REINVENTING THE SPORTS EXPERIENCE SPORTS + FAN EXPERIENCE TRENDS 2017 ANALYSIS & 2018 FORECAST DIMIN.COM

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1 REINVENTING THE SPORTS EXPERIENCE SPORTS + FAN EXPERIENCE TRENDS 2017 ANALYSIS & 2018 FORECAST

2 SECTION 1 THE CURRENT STATE OF AFFAIRS 04 THE ULTIMATE GOAL: BUTTS IN SEATS Four key facts about the current state of affairs in the sports industry. 05 CHANGING THE GAME: PUTTING FANS FIRST A look at Mercedes-Benz Stadium s choice to put fans first and how it s paying off. CONTENTS 06 TODAY S FANS Diving into what makes up fans. SECTION SPORTS + FAN EXPERIENCE TRENDS TRENDS Two main trends that rose up in the ranks in SECTION TRAJECTORY FORECASTS Five trends on the rise in TRENDS IN DETAIL Dive deeper into some of the 2018 trends and learn more.

3 TH E C URRENT STATE OF AFFAIRS 03

4 HOME AMENITIES INCREASE IN QUALITY, SO STAYING HOME TO WATCH THE GAME IS MORE ATTRACTIVE FRANCHISE OWNERS ARE INVESTING BIG TIME IN AMENITIES + EXPERIENCES MEANT TO IMPRESS THE ULTIMATE GOAL: BUTTS IN SEATS It s no secret: sometimes the best game-day experience you can have is seated on your own couch, cracking open a (cheap) cold one, grilling your own (affordable) burgers and hot dogs in the backyard, and watching the game on livestream or cable. It s a battle every stadium is waging. How to get those fans in seats? Owners, sponsors, and venues are turning to experiences as the answer. Offering fans bigger, better, and more thrilling experiences and amenities specifically ones that they can t get at home is becoming a clear way to a fan s loyalty and attendance. THE BASICS NOW INCLUDES: FOOD, DRINKS, LOUNGES, AS WELL AS WIFI + CHARGING STATIONS HIGHLY RANKED STADIUMS HAVE HIGHER FAN EQUITY AND TEAMS WITH BETTER-RANKED STADIUMS ALSO ENJOY BETTER WINNING PERCENTAGES (SUGGESTING A POSITIVE CYCLE OF STADIUM EXPERIENCE, RESULTS, + EQUITY/ENGAGEMENT) 04

5 CHANGING THE GAME: PUTTING FANS FIRST Mercedes-Benz Stadium is on the forefront of changing the approach in an effort to accommodate their fans. By reducing the prices of food and beverages, they re seeing an increase in both fan satisfaction and revenue generation. The SportsBusiness Journal reported a 2.8% jump in overall attendance for the Atlanta Falcons home games in the 2017 season, making them one of nine teams to see an attendance bump, out of the NFL s 32 teams. Arthur Blank s vision, resolve and significant investment to improve the fan experience by listening to the fans, and including them in the process of addressing their stated pain points, drove us to this new approach, said Steve Cannon, AMB Group LLC s chief executive officer. This was first and foremost a huge investment in the fan experience and training gameday associates in an entirely different way to deliver on it. We re certainly pleased with what we ve seen so far, but there is more work to do. Delivering a great fan experience and business innovation are neverending missions. 79% OF FANS SAY TICKETS TO LIVE SPORTS ARE OVERPRICED, HOLDING THEM BACK FROM ATTENDING 34% OF FANS FEEL THAT STADIA SHOULD PRIORITIZE INVESTMENTS IN FOOD AND DRINK SERVICES MERCEDES-BENZ STADIUM DRAMATICALLY DROPPED FOOD/BEVERAGE COSTS BY 50%, AVERAGE SPENDING PER FAN INCREASED 16% 6,000 FALCONS FANS (PER GAME) ENTERED MBS EARLIER THAN IN PREVIOUS YEARS TO TAKE ADVANTAGE OF FOOD AND BEVERAGE OPTIONS 05

