[PDF]

Final Report: Multi-Sport Complex Feasibility Study for the Jonesboro Advertising & Promotion Commission PDF Free Download

1 / 109
0 views•109 pages

Final Report: Multi-Sport Complex Feasibility Study for the Jonesboro Advertising & Promotion Commission PDF Free Download

Final Report: Multi-Sport Complex Feasibility Study for the Jonesboro Advertising & Promotion Commission PDF free Download. Think more deeply and widely.

C:\Users\bconnolly\Desktop\Victus Advisors\Proposals\Portrait Cover.jpg
FINAL REPORT
MULTI-SPORT COMPLEX FEASIBILITY STUDY FOR THE
JONESBORO ADVERTISING & PROMOTION COMMISSION
JANUARY 22, 2025
TABLE OF CONTENTS
SECTION PAGE
1. Introduction 3
2. Demographic & Socioeconomic Analysis 8
3. Local Sports Facility Analysis 17
4. Competitive & Comparable Market & Facility Analysis 32
5. Local & Regional User Interviews 60
6. Sports Tourism Trends 71
7. Facility Demand Assessment 85
8. Usage Projections & Operating Pro Forma 88
9. Economic & Fiscal Impact Analysis 100
Disclaimer: This report relies on a variety of information and assumptions to develop market, financial, and economic projections. Information sources and assumptions
include, but may not be limited to, information provided by the Jonesboro Advertising & Promotion Commission, input and opinions provided by the Client’s relevant
stakeholders and partners, Victus Advisors’ industry experience and previous studies, and publicly available data from various industry sources. Any information
collected by Victus Advisors has not been audited or verified and has been assumed to be correct. There will be differences between actual events and projections
contained herein. We express no assurances of any kind related to any projected information, and differences between projections and actual events may be material.
2
1. INTRODUCTION
3
PROJECT BACKGROUND
Victus Advisors (or “Victus”) was engaged in September 2024 by the Jonesboro Advertising and
Promotion Commission (“Jonesboro” or the “Client”) to conduct a multi-sport complex feasibility study.
Victus’ primary study goals include:
Phase 1 – Multi-Sport Complex Demand Analysis
a) Market Demand Analysis - Develop a comprehensive profile of the strengths and weaknesses of
Jonesboro as an indoor sports facility market.
b) Indoor Sports Market & Facility/Event Opportunity Analysis – Develop an analysis of the indoor
sports facilities market and opportunities in the Jonesboro market. This includes benchmarking
Jonesboro against other comparable markets that have been successful with indoor sports venues.
Phase 2 – Financial & Economic Analysis
c) Operating & Financial Analysis – Prepare a custom operating model and financial pro forma for the
proposed sports venue.
d) Economic/Fiscal Impact Analysis – Develop estimates of the economic/fiscal impacts that could be
generated within the local economy by a new indoor sports facility.
4
PROJECT UNDERSTANDING
5
In November 2021, a Letter of Interest (LOI) was issued by the City of Jonesboro’s Advertising and
Promotions Commission for a feasibility study regarding a youth sports complex. Eastern Sports
Management was selected to perform a set of tasks related to the feasibility, conceptual design, and
business planning for the potential sports complex in February 2022.
By 2024, plans to build the facility and details regarding the makeup of the building are in progress. As of
now, the facility is planned to be just over 200,000 square feet and include a full-service kitchen, serving
area, and sit-down cafeteria. There will be space for 12 basketball courts convertible to 24 volleyball
courts and 36 pickleball courts within the entire facility, a third of which will be located in the
events/convention center. The natatorium is planned to be a 50-meter pool with 8 lanes and 25 yards
wide to run short course events across the pool. There will be diving wells in addition to a warm-
up/recreation pool.
In September of 2024, Victus was engaged to perform an indoor sports complex feasibility study to
identify whether said plans meet demand within the area.
PROJECT UNDERSTANDING
6
Site LocationProspective Floor Plan
PROPOSED PROJECT SITE
7
As shown to the right, the project
site is located on Race Street at
McClellan Drive, directly off I-555,
in the City of Jonesboro (the
“City”).
Source: Esri
Project Site
2. DEMOGRAPHIC & SOCIOECONOMIC
ANALYSIS
8
CITY OF JONESBORO
The City of Jonesboro has
a population of 82,226.
Source: Esri
Note: Denotes project site marker for the remainder of the report
9
JONESBORO METROPOLITAN STATISTICAL AREA (MSA)
Source: Esri
10
• MSA’s are defined by the U.S. Office of Management & Budget.
•They are defined by adjacent counties with a high degree of social/economic integration
and an urban core of 50,000 people or more.
Metro.
Statistical
Areas •The Jonesboro MSA is comprised of 2 counties, Craighead County and Poinsett County.
Craighead County is home to over 83% of the MSA.
•The Jonesboro MSA has a population of 138,962, approximately 59% of which live in the
City of Jonesboro.
