card adjustment is in order. The Shared Marketing Agreement expires at the end of November 2017 and at that time the City will need to determine the most beneficial future sales agency agreement model to maximize revenue.
Page3 • With the investment in a new Point of Sale system (POS) it is anticipated that the speed of services will be increased thereby increasing the per cap spending during events growing food and beverage revenues. It has also significantly reduced the amount of time staff are required to stay for end of event cash outs providing an anticipated savings of approximately $10,000 in man hours from September to December 2015. 2016 will be used to track and quantify these actual savings which can then be applied to contemplated 2017 budget expense numbers.
• In 2015, a new Building Automated System (BAS) was installed to control our Heating Ventilation and Cooling equipment. As part of the process in scoping out the project and as part of the grant subsidy requirement; meters were placed on our units during Pan Am games to provide a benchmark of consumption. Preliminary calculations indicate that under the control of the new BAS we may have the opportunity to enjoy a 20% reduction in consumption which we have reflected in applying a modest 2% increase in utilities for 2016; as well as be eligible for a 20% refund of the project costs should targets be realized.
• Our Food and Beverage Service team continue to think outside the box and provide a variety of quality food items during events which are second to none in secondary market facilities. Working in collaboration with our Marketing Department unique and themed drinks and menu items are created for events to enhance sales and the fan experience. This season, to compliment the success of our hot carving station; our F& B team have created the Charles Street Cookhouse. This station located in the east end of the building features a variety of options such as chili, wings and shepherd's pie w ith a spotlight on our range of smoked meat items such as pulled pork and chicken meats.
• Continue to grow event opportunities for the Centre by working collaboratively with all possible sources. This includes continuing to work with our established network of live event prornotors, pursue new promoters who have yet to ex.perience the GM Centre and Oshawa market, and work with third parties for new opportunities. These include but are not limited to the Oshawa Generals on league and IIHF events, Durham Sport Tourism for hosting opportunities, and the continuing of the promising discussions started in early 2015 with the UOIT/Durham College Students Association regard ing the fostering of a partnership that would see frosh week and/or other student oriented events hosted at the GM Centre.
• Naming rights are set to e> Page4 2016 Budget Assumptions: • Fortunately, at the time of budget creation the live event activity for Ql & Q2 of 2016 has picked up substantially and at the time of this report we currently have 13 shows on sale in 2016. This allows us to reasonably assume that with typical activity for the remainder of the year we are well positioned to achieve our forecast of 88 total events for 2016. This however was also the case in 2014 and 2015 and a very light Q3 & Q4 resulted in our falling short on annual budgeted events. • Luxury suites were fully leased for the start ofthe 2015/2016 season. It is assumed that we will continue this sold out position and, although we have four suites coming up for renewal in August 2016; most if not all should renew. For the first time since the venue opened, we also currently have four potential clients on our waiting list which is a reflection of our growth over the past seven years. • Non·event generated revenues were adjusted downward to reflect our no longer being involved with F & B sales at the Regent Theatre. The withdrawal from the Regent Theatre was a direct result ofthis endeavour not being economically viable as well as difficult to execute from a logistics standpoint. Non - event revenues have also been adjusted downward for DCAHL post play sales, and in outside caterings to reflect 2015 actuals. • No change In average per game attendance for the Oshawa Generals. The team is in a rebuilding phase and it is unlikely attendance will grow at the start of the 2016/2017 season. Per game average, on the strength of their Memorial Cup win, has increased over the 2014/2015 season to date but it projected that this trend will taper off in the latter half of the 2015/2016 season. • Cost of hydro continues to be a growing concern. In 2015, although overall consumption of hydro decreased by 3%; the overall hydro cost increased by $87,000 or 18%. This increase is directly associated with the Global Adjustment portion of the bill which on average formed 60% or more of the monthly bill. The Global Adjustment issue was been discussed with City staff and in July prompted a review of its impact on City facilities. It was found that the City was also experiencing the same level of increases. The Global Adjustment rate which follows no discernible rate pattern makes budgeting for utilities cost problematic and can have a significant negative impact on year end overall outcomes. In setting the hydro budget for 2016 a decrease in overall consumption due to the installation of the new Building Automated System (BAS) coupled with the unpredictable Global Adjustment fee resulted in allowing for a 2% increase in hydro costs. • Shared Marketing revenues have been flat for the past eight years. These advertising revenues have been increased by $28,000 to reflect which should be a stronger sales year which should be a bi product of the Oshawa Generals coming off their Memorial Cup winning season. Page5 • Ice sales revenue has been adjusted upwards to reflect a number reflective of the continued success of the DCAHL recreational league and an increase in ad hoc ice rentals due to the removal of ice from Children's arena which is projected to increase ice revenues by $49,000. Executive Summary: Spectra Venue Management is proud of their association with the General Motors Centre, the City of Oshawa, the Oshawa Generals and the Durham Turfdogs. It is a privilege to have the opportunity to work alongside each group for a common goal and share mutual success. City staff continue to be fully supportive and a pleasure to work with. Open communication and regular interaction allows the opportunity to align best practices and policies as well as share knowledge and resources to a mutually beneficial end. 2015 was a very special year with the Oshawa Generals winning the OHL Championship and the Memorial Cup. The GM Centre has firmly established itself among the preferred choices of show destinations in south eastern Ontario whenever unhampered by Toronto plays or Casino Rama exclusivity radiuses. Steps continue to be taken to invest in the venue's operational infrastructure with the addition of a new Building Automated System and Point of Sale system which further enhance operational efficiencies, reduce our carbon footprint, and reduce costs and/or enhance revenue generation. The establishment of a sustainable capital replacement plan will ensure the facility is well cared for and able to serve the Oshawa community for many years to come. To evaluate our success and progress I always revisit our guiding principles for success of: 1. Increasing the profile of the Venue, our City, and our Region to the sports and entertainment community to continue to attract quality events and entertainment; 2. To engage the community and market place to create success for our events; and 3. Operate the facility efficiently and effectively to reduce costs and increase revenues. In 2014, the General Motors Centre enjoyed several national and international accolades. In 2015, the accolades were local in nature when Spectra Venue Management was honoured with the Greater Oshawa Chamber of Commerce Award. We continue to attract world class sports and entertainment to Oshawa in 2015 having hosted such artists as the Tragically Hip, Jerry Seinfeld, Theresa Caputo, The World Wrestling Federation, the Toro~to 2015 Pan Am Games, the National Pinty's Grand Slam of Curling, Paul Brant and Dean Brody, and Tim Hicks. Despite a substantial initial drop in our venue data base with the implementation of Canada's anti-spam legislation, the GM Centre