Skywalk, Gymnasium, and Restaurant to Boost Sustainability Orange Veldrome Stadium

Business Project
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Abstract
Orange Veldrom, a multipurpose stadium in Marseille, France, seeks to expand its revenue generating activities for better sustainability. The stadium opts to construct a skywalk, where prominent people will be following as they enter the stadium. The skywalk is expected to cost approximately $40 million and to give returns of approximately $300,000 monthly. The gymnasium will serve people who wish to maintain their fitness through morning runs and evening exercises. It will cost approximately $2 million to construct and projected to provide approximately $10,000 monthly. The gym sessions will be scheduled in such a way that they do not clash with the major events. Finally, there will be a restaurant, which will feature an eating place and a conference hall. The eating place will serve regular customers and will remain operational throughout. The conferencing facility will serve people with meetings of any nature. The OV stadium management seek to maximize the usage of these facilities for better sustainability.
Introduction
Stadiums, like any other investments, have to prioritize profitability for sustainability purposes. Utilizing the opportunities for diversification of the revenue streams helps compensate for the funds generated from hosting sports events. Normally, stadiums generate their revenue through ticket sales, charging parking fees, and support from well-wishers, such as employees who choose to reinvest their income as consumers.
Background
Orange Velodrome is a multi-purpose stadium in Marseille, France, and is home to the Olympique de Marseille football club. The stadium has been relying on publicly hosted events, including FIFA World Cups. Occasionally, it hosts the RC Toulon rugby club of the Top 14 and is known to be the largest football ground in France. Following the dynamics of the sports sector and the economy, the club has to seek alternative means of revenue generation to remain profitable.
Objective of the study
* To provide strategic recommendations for the transformation of Orange Velodrome into a 24/7 event and entertainment venue.
Research Question
1 Will incorporating a skywalk, a gymnasium, and a restaurant help boost the sustainability of Orange Veldrome stadium?
Strategy
The idea is to implement a Tunnel Club similar to that of other big club stadiums, such as Manchester City and Bayern Munchen, with the aim of generating more revenue. Besides generating its income from ticket sales and other common fund sources, the Manchester City stadium has a modern hospitality department that provides contemporary food, drinks, and remarkable behind-the-scenes access to the heart of the stadium (Zinganel, 2010). This hospitality department welcomes the team and the manager as they arrive at the stadium, serves as a complementary bar, provides padded executive seating along the halfway line, and serves as a place where one can listen to post-match interviews live, among many more services. Bayern Munchen, too, has its special services department that supplements the stadium's earnings and reduces its overreliance on public activities for sustainability purposes. Consequently, it is important that OV also explores such opportunities to capitalize on the great potential that the club has based on its brand name and its location. The main strategy for the stadium is to construct a catwalk, a gym, and a restaurant, which will ensure continual operation even in times when the sports are not in progress.
Plan
The stadium draws its inspiration from many other stadiums that have implemented various revenue-generating activities. Some notable stadiums provide the best practices including concert and entertainment activities. For example, The Tunnel Club's complimentary bar provides entertainment services to prominent people attending the sports events. Similarly, FC Bayern Munchen’s Allianz Arena offers catering services that allow visitors to take a snack as they wait or enjoy the matches.
Another practice is serving as a meeting and corporate or social event place. Sports stadiums and arenas have opened their doors to conventions, trade shows, and conferences, which mask as a fantastic source of revenue for the stadium. Finally, the company can also render services to other businesses by organizing business-to-business events that can be beneficial both to the consumer and the stadium, in what is popularly called the B2C strategy. In such an approach, the company can be selling tickets to certain events that meet their value. Therefore, engaging in B2B and B2C activities will help guarantee the stadium some revenue by ensuring that it remains operational even in cases where it is closed.
Investment and Schedule
The stadium has the potential to increase its access to more revenue by considering its full capacity, the number of used spaces, analysis of the unused and potentially exploitable spaces, and identifying the potential businesses that the entity can exploit. Orange Velodrome has a capacity of 67,394 spaces, which is a significant amount of space when considering that the stadium has hosted up to 42,000 spectators who attended matches under the best conditions of safety and comfort in all its operational years. This capacity implies that there is an excess capacity of up to 20,000 seats. Part of the space on which these seats stand can be converted to provide more space for the construction of some recreational centers, entertainment joints, and fitness centers. With a state of the art audiovisual capabilities, Wi-Fi, 4K, and HD screens together with gourmet eateries provide a further opportunity that the stadium can exploit for more revenue sources. The thermal loop ensures that the stadium is a sufficient supply of warm water that a nearby water treatment plant heats. It has three wind turbines power rainwater recovery pumps that help increase the water supply for flushing the toilet and watering the pitch.
Commercialization of strategy
Therefore, like many other stadiums, OV is no longer an entity that is solely concerned with staging bi-weekly football matches together with some other arena events whenever the home team is not scheduled to lay. Given the ever-increasing size of the facility, coupled with its tendency to become more technologically advanced, there are several business options that OV can exploit.
Construction of Skywalks
One of the options is to create a catwalk or a skywalk, which will connect nearby restrooms to the VIP section of the stadium. More prominent people who will be attending the matches will be using these skywalks to go to the stadium without a lot of interference from the public. The skywalk will also connect those interested to go to the gaming floor, a bar, a restaurant, and entertainment lounger or a conference without the need to pass through the stadium. This initiative is meant to ensure minimum disturbance of the guests as well as the players during exercises and game preparation. Skywalks are common as pedestrian facilities in different parts of the world, including the Calgary +15 Walkway, Downtown Minneapolis Skywalk, and the Downtown Saint Paul.
Gymnasium
The stadium will prioritize establishment of a gym with a subscription along with the tunnel club. The decision to incorporate a gym is based on the fact that there is an increasing overall demand for gyms and fitness. Besides, there are no significant changes on the general perception on gyms and outside activities. The stadium's management can then be charging a monthly fee, which will significantly boost the stadium's earnings. The gym can then adopt a suitable membership plan to accommodate the clients as much as possible through a membership system.
Restaurant
Based on the size of the stadium and the extensive events that take place, designers can also focus on upgrading it by building a restaurant that provide an area for sports enthusiasts and other regular customers to relax as they eat. The restaurant would be characterized by an entertainment lounge, and a conference room where people of all professions can visit it for other activities besides only watching football. The profitability of having one or more restaurants in the stadium is that it can run even in times when there are no major events to sustain the stadium’s operations. Thus, OV constructing a restaurant can significantly ...