Hampton
Roads
MSA
City of Jonesboro United
Jonesboro MSA States
Population 82,226 138,962 338,440,954
Population Under 18 19,539 33,194 71,233,156
Percentage of Population Under 18 23.8% 23.9% 21.0%
Population Growth
Annual Pop. Growth (2000-2024) 1.6% 1.1% 0.8%
Annual Pop. Growth (5-year Projection) 0.9% 0.7% 0.4%
Projected Population (2029) 85,993 143,908 344,873,411
Median Age 33.1 35.2 39.3
Median Household Income $59,726 $59,915 $79,068
Adjusted Median Household Income (1) $75,507 $75,746 -
Total Households
32,391 54,807 130,716,571
Family Households 19,749 34,953 83,629,781
Percentage of Family Households 61.0% 63.8% 64.0%
Avg. Annual Spend (Entertainment & Recreation) $3,167 $3,129 $4,091
MARKET PROFILE
Source: Esri (1) Adjusted for cost of living according to Sperling
When comparing the City of Jonesboro to the larger MSA and the United States, the adjusted median
household income is slightly lower in addition to the percent of family households. Average annual
spend on entertainment and recreation just over $3,160 is also on the lower end. Median age below 35
for the city signifies a younger population, which can explain the lower family household rate.
Population growth has outpaced the United States over the last 24 years and is projected to continue
that way in the next five (5) years.
11
POPULATION DISTRIBUTION
Total Population by Block
Groups
Source: Esri
Population density in Jonesboro is higher in the
northeast portion of the City in addition to some
southern areas. Density is lower in area within
close proximity to the City center.
12
Median Age by Block
Groups
AGE DISTRIBUTION
13
Source: Esri
Median age in Jonesboro is higher in the City center
versus areas on the outside.
INCOME DISTRIBUTION
14
Median Household Income
by Block Groups
Source: Esri
Median Household Income is much higher in the
southwestern part of Jonesboro. Income levels are
lower around the City center.
WEEKDAY SPORTS & EVENT USAGE DRIVE-TIME ZONES
Source: Esri
Based upon Victus Advisors’ experience,
primary weekday attendance for sports
and event facilities (often in the late
afternoons and evenings Monday through
Friday) is usually drawn from within a 15-
to-30-minute drive radius.
There is a population of just over 88,500
people within a 15-minute drive time of
the project site and over 138,000 people
within a 30-minute drive time.
Note: Regional, multi-day, weekend
tournament attendance will typically be
drawn from a much wider drive radius, as
shown later in this report).
15
16
•Market Profile: Jonesboro’s adjusted median household income in addition to average annual spend
on entertainment and recreation is similar to the MSA but lower than the United States. Median age is
lower than the United States by more than five (5) years. Jonesboro’s population growth in the past
24 years doubles the United States, and it’s supposed to continue that way in the future.
oPopulation Distribution: Near the project site, population density is significantly lower;
however, areas with high population density are within close proximity.
oAge Distribution: Lower median age blocks are very close to the project site.
oIncome Distribution: There is high wealth concentration in areas west and south of the project
site.
•Drive-Time Zones: There is a population of nearly 89,000 people within a 15-minute drive time of the
project site and over 138,000 people within a 30-minute drive time.
CONCLUSIONS:
MARKET DATA
CONCLUSION
The Jonesboro Market has favorable demographic trends such as a lower median age and high
population growth that could reflect demand for an indoor sports complex in Jonesboro.
3. LOCAL SPORTS FACILITY ANALYSIS
17
YOUTH/AMATEUR SPORTS PROGRAM INVENTORY
18
Sources: Victus research
Notes: (1) Sorted by Organization in alphabetical order.
(2) This is a representative sample of potential users.
As shown above, the Jonesboro area has a strong existing core of youth and amateur sports programs
that operate throughout the year. Some of these programs are offered at the recreational level, while
others are offered by private sports clubs to compete regionally and nationally.
19
Source: Google Maps
Note: Sorted by Indoor Sports Facilities in alphabetical order.
Victus Advisors compiled the list above of
indoor sports facilities in Jonesboro that
have been most frequently utilized by the
local sports groups shown on the prior
page.
Please note, this is not intended to be a
comprehensive list, but rather those indoor
facilities listed by local sports user groups.
JONESBORO INDOOR SPORTS FACILITIES
7
8
6
4
5
1
3
2
20
Allen Park Community Center
•Owner/Operator: City of Jonesboro
•Features:
-2 basketball courts convertible to 3 volleyball courts
-Multiple community rooms, kitchen
-12 tennis courts, pickleball courts
-Parking, restrooms
•Sample Programs:
-City of Jonesboro recreational programs
-City Stars basketball, NEA Volleyball Academy
-Arkansas Juniors Storm
RENTAL RATES
•Large Community Room – Tables and chairs available: $40 / Hour
•Small Community Room - Tables and chairs available: $40 / Hour
•Kitchen – Requires room reservation:$20 / Hour
•Basketball/Volleyball Court – Volleyball net included: $40 / Hour
JONESBORO INDOOR SPORTS FACILITIES (CONT.)