has quickly regrown its data base to the largest it has ever been at over 62,000 members reflecting how truly engaged our community is with the Centre. This robust engagement continues to fuel strong ticket sales for our events and ensures that our market continues to be viewed as one of the most vibrant in Ontario and on the minds of promoters and artists alike. The GM Centre continues to function within its operating expense framework, however uncontrollable areas such as emergency repairs or the Global Adjustment can have a negative impact on financial performance. Revenue generation in suite leases, ice rentals, food and beverage are all flourishing and soon it is hoped shared marketing and naming rights will be added to this list. Page6 Again, rwould like to sincerely thank City Staff for the remarkable support they provide on an ongoing basis and for always making our Spectra staff feel part of your team. I would also like to thank City Council for all of their understanding and support to assist us in fulfilling their vision of what the GM Centre can be. As we close in on achieving all of our targets; although we take great pride in how far we have come and ho much we have accomplished we know there is still work to do and many special I time ahead. Vince Vella General Manager Page7 GENERAL MOTORS CENTRE FY 2013 FY 2014 FY 2015 FY2016 Actual Actual Budciet Budget Number of Events 97 91 97 86 Attendenance - Paid 294,137 307,667 292,825 295,420 Attendance - Drop 265,360 292,849 292,825 295,420 Average Ticket Price s 23.82 $ 29.82 $ 25 03 $ 26 45 Per Caps - Concessions $ 4.93 $ 5.13 $ 4 99 $ 5.57 Per Caps - Restaurant $ 1.20 $ 1.72 $ 1.91 $ 2.19 Per Caps • Suites $ 41 .02 s 39.04 $ 26 24 $ 32 28 Per Caos - Novelties s 4.08 s 4 28 $ 3 28 $ 5 26 Revenue Gross Ticket Revenue $ 7,005,911 $ 9,175,522 $ 7,329630 $ 7,812,655 Other Revenue Sponsorship Revenue Less Taxes (783,439) (1,094,679) (843,232) (896,801' Gross Event Revenue $ 6,222,472 $ 8,080,843 $ 6,486,398 $ 6,913,854 Less. Tennant Charges (5,587.163) (7,345,715) {5,686,474) (6, 178,030) Net Rental Income $ 635,309 $ 735,128 $ 799,924 $ 735,824 Net Service Income/ (Loss) (24,951) (71 ,183) 43,706 39,778 Direct Event Income before Surcharge, Suites & Ticketing $ 610,358 $ 663,945 $ 843 630 $ 775,602 Surcharge Revenue 104,153 155,413 177,647 191 ,215 Suite Ticket Revenue 49,233 64,084 Ticketing System Revenue 80,727 137,996 68,161 70,660 Direct Event Operatmg Income $ 844,471 $ 1,021,438 $ 1,089,438 $ 1,037,476 Ancl!liary Income Concessions 435,049 473,216 433,173 490,610 Restaurant 105,590 159,202 168,893 196,012 Suites Catering 175 236 166,774 108,394 133,650 Novelties 30,755 37,511 40,560 42,089 Total. Ancillary Income $ 746,630 $ 836,703 $ 751,020 $ 862,361 Total Event Operating Income $ 1,591 ,101 $ 1,858, 141 $ 1,840,458 $ 1,899,837 Other Income Suite Rentals $ 48,206 s 62,535 $ 51,327 $ 17,100 Suite Leases (Net of Gens Suite Tickets) 199,375 250,931 265,799 375,354 Interest & Dividends 21,465 27,055 25,000 25,000 Ice Rentals 731,687 762,273 754,810 867,425 Room Rentals 6,555 7,350 3,000 3,000 Advertising 205,697 267,875 250,100 276,299 Advertising Commissions (24,485} (41,095) (34,024) (30,959) Advertising Expenses (16,560) (8,428) (3,575) (6,625) Naming Rights 77,745 73,000 73,000 94,167 Exdusivity Rights 42,822 44, 156 46,366 45,000 F&B Sales (Net of Cost or Goods Sold) 131,893 161,295 169,578 113,700 Miscellaneous 17,083 29,266 37,450 32,000 ATM Surcharge Revenue 6,966 9,926 9,000 6,000 Paciolan Fulfillment Revenue 30,000 30,188 30,750 30,750 Ticket Order Charges 58,637 39,115 32,078 28,689 Total. Other Income $ 1,537,088 $ 1,735,462 $ 1,710,659 $ 1,876,900 Indirect Expenses 081 - Executive (166,798) (177,050) (188.517) (199,627) 082 - Marketing (61,002) (59.668) (77,703) (83,448) 083 Finance (224,669) (244,952) (237,410) (262,893) 084 • Box Office (192,455) (203,069) (207,227) (250, 199) 085 - Facility Operations ( t ,355,609) (1,483,711) (1.480,878} (1,532,945) 086 - Group Sales (35,246} (24,912) (35,451) (39,330) 087 - Corporate Sales (Premium Seating) (71 ,136) (81,504} (79,064) (87,852) 088 - Food & Beverage (629,378) (648,236) (631,522) (624,343) 089 • Ice Sales (278,368) (281,445) (291,399) (299,653) 095 - Event Services (93,770) (113,615} (132,454) (143,422) 099 • Overhead Burden (538,366) (566, 178) (604,223) (650,739) Total: Indirect Expenses $ (3,646,997) S (3,884,340) $ (3,965,848) $ (4, 174,451) lncome/(Loss) from Operations $ (518,808) $ (290,737) $ (414,731) s (397,713 Page 8 SPECTRA - BY COMC/.ST SPECTACOR Page9 Page 10 TABLE OF CONTENTS INTRODUCTION STRATEGIC OBJECTIVES • Mission Statement ...... _._ ...... - ...... - ...03 • Strategic Objectives ...... --...... 10 • E~ecutive Summary ····---·-·-························...... 03 • 2016 Mark~ting Objectives ...... ,...... 11 • 2016 Communications Objectives ...... - ...... 11 SITUATIONAL ANALYSIS • l(ey Perlormance Indicators (KPls) ...... 12 • Situational Analysis and Resea rch ················-··············.... 04 • Competition ...... rn.,...... 04 MARKETING STRATEGY Opportunities ...... 05 • Suategy & Tactics - Marl -----··-- ______.. ______....______G:'t ~fAALU~.rc~s CttH ~~ • s:·i:CiRA VCNl'E f.1At~AG:..'.1HJi' Page 11 Page 12 through an organized communications and marketing plan MISSION STATEMENT while having a competitive edge in regards to the industry's The City of Oshawa's slogan is "prepare to be amazed"; and with ever changing and evolving trends. that, it is the goal of management and staff of the General Motors Cenlre and Spectra to ensure that everyone, from promoters and In order to maximize the General Motors Centre's successes, artists; to guests who attend our events - are truly amazed. Spectra's marketing and communication efforts throughout Spectra Venue Management is committed to operate and 2016 will focus on the following goals: maintain the General Motors Centre with the highest standards in order to provide a world class sports and entertainment facility • GOAL ONE: Continue to ma,dmize revenue generation that is clean, safe, offers exceptional customer service and from all available areas and operate in the most cost products, and offers something for everyone; whether it be world effeclive manner with the goal of reducing the overall class concerts, sports, theatre or family and/or community operating costs of the General Motors Centre to a cost events. neutral or positive position It is our mission to build strong and lasting relationships with all of • GOAL TWO: Continue to raise the profile of the General our guests, partners and our community. We pledge to be good Motors Centre within the Industry, Region and corporate and community partners as well as safeguard the great Community through the successful attraction and responsibility for the care and control of the General Motors hosting of quality events, and enhancing Regional and Centre for which we have been entrusted by the citizens of Community awareness Oshawa. We wlll continually strive to raise the bar in all areas and promise to not only meet any e> Page 13 Concerts & Live Events • Oshawa Music Hall - Oshawa, ON - capacity 600 • The Regent - Oshawa, ON - capacity 605 • Massey Hail - Toronto, ON - capacity 2,753 • Sony Centre -Toronto, ON - capacity 3, 191 • Casino Rama -Rama, ON-capacity4,974 • Sudbury Community Arena - Sudbury, ON - capacity 5,000 • Peterborough Memorial Centre - Peterborough - c. 5,442 • Rogers K·Rock Centre - Kingston, ON-capacity 6,700 SITUATIONAL • Ricoh Coliseum - Toronto, ON- capacity 9,000 ANALYSIS & RESEARCH • Molson Canadian Amphitheatre - Toronto, ON - c 16,000 • FirstOntario Centre - Hamilton, ON - capacity 18,500 The General Motors Centre is the premier entertainment and • Air Canada Centre - Toronto, ON - capacity 19,800 sports venue in the Durham Region with no other comparable venues within a 60km radius. In addition to drawing from Oshawa • Boots and Hearts Festival - Barrie, ON and the Durham Region, the General Motors Centre attracts • Havelock Country Jamboree - Havelod<, ON people from Northumberland eastwards to the GTA along with those north in the Kawartha Lakes region. Community Ice Rentals Canlan Ice Sports The General Motors Centre is uniquely positioned in the event • market segment. The GM Centre's position and reputation as a • South Courtlce Arena top facility in Southern Ontario, as well as canada, allows us to • Garnet 8. Rickard Recreation Complex capitalize on opportunities to secure world-class entertainment • Darlington Sports Centre and community events that otherwise would not be possible in • Newcastle Memorial Centre Oshawa. The General Motors Centre must continue to bring Orono Arena & Community Centre unique entertainment and recreational options to the Durham • McKinney Centre Region in order to be competitive. • • Iroquois Park Sports Centre • Luther Vipond Memorial Arena COMPETITION • Don Beer Arena Art Thompson Arena The competition has always been significant in the Durham • Region and the Greater Toronto Area in terms or concert venues, • Pickering Recreation Complex Arena sport facilities and options to spend entertainment dollars. The • Ajax Community Centre General Motors Centre competes directly with other areas for • Pickering Village Arena disposable income which can be spent on entertainment options Uxbridge Arena such as movie theatres, shopping, restaurants and other • Blackstock Recreation Centre recreational activities. • • Scugog Recreation Comple1< The General Motors Centre has separated themselves from local competition and venues such as Casino Rama and Peterborough Adult Hockey Leagues Memorial Centre by continually activating our relationships with • Adult Safe Hockey League (ASHL) trusted promoters ensuring world-class acts visit Oshawa. Social • Iroquois Park Sports Centre Adult Hockey league (IPSC media efforts and a loyal following also give the GM Centre a Adult Hockey league} competitive advantage over venues such as Peterborough Memorial Centre, Sudbury Community Arena, and Ricoh • Oshawa Men's Hockey League (OMHL) Coliseum. • Whitby Men's Hockey League (WMHL) • Ajax Old Timers Hockey League (AOHL) ·- G-:t.=--HAI t.1010RS CHJr""1::. SiJ':CJH,\ \,'""'..f !U:: ·.,,\;J,\::=r/C:r Page 14 OPPORTUNITIES each year to target events that would appeal to the university The Durham Region and GTA's demographlc makeup and and college market. Discussions with the current student composition presents the General Motors Centre with numerous association personnel are underway which will hopefully pave opportunities to cater to the market. The General Motors Centre the way for future collaborations. will continue to pursue world-class entertainment while remaining flexible and versatile securing smaller touring acts, A strong working relationship with community business sporting events and community events. associations including Sport Durham is also important to the overall success or the venue. As Durham Tourism continues In regards to concerts, the market that has led to the greatest working with sport organizers, the General Motors Centre is a success in Oshawa and the General Motors Centre is country perfect fit to house various events. music. In 2015, the General Motors Centre was al so host to multiple day sporting events including five days of weightlifting, Based on our data rrom Google Analytics, 52.71% of our eight days of boxing, and six days of curling through the 2015 website sessions flow through mobile devices (including TORONTO Pan Am Games and the National Grand Slam of Curling tablets). Due to these heightening numbers, we worked with respectively. Carbonhouse to launch a mobile responsive version of our current website to make our fan s' experience seamless. This The University or Ontario Institute of Technology, Durham year there were 136,307 unique users visiting College, and Trent University are other community partners generalmotorscentre.com on their mobile devices. where additional opportunities lie. With a student enrollment surpassing 10,000 for UOIT, 8,300 full -time students at Durham We are also currently working on mobile responsive email College and over 900 for Trent University In 2015, two of the templates for our Backstage Pass membership which will three post·secondary educational institutes hold their annual make viewing emails on mobile devices much more effective convocation ceremonies at the General Motors Centre. With the and user-friendly. rapidly increasing student population In Oshawa, the General Motors Centre will have a fresh, young adult audience -·----·--- - ·------~------GfU=RAt f,/0":-lHSC'...kJI Hf: · s;; c- c:Rt, Vc::t.ue ·.1At;J..(";:.•.1FNT Page 15 \ t PRIMARY MARKETS Oshawa's close proximity to a population base of more than The average value of dwellings in Durham was $335,936 in 653,600 people in the Durham Region and 2.79 million people in 2011 and 82.7% of households were owners. Oshawa is a real Toronto make it attractive to new business. The community's air, estate hotspot with the lowest median detached house sale rail, and road transportation networks make Oshawa highly price for cities in the GTA. A total of 75% of Durham accessible from all directions and the new extension for the 407 households spent less than 30 per cent of total Income on into Oshawa will only assist in making It even easier to access. shelter costs leaving more disposable income for other purposes. Located in the largest municipality of Durham Region, Oshawa's 2015 total estimated population is 160,053 people with a The average household income in Oshawa area is $87,214 projected 10% population growth rate by 2025. with an unemployment rate of 8.1% which is higher than the provincial rate or 7.1% in November 2015. With a median age of 39 years, Oshawa has 102,250 census families with 53.2% of couples having children aged 24 and under Durham Region is very culturally diverse and visible minorities at home based on the 2011 census. In comparison, 46.9% of comprise 20. 7% of Durham's population but is still below couples in Canada had ch ildren aged 24 and under at home. Ontario and GTA populations. This share is primarily represented by those that are Black (7%), South Asian (5.7%), Filipino (2%), and Chinese (1.5%). lOIJRCE StATISTlCS CANADA ArlO (r,'VIROMCS Al'IAIVIICS ------~-·---· ------· G:t..:~•.tC',iC~$ C~tJiRE . s~~Cff{!, V:--/{L,:: ,'J/,t. \Gf':..ur Page 16 SECONDARY MARKETS Reaching outside of the Durham Region provides a secondary market for the General Motors Centre and includes Northumberland County, Kawartha Lakes and Peterborough as well as the GTA. Due to the media penetration by Toronto media into our marketplace, we do see Toronto and GTA residents purchasing tickets to our events. By purchasing GTA media we can target both Toronto residents as well as commuters from Oshawa and the Durham Region. Dependent on the event or artist, fans have demonstrated willingness to travel north of the border or even from as far north as Sault Ste. Marie. GMC DATA COLLECTION With such a close proximity to the Greater Toronto Area which includes Toronto, it is crucial to utilize both local media and Toronto media to penetrate our audience however Toronto media is costly compared to local. Therefore the research completed by our marketing department is vital so that our target demographic that consumes various media sources both locally and in Toronto can be reached efficiently and effectively. The Spectra Marketing Team at the General Motors Centre consistently identifies who the fan base is through an annual survey, post·event suiveys, and postal code data collection which also aids in measuring advertising effectiveness. ANNUAL SURVEY In 2015, the GM Centre conducted internal market research consisting of a survey circulated to fans through the Backstage Pass database via email, social media, as well as our website which resulted in 1,834 respondents. The survey results have given us a valuable perspective reinforcing our knowledge of the current target audience. We will continue to deploy this annual survey to collect data, and utilize this information when planning advertising spends, pricing decisions, and ultimately improving the fan experience at the venue. The survey is al so linked right from our homepage of our venue website as an ongoing source of feedback from our fans and visllors. For an example of the annual survey results, please see the appendix. Page 17 POST EVENT SURVEYS mostly through the Backstage Passe-Newsletter (27.9%) and In 2015, the Spectra Marketing Department at the General would best be notified of upcoming events by e-mail (52.6%). Motors Centre was able to gather vital information about the guests visiting the venue, giving the GM Centre the ability to 95.65% of our fans stated that they would attend