Overview

• Opened in December 2003

• Both Sporting and Non-Sporting Events • Home to NHL Arizona Coyotes • State of the Art Concert and Entertainment Facility

• April 2016, AEG Facilities was awarded the Arena Management Contract effective July 1, 2016. The agreement recently extended and now ends in 2026.

• Structure of the Agreement • AEG manages the sales, marketing, operation and maintenance of the facility and designated parking areas, which includes agreements with tenants, food service providers and others performing in and providing services at the venue • AEG and the City work together to determine the capital needs of the facility • City pays $5.6 million for management fees offset by a “profit-sharing” arrangement • AEG at risk 100% for any annual losses • All facility and related sales taxes are retained by the City Arena Bookings

BOOKING PROGRESS (excluding Hockey related events)

BOOKING PROGRESS 35

30 29 25 26 24 20

15

10

5

- Shows booked 2016-2017 Shows booked 2017-2018 Shows booked 2018-2019 Our Approach

How AEG thinks: Aggressive, entrepreneurial, and all-encompassing approach to booking. Operationally conservative, environmentally prudent, and employee and customer-oriented focus. Gila River Arena SWOT Analysis

Strengths Weaknesses • Very versatile venue with largest indoor concert capacity in area. • Historic position as 2nd arena venue in market • Venue in good shape and still offers state of the art amenities • Older acts may not have played venue despite better production capabilities • Excellent sound for an arena • Past misrepresentation of venue location and accessibility • Fiscally prudent, bottom line oriented staff • Strategically accessible location with above average area amenities • Strong area partners and synergies

Opportunities Threats • Date availability • Longtime act relationships with competitive venue • Area partner synergies creating greater exposure for touring acts • What has become traditional plays in competing venues for various acts • Easily accessible parking – quick ingress and egress • Misinformation regarding ability of venue to host events • New guest service and food amenities will drive interest in venue • Drive non-hockey traffic with success of hockey team Arena Bookings FY 2018-2019

HOCKEY RELATED EVENTS

NHL Arizona Coyotes Home Games (including pre-season) 43

ASU Hockey 3

Other ice use days by team 177 Practices Training camp Development Camp Injury Ice Visiting Team Practices AHU Adult League Paw Patrol ___ TOTAL 223 Arena Bookings NON-HOCKEY EVENTS FY 2018-2019 DATE DAY EVENT July 12, 2018 Thursday SMASHING PUMPKINS August 17, 2018 Friday PANIC AT THE DISCO August 25, 2018 Saturday TOP RANK BOXING August 31, 2018 Friday SAM SMITH September 12, 2018 Wednesday GAME OF THRONES October 8, 2018 Monday DRAKE November 7, 2018 Wednesday RUSS November 16, 2018 Friday MIKE EPPS December 2, 2018 Sunday (2) TRANS-SIBERIAN ORCHESTRA December 15, 2018 Saturday CHILDISH GAMBINO January 11, 2019 Friday ACE COMICCON January 12, 2019 Saturday ACE COMICCON January 13, 2019 Sunday ACE COMICCON January 14, 2019 Monday DISTURBED January 19, 2019 Saturday PBR January 20, 2019 Sunday PBR January 26, 2019 Saturday ELTON JOHN February 1, 2019 Friday KELLY CLARKSON February 13, 2019 Wednesday KISS February 17, 2019 Sunday JURASSIC FIGHT NIGHT February 22, 2019 Friday AIA BASKETBALL (4) February 23, 2019 Saturday AIA BASKETBALL (4) March 17, 2019 Sunday CHRIS TOMLIN March 30, 2019 Saturday PINK April 4, 2019 Thursday MERCYME May 25, 2019 Saturday B2K June 20, 2019 Thursday KHALID June 29, 2019 Saturday ARIZONA RATTLERS Arena Bookings

CONCERT BOOKINGS

Historical Concert Bookings per Fiscal Year

20

18 19

16 15 14

12 13

10 11

8 9 9 9

7 6

4 5

2

0 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 Arena Bookings

EVENT PAID TICKET HISTORY (excluding hockey)

Total Annual Tickets Sold

218,703 195,317 181,328 172,803

147,770 144,488 129,537 110,905

83,440 PROJECTED

2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 Arena Bookings

HISTORICAL EVENT ACTIVITY (excluding hockey) Booking Highlights

• This year the Arena again sold the most tickets in any one fiscal year since 2009-2010

• The Arena had the highest total gross ticket revenue over the past nine years

• Arena increased concert business by 27%

• This year the Arena had the most events held in July since 2009

• The Arena doubled the rehearsal days over the prior year (22)

• Again hosted ACE ComicCon Arizona. Only second time ACE ComicCon event ever held in an Arena

• Hosted Arizona Rattlers playoff game and agreed to host team for 2020 season

• Arena had the highest ticket sales on the entire MercyMe Tour

• Diversified business working with five new promoters/producers

• Hosted very successful first-time event, “Jurassic Fight Night” with local partner Target Business Thoughts

➢ Key Focal Points • Profitability, programming, positive industry exposure, and industry relations.