21
Earl Bell Community Center
•Owner/Operator: City of Jonesboro
•Features:
-Earl Bell Gymnasium, basketball/volleyball court with
bleachers
-Several community rooms, dance rooms
-Rock climbing wall
-3 tennis courts
•Sample Programs:
-City of Jonesboro recreational programs
-City Stars basketball, NEA Volleyball Academy
RENTAL RATES
•Community Room – Tables and chairs included: $40 / Hour
•Basketball/Volleyball Court – Volleyball net included: $40 / Hour
•Rock Wall – Open Climb: $5 per person
•Rock Wall – Monthly Pass: $30
•Rock Wall Party – Under 10 Climbers: $70 per two-hour block
•Rock Wall Party – Under 20 Climbers: $100 per two-hour block
•Rock Wall Party – More than 20 Climbers: $5 per person per two-hour block
JONESBORO INDOOR SPORTS FACILITIES (CONT.)
22
Elite Arkansas Training North
•Owner/Operator: Private
•Features:
-2 full basketball courts plus a small gym
-2 regulation volleyball and pickleball courts
-Seating for spectators
-Electronic scoreboard
•Sample Programs:
-Private sessions, birthday parties
-The Select Few basketball club
-JO volleyball program
RENTAL RATES
•Basketball – Half Court: $30 / Hour
•Basketball – Full Court: $50 / Hour
•Small Gym: $35 / Hour
•Volleyball Courts: $50 / Hour
•Pickleball Courts: $30 / Hour
•Full Gym: $225 / Hour & $1,600 / Day
JONESBORO INDOOR SPORTS FACILITIES (CONT.)
23
Jonesboro Youth Center
•Owner/Operator: City of Jonesboro
•Features:
-Basketball/volleyball court
-Indoor turf field that’s lined
-Community room
•Sample Programs:
-City of Jonesboro recreational programs
-City Stars basketball, NEA Volleyball Academy
RENTAL RATES
•Community Room – Tables and chairs available: $40 / Hour
•Basketball/Volleyball Court – Volleyball net included: $40 / Hour
•Indoor Turf Field: $40 / Hour
JONESBORO INDOOR SPORTS FACILITIES (CONT.)
24
Parker Park Community Center
•Owner/Operator: City of Jonesboro
•Features:
-Dickey Nutt Gymnasium which can either be 2
basketball courts or 3 volleyball courts
-Community room, kitchen
-Pavilion and playground nearby
•Sample Programs:
-City of Jonesboro recreational programs
-City Stars basketball, NEA Volleyball Academy
RENTAL RATES
•Large Community Room – Tables and chairs included: $40 / Hour
•Small Community Room – Tables and chairs included: $40 / Hour
•Kitchen: $20 per day
•Basketball/Volleyball Court – Volleyball net included: $40 / Hour
JONESBORO INDOOR SPORTS FACILITIES (CONT.)
25
Red Wolf Center
•Owner/Operator: Arkansas State University
•Construction Cost: $32.01M in Q2 2024 dollars*
•Footprint: 84,250 sq. ft.
•Features:
-2 levels; lower level has 3 full size multi-use courts that are
programmed with basketball, volleyball, and badminton
-MAC Gymnasium for alternative sports such as indoor
soccer, floor hockey, and arena flag football
-Dance studio, rock climbing wall
-Free weight and cardiovascular area
-Locker rooms, training rooms, office space
•Sample Programs:
-Group fitness classes, Intramural Sports
-Club Sports, Open Recreation
*Estimated according to the Turner Building Cost Index Q2 2024
JONESBORO INDOOR SPORTS FACILITIES (CONT.)
RENTAL RATES (2-HOUR MINIMUM)
•Full Day / Facility: $600 / Day
•Up to 5 hours: $350 / Day
•1 space: $40 / Hour, 2 spaces: $75 / Hour
•Climbing Wall: $100 for 2 hours, $150 for 3 hours, $200 for 4 hours
26
JONESBORO INDOOR SPORTS FACILITIES (CONT.)
Red Wolf Center Facility Map
27
St. Bernards Health and Wellness
•Owner/Operator: Private
•Footprint: 50,000 sq. ft.
•Features:
-25-meter 4 lane lap pool heated to 80-85 degrees
-Jetted Spa heated to 101-104 degrees
-Warm water therapy pool heated to 90-94 degrees
-Indoor walking track, conference and office space
-Men’s and women’s saunas
•Sample Programs:
-Swim lessons, person training
-Individual workouts, water aerobics classes
-Jets Aquatic Club
•Additional Information:
-St. Bernards Therapy Department utilizes the
therapy pool at some times throughout the day.
JONESBORO INDOOR SPORTS FACILITIES (CONT.)
28
The Trim Gym
•Owner/Operator: Private
•Footprint: 108,000 sq. ft.
•Features:
-25-meter 4 lane Olympic size pool
-Whirlpool, steam, and sauna
-Indoor Basketball court, locker rooms
-Yoga studio for regular, warm, or hot yoga
-6 pickleball courts, indoor tennis courts, 2 racquetball courts
•Sample Programs:
-Personal Training, 3 Oaks Racquet Club
-Shark Wave Aquatic Team
JONESBORO INDOOR SPORTS FACILITIES (CONT.)
