SMG - Management of Chesapeake Energy Arena

[jdg78]

Pete - I know you mentioned earlier in the summer you were considering investigating the conflict of having SMG managing both the Peake and BOK Center. I was curious if you had dug anything up? I have held the opinion SMG has done a terrible job bringing events to OKC since the BOK hit its stride. It seems Tulsa has received the majority of first leg shows in the state. I would also encourage everyone to just look at each venues website. The Peake’s is a joke. I know this is a minor thing but when comparing it to the BOK’s site, that clearly plasters “The State’s Premier Venue” across each page, it makes me wonder. Also, SMG has done a masterful job of publishing puff pieces in Billboard magazine and other trades regarding the BOK.

Check this out: https://www.google.com/amp/s/www.bil...VUMdYsWrJF-RSw

Does SMG deploy 360 marketing for the Peake? What are they doing to provide a world class experience for the artists when they are in town? Seems to me SMG is under selling the Peake. Pretty obvious when in the article above the GM at the BOK indicates 41% of ticket sales come from outside of the Tulsa area. How many come from OKC? I’m guessing a lot as I head to Tulsa 4-5 times a year for shows. Why are we accepting this level of management in a publicly subsidized arena?

Funny story. I received a survey from SMG regarding my experience at the recent Smashing Pumpkins show at the Peake. I left several comments questioning SMG’s ability to market the Peake as a premier venue for music and directly questioned the apparent conflict with the BOK Center. I made the point that OKC is a first run city and we should be getting more first run shows. Especially since the BOK gets the first run then the artist comes to OKC (Garth, Timberlake, Bruno Mars, and etc.). I have received several follow up surveys from SMG since.... My point in bringing this up is I believe the more pressure we put on SMG the more likely this will change..

Looks like Carrie Underwood is coming to OKC first before Tulsa next year... it’s a start. I would love for Pete to take a deep dive in SMG and ratchet up the heat on them.

[jdg78]

Oh.... for what it’s with SMG just brought in a new GM for the Peake who was previously at the arena in Sioux Falls. Is this an indication of SMG’s perception of our market? I would think we would to try to bring in someone with experience in a larger market closer to the size of OKC.

[jonny d]

Oh.... for what it’s with SMG just brought in a new GM for the Peake who was previously at the arena in Sioux Falls. Is this an indication of SMG’s perception of our market? I would think we would to try to bring in someone with experience in a larger market closer to the size of OKC.

Well, that would be a lateral move. Very rarely do people make those. Sioux Falls to OKC is an upward move. More reasonable. Just my opinion, though. Especially if SMG promotes from within.

[Pete]

I'll see what I can find out.

Tulsa is a significantly smaller market yet they seem to get a disproportionately large percentage of the arena shows that come to the state.

Thunder only have 41 home games plus a bit for the playoffs.

[jedicurt]

I'll see what I can find out.

Tulsa is a significantly smaller market yet they seem to get a disproportionately large percentage of the arena shows that come to the state.

Thunder only have 41 home games plus a bit for the playoffs.

yes, but the thunder ownership group is exactly the problem... i don't have any links, because it was personal conversations... but the "thunder don't want to share" stance is what killed OKC getting an ECHL hockey team owned by the Dallas Stars ownership group. And i know someone with some insight into SMG, and they have said on numerous occasions that for all events, the demands that the thunder put on, due to their influence, typically causes them to not be a good financial decision, hence BOK gets more of those events.

[Pete]

yes, but the thunder ownership group is exactly the problem... i don't have any links, because it was personal conversations... but the "thunder don't want to share" stance is what killed OKC getting an ECHL hockey team owned by the Dallas Stars ownership group. And i know someone with some insight into SMG, and they have said on numerous occasions that for all events, the demands that the thunder put on, due to their influence, typically causes them to not be a good financial decision, hence BOK gets more of those events.

Reminder that the City owns the arena, SMG manages it on the city's behalf, and the ownership group is all local and are supposed to be acting in the best interests of the entire community.