➢ Concerts • Through current successes our aim is to attract more musical concerts on a more regular basis despite irregular touring schedule and artist schedules.

➢ Family Shows • Traditional family show content is being consolidated with some of the larger companies like Feld Entertainment and Cirque du Soleil. Search for alternative family show content and continue to court current touring shows.

➢ PBR • PBR products continue to grow in Arizona. This past year’s success builds new opportunities, and PBR has expressed interest in taking that to the next step.

➢ Religious • Chris Tomlin and Mercy Me’s Imagine Nation Tours success has built more opportunity and touring consistency with this genre. Target Business Thoughts

➢ WWE • WWE’s Royal Rumble once more played the Phoenix area and established it as a key area for the company. Discussions continue with them to take advantage of this location and arena for future events.

➢ Boxing/MMA • Top Rank boxing drew well and has helped establish Glendale as a strong location and easy facility to work.

➢ Community Events • Date availability pending, events such as AIA Basketball, Glendale Chamber of Commerce Member Appreciation Night, Recruit Military Job Fair, West Valley Child Crisis Center Luncheon, Phoenix West Recruiting Company – Army Change of Responsibility Ceremony, 911 Tower Challenge, United Blood Services Emergency Blood Drive, Glendale Rotary Community Cook Off, Wishes for Teachers event, and Earth Day all-staff clean up with Glendale Parks have all added to the diverse content of the venue and have given added exposure to the venue as well as value to the community.

➢ New business opportunities • New and creative business opportunities like ACE ComicCon and Jurassic Fight Night are sporadic and have to be carefully measured, but can make a significant impact both financially and promotionally. More effort will be focused on searching out new opportunities. Capital Expenditure Highlights

• Security Cameras and High Def Video Equipment - purchased and installed new cameras and increased storage capacity, thus continuing to improve the overall security and safety plan

• Key Scan System – increased the use of scan cards and reduced traditional keys while increasing security

• Two way radio system – to improve event communications and respond quicker to issues

• Black dasher board cover – existing board cover was unusable

• Chiller loop glycol replenishment – added additional glycol to kill bacteria and create a colder chilled water loop

• Chairs on telescopic seating riser – replaced 160 chairs and equipment to make event changeovers quicker and more efficient, thus saving time and money

• Water heaters – replaced six of sixteen worn-out water heaters

• Emergency Generator Repairs – repaired generator radiator

• New Center Hung Scoreboard – replaced outdated older model

• New Control Room and Equipment for Center Hung Scoreboard

• New LED Sports Lighting – for enhanced playing surface lighting (additionally cut utility costs)

• Compressor for ice plant – older compressor needed replacement Operational Improvements

Staffing improvements with new hires • Hired four full-time conversions and audio/video engineers • Seven part-time building general operations personnel • Augmented venue marketing and promotional team with key hires of Assistant General Manager with an extensive marketing and promotional background, along with a new marketing manager adept at working with teams and venues. Venue system upgrades • Lighting - Changed out all metal halide tube lights to LED’s in all stairwells and concourse. • Security - Remodel Command Center for more efficient operation. • Coyotes - Players lounge remodel including converting to all LED lighting. • Premium Upgrades – Suite renovations, Club area, and VIP Entrance. • Waste removal – Added food composting program to decrease our carbon footprint. Operational Enhancements - Guest Services

As the leader in guest service experience in the State of Arizona, the Gila River Arena has again added and continued with the following conveniences: • First Arizona entertainment venue to provide a “Universal Changing Table”. This equipment accommodates guests who have varying needs, from children to adults. • Implemented merchandise orders for the suites • Continued with AEG ENCORE training to equip our staff to handle guest needs and ensure a pleasurable and safe guest experience. AEG ENCORE, developed in conjunction with the Disney Institute, is our proprietary guest service program that will reinforce and enhance the guest experience at Gila River Arena with a unique and systematic approach to guest services. • Staff re-certified in handling and assisting with Sensory Inclusive needs. Staff was trained by medical professionals on how to recognize guests with sensory needs and how to handle a sensory overload situation. Sensory sensitivities or challenges are often experienced by individuals with autism, dementia, PTSD and other similar conditions. • Added additional (larger) nursing mothers room to accommodate increased demand. • Added “Vibes” Hi-Fidelity Earplugs for guests and staff. Enhances the live music experience by lowering decibel levels without sacrificing sound clarity. Operational Improvements - Security

• Upgraded CCTV cameras to provide more visual coverage of all public accessible areas providing a more secure area and better response times. • Created Express Entry (no bags) security checkpoint into venue, which speeds up entry allowing guest quicker access to their seat and arena amenities. • First AEG Venue to conduct Red Ball Drills in real time scenarios during an event. Red Ball drills are real-time training scenarios built to identify any weaknesses to be addressed in overall venue security. • Completed NHL “Under Maintenance” program and facility is totally security compliant For the first time in arena history venue is operating under accepted NHL security requirements • The NHL has awarded Andrea Evans, Gila River Arena Security Manager, the NHL Professional of the Year Award, for exceeding all NHL Security requirements. • Added new dedicated communication devises in conjunction with operations management software for supervisors to increase speed and create more accurate incident reporting during events. • Implemented high security check-in software for non-event hours in order to improve the security protocol and tracking for visitors and vendors. • Increased event security staffing with in-house personnel allowing for better accountability, control, and reliability. Operational Improvements - Parking