JONESBORO INDOOR SPORTS FACILITIES:
SUMMARY
29
Source: Victus research
Note: Sorted by Facility in alphabetical order
As shown above, Jonesboro has some existing indoor sports facilities that can cater to a variety of
sports and activities, many of them being recreation centers. It should be noted however, that there is
no facility with more than four (4) basketball or volleyball courts, which greatly restricts the market’s
ability to host large multi-day youth/amateur sports tournaments which often require a minimum of at
least eight (8) or more courts. There are also no 50-meter pools within the City of Jonesboro, which
are often required for larger state or regional swim meets.
It should also be noted that college facilities are typically more difficult for outside sports group to
access, as university programs typically have primary priority.
30
Source: Victus research
Note: Sorted by Facility in alphabetical order
As shown above, rental rates for indoor sports facilities in Jonesboro are
similar. Basketball/volleyball courts typically range between $40 and $50
per hour, depending on public vs. private venue operations.
JONESBORO INDOOR SPORTS FACILITIES:
RENTAL RATES
31
•Indoor Courts Facility Summary: Out of all indoor court facilities profiled, the highest amount of
basketball/volleyball courts is four (4). All but three (3) of the facilities are publicly owned, and one (1)
of the facilities is operated by a school.
oIndoor Courts Rental Rate Summary: $40-$50 / Hour depending on public versus private
venue operations.
•Indoor Pools Facility Summary: Both aquatic centers profiled are able to host clubs/teams that host
competitive meets. Both pools are 25 meters in length, which can host short course but not long
course events.
CONCLUSIONS:
LOCAL INDOOR SPORTS FACILITY ANALYSIS
CONCLUSION
The Jonesboro Market currently does not have any indoor sports facilities that are capable of hosting
large sports tourism events.
4. COMPETITIVE & COMPARABLE
MARKET & FACILITY ANALYSIS
32
33
OVERVIEW
In the next section of this report, Victus Advisors analyzed facilities that could potentially be a competitive
venue for existing or future sports tourism locations in the Jonesboro MSA. The cities/markets where
these sports and/or aquatic centers are located are all within a 5-to-6-hour drive time of Jonesboro. This
section includes two (2) types of facilities, as seen below:
•Indoor Sports Centers – These are a sample of facilities with indoor basketball courts convertible to
volleyball courts. The selected indoor sports centers range anywhere from 43,000 to 227,000 square
feet of indoor space, depending on the number of courts and additional amenities/features (such as
recreational or health/wellness amenities, restaurants, flex rooms and meeting/event spaces,
entertainment components, etc.).
•Indoor Aquatic Centers – These are a sample of facilities that have hosted regional events in
Arkansas. Some of the selected indoor aquatics centers can only accommodate 25-yard short course
meets, while others can accommodate both short course and long-course (50 meters) meets.
At the end of this section, we also show examples of sports marketing and branding efforts for
comparable markets that are active in the sports tourism space.
REGIONAL INDOOR SPORTS CENTERS
34
Source: Google Maps
Note: Sorted in alphabetical order
6
7
5
9
3
4
1 2
810
Fayetteville, Arkansas
•Expansion Opening: 2011
•Construction Cost: $4.38M in Q2 2024 dollars*
•Owner/Operator: Arkansas Athletes Outreach
•Footprint: 43,000 sq. ft.
•Features:
-1,800 sq. ft. Sports Fitness Center
-1,800 sq. ft. Multi-Purpose Conference room
-5 basketball courts, 7 volleyball courts
-2 sets of restrooms
-Bleachers, concession stand
•Programming:
-Camps, tournaments/events
-NWA League, Rookie League, Ozark Junior Volleyball Club
-Parisi Speed School, Conley Clark Elite Basketball Academy
•Additional Notes:
-Non-profit organization focused on building champions for life through the transformational power
of sports.
AAO P. WHITAKER SPORTS CENTER
35
*Estimated according to the Turner Building Cost Index Q2 2024
Rogers, Arkansas
•Opened: 2020
•Construction Cost: $8.45M million in Q2 2024 dollars*
•Owner/Operator: Arkansas Athletes Outreach
•Footprint: 54,000 sq. ft.
•Features:
-4 basketball courts, 24 basketball goals
-6 volleyball courts
-Retractable bleachers, concession stand
-Old Spice sports fields
-2 football/soccer/lacrosse fields
•Programming:
-Camps, tournaments/events
-D1 Training – State of the Art Fitness Center
-NWA League, Rookie League, Mercy Physical Therapy Clinic
•Additional Notes:
-Non-profit organization focused on building champions for life through the transformational power
of sports.
AAO WHITAKER FAMILY SPORTS CENTER
36
*Estimated according to the Turner Building Cost Index Q2 2024
Affton, MO
•Opened: 2014
•Owner/Operator: Private
•Footprint: 90,000+ sq. ft.
•Features:
-6 full size basketball courts, 8 tournament volleyball courts
-Netted turf field with separate batting cages
-Full service professional fitness center
•Programming:
-Practices, tournaments/events, leagues
-Output Performance, Threat Hoops
-K Elites Volleyball Club, Webster University Athletics
-Ace Volleyball Club, Midwest Premier Hoops, Moore Buckets
•Additional Notes:
-Indoor training for local little league, high school, collegiate and professional sports teams.