another customize how we talk with them, and ensure we are event at the General Motors Centre I providing information they want to know about. We will 24.04% of our fans surveyed had never been to an event at continue to utilize post-show surveys to collect data, and will the General Motors Centre prior to the one they attended in utilize this information when planning advertising spends and 2015. to provide valuable feedback to our management team to exceed customer service expectations through all The post-event survey was refreshed this year to allow us to departments. target any areas of concern from our fans more effectively. More text fields were created to allow for fans to write their Collecting and analyzing this data has shown us that our exact thoughts if we did not meet their expectations in a customers purchasing tickets to General Motors Centre certain area of service. events are mostly in the 45-54 age category (33.2%) while women were the dominant ticket purchaser (67.6%}. The For a sample of the data that has been collected using our main source of ticket sales were to Oshawa residents based post-show surveys through 15 events in 2015 from 1,955 on post- event surveys (25.7%) and heard about shows ticket purchasers, please refer to the appendix . ~--~~~~~~~~-~-~~~~~- -~ Grni:RAL •1c;c~s ::rnr,1r . s?r:;·;i" \·~.r,uc •t•NAGE1:;;:,; Page 18 VENUE WEBSITE We continue to utilize all components of our website to increase • Average site visit traffic and exposure of our upcoming events. The website has 1:40 duration proven to be more user-friendly, improving the guest experience from beginning to end. Over the past year we have worked with • Visit 3.61 pages per visit our website provider, Carbonhouse Inc., to ensure the first-class user experience on mobile devices as well as desktop, white also • 468,785 Website Sessions working with Spectra Ticketing & Fan Engagement, to ensure the Desktop - 221,679 ticketing website's features are being utilized to Increase Mobile -188,347 additional revenues. The use of Google Analytics continues to be Tablet - 58,759 beneficial for the development of our marketing strategies as we can confirm where fans are visiting our websites from, the devices they are using, and their behaviour while browsing. WHAT ARE THE TOP VISITING CITIES? 30% 25% 20% 15% 10% 5% 0% Whitby Aja,c Pickering Bowmanvllle Seriesl 7.63% 3.68% 3.43% 3.17% ---- ·------- ' G:NERA. MOTORS CE:tJ7Rt! · SPECMA V,J JJ(; f,lANAGr.1.1.::11r Page 19 STRATEGIC OBJECTIVES The General Motors Centre was opened in November 2006 to entertainment map. The venue recently received local replace an aging Civic Auditorium and a downtown location recognition for Business Excellence from the Greater Oshawa was strategically selected for the new build for several Chamber of Commerce and continues to be selected to host reasons. A centrally located spectator facility would ensure marquee events such as Jerry Seinfeld, The Tragically Hip, ease ofaccess for all points of Oshawa as well as act as one of Theresa Caputo and WWE as well as such notable sporting the cornerstones to the Downtown Rejuvenation Project. events as the TORONTO 2015 Pan Am Games and the Over the past nine years, the General Motors Centre has National Grand Slam of Curling. evolved into a community gathering place which has brought enterta·nment and enjoyment to almost 2.3 million people To achieve the accomplishments noted above, the venue s"nce its doors opened. It has played an important part in the must have a solid connection to the community and the evolving of the downtown and has enhanced the economic market place, and that market must be, through strong ticket impact to the downtown and City. sales, able to support the events which flow through the venue. The success of the event is contingent on many things The Spectra Team at the General Motors Centre are but none more important than strong ticket sales and the extremely proud of the growth and accomplishments of the financial success of each event. venue over the past five years. Our guiding principles for success have always been: lastly, we fully recognize that it was taxpayers' dollars which built this magnificent facility and its taxpayers' dollars which • To increase the profile of the venue, the City of support any operating costs. As such, the Spectra staff at the Oshawa and Durham Region within the sports and General Motors Centre work hard to ensure the facility Is well entertainment community and to thereby increase maintained and operated in order to safeguard the City's investment. We are fully committed to operating this fa cility the quantity and the quality of the events hosted by as efficiently and effectively as possible with the goal In mind the Centre. of eventually operating at break-even or profitable position. • To engage the Community and market place in order The facility has instituted a cost errective operation, evolved to create success for those events, and into establishing a regular and varied foundation of live • To operate the facility at optimal efficiency and events, and is enhanced by the continuing growth of our maximize all possible revenue streams while primary tenant, the Oshawa Generals. The final piece of the equation will be the continuing maximization of all available minimizing expense lines to continue to reduce commercial rights revenue opportunities; most notably our municipal operating subsidies. upcoming Naming Rights. The achievement of all three of these guiding principles will best position us for success and There can be no doubt that Oshawa and the General Motors we will strategize to meet the following objectives: Centre are now firmly situated on the sports and ·--~------ Gft~::R,\l'~CiCi-iSC~·.1~~ . ~~Clk,\ \'=:.LI~ l.',flo'II..G~l:~!':.l, 1 Page20 2016 MARKETING 2016 COMMUNICATION OBJECTIVES OBJECTIVES • Increase building revenues by working with Spectra Ticketing • Receive press coverage for the venue during down & Fan Engagement while implementing new programs and times; focusing on community relations, interviews strategies that will assist with increasing ticket safes and with key management, behind the scenes enhancing the fan experience information and more • Increase building revenues by selling advertising and • Receive additional press coverage on positive sponsorship space through our venue's physical and digital happenings within the facility; pre-show reviews and assets that will directly impact the General Motors Centre's post-show reviews, interviews with artists, bottom line. contesting occasions, charitable initiatives, etc. • Provide a one-stop shop for all promoters booking events at • Providing media partners with intriguing angles, the General Motors Centre. giving them stories that the normal fan may not normally be able to have read or to have seen • Increase social media following and grow the General Motors Centre's Back stage Pass cyber club while increasing opt-in • Work with Durham College to provide their rates for Canada's new anti-spam legislation. photography students a real life experience while shooting a live event and their journalism students for event reviews • Continue to increase the number of spo11s and entertainment events each year, keeping in mind, that the community wants quality vs . quantity in the event programming. • Prepare for a potential naming rights change and educating the market of the change, website, social channels, and any other pertinent information • Focus on strengthening community relatfons, taking active roles In local organizations and ensuring that the General relating to the venue Motors Centre is an accessible and va lued member of Oshawa and the communities of the Durham Region. • Conduct internal market research and measure advertising techniques to ensure the General M otors Centre marketing team continues allocating marketing dollars effectively. -----..------·------ Gt'~'::r\A. ... t.'CTOHS CEt~TH~ .. sr,~c·RA 'v'::".·.: ~. ~~1A:~~e,; \ t:.tJT Page 21 KEV PERFORMANCE INDICATORS (KPls) The following Key Performance Indicators (KPls} are used to measure both the performance of the concerts and live events as well as the impact of our marketing efforts on event sales and social networking efforts. The chart includes actual data for 2012-2014 and estimated final tallies for 2015 as well as targeted data for 2016. The figures do not contain Oshawa Generals, Oshawa Power, Durham TurfDogs or trade shows data. r 2012 Actual 2013Actual 2014Actual 2015 Est. Finals 2016 Target ' Number of Events 32 21 32 25 30 Attendance 91,483 70,682 107,811 78,735 101,360 LAvg Attendance Per Event 2,859 3,366 3,369 3,149 3,379 [ Community Ice Rentals ! 