ALSD International State of the Industry: 2021 Back in the Saddle! September 1, 2021 Introduction What Does HSP Do?

Home , Education City Stadium, Forsyth Barr Stadium, Hindmarsh Stadium, Narendra Modi Stadium, Ras Abu Aboud Stadium, Stadium Australia

Master placemaking. Conduct market, financial feasibility & impact studies on:

§ Stadiums/Arenas

§ Entertainment Districts

§ Hotels, Convention Centers

§ Mixed-Use Districts

§ HSP’s 2nd year presenting the international state of the industry for the professional venues market. § More than €10 billion in International Sports Projects currently finishing or underway (~€6 billion in the last three years).

§ Featured in this Year’s Presentation:

§ Updated Venue Database (Added Arenas)

§ New Builds/Major Renovation Profiles

§ Entertainment Districts NEW

§ FIFA World Cup Facilities

§ Esports NEW

§ Private Equity Investment NEW

§ The comprehensive database created by HSP includes over 400 stadiums and more than 120 arenas worldwide. For presentation and data displaying purposes, the following criteria was used to explain the high-level trends and developments happening in the industry.

§ Featured in this Year’s Database: § Football (50,000+)

§ Rugby (50,000+)

§ Cricket (35,000+)

§ Formula 1 (F1 Schedule)

§ Arenas (15,000+) NEW

§ HSP’s database tracks over 120 arenas worldwide above 15,000 capacity (Non- North America). § Analyzes trends in arena new builds, renovations and/or expansions, premium spaces, and much more. § Details the costs and trends of the 20 arenas that are currently under development or were recently opened.

§ Utilizes these statistics and analytics to make projections on the future of arenas.

Number of New Stadiums & Arenas per Decade 90 80 70 60 50 40 30 20 10 0 1909 & 1910's 1920's 1930's 1940's 1950's 1960's 1970's 1980's 1990's 2000's 2010's 2020's Before

New Stadiums per Year New Arenas per Year

8 Spending on New Venues

Total Spend on International Venues: 2000 - 2025 € 3,000,000,000

Guangzhou Evergrande € 2,500,000,000

Motera Stadium € 2,000,000,000

National Stadium Bramley-Moore Optus Stadium AC/Inter Milan € 1,500,000,000 Yas Marina Circuit

Tottenham € 1,000,000,000

€ 500,000,000

€ 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Football Cricket Rugby Formula 1

9 An Average of Roughly €750 Million Spent per Year on New Venues

Average Cost Per Facility by Year by Sport: 2000 - 2025

€ 1,600,000,000 Football Cricket € 1,400,000,000 Rugby Formula 1

€ 1,200,000,000

€ 1,000,000,000

€ 800,000,000

€ 600,000,000

€ 400,000,000

€ 200,000,000

€ 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

10 Stadiums Built by Decade

§ 20+ facilities International Facilities Built by Decade Pre 1900's - 2020's

completed or 1910's, 2.08% 1909 & 2020's, underway in the Before, 6.94% 1920's, 5.21% 2020’s 5.56% 1930's, 5.90% § Jump in 1940's, 1.39% 2010's, 16.32% worldwide facility development in 1950's, 7.29% st 1960's, 4.51% the 21 century 2000's, 18.75%

1970's, 9.72%

1980's, 7.99% 1990's, 8.33%

11 Arenas Built by Decade

§ 11+ arenas International Arenas Built by Decade 1950's - 2020's 1960's, 3.60% 1950's 1.80% completed or underway in the 2020's, 9.91% 2020’s 9.91%

1980's, 10.81% 2010's, 22.52%

1990's, 15.32%

2000's, 26.13%

12 Football New Builds Driving Market Growth

New International Facilities by Year and League: 2000 - 2025

12 11 10 9 8 7 6 5 4 3 2 1 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Football Cricket Rugby Formula 1

13 Arenas by Continent (15,000+ Capacity)

54 81 38

15 3

14 New Builds International Football Stadium New Builds 2020-2025 New San Siro Stadium Milan, Italy

§ Teams: AC Milan, Inter Milan, Opening Ceremony of 2026 Winter Olympics § Capacity: 60,000 § Reported Cost: €1.2 billion § Opening Year/Season: TBD hundenpartners.com | © 2020 HSP 17 Bramley-Moore Dock Stadium Liverpool, England