CENTER ST. LOUIS
37
RENTAL RATES
•Volleyball: $45 / Hour on weekdays, $50 / Hour on weekends
•Basketball: $50 / Hour on weekdays, $55 / Hour on weekends
Little Rock, Arkansas
•Opened: 1993
•Owner/Operator: University of Arkansas at Little Rock
•Footprint: Part of the 205,000 sq. ft. Donaghey Student Center
•Features:
-Capacity of 750,000 gallons
-50-meter by 25-yard 8 lane competition pool
-2x1 meter diving boards on concrete short blocks
-2x3 meter diving boards on concrete platforms
-One 12-line scoreboard, 16 touchpads
-Electric timing system, removable bulkhead
•Programming:
-Arkansas Swimming, Arkansas Racers
-Competitive swimming, diving, and water polo
-Little Rock swimming and diving
-Arkansas Canoe Club, Lifeguard Training
-Multiple state and regional championship events
-Sun Belt Conference Championships, Arkansas High School State Championships
•Additional Notes:
-Central Arkansas’s only indoor Olympic-size pool.
DONAGHEY AQUATIC CENTER
38
Cabot, Arkansas
•Opened: 2024
•Construction Cost: $16M
•Owner/Operator: City of Cabot
•Footprint: 128,000+ sq. ft.
•Features:
-6 full size basketball courts convertible to 12 full size
volleyball courts, 18 pickleball courts
-Basketball goals/volleyball nets are ceiling mounted,
creating adjustable goal and net heights
-Courts separated by divider curtains
-2 indoor soccer fields and 4 batting cages
•Programming:
-Local and regional tournaments/events, camps
-Memphis Flea Market, Gun Shows
-South Central Regional Gold Cup Qualifier, Arkansas
State Qualifier
-Basketball ASE, Volleyball CHS, Game Time
GAME TIME AT THE GROUNDS
39
•Additional Notes:
-Advances opportunities for both local and regional sports play in Arkansas and surrounding states.
GAME TIME AT THE GROUNDS (CONT.)
40
RENTAL RATES
•Half Basketball Court / 1 Volleyball Net: $40 / Hour, $60 / 1.5 Hours, $75 / 2 Hours
•Full Basketball Court / 2 Volleyball Nets: $70 / Hour, $90 / 1.5 Hours, $105 / 2 Hours
•Turf Rental Half Field: $50 / Hour, $80 / 1.5 Hours, $95 / 2 Hours
•Turf Rental Full Field: $100 / Hour, $125 / 1.5 Hours, $140 / 2 Hours
•Batting Cage Rental: $25 / 30 minutes, $45 / Hour, $60 / 1.5 Hours, $80 / 2 Hours
•Meeting Room A or B Rental: $75 / Hour
•Combined A and B Meeting Room Rental: $125 / Hour
41
Floor Plan
GAME TIME AT THE GROUNDS (CONT.)
Memphis, Tennessee
•Opened: 2022
•Construction Cost: $64.01M in Q2 2024 dollars*
•Owner/Operator: Private
•Footprint: 227,000 sq. ft.
•Features:
-3,500 spectator seats
-16 basketball courts, 32 volleyball courts
-Expected foot traffic over 2 million people annually
-2 cafes, E-sports center, parkour/ropes course
-Adaptable for wrestling, gymnastics, cheerleading,
futsal, and more
•Programming:
-Leagues, parties, events, camps, clinics
-Local, regional, and national tournaments
-Hoops 901, Ninja 901
MEMPHIS SPORTS AND EVENTS CENTER
42
•Additional Notes:
-Memphis Mayor Jim Strickland: “We will have hundreds of thousands of people per year come to
Memphis because of this facility, spending money in the city, creating jobs, and it will be a huge
national destination.”
*Estimated according to the Turner Building Cost Index Q2 2024
MEMPHIS SPORTS AND EVENTS CENTER (CONT.)
43
Floor Plan
RENTAL RATES
•Volleyball (Half Court): $50 / Hour
•Basketball (Full Court): $100 / Hour
Benton, Arkansas
•Opened: 2017
•Construction Cost: $66.69M in Q2 2024 dollars*
•Owner/Operator: The City of Benton
•Footprint: 117,394 sq. ft.
•Features:
-5,200 seating capacity in the gymnasium
-4 basketball courts, 8 volleyball courts, 12
pickleball courts
-Indoor Walking Track, multiple fitness rooms
-25-yard 8 lane competition pool with a 250-seat
viewing area and 1-meter diving
-Leisure pool with a splash pad and water slide
•Programming:
-Tournaments/events, camps, lessons
-The Boys and Girls Club, Cool Pool Kids Club
-USA Volleyball, Benton High School swim team
RIVER CENTER
44
•Additional Notes:
-Benton residents passed a “quality of life” tax in 2014 which is what helped fund this project.
*Estimated according to the Turner Building Cost Index Q2 2024
45
RENTAL RATES
•Half Court: $30 / Hour
•Full Court: $60 / Hour
•Max Daily: $1,800 / Day
RIVER CENTER (CONT.)