740,390 I731,687 _ ___,__! s""- 14_,,'"""30_1_ __,!,.....:s__so1..:..._,8_4o_---Ll_ $___sG7,4_2s__ Gross Ticket Sales $4,190,906 $3,661,679 $5,854,057 $2,989,967 $4,674,825 Avg Gross licket Sales Per Event $129,286 $172,021 $182,939 $119,599 $155,828 Direct Event Income $217,523 $135,042 $143,771 $119,213 $261,291 Surcharge Revenue $128,204 $94,058 $144,533 $88,893 $194,367 Convenience Fee Revenue $84,796 $76,063 $68,633 $88,562 $64,053 Ancillary Income $234,487 $290,237 $543,808 $290,748 $409,141 Total Event Income $665,010 $595,400 $900,745 $587,416 $928,851 Avg Total Event Income Per Event $20,782 $28,352 $28,148 $23,497 $30,962 2012Actual 2013 Actual 2014Actual 2015 Est. Finals 2016Target Facebook Likes 6,303 18,495 27,036 32,000 34,000 Twitter followers 3,960 8,613 9,444 10,340 11,400 YouTube Views 62,898 80,340 92,200 117,900 123,000 lnstagram Followers n/a 128 1,433 6,050 7,500 Backstage Pass Subscribers 49,821 70,242 56,248 65,000 74,000 --- ... --~------·-·- - - Cl~.~·1,; .. •J:'.)l~i~SCC,' iHt · ~,;- ...C,HA Jf.:~·... t:~.~At,:,G:=t.ff"l Page22 STRATEGY & TACTICS - MARKETING GOAL Continue to maximize revenue generation from aU available areas and operate in the most cost effective manner with the goal of reducing the overall operating costs of the Generaf Motors Centre to a cost neutral or positive position. OBJECTIVE #1 Increase building revenues by working with Spectra Ticketing & Fan Engagement while implementing new programs and strategies that will assist with increasing ticket sales, sponsorship sales as well as enhancing the fan experience. STRATEGY Our marketing team will work with Spectra Ticketing & Fan MEASUREMENT Engagement Digital Marketing Specialists to implement new With the implementation of these specialty automation features within the FanOne Marketing Automation Guide to assist programs that are available through Spectra Ticketing & Fan in keeping the General Motors Centre front of mind for our fans. Engagement, we can create benchmarks based on results from other venues' campaigns. TACTICS • Convert social media followers into email subscribers by The cart abandonment program was Implemented at the utilizing an easy sign -up form General Motors Centre in August 2015 as part of a generic • Enable subscribers to easily post and share our event campaign. Since then, the campaign has resulted in 189 tickets information, news and promorons by acrvating a social sold for $10,279 in online ticket sales. Spectra Ticketing and participating venues, have stated that event-specific media sharing script In emails of our choosing campaigns have stronger results when compared to the • Utilizing webpage tracking scripts in an effort to create generic setup however, each campaign would have a cost and warm leads for our sales teams for private suites, group we would need to compare the cost/benerit differences. sales and sponsorship • Retarget known individuals that leave Items in their We are meeting to discuss these tactics with Spectra Ticketing shopping cart with an automated fol ow-up email in December 2015 so that we can begin rolling these out throughout 2016. reminder • Implement a birthday program that provides a special offer to the celebrating fan ------~.. ------· ·------ c: ·.r 1A.. M:J:TC~scc·r··~r: . s:~c.:c··~A ·:tr.:ui.:1,1.A·~.n:;t.,.1:·..i Page23 )• ffP t• c. aU•• t•,,t«it :;;....;fu! ''""" '""''"'"l>f .. "f"•t :•:t':t'tt0,:'"'1, ...... ~ .... U'"'~!'t t~~ ...::.iJ •:,t:1,, It -. N'f/l"e"lt:N t'" o:•"I,:~,·. ,, J•t!• " 1:"'\ -:.aucta t,,.,.,u,•,;•o,u.-..-r, ,.,.,..;.. •ir.. "'•:0:,?; ~It 1·ttu~·1,·a•·t,·r.1 s, .1.1-:0, •,,,u ,.,,:,..•n :r"t::•,..... usr, tt ,o.~.11! :...... i-a:• •·:~• ,:.• •·,t;.;" th•:,i:.: •::. ,•:nn:·, :.::• ;!IM u.•1 .,,. :,t'J'l t•: •:•ot~··: • :,. f ;.,,• !: I 101,,,lnu {, Ci,i ! t' (Joo.· . ! t.,\ n ..r.h.aw, U•"'?::ow:fw c:,t111 ~'''-"'"'' T':'t •t•J•t•,t: •;1 --1! ' Continue to maximize revenue generation from all available areas and operate in the most cost effective manner with the goal of reducing the overall operating costs of the General Motors Centre to a cost neutral or positive position. OBJECTIVE #2 • Align the advertising component to a prospective Increase building revenues by selling advertising and sponsorship business where a unique and catching tagline can be space through our venue's phys·cal and digital assets that will utilized and pitch to that partner directly impact the Genernl Motors Centre's bottom line. • Follow up with businesses in the new year when their advertising budgets have renewed STRATEGY • Allocate more time to selling these assets Spectra's Marketing Department has worked with Carbonhouse Inc. to setup advertising elements for the venue's main website that we have since packaged into advertising options. We will also Incorporate new opportunities through the Spectra Ticketing MEASUREMENT website to incorporate into the packages to increase value for The marketing department was able to secure renewals for prospective partners as well as Increasing revenues. two hotel advertisers for the 2016 year so far with $1,500 commltment5, from each with the potential for two more TACTICS new partners. The marketing department was also able to secure a Backstage Passe-Newsletter sponsor for 2015·2016 • Re-launch a revised package following a similar format to in the amount of $10,000 and will continue to work with the naming rights package to include physical and digital local businesses to secure spons.ors for other avallable assets within the venue inventory such as seating chart and concert and event listing packages. ------·----- ...... _.. - - . ------~ Gt f{LRAL '.iC-CRS c-..r.,:4-r(- · Sr'E:::.-~,; \'t:JJUC 1/,'l.Ur\GH.'~.., Page24 GOAL Continue to raise the profile of the General Motors Centre within the industry,·region and community through successful attraction and hosting of quality events, and enhancing regional and community awareness. OBJECTIVE #1 • In-House Marketing Support - our team is able to Provide a one·stop·shop for all promoters booking events at the deploy in-venue resources to help raise awareness General Motors Centre. of our events through videoboard commercials, outdoor digital boards, in-arena postering and STRATEGY flyering, signage, and various partner sites. Promote a full service marketing program which is dedicated and • Interactive Marketing - our Spectra team deploys familiar with the Oshawa and Durham Region market to help raise multiple advertising campaigns that lead to awareness and sales for General Motors Centre events. successful and measurable interactive campaigns. TI1is includes website up-selling, targeted TACTICS campaigns on social networking sites, Google • Actively promote our event marketing services to AdWords, and retargeting campaigns. incoming shows and tours while obtaining agency o A $200 promoted post on Facebook for Jeff commissions and Centre Ad Program revenues for the Dunham's on-sale generated 115 tickets venue for $7,590 in online sales only • Utilize in-venue assets to extend promotional awareness • Grassroots Marketing - we will be launching a new and exposure grassroots program to ensure that our numerous • Deploy interactive campaigns aimed at our current events at the General Motors Centre receive databases and targeted groups outside of our current maximum coverage throughout our third party records partners by utilizing combined ads and providing • Actively propose and plan coordinated public relation complimentary tickets to our partners that assist plans for events at the General Motors Centre with the program. • Leverage existing relationships with sponsors and • Group Sales - the Group Sales Department has partners to extend our grassroots marketing reach continued to drive sales grossing over $79,908 in • Prospect and close sales for General Motors Centre 2015 for ticket sales, group suite rentals for special events by approaching targeted user groups with value· events and packaging. added propositions and packages While timelines vary event to event due to several MEASUREMENT factors, the General Motors Centre team will employ a We