I'm not saying I have confirmed that the Thunder ownership are the issue but that possibility deserves investigation.


It would be very interesting to figure out how much lost revenue the city experiences due to lack of concession sales, parking, hotel rooms and general dinner and bar traffic these events bring to downtown.

We already know that the Thunder generates a ton of money in all these same ways.

[jedicurt]

Reminder that the City owns the arena, SMG manages it on the city's behalf, and the ownership group is all local and are supposed to be acting in the best interests of the entire community.

I'm not saying I have confirmed that the Thunder ownership are the issue but that possibility deserves investigation.


It would be very interesting to figure out how much lost revenue the city experiences due to lack of concession sales, parking, hotel rooms and general dinner and bar traffic these events bring to downtown.

We already know that the Thunder generates a ton of money in all these same ways.

that would be very interesting to see. I can only speak on second hand accounts... but i know from someone within DSE Hockey Club, that when they sat down with all parties involved, that the reason the city said it wouldn't be interested was the affect it would potentially have on the facility for basketball. so we basically have a building that is hardly used most of the year, because of a tenant that uses it slightly more than 10% of the year. atleast that was what i was told was the opinion from that person when they left after the talks

[kwhey]

yes, but the thunder ownership group is exactly the problem... i don't have any links, because it was personal conversations... but the "thunder don't want to share" stance is what killed OKC getting an ECHL hockey team owned by the Dallas Stars ownership group.

Another reason, I stopped supporting the Thunder. Always me, me, me, me. Not to mention the time the time they got pissy because the Barons put huge banners on the Cox to announce the starting of one of the seasons and the Thunder demanded that they be taken down. The weak child that the city is told them to take them down. The Thunder can go stick it in their ear.

[benjico]

Another reason, I stopped supporting the Thunder. Always me, me, me, me. Not to mention the time the time they got pissy because the Barons put huge banners on the Cox to announce the starting of one of the seasons and the Thunder demanded that they be taken down. The weak child that the city is told them to take them down. The Thunder can go stick it in their ear.

I think I remember that banner. It said something like "Think Outside the Ball" and was aimed at people leaving Thunder games. Kinda seemed almost like a shot to the Thunder. I can see why they wouldn't want that type of advertisement in a space they normally control (if that's the banner you're speaking of).

[jdg78]

Correction. Tulsa does seem to get a ton of early to mid week shows that are not 100% sold out.

[jdg78]

Great point Johnny d.

Pete - I have heard that Bank of Oklahoma and possibly the Kaiser Family Foundation provide certain guarantees to purchase unsold tickets. This is a hell of an incentive for some artists and seems highly likely as Tulsa does seem to get a tone of early to mid week shows that are 100% sold out. The Peake does have a ton of Friday and Saturday shows when we actually get them.

[Pete]

^

The Thunder actually only use that arena for part of 10% of the days.

As we've discussed elsewhere, in other markets arenas often host 2 or even 3 events in a single day.

A Thunder game takes about half a day at most.

[jdg78]

It makes sense the Thunder would have a say regarding another sporting franchise occupying the arena. However, it would be fascinating to understand the SMG agreements with both the Peake and BOK Center. Both buildings are publicly funded and the contracts should be available. As a citizen of OKC, I would love to know why we get fewer first run shows and what is causing this? Is it a bias by SMG or a underlying financial arrangement made by the City of Tulsa, BOK, & or the Kaiser Foundation that ensures Tulsa gets first dibs on all shows.

My opinion is this is either caused by gross incompetence and or fraud by SMG or incompetence on the OKC City Council / Jim Couch for not ensuring we are maximizing thhe Peake’s potential. You can’t tell me with our resources at the city level that the city wouldn’t be aware of what assistance the city of Tulsa may be providing to ensure the BOK is being utilized. Similar to city incentives for the Omni to attract conventions and or other incentives to bring in new retail. City of OKC seems to be very in tune with the regional competition for tourism and retail but not the arena? Seems fishy to me. Why is Tulsa killing it and heavily publicizing the 10th anniversary of the BOK with surprise show announcements? Did we do this for the Peake? Why not? We are all paying for this venue. We should be getting more shows!

