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The Rose Bowl at a Crossroads
Today, the historic Rose Bowl is a crossroads. The main challenges are maintaining both a stadium that can accommodate more than 106,000 and a golf course that helps sustain it, keeping longtime tenant UCLA, and attracting new tenants and events are facing the Rose Bowl.
The stadium has adequate event bookings for 2002, but next year, the future is not so certain. The L.A. Times reports that Rose Bowl Operating Co. is very concerned about the future of the Rose Bowl.
The stadium is currently profitable, but unless new dynamics are introduced, the Rose Bowl could be passed up for newer and more moden venues as the Los Angeles Galaxy will do in 2003.
Consequently, Pasadena is actively looking for new opportunties to invest in their historic stadium. Pasadena has invested $32 million over the last 10 years in improvements at the Rose Bowl and profits from the Brookside Golf Course service a bond debt that stands at about $2.5 million a year.
The Rose Bowl is a stadium of storied past and present, but, bottom line, it's future depends on attracting new business. A lucrative franchise, such as The Thorns are exactly what the Rose Bowl needs.
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Approval of Additional Rose Bowl Events
According to the L.A. Times (Aug 21, 2000), The Pasadena City Council, in a move to raise much needed funds, tentatively voted to increase the number of events at the Rose Bowl from 12 to 25 per year. In a break from the recent past, the council and residents show willingness to increase both the number of large events and profile of the bowl.
The reason for voting an increase in the amount of annual event is simple: Revenue. City officials have been searching for ways to keep Rose Bowl profitible in the current competitive business climate. In addition to keeping the bowl profitable, the council is simultaneously trying to find ways to avoid corporate sponsorship as a source of revenue.
This vote by the city council is a critical first step towards expanding a city limit capping the number of major events, such as professional football. A sound and popular plan could be just the impetus toward allowing more events.
As discussed later in this chapter, an addition of events to the Rose Bowl may not even be needed to accommodate the Thorns. The Pasadena Thorns can be a reality, even under current city use limits.
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UCLA Football
UCLA is the best known current Rose Bowl tenant. Their home shedule, including the famed Rose Bowl championship game, account for no more than 7 events annually.
As the primary tenant, UCLA is the Rose Bowl's single most important revenue source. UCLA moved to the Rose Bowl from the Coliseum in 1982 and their current contract with the Rose Bowl expires at the end of the 2003 season. For now, UCLA is very happy playing their home schedule at the Rose Bowl, but if a another stadium besides the coliseum becomes available, UCLA would be very tempted to move. Such a move would be a devastating blow to the Rose Bowl's financial outlook.
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It is commonly noted that UCLA would like to remain at the Bowl. The Rose Bowl is for now UCLA's best option, but if a modern stadium were to be built, UCLA might see benefits in moving. The threat of that revenue loss had made Pasadena politians and residents more willing to add The Thorns.
From UCLA's perspective, Addition of an NFL team would add to the presitige, profile and accommodations of the Rose Bowl and therefore give UCLA another reason to stay at this world class football stadium.
L.A. Galaxy Soccer move to Dominguez Hills
The Los Angeles Galaxy has called The Rose Bowl it's home for the past six seasons and account for a total of 13 events annually, but they've recently announced their intention to leave the Bowl. The reason for leaving is primarily that the soccer team draws only 20,000 to 30,000 fans per event. Much of the stadium is not near capacity and therefore runs at a very high overhead.
Quoting the Los Angeles Times, The Los Angeles Galaxy received approval to build a 20,000-seat stadium at California State University, Dominguez Hills, from the school's board of trustees, that enabled the Major League Soccer team to start construction, Galaxy General Manager Tim Luce said. Galaxy owner Anschutz Entertainment Group broke ground on the $112 million project in July 2001.
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Until the new Dominguez Hills stadium is finished, the Galaxy plan to play home matches at the Rose Bowl. They recently signed a new contract to use the Pasadena facility until 2002, after which time they will move into their new stadium. That leaves only one season left as hosted by the Rose Bowl.
The loss of 13 annual events translates into a major loss of revenue at the Rose Bowl. The revenue shortfall has to be made up with different events. The Pasadena City Council & residents are looking for ways to increase revenues. The Thorns provide the perfect opportunity to introduce a new revenue source to the Rose Bowl and are an NFL team that the whole community could rally around.
The Thorns Fill The Void
As previously stated, 25 city sanctioned Rose Bowl events are available. The question is, How are those 25 events going to be distributed? College football currently uses no more than 7 events annually. That leaves 18 or more events remaining. Loss of the Galaxy Soccer team leaves 10 events more what is needed to host an NFL season.
Several proposed options for the remaining 18 events include Motocross, rock concerts or other exhibitions. These types of events are unpredictable in both frequency of booking and security required. Also, Motocross is an option that radical alteration to the playing field. Rock concerts bring the concern of too much noise and drug use.
Football is the logic choice of event type to generate greatest needed operating revenue and will have the less impact to the environs than rock concerts or racing events. The Rose Bowl was originally built as a football stadium and can remain a football stadium exclusively.
The Pasadena Thorns & UCLA would raise enough revenue so that no other events during the year would be necessary. Once the football season is over, the Rose Bowl becomes quiet for the several months before the next season.
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