will measure this by the number of shows activating our in strategic time-sensitive plan. Understanding some house services. Our marketing department offers the Centre Ad events may have less lead time, it is crucial to effectively Program which generated $19,380 in revenue for 2015 in addition carry out as many initiatives as possible. Working with to $1,407 in agency commissions. This program includes, but is promoters in advance of show announce dates allows not limited to: the General Motors Centre to execute the most comprehensive plan. • Special Advertising Rates • as we work with the media on a regular basis, we receive preferred rates from our partners in the Durham Region and GTA markets. ----·------·------·------~-- ' CE!JERAL •.:OiCRS C:'1,-'l:' S:>f:Ci'lA \'Fllllf' 1.'Allt,G~Mf- 'J• I Page 25 GOAL Continue t o raise the profile of the General Motors Centre within the industry, region and communit y t hrough successful attraction and hosting of quality events, and enhancing regional and community awareness. MEASUREMENT Through our General Motors Centre Backstage Pass, we are able to communicate with our database of 65,000 subscribers directly through email. This database of past purchasers and subscribers allow us to send timely offers and pre-sale details OBJECTIVE #2 resulting in an increase in sales. Currently we have 51,843 fans Increase social media following and grow the General Motors that have provided us with their expressed consent since the Centre's Backstage Pass cyber club while increasing opt-in rates new Canada Anti·Spam Legislation launched which is 83% of for Canada's new anti·spam legislation. our total database and we have until July 1, 2017 to ensure STRATEGY the remaining 17% have opted in. Working with all departments to create unique and interesting Our social media is similar in the ract we can send information content for our social media campaigns while also providing fans out and immediately reach our rans and beyond which has quality information through the Backstage Pass for pre-sales, played a significant role in our communications and in the contests, and more to ensure that fans update their preferences success of the venue and our events. As of January 1, 2015, to provide their expressed consent if they have not yet. Facebook will be hiding overly promotional posts In an effort to clean up users' newsfeeds and to push brands to purchase TACTICS advertising. To continue reaching a high audience reach we • Implement the seventh annual Key to the GMC Contest will utilize unique content and begin budgeting more dollars • Ensure content is intriguing and engag:ng for our fans for Facebook to attempt to reach our 32,000 fans currently as well as those we target through their platform. through all of our social media accounts • Avoid repetitive content on social media In regards to Twitter and tnstagram, we have not seen as • Avoid constantly selling on social media much interaction from these two outlets, yet. The General • Be social with fans - have conversations on social media Motors Centre lnstagram account quickly grew to more than • Incorporate new social sharing options in our e-blasts 6,000 followers after starting at less than 600 fans at the • Continue pushing our cyber club sub~ rlbers to opt-in by beginning of 2015. Advertising options have recently been offered on lnstagram and more testing is required to including messaging in each e-blast that goes out determine the effects of purchasing through them. 1 In November 2015, the General Motors Centre was ranked 9 " in our category for venues 5,001 to 10,000 capacity for Venue's Today Social Media Power 100 list and Is the only Canadian venue in the catecory. Venues Today continues to use the 'big three' digital platforms or Facebook, Twitter and lnstagram for ranking venues on its #SMPlOO chart. - 1 G::\:'h\L t'0i~PS Cf.'r"R": • S?=CTRA /St.t..;. r.•Ai•.\G-: •!f'.Ml I Page26 GOAL Continue to serve as a catalyst for positive economic impact in our community through hosting of a diverse blend of sports and entertainment events and to serve as one of the cornerstone pieces that contributes to municipal growth and rejuvenation of the Downtown core through such initiatives as Plan 20Twenty. OBJECTIVE #1 MEASUREMENT Continue to increase the number of sports and entertainment We continue to increase our connections within the industry events each year, keeping in mind, that the community wants as well as impress promolers that continually return to the quality vs. quantity in the event programming. General Motors Centre. STRATEGY In 2015, the promoter mix was diverse and so were the events. Live Nation, Feld Entertainment, M ills Nurture our positive working relationships with top promoters Entertainment, AEG live, LIVEact, Touring LLC were all and establish new relationships with those promoters yet to play JS part of that mix. Paquin Entertainment Group found Oshawa the General Motors Centre by keeping them apprised of the as a hotspot when they brought four new shows to the positive happening at the venue and wilhin the region. General Motors Centre including the two Bubble Guppies Showcasing our market and its value and that we can support performances that were nearly sold out. world class artists is very attractive to promoters and new marketing or promotional opportunities are also things that will The most triumphant victory for Spectra was the return of impress them to enter or return to the market. the WWE Oshawa after a 10 year hiatus. After last year's thumb wrestling publicity stunt to garner their attention, TACTICS WWE returned for a sold out show which grossed almost • Continue to send the quarterly General Motors Centre $230,000 in fcket sales. Promoter Newsletter to all of our contacts within the entertainment industry The huge success of our self-promoted Touch -a-Truck event • Create new relationships with business owners in has prompted us to look at other new community events we can create for our community. Our goal is to introduce a Oshawa and the Durham Region to establish new cross new event in 2016 that will be similar to the Touch-a-Truck promotional opportunities that benefit both parties event in the ability to grow year after year. We are also • Create publlcity stunts to grab the attention of looking to utilize outside programs such as Paint Night to promoters that have not yet brought an event to increase attendance within Prospects on slower nights the General Motors Centre where the restaurant is already open for DCAHL. ------·-- ______,__ - · 8f.MH{Al t.1Q;C'lSCHllfk · SPcc."ilAVct;-~ t.WAG:-1.H·t-.1 Page 27 GOAL Continue to be a good and responsible corporate community partner by giving back to the community and supporting focal charities and initiatives. OBJECTIVE #1 Focus on strengthening community relations, taking active roles We also continue to work with a wide variety of local non in local organizations and ensuring that the General Motors profit organizations, lo assist them any way we can such as Centre is an accessible and valued member of Oshawa and the ticket donations. Such organizations include, but are not communities of the Durham Region. limited to: STRATEGY • Rotary Club of Oshawa - Parkwood Grandview Kids Spectra by Comcast Spectacor encourages personnel of every • Spectra venue to become heavily involved within the community, • The Oshawa Hospital Foundation and give back to the communities we live and work in. • YWCA Durham • Durham Outlook for the Needy TACTICS • Feed the Need in Durham • Invite organizations to apply for charitable donation~ • Heart & Stroke Foundation • Continue to support fundraisers and community events • Canadian Mental Health Association that raise funds for a good cause • Be an instrumental part of the community helping out In 2013, the Spectra marketing team at the General Motors Centre created the Touch·a-Truck, a free community event with goodwill initiatives supporting local charity. In 2015, Spectra hosted its Third • Utilize our unique industry as a means to gain access to Annual Touch~a-Truck outside the venue benefitting Big once in-a-lifetime experiences or gifts to raise fund s such Brothers Big Sisters of Oshawa-Whitby. The event continues as autographed guitars to grow ea ch year with over 45 vehicles taking part and • Organize community events that directly benefit local approximately 4,000 people In