REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Presentation and Potential Action on Levi’s Stadium Marketing Plan Assessments
Report
BOARD PILLAR
Ensure Compliance with Measure J and Manage Levi’s Stadium
BACKGROUND
The Stadium Management Agreement (Management Agreement) between the Stadium Authority and Forty Niners Stadium Management Company, LLC (ManCo) requires ManCo to develop a Marketing Plan for Non-NFL Events to be included in the Stadium Operation and Maintenance Plan (SOMP) and mutually agreed on by the Stadium Manager and Stadium Authority. The provision reads as follows:
4.10 Marketing Plan. Until the exercise of any Non-NFL Event Replacement Right, the Stadium Operation and Maintenance Plan shall include a marketing plan setting forth in reasonable detail the Stadium Manager's plans to develop, implement and monitor marketing, booking, advertising and promotion of Non-NFL Events for the Stadium, which marketing plan shall be mutually agreed upon by the Stadium Manager and the Stadium Authority (the "Marketing Plan"). If the Stadium Authority exercises the Non-NFL Event Replacement Right, the Stadium Authority and the Stadium Manager will develop a similar plan with the third-party provider.
The Stadium Manager is also required to “use commercially reasonable efforts, consistent with the Marketing Plan, to market, promote, schedule and book Non-NFL Events and other activities at the Stadium in accordance with the Scheduling Procedures” (First Amendment to the Stadium Management Agreement, Section 3.2 Marketing Plan; Contracting Authority). As such, the Marketing Plan has direct effect on the marketing and booking of Non-NFL Events at Levi’s Stadium.
As part of the Stadium Authority Board’s March 23, 2021 action on the 2021 Marketing Plan, the Board took action to pursue an independent third-party consultant to review and assess the Marketing Plan. As part of the same action, the Board also delegated authority to the Executive Director to conduct a competitive Request for Proposal, enter into an agreement for such services, and approve any budget amendments associated with the action. Staff conducted a competitive procurement process and a review panel selected Stone Planning LLC as the most qualified respondent.
This report transmits the third-party Levi’s Stadium Marketing Plan Assessments (Attachment 1) prepared by Stone Planning and its subcontractor, The Rooney Sports & Entertainment Group.
Stone Planning LLC is an independent consulting firm that assists in the planning and operations of sports and entertainment venues and events. Stone Planning’s services include feasibility and economic impact studies, management and competitive analyses, and other research and advisory consulting. Stone Planning’s client list includes the Oakland-Alameda County Coliseum Authority, the City of Inglewood, the City of Carson, the San Diego Regional Economic Development Corporation, the Green Bay/Brown County Professional Football Stadium District, the Maryland Stadium Authority, the Louisville Arena Authority, the Louisiana Stadium and Exposition District, Connecticut’s Capital Region Development Authority, and New Jersey’s Casino Reinvestment Development Authority.
The Rooney Sports and Entertainment Group provides consultation in the areas of event and venue launches, sponsorship, and marketing, as well as revenue-generating initiatives, specializing in sports-and entertainment-related venues. Its principals have worked with numerous major professional sports franchises and stadiums in developing live entertainment programming, and have served as facility operators and developers, and in executive roles with professional sports franchises and facilities.
DISCUSSION
Pursuant to City Code Section 2.105.330(b), a competitive request for Statement of Qualifications (SOQ) was conducted for this procurement, with the award recommendation based on “best value.” The factors considered in the award were proposal responsiveness, experience and availability of the firm/time to complete the Plan Assessments, experience of the team, and cost.
In August 2021, the Stadium Authority released a SOQ for assessments of the 2020 and 2021 Marketing Plans. The 2020 Marketing Plan was included in the assessment because it was prepared pre-COVID-19 and the region began resuming large events during Summer 2021 while the 2021 Marketing Plan mainly focused on COVID-19 impacts. The SOQ was published on DemandStar, the Stadium Authority’s e-procurement system, and was also advertised on BidSync, the City’s e-procurement system. Nine companies viewed the SOQ in DemandStar and 49 companies viewed the SOQ in BidSync, and two proposals were received from the following firms:
• Aderassa Group
• Stone Planning LLC and its subcontractor, The Rooney Sports and Entertainment Group
The proposals were independently evaluated by a three-member evaluation team. The proposals were evaluated and ranked against the criteria published in the SOQ. Based on receiving the highest overall score, staff awarded the contract to Stone Planning LLC in the amount of $49,500. The firm and its subcontractor demonstrated the industry expertise and experience required to assess the 2020 and 2021 Marketing Plans.
The SOQ and the Stadium Authority’s agreement with Stone Planning LLC includes the following scope:
Review, assess, and evaluate the Draft 2020 and 2021 Marketing Plans in the following key areas: venue positioning, goals and objectives, marketing strategy, and research and data.
Venue Positioning
• Evaluate how the Marketing Plans strategically assess clients, business trends and Strengths, Weaknesses, Opportunities, and Threats (SWOT).