• Added 14 total “hard” signs in key areas and intersections for improved traffic flow and parking for Arena events with the help of the City of Glendale Transportation Department. This action has proven to decrease the amount of wait-time on adjacent streets for ingress and egress. • Improved partnership with Renaissance Hotel, State Farm Stadium, Westgate Entertainment Center, and the Quarter Condos to successfully coordinate parking plans and event operations for dual events. Strides have been made by all entities to blend their parking operations and work together fluently. • Hired 25 new event employees, bringing to total up to 50 total staff. • Assisted guests throughout the year with approximately 45 various inconveniences such as flat tires, jump starts, dead batteries, and those locked out. • Completed traffic flow analysis, which has proven to decrease guests time in traffic and facilitated their access to the proper lot more efficiently. Food & Beverage

➢ Past Year in Review - Items and Improvements 31 New Menu Items were added, especially in the entrée category, increasing basket size per transaction. • Examples included Kachina Burger, Hat Trick Dips, Cantina Bowls, Boneless Wings, Ahipoke Bowls, Smoke House BBQ Sandwiches, Cheetos Popcorn Beverage program enhanced with a combination of sponsor partners and creative specialty drinks • New partners included White Claw, Saint Archer’s Brewing, Grand Canyon Brewing, New Amsterdam Vodka & Milagro • Partnered with local concepts and the Renaissance Hotel to feature the same specialty cocktails as featured in arena • Wine bars added, offering wine by the bottle in concessions (poured into a plastic carafe) Fan Experience- New Concepts added and refreshes throughout the arena • For the 1st time, the upper concourse food & beverage offerings matched the main concourse, enhancing guests experience sitting in the 200 level • Streets of NY Pizza, Nitro Live Ice Cream, Pork on a Fork BBQ, Ahipoke Bowl, Cheetos Popcorn Cart, Burger Burger Stand, Wetzel’s Pretzels added a 3rd kiosk • Grab N Go at 108 rebranded Tap House Market featuring an enhanced microbrewery selection of craft beers, along with increased grab n go items Food & Beverage

➢ Past Year in Review - Items and Improvements Dos Equis Deck • Added Street Taco Cart, offered Coyote season ticket member discounts, sales increased 400% • Pre-concert VIP reception added as a ticket add on, themed to the show Special Programs, Sustainability Efforts and Community Initiatives • Season Ticket Member Discount available for all games • Dynamic pricing for both games and concerts in place, allowing to capitalize on the higher attended events • Levy Restaurants has partnered with AEG 1Earth’s composting and zero waste recycling programs. • Post event consumable food is donated to Church on the Street’s fight against hunger program. Food & Beverage

➢ Upcoming Season – New Concepts and Refreshes New Concepts/Added Food & Beverage Features: • Cold Beers & Cheeseburgers stand open to the public • Brat Haus, featuring locally made sausages and 18” Bavarian Pretzel • Danzeinsen Dairy Milkshakes • Vegan, Vegetarian and Gluten Free items added to Tap House Market and throughout stands & club menus, capitalizing on the plant based trend and allergenic requests • Wine program elevated with Treasury Wines coming onboard as a major partner Food & Beverage

➢ Upcoming Season – New Concepts and Refreshes New Concepts/Added Food & Beverage Features: • Suite Level Club redesign for Chef Tables- better traffic flow, featuring healthier items and local ingredient menu engineering • Dos Equis Deck- furniture refreshed, drink rail added to overlook Westgate, additional beverage station added • Enhanced beverage programs with all partners increasing fan experiences for all events • Potential concepts (still in process of being vetted) include Benihana, Gadzooks and Donut Bar • Technology Improvements- considering Kiosks, App based ordering, suite call buttons and “Beer Me” button (ordered via App and delivered within minutes) Bottom Line

FY 2018-2019 Budget

Operating Revenues $ 9,559,040 Operating Expenditures $ 7,759,062 Net Operating Income $ 1,799,979

Return to City of Glendale $ 899,989 Bottom Line

FY 2018-2019 Actual

Operating Revenues $ 13,702,897 Operating Expenditures $ 10,024,254

Net Operating Income $ 3,678,643

Return to City of Glendale $ 1,669,660 Bottom Line

ACTUAL RETURN VARIANCE Key Factors for Over Delivery

• Expense Control Budgeted Net Operating Income $ 899,989 • Aggressive Booking Posture • Ancillary Revenue Growth Actual Net Operating Income $ 1,669,660 • Enhanced Artist and Promoter Relationships Variance $ 769,671 • Positive PR Push both locally and in Industry • Industry Re-education THANK YOU!