ISU to Manage Hilton?

[birdflu]

Every band concert. The recital hall in Music Hall is waaaay too small to have ensemble concerts there- the audiences can't all fit inside. The choirs do it, but we end up turning away a ton of people at every concert. When a concert has more than one choir on the program, they can't watch each other, either. All the band concerts have to happen downtown- we don't fit on the recital hall stage, and it costs way too much to rent Fisher or Stephens. We barely fit on the City Auditorium stage, but at least there's plenty of seating. The only concert that happens in Stephens is Band Extravaganza, and that's only because that's the only stage that can hold the whole marching band (and even then, juuuuuust barely). The department loses money on that one, too, despite how many tickets they sell.

Since the department is essentially bankrupt, ISU taking back the Iowa State Center would be a fabulous thing. Here's to hoping, but it doesn't sound like anything is going to happen for a few years.

Yeah, I wasnt sure if they were still holding their concerts at Ames Muni. but I was in symphonic band when they switched from CY Stephens to Ames Muni.- what a downer to play there. My highschool auditorium was nicer.

[ISUFan22]

The change was made available until recently...The articel states that ISU and SMG had a contract through 2011, but since SMG was recently sold, ISU can evaluate it's contract.

As much as it pains me, I can't fault BVD for this one.

But why did we never hear about this under BVD's watch? And I wonder what AD put this in place - BVD or Gene Smith?

Not even a few months after Pollard showed up in Ames, we heard about this and how he wanted to change it as soon as possible.

[theshadow]

Previous administrations have made some really, really dumb decisions in the past. Outsourcing the management of the ISU Center is right up there at the top with selling WOI-TV.

Selling Veenker GC to the university was also a terrible move, in retrospect. I cringe when I think of the extra revenue that would have generated over the past several decades, not to mention a home course that the golf team didn't have to pay to use.

[ajk4st8]

Maybe now some of the concessions sales will start going to ISU athletics.

[jimmycy]

But why did we never hear about this under BVD's watch? And I wonder what AD put this in place - BVD or Gene Smith?

Not even a few months after Pollard showed up in Ames, we heard about this and how he wanted to change it as soon as possible.

Its always been this way at ISU. Several years ago the ad paid over 500,000 dollars to use hc for basketball. by the way the ad also pays the university to use it's other gyms around campus to practice. the whole situation is silly. for some reason football doesn't have this issue.

[pulse]

But why did we never hear about this under BVD's watch? And I wonder what AD put this in place - BVD or Gene Smith?

Not even a few months after Pollard showed up in Ames, we heard about this and how he wanted to change it as soon as possible.

It wasn't VD or Smith, it was the guy before him, who's name I can't think of.

[Flag Guy]

I have to say... it's funny working at Hilton and hearing people ***** because Pollard wants something done pronto...
Not to say there is bad blood there or anything... (though I'm not saying there isn't. Doesn't help that I haven't been into work there for 3 months now...)

That aside, for those worrying about losing concerts, it can't get much worse. Frankly, we're already losing most major shows to the Wellsfargo Arena. It was built as direct competition to Hilton, and lets face it. While I personally don't like the place from the 2 visits I've had to it, it IS more modern, and has ammenities that Hilton can't offer (I'm not sure what their technical capacities are, but I'm sure they are more than what Hilton can offer. Then you have luxury suits...)

Point is, if we are going to lose the concerts anyways, why not pick up the revenue we lose from sporting events? Besides... maybe that extra revenue could be used to help pay for upgrades and modifications to Hilton that, while primarly aimed at improving sports, could help lure some concerts back to us.

[cyclonenum1]

This change will allow ISU to change the seating configuration and add luxury boxes to Hilton (which are obviously big revenue generators).

[Cyclone62]

That aside, for those worrying about losing concerts, it can't get much worse. Frankly, we're already losing most major shows to the Wellsfargo Arena. It was built as direct competition to Hilton, and lets face it. While I personally don't like the place from the 2 visits I've had to it, it IS more modern, and has ammenities that Hilton can't offer (I'm not sure what their technical capacities are, but I'm sure they are more than what Hilton can offer. Then you have luxury suits...)

Actually, in the past two years, I can only think of one or two major concerts at Wells Fargo. I can count between five and ten at Hilton in the same time period. Most concerts in Des Moines lately have been more low-key and held at Val-Air.

[Dryburn]

As you can see, I don't post much.....I prefer just to read and keep up on what is going on with ISU sports...but I felt I had to weigh in on this subject. Let me preface this response with the fact that I worked at the ISU Center from 1971 when Hilton opened until 1983...the last 8 years I was on the full-time staff.