6 TODAY S FANS THE 24/7 FAN With smart phones, tablets and 4G mean that being a fan is a 24/7 experience. NOT STRICTLY SEASONAL Fans are interested in out-of-season sporting content, such as: in-depth season analysis, athletes lives beyond the sport, historical sporting moments, etc. Today s fans are even more connected than ever before, but generally the driving reasons behind why they re fans stay the same: 01 Entertainment The enjoyment that comes from watching sports as a leisure activity. 02 Escape The use of sports as a diversion from everyday stress or boredom. 03 Eustress The highs (and lows) fans experience as teams are winning (and losing). 04 Aesthetic The beauty of watching a highly skilled athlete perform. 05 Learning The fan watching to learn from and be inspired by the participants. 90% 85% BELIEVE ANYONE CAN BE A SPORTS FAN SAY A SPORT WOULD BE NOTHING WITHOUT FANS 06 Achievement The feelings of vicarious achievement fans share when their team wins. 07 Connecting The sense of belonging fans feel by being connected to a larger group. 08 Bonding The use of sports to bond and spend quality time with family. SHORTER ATTENTION SPANS Millennials and Gen X fans are harder to capture due to shortattention-span-theater. DEMANDING MORE ENGAGING, IMMERSIVE EXPERIENCES Fans want to be closer to the action, to the athletes, to the stats and to the most revealing camera angles. They want the insider s view. 06

7 2017 SP ORTS + FA N E X P ERIENC E TRENDS 07

8 20 17 WHERE WE WERE IN 08 SPONSORS BUYING INTO THE EXPERIENCE ECONOMY With many sponsors existing in a single space, the more a brand can make their contribution seem organically intertwined with the event, the higher the chances fans will remember and connect with that brand in the long term. My general view on fan engagement is that we re still in the early days and it s only going to get harder to engage people meaningfully Don t go in and just bring your logo. One of the richest things you can do is to make the experience better. Roel de Vries, Global Head of Marketing & Brand Strategy at Nissan SOCIAL-FOCUSED DESIGN It s no surprise that social media has become a crucial part of the game day experience. 3 in 4 fans post to social media while watching, and with fans being 2x more likely to post from a stadium than from home, it s becoming even more important to design with social media in mind from the beginning. In the long run, it ll pay off. Social media feeds the FOMO [Fear of Missing Out] mentality and become free, organic marketing.

9 201 8 TRAJECTORY 09

10 20 18 WHERE WE RE GOING IN 10 NURTURE PRE/POST-GAME ENTERTAINMENT While the game itself may only be a couple hours, the pre- and post-game entertainment can extend for hours before and after. For many, the tailgating can be their favorite part of the game-day festivities. Nurturing and providing more entertainment for those times will encourage fans to spend more time on the property. EXCLUSIVITY AND INCLUSIVITY With the goal of filling seats in mind, sporting events will have to start walking a fine line of providing exclusive events and experiences to their guests, experiences that they won t be able to get at home, but also increasing the inclusivity of events experiences that can be enjoyed by the entire family, regardless of age, gender, etc.

20 18 WHERE WE RE GOING IN 11 TECH INTEGRATION WOW MOMENTS + CONVENIENCE State-of-the-art technology is increasingly integrating itself into the stadium and sporting event scene.

11 20 18 WHERE WE RE GOING IN 11 TECH INTEGRATION WOW MOMENTS + CONVENIENCE State-of-the-art technology is increasingly integrating itself into the stadium and sporting event scene. Technology has the power to create both wow moments and to also create a more streamlined experiences everything from holographic representations of players to wayfinding throughout the venue to being able to handle entry, beverage purchases, etc. all in one RFID bracelet. GAME VS. EXTRACURRICULAR ACTIVITY A BALANCING ACT As teams and brands successfully draw fans to stadiums exclusive venues and can t-miss experiences, there will be a balancing act required to keep fans engaged with the game itself. Owners, teams and sponsors will continue to choreograph all aspects of stadium design, so that fans experience the stadium to its fullest, but are in their seats to cheer on their team. esports Between being more accessible to general audiences due to live streaming and being able to have the ultimate front-row seat, esports are building momentum as a popular and sometimes preferred sport among younger generations (Millennials + Gen Z).