[Pete]

In the end, it's the City's job to manage and evaluate SMG's performance.

I suspect SMG is not getting much push-back which is why we continue on with them when there are other good alternatives.

[jonny d]

In the end, it's the City's job to manage and evaluate SMG's performance.

I suspect SMG is not getting much push-back which is why we continue on with them when there are other good alternatives.

What are these other arena management alternatives you speak of? That truly would be interested in managing an arena in OKC.

[Pete]

What are these other arena management alternatives you speak of? That truly would be interested in managing an arena in OKC.

Besides SMG, AEG and Spectra are major players.

[jdg78]

Pegulas or AEG? Surely, SMG doesn’t manage every major arena in the country.

[jonny d]

My thing is, would those ventures want to manage an arena in OKC? AEG manages mega arenas in huge cities, for the most part. I agree OKC needs to do something, just not sure what is lay people can do.

[Swake]

My thing is, would those ventures want to manage an arena in OKC? AEG manages mega arenas in huge cities, for the most part. I agree OKC needs to do something, just not sure what is lay people can do.

AEG not only manages the Sprint Center in Kansas City, which is not that much larger a city than OKC, but Philip Anschutz (the "A" in AEG) owns the Oklahoman.

[kukblue1]

Does Tulsa have a bit more of a population it can reach than OKC. Meaning like Joplin and Springfield MO. Fort Smith. Stillwater and get people from OKC. Okc gets what Lawton?

[BoulderSooner]

Does Tulsa have a bit more of a population it can reach than OKC. Meaning like Joplin and Springfield MO. Fort Smith. Stillwater and get people from OKC. Okc gets what Lawton?

okc people are also much more willing to drive to tulsa for shows than they are to drive here

[BG918]

Does Tulsa have a bit more of a population it can reach than OKC. Meaning like Joplin and Springfield MO. Fort Smith. Stillwater and get people from OKC. Okc gets what Lawton?

Tulsa can pull from Northwest Arkansas (Fayetteville-Bentonville-Springdale-Rogers) which is a metro of over 500,000 about 2 hours away. It is a growing area (15th fastest growing metro in the U.S. between 2000 and 2017) with a healthy economy that will travel to Tulsa for concerts and events.

[Swake]

Tulsa can pull from Northwest Arkansas (Fayetteville-Bentonville-Springdale-Rogers) which is a metro of over 500,000 about 2 hours away. It is a growing area (15th fastest growing metro in the U.S. between 2000 and 2017) with a healthy economy that will travel to Tulsa for concerts and events.

Springfield (500k+), Joplin (200k+) and Ft Smith(200k+) are all also less than 2 hours from Tulsa.

[BG918]

Springfield (500k+), Joplin (200k+) and Ft Smith(200k+) are all also less than 2 hours from Tulsa.

Springfield is closer to 3 hours from Tulsa and also 3 hours from STL. While some may come down from that area I would put Joplin/NW Arkansas/Fort Smith squarely in Tulsa's sphere of influence. Also SE Kansas but it's not a highly populated area (likely similar to western OK outside of OKC).

[Swake]

Springfield is closer to 3 hours from Tulsa and also 3 hours from STL. While some may come down from that area I would put Joplin/NW Arkansas/Fort Smith squarely in Tulsa's sphere of influence. Also SE Kansas but it's not a highly populated area (likely similar to western OK outside of OKC).

You must drive slower than I do. Google has it at 180 miles downtown to downtown and even if you drive the 75 mph speed limit you would be there in 2 hours 20 minutes. I can hit St Louis in five hours and Springfield is not the halfway point.

There aren't many people and even less money in southeast Kansas.