Springdale, Arkansas
•Opened: 1995
•Owner/Operator: Private
•Footprint: 220,000 sq. ft.
•Features:
-Ice arena
-Gym with a full-size basketball and volleyball court,
aerobics/dance and gymnastics studio, and a four-
lane walking/jogging track
-Junior-Olympic (25-yard) 9 lane lap pool
-Leisure pool with a wrap-around slide
-Fitness center, locker rooms with showers
•Programming:
-Aquahawgs, Razorback Aquatic Club, multiple high
school teams
-Birthday parties, classes, meetings and events
-Multiple drop-in activities, summer camps
-Lifeguard Certification, martial arts
THE JONES CENTER
46
•Additional Notes:
-On average, the Jones Center sees more than 500,000 visitors each year which is an influencing
factor into the recent announcement of a facility expansion.
47
Floor Plan
THE JONES CENTER (CONT.)
Cool Springs, Tennessee
•Opened: 2000, bought in 2018 by new investors
•Owner/Operator: Private
•Footprint: 171,000 sq. ft.
•Features:
-8,500 sq. ft. medical area supported by Tennessee
Orthopaedic Alliance
-6,000 sq. ft. VR gaming experience
-22,000 sq ft. obstacle training and rock climbing
-6 basketball courts, 12 volleyball courts
-5 dance recital rooms, yoga studio, gymnastics arena
-We Got Skills Grill, 9 Fruits Juice Bar
•Programming:
-Tournaments/events, camps
-Music City Dance, Tennessee Performance Volleyball
-Cheerleading group Premier Athletics, Nike Basketball
48
•Additional Notes:
-The ownership group that took over in 2018 has spent $2 million on improvements for the facility.
It was stated the improvements have made the building an attractive location for sports-focused
tenants.
TOA SPORTS PERFORMANCE CENTER
Fayetteville, Arkansas
•Opened: 1984
•Owner/Operator: University of Arkansas
•Footprint: Part of the 225,000 sq. ft. HPER Building
•Features:
-Total seating capacity at 1,496
-50-meter 8 lane Olympic size pool with two removable
bulkheads, 750,000-gallon tank
-Two 1-meter & two 3-meter springboards
-One 5-meter platform & one 10-meter platform
-Wireless audio and lighting systems
•Programming:
-University of Arkansas swimming
-Aquatic fitness classes, lifeguard certification
-Aquahawgs, Arkansas Racers, Arkansas Swimming
-Birthday parties - water volleyball/basketball available
49
•Additional Notes:
-University Recreation offers private swim lessons for adults and children five years and older.
Classes focus on swimming basics including breathing, floating, gliding, basic strokes, and water
safety skills.
UNIVERSITY OF ARKANSAS UREC POOL
50
RENTAL RATES
•Natatorium for University Organizations/Affiliates: $40 / Hour
•Natatorium for Non-University Organizations: $80 / Hour
UNIVERSITY OF ARKANSAS UREC POOL (CONT.)
51
As shown above, most indoor sports facilities profiled have at least four (4) basketball courts and six (6)
volleyball courts. There are four (4) facilities that are publicly owned and operated while the rest are private.
Of the four (4) facilities that accommodate aquatics, only the University pools can host both short and long
course events. The Jones Center and the River Center can only host short course meets.
Source: Victus research
Note: Sorted by Facility in alphabetical order.
INDOOR SPORTS CENTERS:
FACILITY SUMMARY
52
Square Footage: Among the profiled facilities, the average square footage is approximately 114,000.
Construction Cost: The average construction cost is nearly $32 million in Q2 2024 construction dollars,
or approximately $247 per square foot.
Source: Victus research
Notes:
(1) Sorted by Est. Q2 2024 Construction Cost Per Sq. Ft. in descending order
(2) Estimated according to the Turner Building Cost Index Q2 2024
INDOOR SPORTS CENTERS:
CONSTRUCTION COSTS
53
Source: Victus research
Note: Sorted by Facility in alphabetical order
As shown above, rental rates for regional indoor sports facilities near Jonesboro vary:
•Basketball courts range between $50-100.
•Volleyball courts range between $30-$50.
INDOOR SPORTS CENTERS:
RENTAL RATES
54
•Regional Indoor Sports Centers Summary: Most indoor courts facilities profiled have at least four (4)
basketball courts convertible to at least six (6) volleyball courts, and up to 16 basketball and 32
volleyball courts on the high end.
•Construction Costs Summary: The average construction cost per square foot of the indoor sports
centers is approximately $247 in Q2 2024 construction dollars. The average square footage of the
buildings is just under 114,000 square feet.
•Rental Rates: For single basketball hard-court rentals, there is a range of $50-$100 / Hour. For single
volleyball hard-court rentals, there is a range of $30-$50 / Hour. Rates at the Center St. Louis varied
depending on weekday versus weekend use. For indoor pools, the University of Arkansas UREC
pool ranges from $40-$80 / Hour depending on University versus Non-University Organizations.