attendance for 2015. The charities event raised $1,951 in 2015, $1,250 in 2014 and $1,000 in 2013. • Donate on behalf of artists/bands as their artist gift for a charity that is near and dear to them Spectra marketers are also looking at new event creation • Be active community members through participation in possibilities to introduce in 2016 to keep the General Motors community organizations and charities Centre front of mind during off-peak months. MEASUREMENT Spectra's part-time employees at the General Motors Centre At the General Motors Centre, we are committed to al~o worked with Adopt-a-Family Holiday Program Durham partnering with local non·profit organizations whenever Region to sponsor seven families within the Durham Region. possible, and will continue that commitment in 2016. The Our team provided seven run Christmas dinners along with a care package with toys for the children to enjoy during the General Motors Centre partnered with a local organizing holidays. The Durham Central Adult Hockey League also committee consisting of three local curling clubs that hosted a food drive in which $387 cash and almost 2,000lbs benefitted from each ticket sold to the 2015 National Grand Slam ofCurling event hosted In November. of food were made available to Feed the Need in Durham for ------the holiday.--·----- Gc,s:'l'A.L '.iC1 CriS ::t~1 t ~c . sj..lr::(:n<,\ '-'F: '.uF ,.1 A~~4.Sf-f.'':'- i Page 28 n lc!ll '/H~ 1,762,385 1,025,721 L.._.J...... ••,.s...,.. -~.....,. PJgHISes~ft 3.61 ~ GOAL Continue to safeguard this significant investment for the City of Oshawa and to operate it to the highest standard to ensure our community has a safe, first class facility to be proud of for many years to come. OBJECTIVE #1 MEASUREMENT Conduct Internal market research and measure advertising Spec tra introduced a new live Excel document that allows techniques to ensure the General Motors Centre marketing team marketing dl'partments to track collected data more continues allocating marketing dollars effectively. eff ciently so that the information can be better utiliz:ed when allocating advertising dollars. The document is STRATEGY primarily automated once advertising bookings are inputted and will allow the marketers to track ROl's and the overall Organize the data the General Motors Centre obtains from their successes of their campaigns and promotions. This report rans in a manner that it will help aid the decisions of marketing, also automatically pulls other relevant information for event booking, pricing, and more. decision making when it comes to repeat or similar shows to create benchmarks for tickets sales and more such as sales TACTICS year over year, etc. The addition of other analytics such as • Post show and annual surveys Google Analytics, Facebook, Twitter and others provide • Google Analytics va luable insights into our fans' behavior, demographics, and • Paciolan's Ticketing Intelligence more which aid in numerous steps during the decision making process. • Utilize came-from-codes and promotional codes to track ticket sales through digital and other media chann els Spectra will use the survey results to guide improvement in • Utilize the Jeff Robin's Report for all events their services and adjust operations to ensure the facility and the public's needs are met. Results from each live event are distributed to Department Heads to follow up with fans' feedback or concerns if they request a response. ------·------ G•NFP.f,l 1.1:-i·cRS C~MR~ . SPcC.RA Vl'.1'.'-c. f,'N,AG::\1E:IJ' ' ' Page29 STRATEGY & TACT~CS ... COMMUNICATIONS GOAL Continue to raise the profile of the General Motors Centre within the industry, Region and community through successful attraction and hosting of quality events, and enhancing regional and community awareness. OBJECTIVE #1 MEASUREMENT Find "behind the scenes" stories to provide to media partners When the Harlem Globetrotters visit Oshawa, they typically with intriguing angles on upcoming events, giving them stories send an Advanced Ambassador into the market a couple that their readership or listenershlp may not normally have acces s weeks prior to the event. During the one-day visit, we to. coordinate Toronto media visits and have been on YTV, CP24, City 1V's Breakfast Television, C1V, and more. We've also STRATEGY escorted a Globetrotter to schools within Durham Region Provide "behind the scenes" access to tours and performers as an where an anti-bullying program has been presented in front of effective way of garnering free exposure to a captive audience hundreds of students as well as media in attendance. The and added show awareness. amount of coverage generated from these events is invaluable when we are working with tight budget constraints and having th·s exposure created, significantly assists ticket sales. TACTICS • Secure media coverage to special events or public The Spectra marketing department will continue to assist in relations stories securing interviews with live event talent such as the • Coordinate media interv:ews with performers and acts Barenaked Ladies, Alan Doyle, Johnny Reid, Gerry Dee, and many others in an attempt to provide media with • Coordinate escorted media days where advance opportunities that will assist with exposure for our events. appearances by performers can increase media exposure • Continue to send media credential reminders for all of Spectra also supports the General Motors Centre sport our shows tenant!> and promote several initiatives including the 2015 • Create positive buzz about upcoming shows Teddy Bear Toss. Spectra posted a video of the first goal • Incorporate public interest figures into promotions and which showed 6,017 stuffed animals being thrown on the ice stories where possible which resulted in an organic audience reach of 300,000 In only one day which assists in the cause and recognition for • Include key community partners and programs to the Durham Children's Aid Foundation but also showcases help add value to their causes the venue and the Generals within the community. • Create time-lapses of stage setups, ice painting, and other unique, visual moments . ----- -----,...._...... _ __ ---- c···~~r.;'\ .•:t.r,:·iSC~r~-·te . s~r:crqA \t t.'...... ·.1.;J,;c;;r.1E.rJT Page 30 GOAL Continue to raise the profile of the General Motors Centre within the industry, region and community through successful attraction and hosting of quality events, and enhancing regional and community awareness. OBJECTIVE #2 Receive additional press coverage on positive happenings within MEASUREMENT the facility by continuing to develop relationships with key media 1 For our 6 \ annual Key to the GMC contest, where one lucky personnel within the Durham Region. fan won 2 tickets to every event in 2016, we again received extensive coverage from local media as we had Durham STRATEGY Radio's CKDO onboard as a presenting sponsor of the Determine what each outlet prefers in regards to their content contest again this year. Other outlets such as Metroland and and provide them that information when it's available. Whether it Rogers TV also covered the contest winner announcement. is show reviews, interviews, contesting announcements, charitable initiatives or industry rankings, knowing how the outlet Press releases were also distributed lo promote our industry prefers to receive the information will aid in the process or rankings as we received word in 2015 that the General receiving coverage. Motors Centre ranked first in Canada for venues 5,001 · 10,000 capacity by Venues Today for 2014. Spectra at the TACTICS General Motors Centre also received the Business Excellence Award from the Greater Oshawa Chamber of Commerce In • Stay in contact with key media personnel in the Durham 2015 which showcased the venue and Spectra in the Region spotlight which was also distributed to our media • Ensure media distribution lists continue to be up to date distribution list. All releases are distributed to local media as • Send embargoed media re leases to local partners well as local government to ensure they are always up-to • Continue to provide local media with the opportunity to date with the status of the General Motors Centre. cover events happening at the General Motors Centre as Throughout the 2015 TORONTO Pan Am Games and the photographers, videographers and reviewers when 2015 National Grand Siam of Curling events hosted at the approved by the promoter General Motors Centre, it was great to see local • Create PR events that will garnish attention for the organizations such as Sport Tourism Durham Region, Central facility during slower times such as our Touch-a-Truck Counties Tourism and others assist with distributing event information out through their channels. Working with Sportsnet and the Grand Slam of Curling event also assisted with significant coverage or the Oshawa venue to the'r viewership and readership online throughout the event. ------~------... ------· ---·--~------· - :3[ NE llAI Ml'l"C'lsn·J-'\f! . .