§ Team: Venados F.C. and Leones de Yucatán baseball club § Capacity: 32,000 § Reported Cost: €85 Million § Opening Year/Season: 2023 hundenpartners.com | © 2020 HSP 25 International Cricket Stadium New Builds 2020-2025 Narendra Modi Stadium Ahmedabad, India

§ Team: Gujarat Cricket Association § Capacity: 132,000 § Reported Cost: €150 Million § Opening Year/Season: 2021 hundenpartners.com | © 2020 HSP 27 International Entertainment Arenas - New Builds 2020-2025 Etihad Arena Abu Dhabi, UAE

Sydney Football Stadium Agia Sophia Stadium Sydney, Australia Athens, Greece 45,000 33,000 €623 Million €80.7 Million

Qatar 2022

Al Bayt Stadium Lusail Iconic Stadium Lusail, Qatar Al Khor, Qatar 80,000 60,000

Al Janoub Stadium Ahmad Bin Ali Stadium Al Wakrah, Qatar Al Rayyan, Qatar 40,000 21,282

Khalifa International Stadium Education City Stadium Doha, Qatar Al Rayyan, Qatar 48,000 45,350

Ras Abu Aboud Al Thumama Stadium Doha, Qatar Doha, Qatar 40,000 40,000

Canada, Mexico, and the United States 2026

§ Event: FIFA World Cup Qatar 2022 § Capacity: 45,350 § Reported Cost: Part of €5.5 Billion (Across all 4 facilities)

§ Event: FIFA World Cup Qatar 2022 § Capacity: 40,000 § Reported Cost: Part of €5.5 Billion (Across all 4 facilities)

Source: SCQA

Australia, New Zealand 2023

Eden Park Sky Stadium Auckland, New Zealand Wellington, New Zealand 50,000 34,500

FMG Stadium Waikiato Forsyth Barr Stadium Hamilton, New Zealand Dunedin, New Zealand 25,800 30,748

Stadium Australia Sydney Football Stadium Sydney, Australia Moore Park, Australia 83,500 45,000

The Gabba Hindmarsh Stadium Queensland, Australia Adelaide, Australia 42,000 22,000

Perth Rectangular Stadium AAMI Park Perth, Australia Melbourne, Australia 20,500 30,050

§ Esports viewership is projected to grow at a 9% compounded annual growth rate (CAGR) between 2019 and 2023.

§ A total of 454 million viewers in 2019.

§ Total investments in esports grew from $490m to $4.5b from 2017 to 2019. § It is projected that the esports industry will exceed $1 Billion in revenue in 2021.

§ The map details the share of respondents who spent more time watching eSports in 2020 compared to 2019 (%) § Explosion in the southern region including Spain, Portugal, Italy as well as in the UK.

§ Demand for an increase in venue development to accommodate this growth

Source: Statista

Based on a survey of 10,175 (age 18-45)

In Western Europe and Northern Europe; May-Jun 2020

Source: Newzoo/PayPal

Dundee, Scotland Bristol, UK 4,000 1,500

Chongqing Zhongxian E-Sports Stadium X-Stadium Chongqing, China Dubai, UAE 7,000 N/A

Location: Toronto Opened: 2025 Cost: $500 Million Developer: OverActive Media

§ The proposed multi-purpose arena will be located at the Canadian National Exhibition Grounds and will have a capacity of 7,000. § Facility projected to host more than 200 events per year for esports and entertainment. § Attached hotel complex proposed.

Location: Chongqing, China Opened: 2018 Cost: ~$500 Million

§ Capacity of 7,000. § Exterior LED screens for an outside plaza space for 13,000 spectators that cannot get a seat inside. § Part of a complex with retail shops, a food court, exhibition space, and a luxury hotel.

Distrito T-Mobile Yas Island San Juan Abu Dhabi

Co-Op Live Mercedes Platz Manchester Berlin

Location: Milan, Italy Opened: 2024 Cost: $750 million Replaces: Giuseppe Meazza Stadium Teams: AC Milan and Inter

§ Capacity of 60,000, down from 75,000 in existing venue. § Two competing designs § 22-acre municipal park to include an open-air gym, museum and running track § Football pitch, basketball court, zip line, climbing wall

Location: Riyadh, KSA Opened: 2030 Cost: TBD Spaces: 20,000 Seat Stadium 18,000 Arena 5,000 Multi-purpose Sports Hall 5,000 Sports Hub Veledrom 3,000 Aquatic Center The Qiddiya project located west of the city of Riyadh is projected to be completed in 2030 and contain several different arena and entertainment venues that are a part of the KSA’s Vision 2030 strategic plan.

