i~J General Motors Centre 99 Athol St. East, Oshawa, ON L1H 1J8 p. 905.438.8881 f. 905.432.2372 www.generalmotorscentre.com ------~~--·-·-·------·------·---~---·--··----~-----~-----··-- '
Global Spectrum Facility Management 2014 Operating Budget and Business Plan
Please find attached the 2014 General Motors Centre Operating Budget, Business Plan and Marketing and Communications Plan. These documents outline our clear direction and strategic plan to meet our goal of maximizing success in the areas of activity, operations and finance.
Global Spectrum's mandate was clear when assuming management of the General Motors Centre in June 2008. Our primary obligation was to turn the GM Centre into a world-class sports and entertainment facility and attract a diverse mix of quality entertainment, which would appeal to all tastes, safeguard this facility, which represents a significant investment on behalf of the City, and lastly ensure fiscal responsibility by maximizing all possible revenue streams while controlling costs.
The GM Centre has received industry recognition as an elite facility and continues to achieve ran kings both nationally and internationally. Venues Today magazine named the General Motors Centre 1115 in the world in its Mid-Year Top Stops Report. Pollstar magazine ranked the GM Centre 11166 in the world in its 3'd Quarter Report, and for a fourth consecutive year the venue was nominated as Facility ofthe Year during Canadian Music week in the "Under 8,000 Capacity" category. These distinctions were possible due to the continued support of promoters throughout the entertainment industry most notably Live Nation Canada. As a result, of our ability to deliver first class services to promoters and artists and due to the strength of our market; Live Nation above all has identified Oshawa and the General Motors Centre as a premier destination for live events. During the first six years of operation, Live Nation Canada promoted on average 4 events per year at the GM Centre. In 2013, Live Nation promoted 12 of our 17 live events including six sold out shows for Blue Rodeo, The Tragically Hip, 2 shows of The Price is Right, Eric Church, and the Dixie Chicks. At the time of this report, Live Nation has six shows on sale for·2014.
Complementing the Live Nations events, the General Motors Centre was pleased to host a variety of shows brought to Oshawa by other promoters such as Feld Entertainment, Paquin Entertainment, Globetrotters Inc., and Gold and Gold Entertainment. These shows included Dora the Explorer, Reba, Disney Playhouse Live, the Subway Super Series featuring Team OHL vs. Team Russia and the world famous Harlem Globetrotters. Along with Oshawa Generals hockey and Oshawa Turfdogs lacrosse the General Motors Centre truly offers something for everybody.
As mentioned above, one of the factors which has allowed the General Motors Centre to flourish and to attract the attention of the entertainment industry is the strength of our market through robust ticket sales. Events at the General Motors Centre not only sell well but our sales typically surpass those of like facilities hosting the same shows. This is not only a testament to how engaged and supportive our community is but is also a direct result of Global Spectrum's effective marketing efforts. The Backstage
Page 1 Pass Club database has experienced amazing growth from under 1,000 in 2008 to over 59,000 in 2013. The success of our live events is one of the pillars of our financial success and is a key economic driver for the facility in a number of areas which includes direct event income from rent, and from ancillary revenue sources such as merchandise sales, service charges, and food and beverage sales. Strong marketing and strong sales go hand in hand in driving all of these revenues.
Tenants:
Another area which we rely heavily on for event revenue generation is our primary tenant the Oshawa Generals. Consistently well attended games allows the facility the opportunity to maximize revenues from rent and user fees as outlined in the lease and licence agreement as well as generate significant food and beverage sales. The Team has had a history of low attendances during the first two months of the season and then traditionally attendance increases into November and December and depending on the Teams performance and potential playoff position it will continue to be strong to regular season's end or drop off sharply. During the 2012/2013 season the Gens averaged over 5,500 per game over their final13 games. Attendance then dropped sharply during the first two rounds of the playoffs where the Team averaged 4,350 per game for their six game playoff run. Unfortunately, the start of the 2013/2014 has seen an even slower start than customary. Over the first nine games this season average attendance has been 3,830 per game or 241 fewer fans per game when comparing games to the same point last season. This decline could be a result of less Friday night games (only 2 in Oct) and/or no opponents of note. It is hoped that numbers will increase significantly for the balance of the season. Currently the Team continues to play extremely well and leads their conference.
We are continuing to work with our other tenant the newly named Oshawa Turfdogs as the Canadian Lacrosse League continues to try to grow the sport of professional lacrosse in various markets across Ontario. The Turfdogs have suffered low attendance over the first two seasons at the General Motors Centre. Largely hampered by no ownership group to provide leadership and direction; the league has tried to administer the day to day operations of the Oshawa franchise. We continue to offer every assistance possible and look to be instrumental in guiding the team to greater success in its upcoming third season.