•Economic Impact: Multiple facilities profiled bring hundreds of thousands of people to the city in
which it’s located, creating jobs and generating revenue for local businesses.
CONCLUSIONS:
INDOOR SPORTS CENTERS
CONCLUSION
The profiled facilities illustrate how a potential indoor sports facility can generate significant economic
impact. As it relates to Jonesboro, this new facility would be the only indoor sports center in the area
with an Olympic-sized pool in addition to 12 multi-use courts. This development can be a home to
teams/clubs that are more local in addition to attracting large regional sports events.
COMPARATIVE SPORTS MARKETING/BRANDING OVERVIEW
55
Most municipalities across the country that own and operate sports facilities will typically rely on public
(or quasi-public) tourism promotion agencies, such as Jonesboro Advertising and Promotions
Commission, to handle the bulk of their external youth/amateur sports marketing efforts. These efforts
may typically include regionally-branded efforts such as:
•Dedicated staff who can obtain, sell, and sometimes help produce events
•Website detailing the available sports facilities and opportunities
•Sports-focused collateral materials (brochures, magazines, etc.)
•Social media marketing (Facebook, Instagram, Twitter, YouTube, etc.)
•Personal contact and relationship marketing (trade shows, phone calls, etc.)
The balance of sports tourism advertising for each individual facility is then conducted by the local venue
operator, as well as any local tournament/event organizers. But it should be noted that the most
successful models tend to include a mix of regional marketing efforts (via tourism promotion agencies)
and facility-specific and event-specific marketing efforts (via facility operators and event operators).
Therefore, it will be imperative for Jonesboro Advertising and Promotions Commission to maintain strong
working relationships and clear lines of communication with key local sports groups and sports facility
operators.
The following pages highlight sports marketing campaigns from the comparable markets in which the
regional indoor facilities are located in.
SAMPLE MARKETING CAMPAIGNS
56
SPORTS-FOCUSED BRAND:
St. Louis, St. Louis County, Missouri
“The Ultimate Sports City”
SAMPLE MARKETING CAMPAIGNS (CONT.)
57
AMENITIES & ATTRACTIONS:
The State of Arkansas
“Adventure”
SAMPLE MARKETING CAMPAIGNS (CONT.)
58
SPORTS OFFERINGS
Rogers, Benton County, Arkansas
“Experience Sports”
SAMPLE MARKETING CAMPAIGNS (CONT.)
59
REPUTATION & HISTORY
Memphis, Shelby County, Tennessee
“#Soultrip”
5. LOCAL AND REGIONAL USER GROUP
INTERVIEWS
60
OVERVIEW
61
In October and November 2024, Victus Advisors conducted telephone interviews with a representative
sample of sports event organizers and user groups who could be potential users of an indoor sports
complex in the City of Jonesboro. The goals of these interviews were to gather feedback regarding the
market opportunity for regional/local events to be held at an indoor sports complex in the City of
Jonesboro. Interviewees shared views of Jonesboro as an event destination, comparable out-of-market
venues, minimum amenities required in order to attract events, and other feedback concerning the
proposed venue.
INTERVIEWS - Victus Advisors conducted telephone interviews with representatives from the following
nine (9) sports event organizers and user groups (in alphabetical order):
•AAU Arkansas District Volleyball
•Arkansas Racers
•Arkansas Swimming
•Aquahawgs
•Delta Region USA Volleyball
•Hardwood Basketball Tournaments
•Jets Aquatic Club
•Oklahoma Swimming
•USA Swimming – Central Zone
62
COMPARABLE VENUES
AQUATICS
•Donaghey Aquatic Center (Little Rock, AR)
•River Center (Benton, AR)
•The Jones Center (Springdale, Arkansas)
•University of Arkansas UREC Pool (Fayetteville, AR)
BASKETBALL/VOLLEYBALL
•AAO P. Whitaker Sports Center (Fayetteville, AR)
•AAO Whitaker Family Sports Center (Rogers, AR)
•Center St. Louis (Affton, MO)
•Game Time at the Grounds (Cabot, AR)
•Memphis Sports and Events Center (Memphis, TN)
•River Center (Benton, AR)
•TOA Sports Performance Center (Cool Springs, TN)
INTERVIEW SUMMARY
AQUATICS:
Arkansas Racers
•The Racers are a club team under USA swimming with multiple locations around the state, including
Benton, Clarksville, Fort Smith, Hot Springs, Little Rock, Paragould, and Russellville. The
interviewee stated the club uses many facilities all over the state, including River Center and the
University of Arkansas UREC Pool. The organizer noted the possibility of the Paragould location
possibly moving to Jonesboro granted this facility is built and can host long and short course events.
However, concern was voiced about encroaching on the Jets Aquatic Club’s territory. Because of
this, the interviewee stated the Racers are unlikely to bring any events to a new facility.
oINTEREST LEVEL: LOW TO MEDIUM
Arkansas Swimming
•This organization is a local swimming committee (LSC) under USA swimming. They host around 15-
16 larger meets that includes three (3) championship meets. The organizer noted they tend to use
facilities within the state that are more central to make travel more convenient; sometimes they hold
events in the northwest. The interviewee also stated air quality and the temperature of the water are
major factors when choosing a venue. When referencing Jonesboro, the interviewee noted that while
the location isn’t desirable for some clubs, there are teams that would travel. Potential programming
is around 1-2 events in a calendar year.
oINTEREST LEVEL: MEDIUM TO HIGH
63
INTERVIEW SUMMARY (CONT.)