§ $40+ Billion § Development is 55% completed § 35 residential towers § 56 F&B outlets scattered on 3km of waterfront boardwalk § 18,000-seat state-of-the- art arena § Ferrari World Abu Dhabi § Yas Waterworld Abu Dhabi § Warner Bros World Abu Dhabi

Source: Miral

63 The Entertainment The Deer District District component of the entire Deer District is a compelling aspect to the arena’s presence in downtown Milwaukee. Whether or not someone has a ticket to a game or concert, the pedestrian plazas between Punch Bowl Social and the v t arena’s glass wall has become a needed component of creating what the city has lacked; a critical mass of dining and nightlife options. 64 Fiserv Forum and the Deer District

The culmination of Milwaukee’s efforts were finally realized in July 2021 when they were playing home games against the Phoenix Suns in their first NBA Finals Championship in fifty years. The Deer District became ground-zero for city and state- wide spirit as more fans showed up on each successive night during the series.

Bucks Training Facility

65 Fiserv Forum and the Deer District The deciding and final Game 6, in Milwaukee, brought as many as 80,000 total fans to the Deer District. Milwaukee won the best-of-seven series 4-2.

Bucks Training Facility

66 Fiserv Forum and The Deer District

67 Fiserv Forum and The Deer District The rise from pandemic to public crowds is likely the most dramatic in Milwaukee of any city in the U.S., beginning in June.

NBA Playoffs NBA Finals

From an average of 10K people per 162K 159K week in February through March, to 144K between 100K and 150K per week by 127K 130K mid-June. 108K 71,000 10,000 per Up to 30,000 per week week

This Chart: VisitsBucks Training to Deer Facility District after 5pm – shown by week

68 Fiserv Forum and The Deer District

Game 6 (Home - Win Game 5 was in Phoenix, but the Deer District hosted a Championship) watch party in which the total (indoor and outdoor) attendance was better than the home games 3 or 4. Milwaukee won the last four games, contributing greatly to the daily attendance increase. NBA Finals

Game 3 Game 5 (Home) (Away) Game Game 4 2 (Home) Game(Away) 1 (Away)

This Chart: Visits to Deer District after 5pm – shown by day Bucks Training Facility

69 Fiserv Forum and The Deer District Visits to Deer District after 5pm – shown by distance traveled

16% percent travel from 50 and 100 miles, and another 15%+ come from well over 100 miles from Milwaukee.

21% 16%

9.4% 8.2% 9% 6% 7.2% 6.5% 4% 4% 4.5% 1.3% 1.6% 2.4%

Bucks Training Facility

70 Fiserv Forum and The Deer District This Chart: Visits to Deer District after 5pm – shown by distance traveled

Almost one-third of visitors to the Deer District live over 50 miles away, according to this distance chart. A winning NBA team is helpful towards attracting out-of- towners to your fair city, however, just as important is having a dynamic and attractive development in the center of the action. One that people are sparks awe and joy in them, making them vow to return again.

Bucks Training Facility

71 Fiserv Forum and The Deer District This Chart: Visits to Deer District after 5pm – shown by average annual household income

Significant diversity of household income spectrum for visitors, from $0 - $200k+

Bucks Training Facility

72 Fiserv Forum and The Deer District Where do people at Deer District come from? HSP uses geo-fencing technology to read the behaviors and movements of crowds. This Map shows fans who have been to the Deer District between the times of 5pm and Midnight since February, 2021. The total is around one million people, and most of those people did not have tickets to any event, proving that the Deer District has become the new hub of nightlife and entertainment in Metro Milwaukee, Wisconsin, and beyond. Bucks Training Facility

73 Fiserv Forum and The Deer District – Fear the Deer Nation!

And across the U.S. They are not the Green Bay Packers, in terms of national loyalty, but still respectable. There are representatives from every major city that have visited the Deer District at least once in the past six months. Wisconsin has a special relationship with Phoenix and Florida, the most popular places for retirees to keep warm in winter. Aside from Wisconsin and Chicagoland, there is strong visitorship from the Twin Cities, St Louis, eastern Iowa and the around the Great Lakes States

74 Pedestrian Heat Map Two-Block Area Fiserv Forum and Deer District Plaza The Alleyway A demand-generator like an NBA arena draws people, not only on game-nights. The red areas show that The Alleyway is very conducive to guiding fans to the area’s bars and restaurants. Map shows where people walked during a 2-month period from April 26 to July 11, 2021.