Unfortunately, despite our best efforts, the Oshawa Power of the National Basketball League of Canada was unable to grow to the point of sustainability in Oshawa. The team has subsequently relocated to Mississauga for the 2013/2014 season. Although modestly budgeted for in 2013, this loss will have a minimal negative financial impact on the 2013 and 2014 financial and event outcomes.
Ice Rentals:
Ice rentals continue to be a strong revenue generator for the facility and contribute over $715,000 in revenue each season. This is accomplished not only through robust minor hockey and casual rentals but primarily on the strength of the Durham Community Adult Hockey League which was created and is managed in house and accommodated 90 teams during the 2013 summer league and 38 teams currently during winter league play. Next season we will look to grow the summer league to 100 teams and the 2014 winter league to 40 teams.
Page2 Maintenance:
The facility continues to be diligent in providing repairs and maintenance. Global Spectrum fully recognizes the importance of ensuring that all vital systems operate at their peak performance levels and receive regular attention. The General Motors Centre is now in its seventh season and is beginning to show the normal signs of wear and tear. Covered in more depth as part of the Maintenance Performance Plan, in 2013 unbudgeted repairs began to occur and although an expectation as the building ages; unanticipated repair bills negatively impacted the 2013 operating results. In 2013, a comprehensive long term Capital Plan was developed by Global Spectrum for review and consideration by the City to aid in forecasting major expenditures and upgrades which may be required. Although subject to a rigorous annual maintenance schedule, wear repairs were performed in 2013 in the following areas:
Over haul of one ofthe ice resurfacers- $20,900;
Major repairs to the sump pump repairs to the sump pump pipjng- $35,000;
Replacement of a Condenser fan motor- $4,530; and
Replacement of the radiant heaters in Rink B - $8,800.
Food and Beverage:
Food and beverage services are an area where we continue to make adjustments and opportunistically look for ways to increase per cap spending and/or initiate new ancillary opportunities to g·enerate additional revenues. In an effort to operate in a manner which is most cost effective it was decided that beginning in September 2013 Propsect's would be closed to lunch time traffic. As outlined in past annual reports, having Prospects open for lunch has been an area of focus for our food and beverage team. A number of strategic endeavours to build and sustain a steady lunch time business proved unsuccessful and therefore a business decision, was made to remain closed for lunches and focus on our core business and ancillary opportunities. This decision will be re-evaluated annually.
The quality of our food and beverage services continues to be of the highest quality. It sets the standard among secondary sports and entertainment venues and the CHL, and we continue to be retained as the caterer of choice for UOIT and the Regent Theatre. This season we were also successful in winning an RFP from the Whitby Curling Club to provide food and beverage services for club and private events. This is another example of Global's commitment to maximizing revenues for the City from all areas possible.
2013 Year in Review at a Glance
The following achievements occurred in 2013:
);> World ranking of #166 in Pollstars 3'' quarter report
Page 3 l- #15 world ranking in Venues Today Mid-Year Top Stop
1 l- 4 ' consecutive year nominated as Venue of the Year (under 8,000 capacity) at Canadian Music Week
? At the time of this report, the GM Centre has hosted 6 sold out shows in 2013
'!> Backstage Pass membership grew from 48,000 in 2012 to over 70,000 in 2013
Capital investments continue to be allocated strategically to ensure the optimal care and control of this facility as well as raising the level of finishes to better serve our customers and elevate the stature of the GM Centre to the elite of the secondary market sports and entertainment facilities. Some of the major capital allocations included:
v' Upgrade of all chairs in upper Prospects completing a full retrofit of the upper and lower spaces ($14,300)
>" Purchase of a new auto scrubber to equip our newly created in house housekeeping team ($12,000)
v' Purchase of 400 event chairs to be able to accommodate "A" list artist shows such as Eric Church, the Dixie Chicks and the Tragically Hip ($31,600)
v' Purchase of a marketing tent to activate at community functions and to raise the profile of the Centre ($1, 700)
>" Purchase of 4 spotlights to become more self-sufficient and better position ourselves to attract events ($6,000)
v' Major repairs to our sump pump motors and piping to protect against flood damage ($32,000)
'!> At the time of this report we have hosted 70 events vs. 66 budgeted.
l- Have generated a positive variance of $157,000 in event income to date.
Page4 ~ Reaching an agreement with Bell Mobility to permit antenna in the GM Centre to boost Bell wireless services which will add an additional annual revenue stream of $18,000 for the facility.
~ Continuing to work with Enernoc to participate in an energy curtailment program that earns approximately $6,000 annually for the facility.
