Learning from the best in the sport
- sivanlachman
- 27 בפבר׳ 2022
- זמן קריאה 2 דקות
Operating a stadium costs around $80 million annually. No loans, no after-play cleanup, no depreciation, just everyday operational costs. An average US stadium produces 35 tons of waste annually. With 917 stadiums in the USA alone or 5735 in the world, that is the equivalent of 100 Boeing Dreamlifters.
Let's look into one example. The SoFi Stadium is an indoor-outdoor stadium in Inglewood, CA, home to the Angeles Chargers and the Los Angeles Rams. SoFi stadium cost no less than a whopping $5 billion to build, mostly based on loans. Pre-corona times, sports tourism and increasing jobs were the biggest promise it held. Then the pandemic hit and all estimates went down the drain. In normal times, climate conditions are also affecting income with games canceled due to extreme weather, athletes under performing and more.
So now what ?
Holding 298-acre mixed-use development featuring retail, commercial office space, a hotel, residential units, and outdoor park spaces, SoFi stadium management has committed to sustainable operations and management to become a leader in environmental, social, and economic responsibility.
SoFi Stadium management specify how to deal with supply chain, harboring alternative initiatives in all these areas, tracking carbon foot print all the way to providing quality employment for local community members and businesses. One main focus is fan engagement and community outreach to convey this vision to fans, schools, staff and teams.
With the following areas of focus, Hollywood Park strives to be a leader for sports and entertainment venues in the world. They commit to an annual review of this document to further improve the operation and management of the SoFi Stadium Sustainability Program.
Why is this so important to the business survival of stadiums ?
A professional stadium uses about 5-10MW of electricity during an event, the equivalent of 5,000 homes. Water consumption is incredible as well. Therefore, being self-sufficient, owning a water recycling and energy regeneration facilities reduces environmental foot print while being business effective. NFL Levi's stadium have been doing it for a while, utilizing recycled water for urinals, toilets, cooling towers and field irrigation.
Legislation concerning waste treatment is tightening globally and fans are starting to take note. The Atlanta State Farm Arena has instituted a compostable-only food and containers policy. While having to pay for transporting the waste, the program runs six figures annually.
Corporate sponsors and increasing their focus on sustainability goals as a measure of risk mitigation and investor due diligence. Banks are going in the same direction. These are the main financial drivers for this industry, their demands should be adhered to.
Battling climate change is another way to ensure long term survival of outdoor sports as well as reducing structural damage caused by extreme weather. This goes directly to the business case.
Going local is a sure way to lower supply chain risks. Being part of the local community is simply a win-win situation, raising engagement and support from people and institutions alike.
Transparency and credibility go to all stakeholders, from investors and banks to fans.
This is why this commitment is so strong. Having an ESG policy will mitigate risk, lower costs and enhance value to stake holders. Defining KPIs, measuring and reviewing will validate your sustainability and impact program and make it stronger.
Let TSBC lead you in this journey.
Sivan Lachman