• Assess how the Marketing Plans describe Levi’s Stadium’s position in the local and regional market and utilize that positioning to guide marketing strategies.
Goals and Objectives
• Assess how the Marketing Plans outline goals, objectives, activities, timelines, milestones, resource requirements and an implementation plan for each of the aforementioned key areas.
Marketing Strategy
• Assess how the Marketing Plans utilize research and data-based strategies to inform approaches to increase revenue.
• Assess the Marketing Plans’ recommendations for future market positioning.
• Assess how the Marketing Plans evaluate, benchmark and measure the success of its marketing strategies/expenditures of marketing funds for ticketed and non-ticketed events.
• Assess how the Marketing Plans outline a roadmap for creative execution across traditional and digital platforms.
• Provide a general assessment of the Marketing Plans’ media schedule and marketing budget.
Research and Data
• Assess the quantitative and qualitative market research for each of the target audience segments in the Marketing Plans.
• Assess the Marketing Plans’ quantitative and qualitative performance measures and their correlation to data driven decisions.
• Assess the Marketing Plans’ Key Performance Indicators (KPIs) and their alignment to marketing performance.
• Assess the Marketing Plans and Stadium Authority KPIs and their alignment to fiscal decision-making related to staffing, marketing expenditures and return on investment.
Final Work Product
• Aside from the key assessment areas outline above, the Contractor should use their experience and expertise in marketing stadiums and/or large venues to evaluate whether there are any other key areas that should be explored to attract more event bookings.
Stone Planning and The Rooney Sports & Entertainment Group have prepared the attached Levi’s Stadium Marketing Plan Assessments and will present their findings to the Board. In summary their overall assessment as contain in their report is as follows:
2020 Marketing Plan - Overall Assessment
In general, the Plan documents the intent of the Stadium Manager to incorporate many best sales practices and trends in the industry, in both the special event and major event business lines at Levi’s Stadium. As examples, the appointments of a Chief Revenue Officer and special events Business Development manager, the integration of a CRM system, dynamic pricing, establishment of the special events LinkedIn business page, development of the South Club, creation of turnkey sales packages, and the intent to develop smaller and more intimate events indicate that the Stadium Manager is following industry trends and seeking to expand its major and special events business to a wider audience.
However, while the plan hints at sales successes, it fails to quantify how marketing initiatives provide a ROI. Without data and context, and more comprehensive information in general, it is impossible to determine if the Stadium Manager’s strategies and initiatives are properly targeted or provide ROI, or to
apply any measures of accountability. This lack of information makes the Plan incomplete in many ways.
2021 Marketing Plan - Overall Assessment
In general, much of the new information provided in the 2021 Plan (compared to the 2020 Plan) described the Stadium Manager’s response to COVID. We believe that the specific actions described by the Stadium Manager, to mitigate the loss of business and to protect future business, were appropriate.
However, the 2021 Plan also lacks the type of detail, data, context, and accountability as described in our overall assessment of the 2020 Plan.
On January 31, 2022, the Stadium Manager submitted the Draft 2022 Non-NFL Events Marketing Plan (Attachment 2) as part of the Stadium Authority FY 2022/23 budget process. In past years, the Stadium Authority Board has acted on the Draft Non-NFL Events Marketing Plan as part its consideration and adoption of the Stadium Authority Operating, Debt Service, and Capital Budget. The Board’s consideration and action on the proposed Stadium Authority FY 2022/23 Operating, Debt Service, and Capital Budget is currently scheduled for March 15, 2022.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
There are existing appropriations in the Stadium Authority FY 2021/22 Adopted Budget under the Operating Budget, Executive Director and Board Directives line item to cover the agreement amount of $49,500.
COORDINATION
This report was coordinated with the City’s Purchasing Manager, the Treasurer’s Office, and the Chief Assistant City Attorney.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
ALTERNATIVES
1. Note and file the Levi’s Stadium Marketing Plan Assessments by Stone Planning and The Rooney Sports & Entertainment Group;
2. If the Board desires to have the Draft 2022 Marketing Plan updated to incorporate the assessment feedback, provide direction to the Stadium Manager on requested updates and to submit the revised Draft 2022 Marketing Plan for Board action at the March 15 or March 22, 2022 meeting; or
3. Any other direction from the Board.
RECOMMENDATION
Recommendation
1. Note and file the Levi’s Stadium Marketing Plan Assessments by Stone Planning and The Rooney Sports & Entertainment Group; and
2. If the Board desires to have the Draft 2022 Marketing Plan updated to incorporate the assessment feedback, provide direction to the Stadium Manager on requested updates and to submit the revised Draft 2022 Marketing Plan for Board action at the March 15 or March 22, 2022 meeting.
Staff
Prepared by: Christine Jung, Assistant to the Executive Director
Approved by: Deanna J. Santana, Executive Director
ATTACHMENTS
1. Levi’s Stadium Marketing Plan Assessments
2. Draft 2022 Non-NFL Events Marketing Plan