);> Facilitated the installation of solar panels on the General Motors Centre roof. This was a consolidated partnership between the City of Oshawa, Oshawa PUC and Panasonic in an endeavour to provide a green energy source and reduce our carbon footprint.
:» The creation of our in house housekeeping team has proved a great success. Current savings being realized range from 15%- 40% dependant on event. At the end of 2013 we will have our first full year of data under the current model and will be able to quantify the savings.
2014 Budget Objectives:
The following is a list of revenue generation objectives aimed at continuing to maximize all possible operational and sponsorship revenue stream currently activated and still available.
1. Continue to maximize all possible sponsorship revenue streams currently activated and still available. These include a number of assets such as naming rights and signage which falls outside the Shared Agreement; maximizing the inventory and net revenues associated with the Shared Marketing assets managed by the Oshawa Generals, selling ancillary advertising opportunities such as on the GM Centre website, event sponsorship, etc.
2. Grow our direct event revenue by attracting quantity and quality in live entertainment and events. Along with the traditional revenue stream of base rent; by maximizing ticket sales we will be able to reach our full potential in event per caps whether through service charges, food and beverage sales and/or merchandise sales.
3. Think and work outside the box to create event activity and revenue streams during off season. These would include the continuation of the Summer Circus Spectacular in partnership with the Bowmanville Zoo as well as the continuation and growth of events such as the Touch A Truck event. Another area of focus will be an aggressive targeting of the lucrative movie and commercial industry which traditionally resides in Toronto. We have typically hosted one to two such events per year to glowing revie.ws. We feel this is an area we can experience some growth in.
Page 5 4. Our food and beverage team will continue to seek out additional catering opportunities in and outside the Centre.
5. Work to eventually maximize suite sales to sell out At the end of the 2012/2013 season we experienced a drop off of 3 suites; in all cases clients loved the facility and suite experience but cited financial hardship as the reason for leaving. At the time of this report, 17 of 23 suites were leased/occupied which is 4 short of our aggressive 2013 budget. The 2014 budget has been set more conservatively at 19 of 23.
6. Provide support and services to our tenant teams as required to help maximize attendance and subsequently all areas of event revenue generation.
7. Continue to operate the facility as efficiently and effectively as possible to control all operating expenses. As is the case with bringing housekeeping services internally find ways to deliver first class services in the most economical manner. As in the case of closing Prospects for lunch, making good business decisions in order to maximize cost effectiveness.
2014 Budget Assumptions:
The following assumptions were considered when formulating the 2014 General Motors Centre Operating Budget:
:» The total of annual events has been reduced to account for the loss of 21 Oshawa Power games but reflects the addition of an 8 show Cirque du Solei! run as well as maintaining our typical mixture of live events, community events and trade shows.
:» Oshawa Generals attendance has been budgeted at 2013 levels in keeping with the trend we are currently seeing during the course of the season. Based on the team's performance to date, two playoff games have been budgeted but with modest attendance and corresponding revenue results.
? Suites revenues have been realistically budgeted to 19 suites fully leased. At the end of this season we declined to 15 suites occupied but have recovered to currently 17 suites leased.
? Shared marketing revenues through our partnership with the Oshawa Generals have been increased by $50,000. As a cornerstone revenue piece, the Shared Marketing revenues have been a source of disappointment producing no substantial growth over the past seven years.
Page 6 r Utility costs has been significantly adjusted upward by 9% (+$62,300.) to account for the "Global Adjustment" fee which charges a premium for utilities used during peak hours at a fluctuating market rate.
Execu'tlve Summary:
The Global Spectrum team at the General Motors Centre and the City of Oshawa can take great pride in the growth and development of the GM Centre over the past five years. It truly has been a team effort which allows the facility to flourish in the way it has. One component cannot be successful without the others; a facility's staff must operate a venue professionally and efficiently to deliver the desired results, Council and staff must support and empower to assist the venue to achieve its goals, and the people must support the events to ensure success and support growth and new opportunities.