75 Pedestrian Heat Map 15-Block Area Fiserv Forum and Deer District Water Street Old World 3rd Street

The red areas show where people walked with the highest frequency and the greatest numbers. Map shows where people walked during a 2-month period from April 26 to July 11, 2021.

76 Private Equity Investment & Mergers Private Equity Investment

10 Largest Private Equity Investments into Clubs & Leagues in the Past Decade § There are more than 57 professional sports teams with a valuation of more Team/League/Group Investor Deal Value Year City Football Group Silver Lake Management $500,000,000 2019 than $2 Billion. City Football Group CMC Holdings; CITIC Capital $400,000,000 2015 IceArizona AcquisitonCo Merion Investment Partners $152,500,000 2014 § Rapid growth in sports Liverpool FC Rhone Group $151,720,000 2010 Williams Grand Prix BCE $132,820,000 2020 broadcasting and gaming FC Girondins de Bordeaux General American Capital $114,060,000 2018 revenues have the private sector Olympique Lyonnais Groupe IDG Capital Partners $111,410,000 2016 intrigued. Annual spending on sports Sportech PLC - Football Pools FP Acquisitions $102,060,000 2017 Hertha BSC KKR $82,560,000 2014 broadcast rights has more than KSV eSports Consortium including New Enterprise Associates $46,000,000 2019 in the last ten years and Total $1,793,130,000 doubled Average $179,313,000 currently sits at almost $50 billion Source: Refinitiv worldwide. As of August 2020 § Three dedicated sports investment funds launched in the past 2 years with targets over $1 billion.

hundenpartners.com | © 2020 HSP 78 Private Equity Investment Total Sports § Total annual investment in Investment PE Investment sports has trended upward over the past decade. COVID-19 severely impacted investments in 2020 § Private equity investment continues to rise with the internationalization of sports and investment

“I think the industry desperately needs Venue Management and Hospitality Provider American Global Advisory, Development another entity that will and Investment Company for Sports and Live Entertainment Industries grow this space and take the synergistic resources of OVG and Spectra and be § Oak View Group (OVG) and Spectra announced plans to merge able to redefine what this to create a “leader” in the live events industry. industry looks like going § The combined company will provide industry-leading expertise forward and be able to in booking and creating content for the venues it manages. compete.” - Tim Leiweke CEO of Oak § OVG currently oversees the development UBS Arena and View Group Climate Pledge Arena, as well as the new Co-op Live arena. § Spectra has positioned itself as an industry leader hosting more than 15,000 events a year across the United States, Canada and around the world. The company currently serves about 200 clients.

§ Facility development to continue its rapid growth, with an increased emphasis on flexibility and security. § Higher Federation/League standards for new and existing facilities § Sustainability and reuse a key factor in new development of facilities for premier tournaments such as the FIFA World Cup and the Olympics § Esports to become more of a mature, major player in arena development and the ”sporting world.” § Consumers will continue to expect mixed-use environments around major venues. Financing realities will require it. § An array of different investor types/groups will become involved in sports teams and related development. § Internationalization of sports/leagues, improved product value

With professionals in Chicago, San Diego, Indianapolis and Minneapolis, HSP provides a variety of services for all stages of destination development in:

- Real Estate Market & Financial Feasibility - Economic, Fiscal & Employment Impact Analysis (Cost/Benefit) - Organizational Development

For further information about Hunden Strategic Partners, - Public Incentive Analysis please contact: - Economic and Tourism Policy/Legislation Consulting Hunden Strategic Partners - Research & Statistical Analysis 213 W. Institute Place, Suite 707 Chicago, Illinois 60610 - Developer Solicitation & Selection 312.643.2500 www.hunden.com The firm and its principal have performed more than 800 studies over the past 20 years, with more than $6.0 billion in built, successful projects.