01 AT&T Perch, Mercedes-Benz Stadium, Atlanta, GA Sporting 114 screens, the AT&T Perch is a coveted seating area.

12 NURTURE PRE/ POST-GAME ENTERTAINMENT 46% of fans stated they attend live events for the pre- and postgame activities. Finding ways to bring the tailgating vibe inside and carrying it through the game is a key way for venues and sponsors to connect with fans. 01 AT&T Perch, Mercedes-Benz Stadium, Atlanta, GA Sporting 114 screens, the AT&T Perch is a coveted seating area. Season ticket holders have been known to arrive to games early to snag a seat to either catch coverage of the current game or keep up to date on their other favorite teams. Experiential Design-Build + Sponsorship Management: Dimensional Innovations Owner: Arthur M. Blank Sports + Entertainment Owner s Rep: Darden & Company Contractor: HHRM Architect(s): tvsdesign, HOK 1 02 Vikings Voyage, US Bank Stadium, Minneapolis, MN Over 72,000 fans have access to the Vikings Voyage every home game. Fans can play interactive games, keep track of their scores via RFID technology, learn about Vikings history, and more before, after, and during the game. Experiential Design- Build: Dimensional Innovations 12 2

CONTINUED NURTURE PRE/ POST-GAME ENTERTAINMENT 03 American Family Insurance, Mercedes-Benz Stadium, Atlanta, GA The American Family Insurance activation zone on the concourse 200 level will inspire

This zone offers inspirational kiosks with downloadable screensavers, and an ever-changing Dream Mosaic. Experiential Design-Build + Sponsorship Management: Dimensional Innovations Owner: Arthur M.

features upwards of 400,000 square feet of retail and is home to a variety of unique retailers. Fans can shop, dine, and catch live entertainment before and after the game.

13 CONTINUED NURTURE PRE/ POST-GAME ENTERTAINMENT 03 American Family Insurance, Mercedes-Benz Stadium, Atlanta, GA The American Family Insurance activation zone on the concourse 200 level will inspire fans to Dream Fearlessly with a larger than life Atlanta Falcons Helmet, an oversized Atlanta United jersey and column graphics. This zone offers inspirational kiosks with downloadable screensavers, and an ever-changing Dream Mosaic. Experiential Design-Build + Sponsorship Management: Dimensional Innovations Owner: Arthur M. Blank Sports + Entertainment Owner s Rep: Darden & Company Contractor: HHRM Architect(s): tvsdesign, HOK 04 Atlanta Braves, The Battery, Atlanta, GA Connected to SunTrust Park, the Battery Atlanta features upwards of 400,000 square feet of retail and is home to a variety of unique retailers. Fans can shop, dine, and catch live entertainment before and after the game. Custom Fabrication (LED Baseball): Dimensional Innovations and Nanolumens LA Rams Inglewood Stadium + Hollywood Park, Inglewood, CA The 70,000-seat, open-air facility that will be shared by the Rams and the Chargers in Inglewood is the centerpiece of a $2.6 billion, 298-acre development that will be 3½ times the size of Disneyland. Architect: HKS Architects 13 5

EXCLUSIVITY AND INCLUSIVITY A great deal of diversity can come with designing with inclusivity and exclusivity in mind, which can help a venue reach a larger audience.

14 EXCLUSIVITY AND INCLUSIVITY A great deal of diversity can come with designing with inclusivity and exclusivity in mind, which can help a venue reach a larger audience. This can include everything from the most exclusive of clubs to building spaces that include the youngest members of the family in the game day fun! The shift towards greater inclusivity more families, more women, more children is absolutely true. Activations around big sponsorships have increased dramatically, and this is partly because more families, women and children are coming, but also because the expectation of the event is getting bigger. Roel de Vries, Global Head of Marketing & Brand Strategy at Nissan 14

EXCLUSIVITY AND INCLUSIVITY 01 Gullwing Club, Mercedes-Benz Stadium, Atlanta, GA The Mercedes-Benz Gullwing Club is the most exclusive club in Mercedes-Benz Stadium.

Experiential Design-Build + Sponsorship Management: Dimensional Innovations Owner: Arthur M.

15 EXCLUSIVITY AND INCLUSIVITY 01 Gullwing Club, Mercedes-Benz Stadium, Atlanta, GA The Mercedes-Benz Gullwing Club is the most exclusive club in Mercedes-Benz Stadium. The Gullwing Club offers complementary top-end food and beverage services for its members that can be enjoyed in an open, shared space or brought back to the suite for a more private setting. Experiential Design-Build + Sponsorship Management: Dimensional Innovations Owner: Arthur M. Blank Sports + Entertainment Owner s Rep: Darden & Company Contractor: HHRM Architect(s): tvsdesign, HOK + 02 Cleveland Indians Kids Clubhouse, Progressive Field, Cleveland, OH The dedicated kid-centric space includes a nice blend of physical and interactive play with both high-touch and high-tech, giving kids from ages two to twelve a great way to interact with their favorite team. Experiential Design-Build: Dimensional Innovations / EXCLUSIVITY 02 / INCLUSIVITY