Presently, the General Motors Centre is well positioned to move forward to the next level. The event calendar for 2014 is already filling up with high quality events such as Elton John, The Band Perry, Hedley, Cirque du Solei!, Disney Playhouse Live and the Harlem Globetrotters; truly something for everyone. Relationships have never been stronger between our l We pledge to always work extremely hard to continue to offer premier sports and entertainment for the City of Oshawa and beyond with our ultimate goal being to drive this facility to the most cost neutral position possible. The corner stones are already in place as expenses are stringently controlled and revenues from areas which we can directly affect are reaching optimal potential. The final piece to the puzzle will be the unlocking of some of the major revenue pieces which are not yet at their full potential and/or time locl On behalf of the Global Spectrum Management Team of the General Motors Centre, I would like to thank you all once again for your trust and support. We are truly blessed to have the opportunity to work in such a fine facility and with such good partners, and to live in a vibrant and engaged community. We look forward to continuing to forge ahead In 2014 and being a source part·of great civic pride and a catalyst for continu,;91conomic growth. "7J[Jt Vince Vella General Manager Page 7 GENERAl MOTORS CENTRE FY :l Global Spectrum is the fastest growing firm in the public assembly facility management field with more than 115 facilities and almost 150 marketing specialists throughout the United States, Canada and Globally. With such extensive marketing experience and support, the team at the General Motors Centre has the tools to put all of Global Spectrum's best marketing practices in place through an organized communications and marketing plan. Through the data collected in the previous years, the Marketing team has been able to evaluate the information to determine the key areas to focus on for 2014. The most critical initiative of 2014 will be the need to expand our marketing coverage further into the Durham Region and Oshawa's surrounding areas. With the General Motors Centre's successes over the past years, sales can only continue to increase when we provide a greater presence in these underutilized markets. Our data collection proves to be a valuable resource when implementing our marketing efforts, as it ensures we are able to target our· market properly through our paid and grassroots campaigns. The marketing initiatives that are being implemented at the General Motors Centre grow stronger each year. We will continue to put the General Motors Centre on the entertainment map through relationship building efforts with industry promoters, taking advantage of additional exposure through industry mediums such as Pollstar and Venues Today, partnering with provincial Global Spectrum venues to bring in events, and more! To maximize and showcase the General Motors Centre's successes, Global Spectrum's communications efforts throughout 2014 will be comprised of continuing to work closely with the local and outer-region media. By providing them with unique opportunities to cover stories, gain backstage access, and more, it will enhance their interest in providing us with support. Community Relations is a very. important initiative, which Global Spectrum continues to fulfill on a day-to-day basis. The team at the General Motors Centre has had the opportunity to provide assistance to multiple non-profit organizations and foundations throughout the community, and will continue this effort throughout 2014 . . . • • • • ..... • II •' .. • t(. .. . •• • • Page 10 Research Analysis 2013 The City of Oshawa, along with Durham Region, is extremely unique in its demographic make-up. With such a close proximity to Toronto, it is difficult at times to determine whether the target market is in-tune with local media or with media which stems from Toronto. Our Google Analytics also display that fans within Oshawa and Toronto are the highest visitors of our website which also make it difficult to establish which media residents and/or commuters are most in tune with. Sometimes media buys are strictly dictated by budget as Toronto media is substantially more expensive than local outlets. For over three years now, the Global Spectrum Marketing Team at the General Motors Centre has been working diligently towards identifying specifically who the General Motors Centre fan base is made up of, and how we are best able to reach them through our marketing efforts. Global Spectrum continues. to utilize post-show surveys and as such has been able to gather vital information regarding the average fan of the General Motors Centre. These surveys are sent out to ticket purchasers and the information has assisted in deciphering advertising expenditures, online efforts, ticket prices and more. Below are the results of the data that has been collected through our most recent quarterly fan survey. ·.' • • • • I ' ·,.•,. • • Page 11 Where Is the best place to lnfonn you about future events at the General Motora Centra? 3.$>. Who is the average ticket purchaser? Out of 2, 707 surveyed, these are the results ... Gender of Fan Age of Fan '4Q~ -l.lr4!o1~ _,., -;s.;•_,.. --fomr.l• --.... :~~ ~~-,-~_ '"' m;·, • • • •, ...... • •' . • -~~ • •.•• .'. " .. ... • What cities are they coming from? 2, 707 Responses: Top 14 answers are below with cumulative total for remaining responses What City do you five In? What about the children? 