Even back then it was discussed about the AD wanting to run Hilton. The problems with it then I would assume are the problems with it now. Yes, it would increase the revenue to the Athletic Department...at least on the top end. But, it would probably not increase the overall profit to the AD, in fact it could become a nightmare for them. It is easy to say that yeah, the AD will now get the revenue from concessions and possibly parking if they charge now, and they will save on the rent. But......who is going to cover the costs of operating the building? As I am sure you can understand, Hilton is not an inexpensive building to operate. Someone has to pay those costs, and I am sure that the taxpayers of Iowa will not want it to come out of the General University funds.

I have not lived in Iowa since 1983. I do know that back then, the concessions at Jack Trice were handled by an outside concessionaire, and the AD only received a percentage of the sales. I would imagine the same is true today. The AD does that so not to have the headache are responsibility doing the concessions themselves, and yet they still make some money. I know.......I spent a total of 27 years in concessions and novelty sales management.

Bottom line is this.....while on the surface this would appear to be a great deal for the AD, it is not that simple. Hilton is the major source of income for all of the Center buildings.....at least it was when I was there and I am sure the same is true today. Without the concerts, large events and high-volume concessions sales of Hilton events, much of the other activity at the other 3 buildings of the Center would not exist.

There was always concern if AD took over Hilton .....it would become just a glorified basketball arena and practice facility. Concerts, conventions, other events would take a back seat to AD events and consequently the operation of the Center and the overall cultural atmosphere of Ames and ISU would suffer. How many concerts or large non-football events have you ever seen at JT? I know there have been a couple, but there could have been many more I am sure.

All that I am saying here is that this is not as lucrative as it might appear. Athletic Department would gain a maximum of a few hundred thousand in concessions revenue....depending on how it was done, whether in-house or out-sourced. They would also gain some advertising revenue...probably a couple of hundred thousand more. Ticket sales are already theirs exclusively, less whatever fees they pay Ticketmaster or whoever. There could be some revenue from parking, private boxes, or suite sales if they were constructed. However.......again.......there will be a huge amount of expenses that AD does not now have. Plus, the effect on the operation of the other 3 buildings of the Center could be devastating.

I think the best solution, and hopefully the one that Mr. Pollard and Mr. Madden will see, is to somehow work out the revunue-sharing and rental fee structures in such a way that it will give AD a larger and perhaps more fair portion of the revenues generated by their events. Take the management back under the control of the University and the Iowa State Center as it was 19 years ago, and try and work something out to make it more equitable and beneficial to the AD.

Like with anything, this is not as simple and straight-forward as it appears. I find it amazing that Mr. Madden is still there. He was in the same position when I left ISU 24 years ago!

Anyway........that is my two cents.

[chadm]

This is a blind statement. But common business sense states that if another company is willing to operate the center then they are making a profit. Why not have the AD make the extra income?

[Cyclone62]

But common business sense states that if another company is willing to operate the center then they are making a profit. Why not have the AD make the extra income?

But they also make most of their profit through renting out the arenas, and I'm not convinced they'll be rented out nearly as much as they have been in the past.

[Dryburn]

I agree that a company is not going to operate a facility if they are not going to make a profit.

SMG is a huge company, one of the largest at what they do.

I have no idea what the terms of the contract are with SMG. I am sure it is a matter of public record somewhere. There are many ways that the contract can be set up. Sometimes the client (ISU) and the company (SMG) just share everything, income and expenses and split it all based on pre-determined, not necessarily equal, percentages. Sometimes the company just guarantees a certain payment to the client each month. Sometimes the client may pay the company a certain fee each month. I have no idea how this contract is set up. It would be interesting to find out.

A company like SMG will not lose money on an operation. If they were losing money, they would be asking to get out of the contract, one way or another. I am also guessing though that the Center is not a huge money-maker for them. A company like SMG needs to have a large "family" of facilities of varying sizes, all over the country, to book the concert tours and other event tours into. The more facilities they can offer a tour, the more money they will make and the more likely they are to book the events.

Does anyone know any of the details of the agreement with SMG?

[Skyh13]

Thanks for the info, DryBurn. Being a member of a couple music ensembles, I think it'd be wonderful if the University and the Iowa State Center gained management again, assuming that would indeed benefit the ability to have on-campus concerts from the ensembles in a very nice facility.

[johnsonjj]

While this is certainly about revenue, this discussion seems to lose sight that it is also about the positioning of athletics and university events (the former band members articulated that well). In the OLD OLD days I used to deliver posters for the upcoming concerts at the center so I appreciate the non athletic or even university events. However, I also had several friends that were athletes that used to talk about all the hassles with practice at Hilton.

Anyone who has played basketball with me knows my shot, in any gym, isn't that great. However, if the basketball teams could practice more in Hilton I would think it could only help their game shooting there. I understand we still want separate practice facilities.