~r-fCTr!A 'JrlllJ'' ',1ANAGfMl- 'Jf Page31 '(]moN1C1.E MN1:a1 • ~~!*= g~~--- Tim Hicks got little crazy in OshalA The Gre,,t 1g in the General ~1o,ors Centre ~m::::10:: •()r.' ur 'uH CJmro,, v:h1. ht:.-11.r' GOAL Continue to be a good and responsible corporate community partner by giving back to the community and supporting local charities and initiatives. OBJECTIVE ##1 MEASUREMENT In 2015, Durham College students attended numerous events to Continue to grow and develop our relationship with Durham photograph and review for the school's publication, The College and the University of Ontario Institute of Technology to Chronicle. We've worked with Durham College teachers to assist provide more opportunities for their students taking with promoting the benefits of covering a live event no matter photography, journalism and communications while also the type or genre as it provides real life experience and since developing better relations with the Student Association in an then students have begun attending more of the smaller scaled effort to increase the student's engagement with the General events. Motors Centre as well as the Downtown core. Similar to other media outlets, we've requested that students STRATEGY covering the event tag us when posting online so that we can Meet with administrators, Student Association and professors share it with our fans. This will provide us with social media from both educational institutes and determine together what content that is directly related to our shows but from a third opportunities could benefit the students as well as the venue. party. In an effort to increase awareness within the student TACTICS population, we offered free weekday tickets to students for the • Push the real life experience that the students would be National Grand Slam of Curling event. This not only provided obtaining students with the ability to view the venue for potentially the • Utilize their photos, reviews of events for biogs and/or frst time, it also assisted with our food and beverage per caps social media content on the selected slower draws. Faculty and employees at both institutions assisted the promotion of the offer through their • Promote I've event opportunities to students and internal outlets on campus. fa culties for both campuses to visit the General Motors Centre so they are aware of the venue in the city ------...... -. _....____ -- --- - - GE:t..;]t\l t'Oi=,:Js ~l:£·JTRE • Sr'EC"''{A \:~~ ... t r.•Af,t..CE1,ir.·.r Page 32 SUMMARY The marketing and communications plan will serve as a guide General Motors Centre as a force in the live entertainment for the General Motors Centre. Spectra and the City of industry in Ontario and Canada. Ensuring strong relationships Oshawa to re-evaluate the effectiveness of this marketing with promoters is crucial in the Canadian touring industry and and communications plan on an on-going basis and make maintaining our established relationships with promoters changes to marketing strategies accordingly. such as Live Nation, AEG live, Gold & Gold Productions, Paquin Entertainment, JS Touring, Feld Entertainment, The General Motors Centre will maintain a variety of events Harlem Globetrotters, and Mills Entertainment. in the annual event mix. Access to local programs such as minor hockey and the DCAHL as well as graduations and The success of theatre-style and family shows in the facility other high-quality programming suited to the community will will also have a lasting effect on the General Motors Centre. help instill a feeling of pride associated with the venue. The Shows such as Cirque du Soleil, Harlem Globetrotters and Spectra team will continue to develop new genres of events Disney live! are vital to the venue and city because they at the facility in turn creating revenue, driving ticket sales and typically require multiple day runs. Establishing the General generating economic impact in Oshawa and throughout the Motors Centre as part of the theatre and family style tours on Durham Region. an annual or bi-annual routing will impact the bottom line of the General Motors Centre for years to come. High profile concerts also fit into the category of events necessary for success. Concerts that naturally draw attention These efforts will directly affect the future of the venue and from the media in the GTA and Durham Region and produce its impact on the City of Oshawa and surrounding areas. The strong sales are important for the General Motors Centre's long-term success of the General Motors Centre is directly long-term success. Events such as the PanAm Games, related to Spectra's ability to follow through on this National Grand Slam of Curling, Jerry Seinfeld, Theresa marketing and communications plan and deliver on the goals Caputo and many others go a long way in establishing the and objectives discussed in this report. ------····------· G(\'t~A.~.iorcis cc~r~:. · !it':..c·RA '.. 'E'~UE-. t1A'JA~E t.1CU:"' Page 33 ANNUAL SURVEY 1,834 survey respondents. Will you attend an event at the General Motors Centre in 2016? 79.22% said Yes 20.26% Uncertain at this time I O.S2% No Where is the best place to inform you of upcoming events at the General Motors Centre? 93.68% said Email 35.42% Facebook I 21.98% Radio 10.88% Newspaper I 10.31% Direct mail . ~ : . 7.86% lV I 1.40% Twitter 6.61% Online Ads I 5.98% lnstagram On a scale of 1 to S, how interested would you be in seeing the following type of events at the General Motors Centre? (0 Is not ln tcrested, 5 ls extremely interested, avg. rating u5ed) 3.48 for Sporting Events 3.41 Concerts - Rock I 3.37 Concerts· Classic Rock 3.13 Concerts· Country I 2.91 Theatre/Broadway 2.71 Concerts -Top 40 I 2.58 Family Shows 2.44 Con certs - Oldies / 2.12 Monster Trucks 1.97 Con certs· Metal I 1.95 Concerts-Jazz/Blues 1.73 Con ce rts- Hip Hop --~ ---·---- ~ ·- .______ ~~\~4~\I '.":>"'O;{S:llJi·H: r) ...i-CH~;.. vr.::'Jt-. ~h \nt,GE:n ~-. Page 34 GENERAL MOTORS CENTRE POST EVENT SURVEY DATA All 201 Sspecial events 1hrough Tim Hicks (November 28, 2015)- 1,955 survey respondents The best way to inform them of future events: Age ofticket purchaser: 52.62% said Email 33.24% said 45-54 years of age 23.74% said 55·64 I 19.82% said 35.44 10.93% said 25·34 I 9.16 said 65+ Had they attended an event prior to the 2.87% said 18·24 I 0.22% said under 18 one surveying for? 24.04% said No Gender of ticket purchaser: Will they attend another event at the 67.59% said Femafe General Motors Centre? 32.41% Malt! 95.65% said Yes ------.a••-~----~-"'------·---- •-~_,.__ _ G~~:-Ri,L •.1o·cos :;"·rR-; · S''[CiRAVErJJ, \'AN~W I.IfNT Page 35 2016 City of Oshawa Operating Budget by Department Department: GMC General Motors Centre 2015 2015 2016 Service Level/ Volume/Price 2016 Projected Approved Base Additional Realk>catlon One-Time Proposed 2016 • 2015 2016 • 2015 Actuals Budget Budget Pressures PY Actuals Efficiencies Adjustment Budget Variance Ss Valance% General Motora Centre General Motor.. Centre 414,700 514.700 514,700 (17,000) 497,700 (17,000) (3.3) Total General Motors Centre 414,700 514,700 514,700 (17,000) 497,700 (17,000) (3.3} (Q~ C'D ~ 2016 City Of Oshawa Operating Budget Budget by Program: 118 General Motors Centre 2015 2015 2016 Service Levell Volume/Price 2016 Projected Approved Base Additional Reallocation One-Tune Proposed 2016 • 2015 2016-2015 Actuals Budget Budget Pressures PY Actuals Efficiencies Adjustment BudgeI VarianceSs Variance% General Motors Centre 118 General Motors Centre Conlribulion to Capital 220,000 220,000 100,000 100,000 (120,000) (54.5) Contributions and Financial Chg 314,700 414,700 414,700 (17,000) 397,700 (17,000) (4.1) Operating Revenue (120,000) (120,000) 120,000 (100.0) Total 118 General Motors Centre 414,700 514,700 514,700 (17,000) 497.700 (17,000) (3.3) Variance explanation: lco w "