2, 682 Responses, these are the results ... How many children an~~ In your hou.chold? Ifyou have ehlldren In your household, what are their aget? ..., - ~· 2Yur1 Old _, 111*112-!!'l'Qt$Oid -·_, -6-tl'l'lltiO!cl -1M71...,.0id -WA 1.1'4 -·..... U\ 0.7% '" "" 152'< ·. • • • ••' • ~~.. • ..: • .. ·... • Page 13 What radio stations are they listening to? 2, 652 Responses: 31 options- chart shows top 10 Answers What rad5o atatlona do you listen to the most? CCheck all that •pply) 39.6" What television stations are they watching? 2, 628 Responses: 56 options- chart shows top 10 Answers What tet.vltkm station(l) do you or yourchlldren watch the most? (Check an that _,ply) -'. • • • • ... • I •' .. .. • • •.•. ., ' • ... . Page 14 What newspapers are they reading? 2,622 Responses: 33 options- chart shows top 10 Answers Which newspaper{s) do you read most often? (Check all that apply) What websites are they visiting? 2,612 Responses: 28 options- chart shows top 10 Answers Which webslto{a} do you Ylaft on a 11gu1ar baela? (Check all that apply) ..... tM Wutluar lbttok ·-" Twiuoor ·.•.. ·.' • • • • , ". .. . ' ...... • • . • • ..·~·~ ... ••• • · Page 15 What events have they attended in the past? 2, 586 Responses What type of event. have you vlsllod the Gtneralllloto.. cenlre lor In 111• P••t? (Check an that apply) How they rated their experience at the General Motors Centre? '2,586 Responses: Averaged Out- 1=Poor, 5=Exce/lent How would you rate your experience while visiting the General Motors Centre ll1 the poet? f'>rl:olPtms Bar & Grl £ni Page 16 Coogle Analytics for www.generalmotorscentre.com With the utilization of Google Analytics, we are able to better understand our visitors. This information is proving to be beneficial for our development of marketing strategies as we can clearly learn where fans are visiting our website from and where we need to focus more attention through our marketing. Data displayed represents from January 1 to November 25, 2013. • N11w Vbitor • Rl\uming VisilDr Vi'it& 1 Unlquo Vis!tofS : P1gt' Pages/Visit 1 Avg. Via~ Dumliun \ eovncA l'« % New\li$it11 58.19% What are the top 10 visiting cities? 356,006 356,006 % 1'1~7btel: IOtl.lJC% (2-SS,GOO) % ct 'Iota!: 100.lH!% (::lsti.OO;') 1. Oshawa I 95,644 26.84% I . I. 2. Torcnto I 80,570 22.63% 3. Whitby I 25.151 ~7:05% 4. Ajax I 12,195 3.43% 5. Plc.kerlng I. 12.019 ~ 3.36% 6. Peterborough I 9.141 2.76% 7. Courtice 9.059 B. Montreal I 5.699 9. Mississauga 5.114 10. Markham 4.547 ~128% Page 17 Previous Year Comparison When assessing the progress which Global Spectrum has made since taking on the management role of the General Motors Centre, one only needs to take a look back at the past five full years in which Global Spectrum has been engaged. The growth and successes are truly encouraging. Below, we provide a brief overview of the growth the General Motors Centre has experienced from 2009 to 2013 as they prepare for an exciting first quarter in 2014 with more than 6 events already on sale. Please note this information only includes data from live ticketed events. Oshawa Generals games, Oshawa Power games, CLax games, trade shows and various one-off events are not included. 2009 at a Glance 2012 at a Glance # of Event Dates 20 # of Event Dates 32 # of Sold Out Events 2 # of Sold Out Events 5 # of Returned Events 3 # of Returned Events 11 # of New Events 17 # of New Events 21 Total Attendance 50,443 Total Attendance 86,551 Total Gross Sales $1,349,980.50 Total Gross Sales $4,066,608.05 Average Ticket Price $30.42 Average Ticket Price $46.90 201 0 at a Glance 2013 at a Glance # of Event Dates 29 # of Event Dates 19 # of Sold Out Events 8 # of Sold Out Events 7 # of Returned Events 7 # of Returned Events 7 # of New Events 22 # of New Events 12 Total Attendance 77,316 Total Attendance 62,375 Total Gross Sales $3,218,070.25 Total Gross Sales $3,242,866.91 Average Ticket Price $49.86 Average Ticket Price $54.80 "'Incomplete 2013 figures; as of October 30, 2013 for 2011 at a Glance events that have performed. Does not include Great Big # of Event Dates 39 Sea, Jingle Ball or Johnny Reid. # of Sold Out Events 6 Total attendance includes paid and camp tickets. # of Returned Events 7 Gross sales figures do not include facility fees. # of New Events 32 Total Attendance 91,362 Total Gross Sales $3,382,935.25 Average Ticket Price $46.33 ••.. ·,' • . . . • .. • . , ...... • • ••• ••,• . .. .. -.· ... ~ . • • ••-· ~ ••... 'l . ._. .. Page 18 Communications Plan Global Spectrum Facility Management, operators of the General Motors Centre, take great pride in innovative public relation programs, and establishing key relationships throughout the community. It is our duty to ensure that Durham Region, and the surrounding area, are well aware of what is going on at the General Motors Centre. From world-class entertainment to trade shows, we have something for everybody, and therefore, we need to increase the awareness of the building to our community. Continuing to work hand-in-hand with our local media partners, as well as those partners that are within arms' reach in the surrounding area, will continue to be a strong priority of ours for 2014. Objectives • Receive extra press coverage on positive happenings within the facility; pre-show reviews and post-show reviews, interviews with artists, contesting occasions, charitable initiatives etc. • Receive press coverage for the venue during down times; focusing on community relations, interviews with key management, behind the scenes information and more. • Submit embargoed media releases to local partners, to ensure they have the information well in advance, so that they may plan their coverage accordingly. • Providing media partners with intriguing angles, giving them stories that the normal fan may not be able to read. • Work with Durham College to provide their photography students a real life experience while shooting a live event. • Look at the happenings within the General Motors Centre that we feel are daily me but the community may not understand fully and share that information with local media • Build stronger relationships with local Bloggers whether they focus on the community or a show demographic specifically (Mommy Blogs for children shows, etc.) ••.. • • • ... • • #, ...... ·..