16 esports The esports industry is growing, and growing fast. Currently, the revenue generated from the fans of esports is relatively small ($0.33/fan verses larger sports, like basketball, earning approximately $15/fan). To elevate the experience of esports beyond the free livestreaming they can get at home means more dedicated esports arenas. But don t picture it like a standard bowl that say football may be played in...esports calls for something different. These stadiums will end up looking more like music festivals, a main event in the primary seating bowl, but with plazas and lobby spaces are all working in concert together. esports enthusiasts are looking for this to be an immersive, social experience. Technology also plays a huge role in the esports economy and these stadiums will have to be at the forefront of tech, the audience expects it. But this puts esports at an advantage. Through integrated tech like VR, they can offer the best seats in the house literally being in the game. The esports audience includes some of the hardestto-reach and most sought-after demographics for marketers and advertisers. Bobby Kotick, Chief Executive of Activision Blizzard 16

SPORTS IS ENTERING A NEW ERA OF PARTNERSHIP. TEAMS, SPONSORS AND FANS ALL NEED EACH OTHER MORE THAN EVER BEFORE. BUT ONE THING IS TIMELESS. THE LOVE FOR THE GAME.

Dimensional Innovations as the Sports Practice Director.

17 SPORTS IS ENTERING A NEW ERA OF PARTNERSHIP. TEAMS, SPONSORS AND FANS ALL NEED EACH OTHER MORE THAN EVER BEFORE. BUT ONE THING IS TIMELESS. THE LOVE FOR THE GAME. JUSTIN WOOD SPORTS PRACTICE DIRECTOR JWOOD@ With nearly 20 years experience in communicating and developing meaningful projects with clients, Justin Wood brings an unparalleled range of experience to Dimensional Innovations as the Sports Practice Director. Justin feeds his passion for developing matchless, engaging experiences for clients by focusing on dynamic environments primarily in the sports and entertainment industries. For the last five years, Justin has led the charge on building DI s sports portfolio through developing sponsorship activations, halls of fame and branding experiences. His leadership in projects help sports brands improve the fan experience by connecting their story to the interactive and physical environments. With over ten years of experience at DI, Justin s resume also boasts seven years of running his own design-build consulting company and three years experience in education. Justin is an active member of the International Association of Assembly Managers, the Association of Luxury Suite Directors, the American Association of Museums and the Society for Environmental Graphic Design. He has presented at ALSD, SEGD s Dynamic Environments series and his work has appeared in the Sports Business Journal. 17

18 DESIGN. MAKE. INNOVATE.

19 SOURCES How Technology is Reinventing the Sports Fan Experience. Ross, Stan. NabShow. The Future of the Sports Fan. Performance Communications, Canvas8. Top 8 NFL Stadiums with the Coolest Features for Fans. Fandemonium. August 8, Fan Engagement: From Match Day to Every Day. Fowler, David and Geoff Wilson. Sports Venue Business. Is winning the only factor that significantly affects sports brand engagement? Kirkpatrick, Kate, Evan Hathaway, and Tom Milavec. Gensler In-Stadium Activations Your Fans will Love. Brizi. July 25, Types of Sponsorship Activations that Drive Brand Engagement. Eventbrite. September 6, Crystal Ball: Trends to Watch in January 9, ESP Sponsorship Report. 5 Brand Activations that Generated Big League ROI. Tailgating Sports Marketing. October 2, Social Media Streaming Can Attract Sports Fans, but It Has More to Do. Nichols, Laura. Morning Consult. March 27, What you need to know about sports marketing in 2017 and beyond. Bashford, Suzy. Campaign. March 6, Gamers Paradise: The Rise of esports Arenas. Malone, David. Building Design + Construction. January 18, A Look at the Inglewood Stadium That s the Future Home of Rams and Chargers. ESPN. January 4, Fan Survey: Mercedes-Benz Stadium s Food and Beverage Program Ranks No. 1 in NFL. Atlanta Falcons. January 25, Fan First pays off for Falcons, United. Smith, Michael. Sports Business Journal. January 29, esports Advertisers need to be fans first, marketers second. Chikhani, Riad. Venture Beat. January 20, Top Trends in Sports Stadium Design: The Battle for the Fan is on. Slowey, Kim. Construction Dive. July 28, 2016.

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