(CelebrityAccess) — In a recent interview with Billboard, Tim Leiweke, CEO of the venue management and advisory company Oak View Group (OVG), shared insights into the future of arena building and the growing influence of K-Pop and Latin music. Leiweke, a veteran of the concert industry, believes that the venue development business will continue to flourish and sees no end to its growth in his lifetime.
Leiweke’s company, OVG, has been at the forefront of building new arenas, with seven completed during the pandemic alone. Five of these arenas are owned and operated by OVG. Leiweke emphasizes the importance of differentiating OVG from its main competitor, ASM Global, highlighting the number of buildings managed by ASM and the vast content it handles from Live Nation and AEG.
OVG, in partnership with Irving Azoff, manages approximately 500 facilities worldwide, employing a team of 5,000 full-time and 35,000 part-time staff. Leiweke reflects on the challenges faced during the pandemic while constructing arenas, mentioning projects such as Climate Pledge Arena in Seattle, Acrisure Arena in Palm Springs, CFG Bank Arena in Baltimore, and UBS Arena on New York’s Long Island.
In the interview with Billboard, Leiweke reveals that OVG is currently working on multibillion-dollar projects in Las Vegas, Manchester, and São Paulo, in collaboration with Live Nation. He emphasizes the crucial role of companies like OVG in providing a top-notch fan experience, investing in acoustics, and air-handling systems to address concerns like COVID-19.
The interview delves into specific projects, such as the construction of UBS Arena on Long Island, where OVG partnered with the state of New York to build the facility. Leiweke highlights the importance of sustainability and convenience, emphasizing the goal of making UBS Arena carbon-neutral and the significance of the Long Island Railroad station for easy access.
Leiweke explains the strategy behind building in secondary and tertiary markets like Palm Springs, stating that such markets are good business prospects where arenas can be built at a lower cost. He mentions the financial success of the Coachella Valley Firebirds, the American Hockey League team associated with Acrisure Arena in Palm Springs.
When asked about the growth potential of the venue development business, Leiweke believes it won’t plateau in his lifetime, stating that there are 50 markets in the world that need new arenas, although only 20 of them would make sense for investment. Leiweke is focused on achieving a healthy valuation of OVG to benefit his investment partners.
Leiweke also discusses the importance of alignment with partners, citing successful ventures with the city of Seattle, the Kraken NHL team, and co-owner David Bonderman. The interview highlights OVG’s wide range of services beyond arena builds, including debt financing, food and beverage, sustainability initiatives, and sponsorship sales.
Regarding OVG’s overseas strategy, Leiweke highlights the growth potential in São Paulo, Singapore, and Lagos, where OVG aims to build world-class arenas. The company also has plans for Co-op Live in Manchester, which is expected to become a top-five arena globally.
Leiweke also commented on the challenges Live Nation is facing in the ticketing business, acknowledging the challenge of handling demand and the negative impact of bots and scalpers on the system. In Leiweke’s view, solutions such as smart tickets as the way forward.