•.. • • ••• .. . Plan of Action • Inviting our local media partners to experience or cover, unique story angles; whether it is a backstage interview with the artist, a tour of the dressing rooms, the ability to learn a few tricks from the cast, or talk about wardrobe and make up_. This will give them a new story, that maybe they've never told before. • Ensure media distribution lists continue to be up to date for event announcements, venue rankings, charitable initiatives, tenant news, and media credential requests. • Provide the local media with press releases and event announcements in a timely rnanner, and give them the opportunity to participate in press conferences and interviews when available. • Provide the local media with the opportunity to cover events happening at the General Motors Centre, as photographers, videographers and reviewers, when approved by the promoter. • Maintaining continuous communication with the city media and local Government, (Mayor, Councillors, City Communications etc...) to ensure they are always up-to-date with what is happening at the General Motors Centre. It is imperative to keep these important people in the loop, as it will create positive exposure for the building, as well as, it will give Global Spectrum the chance to build a great relationship with them. • Stay in regular contact with local media partners to ensure they are receiving information the way they find easiest. • Create PR events that will garnish attention for the facility during the slower times of the year. For example, our first annual Touch-a-Truck event in August 2013. Mart?eting Plan The Marketing Department within Global Spectrum is comprised of almost 150 marketing specialists, who are all encouraged and guided to implement the most ground-breaking and creative, yet sensible, marketing initiatives in the entertainment industry. From year to year, we have proven to be the best in the business! Provided with a tool box filled with resources, we are supported and fortified with the ability to reach out to almost 150 other marketing specialists, to brainstorm, receive advice, and share ideas, on any given day. The team at the General Motors Centre has not only been putting Global Spectrum's best practices into place since day one, but have led the way corporately having innovative ideas that other buildings are quickly adopting. Global Spectrum has incredible relationships with the biggest promoters in North America; including Live Nation, AEG, and Feld, Magic Space Entertainment and DKD Events just to name a few. Now that these relationships have been established at the General Motors Centre, it is our job to nurture the promoters, continuing to educate them on the growth of the General Motors Centre and the community, so that we stand as a valuable play option for their artists. Not only is our number one priority to have positive encounters with every promoter we work with, but we strive to showcase the General Motors Centre and the City of Oshawa as a must-play destination. In addition to our promoter relationships, our in-house marketing department has the sole responsibility of utilizing all opportunities to market, not only the building, but the entertainment that is coming through the General Motors Centre. Creating innovative marketing plans, implementing unique grassroots marketing initiatives, and taking advantage of any PR initiatives that we can, is what Global Spectrum Facility Management does best. Objectives: • Contin1,.1e to increase the number of sports and entertainment events each year, keeping in mind, that the community wants quality vs. quantity in the event programming • Nurture our positive working relationships with top promoters and establish new relationships with those promoters yet to play at the General Motors Centre by keeping them apprised of the positive happenings at the General Motors Centre and within the region; showcasing that we have a valuable market, which can support world class artists ·! • • •• • • • . .. . • , • ~ • .· •••• ... •••. ... • Nurture a presence within Durham Region, and gain awareness throughout the community; increasing interaction with our fans. Our new fan phone services number allows fans to connect with our Fan Services Department during an event to answer any questions by text or email and to receive a response immediately from their seat or anywhere in the venue. • Seeking additional opportunities to put the General Motors Centre on the map as an entertainment venue that is a must play destination · • Utilizing Google Analytics to determine proper action with marketing initiatives • Continue to conduct internal market research; utilizing our findings when booking events, determining ticket prices, deciding where advertising should be placed, and more • Implementing original marketing plans and branding efforts • Creating unique grassroots marketing initiatives, promotional opportunities, contesting, social media efforts and more. With the use of the new marketing tent, we were able to generate significant exposure while attending community events • Growth of Backstage Pass, which in-turn, increases ticket sales through one on one contact with the public • Revenue generation through sponsorship initiatives • Creating self-produced events such as Touch-a-Truck, during the slower times of the year to stay front of mind for the community while also providing them new experiences at the General Motors Centre Page 22 Plan of Action -Venue Marketing: • With the successes we've seen over the past few years, the Global Spectrum team at the General Motors Centre has built a strong foundation for a positive future; with gaining event promoters' trust and respect. Now, it is our job to keep them apprised of positive happenings, so that the General Motors Centre is always on the top of their mind when they are routing various entertainment acts. • We continue to seek additional exposure for the General Motors Centre through industry related marketing. We have been highlighted in a number of issues of Pollstar, Venues Today, and Global Spectrums "Globe" newsletter, which is sent throughout the industry. After each event, we submit our sales numbers, and photos from the show, so that these magazines are able to include us in their concert listings, rankings, and updates. We will continue these efforts throughout 2014. • For four years in a row, the General Motors Centre has been nominated at Canadian Music Week in the "Major Facility of the Year, under 8,000" category. 1 The General Motors Centre was recently ranked 15 h in the world for our venue size by Venues Today Magazine's in their Mid-Year Top Stops Report. We again broke Pollstar's Top 200 Venues Arena in Worldwide Ticket Sales for the third 1 quarter where we are currently ranked 166 h in the world, solely from ticket sales rather than venue category size. These accomplishments put the General Motors Centre on the map, and are recognized by promoters. • The re-development of generalmotorscentre.com, which was launched in 2011, has increased our ability to showcase many aspects of the venue, gaining more efficient ways of exposing our upcoming events, as well as building attributes and availabilities. In addition, the usage of Google Analytics has allowed us to begin tailoring our marketing strategies to reach the public outside of Oshawa to pull in from the rest of Durham Region and surrounding areas. • We continue to send the quarterly General Motors Centre Newsletter to all of our contacts within the entertainment industry. This newsletter contains snippets of positive happenings within the. General Motors Centre, City of Oshawa, and the Durham Region showcasing both growth and vitality. Front Shown: • . . • Plan of Action - Event Marketing: • With Google Analytics information active for approximately two years, this has proved to be a great research tool. Here, we are able to analyze our website usage data, to determine who is using our website, where they're coming from, how they got to our site, and so much more. This data will help us make a more informed decision when implementing various marketing initiatives. This will also support our proposals when we are pitching online sponsorship to local businesses. • We will continue to utilize post-show surveys to collect data, utilizing this information when planning how to divide our advertising dollars, and where we are able to reach our customer. • The Marketing Department is a one-stop-shop for all promoters booking events at the General Motors Centre; providing a full service marketing program is something that the promoters appreciate, as a majority of them are working on an entire tour and are not from the area, and therefore, it is difficult for them to correctly evaluate the market. Our department offers a program which includes, but is not limited to: o Centre Ad Program - comprised of added value marketing initiatives, that they would not receive if they were to take on the marketing themselves o Special Advertising Rates - as we work with the media on a more regular basis (rather than one or two times per year) we receive much better rates than a promoter who has never spent a dime in the market o In House Marketing Support - jumbo-Iron commercials, outdoor matrix board, in arena postering and flyering, signage and more o Online exposure through our website, Backstage Pass, social networking sites, and various partner sites o Full Public Relations services o Grassroots Marketing - postering, contesting, and a street team presence throughout the community • We will create a community events tour during summer 2014 as we now have a marketing tent that allows us to stand out at festivals and garnish fans attention. During these events, we will be focusing on growing our email database while showcasing the numerous events coming to the General Motors Centre. In 2013, we attended the Pickering and Oshawa Ribfests where we were able to interact with fans directly while also providing the venue with more exposure to the community. ...• . • • •#, -: • ...... • • ••• .... ·~: ...... ~ . • ••••... .•.:·...... Page 24 • Creating unique grassroots marketing initiatives to promote the events that come through the General Motors Centre is an effort that further enhances the top-of mind awareness, not only for our upcoming events, but the building in general, to the public in Durham Region. Through our street team promotions, contesting occasions, and utilizing our social media outlets, we have found a way to connect with our customers, and increase our interaction with our fans. • The growth of our Backstage Pass a-Newsletter club has been an integral part in making each event a success. We implement contesting (re-launched the Key to the GMC for 2014) initiatives, promotional campaigns (such as attending Ribfests) that have helped increase our database numbers, and will be engaging more with the public this year, in different locations, to increase members. o In November of 2011, our Backstage Pass database had 34,067 fans o In November of 2012, our Backstage Pass database had 48,169 fans o In November of 2013, our Backstage Pass database had 62,384 fans • Pre-sale numbers continue to increase, which attribute to selling shows successfully • Social Media has played a significant role in our communications as well; Facebook, Twitter, YouTube, all have proven to be a tremendous resource when creating awareness about our upcoming events. We continue to nurture these mediums, growing our fan base each day. By implementing creative contesting and interactions with our followers, it has been a rather successful task. o In November of 2011, our Facebook Fan Page consisted of 4,101 fans o In November of 2012, our Facebook Fan Page consisted of 5,705 fans o In November of 2013, our Facebook Fan Page consisted of 16,534 fans • 13,469 referrals to our website from our Fan Page o In November of 2011, our Twitter page consisted of 1,165 followers o In November of 2012, our Twitter page consisted of 3,767 followers o In November of 2013, our Twitter page consisted of 8,212 followers • 1,963 referrals to our website from our Page o In November of 2012, our YouTube page consisted of: • 27 subscribers; 59,606 video views o In November of 2013, our YouTube page consisted of: • 38 subscribers; 78,262 video views Page 25 Revenue Generation The Marketing Department actively participates in generating additional revenue for the building. In the past year, we've resigned our Backstage Passe-Newsletter sponsor to a third term as the Presenting Sponsor while increasing their investment to $7,956. 75. The Marketing Department has worked with carbonhouse to setup advertising elements onto the website that were created into packages. The Marketing Department is currently in discussions with numerous clients and have several of the local hotel chains interested in the Area Hotels Package. Other packages include a Seating Chart Sponsor Package and a Concert & Event Listing Sponsor Package which will have more success in 2014 when the clients' refreshed budgets. The Marketing Department launched a renewed Centre Advertising Program which we provide the opportunity to promoters to use our venue assets for advertising their show as well as our grassroots initiatives. We look to continue increasing the number of promoters that use this program to their advantage and have also increased the amount charged for the program due to recent additions . ..•. . . . • • • • I • ....• • Page 26 Croup Sales The growth of the Group Sales Department has continued to be a great resource for ticket sales as well as additional revenue for other departments. Global Spectrum continues to establish and build relationships with new group leaders within the community for future events while also looking at innovative packaging avenues to increase revenue streams for the General Motors Centre. For the 2014 season, the Group Sales Department has been granted exclusive group sales rights for the Oshawa Turfdogs which will be an essential part of their succession plan. 2009 at a Glance 2012 at a Glance # of Group Event Dates 4 Total Group Attendance 1,229 # of Group Event Dates 21 Total Group Sales $34,311.95 Total Group Attendance 6,461 Average Ticket Price $27.92 Total Group Sales $255,837.75 # of Dinner Package Events n/a Average Ticket Price $39.60 Total Dinner Packages Sold n/a # of Special Package Events 6 Total Dinner Packages Sales n/a Total Special Packages Sold 404 Group Suites Rental Revenue Total Special Packages Sales $29,975.50 Group Suites Rental Revenue $3,545.00 2010 at a Glance 2013 at a Glance # of Group Event Dates 11 Total Group Attendance 4,563 # of Group Event Dates 4 Total Group Sales $222,893.50 Total Group Attendance 2,073 Average Ticket Price $48.85 Total Group Sales $33,825.75 # of Dinner Package Events 12 Average Ticket Price $16.32 Total Dinner Packages Sold 556 # of Special Package Events 1 Total Dinner Packages Sales $52,799.75 Total Special Packages Sold 7 Group Suites Rental Revenue $2,960.00 Total Special Packages Sales $493.50 Group Suites Rental Revenue $4,463.00 Glance 2011 at a 'Incomplete 2013 figures: as of October 29, 2013 # of Group Event Dates 24 Total Group Attendance 3,811 Total Group Sales $69,802.00 Average Ticket Price $18.32 # of Dinner Package Events 7 Total Dinner Packages Sold 462 Total Dinner Packages Sales $46,497.25 Group Suites Rental Revenue $8,425.00 • • • .. .. • . .~·., ~ • ...... ·-·· • '· Page 27 Community Relations Global Spectrum Facility Management encourages a strong mandate for all of its personnel to become heavily involved within the community, and give back to the communities we live and work in. Here at the General Motors Centre, we are committed to partner with local non-profit organizations where ever and whenever possible, and will continue that commitment in 2014. We continue to work with a wide variety of local non-profit organizations and foundations to assist them any way we can. Such organizations include, but are not limited to: • Salvation Army • Durham Family Court Clinic • Grandview Children's Foundation • Canadian Cancer Society • Canadian Centre of Abuse Awareness • Humane Society of Durham Region • UnitedWay • Heart & Stroke Foundation • Canadian Breast Cancer Society • Children's Wish Foundation • Canadian Mental Health Association Durham • Toronto Sick Kids Hospital • Big Brothers Big Sisters • The Leukemia & Lymphoma Society of Canada • Bereaved Families of Ontario- Durham Region • John Howard Society of Durham Region • And more! Page 28