AQUATICS (CONT.):
Aquahawgs
•The Aquahawgs host around four (4) weekend long events per year, bringing in around 300
swimmers for each of those meets. They also host about six (6) 1-day USA Swimming events. They
are located in northwest Arkansas and currently use the Jones Center in addition to the University of
Arkansas UREC Pool. The interviewee stressed that hotel availability and facility air quality are the
major factors in deciding where events are held. The organizer also noted that the drive across the
state for events would not be a barrier to attracting clubs throughout the area. In terms of demand,
the organizer stated his club would definitely use a new facility in Jonesboro and would be able to
host one (1) event a month, totaling a dozen events in a year.
oINTEREST LEVEL: HIGH
Jets Aquatic Club
•This is a local club in Jonesboro that fluctuates between 50 and 90 kids. They host two (2) AAU
swim meets over the summer and spring and one (1) USA swimming meet in September. They
currently use the outdoor Jonesboro City pool and St. Bernards Health and Wellness; these facilities
restrict them from hosting larger events. In terms of amenities, the interviewee stressed that a 50-
meter pool with two sets of 8 bulkheads on each side would be ideal. Also, blocks with fixed
adjustable wedges is important. In terms of usage, the organizer said they would 100 percent use
the facility and would transfer many events over plus add some new ones. 5-6 events would be
possible, including 2 state championships and a sectional meet.
oINTEREST LEVEL: VERY HIGH 64
INTERVIEW SUMMARY (CONT.)
AQUATICS (CONT.):
Oklahoma Swimming
•They are one of the local swim committees (LSC’s) within Oklahoma Swimming under USA
swimming. They host several championship meets in addition to state championships every year.
While they haven’t hosted in Jonesboro before, they have hosted in northwest Arkansas for Jenks, a
suburb of Tulsa. For meets, the interviewee stated they look for facilities that can host both short and
long course events with solid seating/deck space to accommodate swimmers/spectators. In terms of
usage, Oklahoma Swimming would not use this facility. However, the organizer noted that the
Jonesboro area is growing quickly and believes it could be successful.
oINTEREST LEVEL: LOW
USA Swimming – Central Zone
•This is one of the four (4) zones of swimming and includes Arkansas along with many other states.
At a regional level, they host five (5) future sites. Typically, the meets will max out at 800 competitors
which means seating for 1,000-1,500 would be ideal. The three most important amenities for the
venue are deck space, spectator seating, and warm up/warm down facilities. The organizer also
noted to cater to swim lessons/recreational demand as well. Because there are not a lot of 50-meter
facilities available in Arkansas, the potential to host sectional meets is there. In terms of usage, the
Central Zone hosts two (2) large meets yearly; this venue would be in the running because it’s
planning on being a 50-meter pool.
oINTEREST LEVEL: MEDIUM
65
INTERVIEW SUMMARY (CONT.)
VOLLEYBALL:
AAU Arkansas District Volleyball
•The interviewee confirmed interest in an indoor venue granted it had 18 courts. Right now, this
organization runs around 12 sanctioned meets per year but does not have a large enough facility to
put on a big event in the Arkansas market. Their tournaments/events are being run through schools
across the state like Arkansas Christan, Little Rock Christian Academy, and Arkansas Baptist Prep.
The organizer said that if a new indoor facility was built that could host 18 courts at once, they would
definitely use it. Potential programming would likely be two (2) events yearly; the interviewee
believed the facility would open the door for many other clubs that would use it.
oINTEREST LEVEL: HIGH
Delta Region USA Volleyball
•This organization currently runs about 70 events per year from December to June; they have around
10,000 members over 3 states. Larger events go to dedicated sports centers while smaller ones
usually use high schools. The interviewee stated that he’s familiar with the Jonesboro area and
noted how he only knows of one multi-court facility in the area. Main reasons to hold an event in a
particular venue included seating arrangements in addition to spacing requirements for everyone
involved. Ideal number of courts was not specified, as long as everything is in one facility. In terms of
usage, the interviewee said they would absolutely use the facility and stated they would prepay for
six (6) dates, possibly eight (8).
oINTEREST LEVEL: HIGH
66
INTERVIEW SUMMARY (CONT.)
BASKETBALL:
Hardwood Basketball Tournaments
•This organization leads youth basketball tournaments in Arkansas, Oklahoma, and/or Missouri every
weekend from February to September. Most events in Arkansas take place in the northwest, in cities
like Conway or Clarksville; Conway has the Don Owens Center and Clarksville has the Marvin
Vinson Activities Center. To have a good-sized tournament of 100 teams, at least four (4) courts are
necessary. When looking at potential locations to host, safety and easy access take priority over
entertainment or attractions. The interviewee stated that they haven’t hosted anything in Jonesboro
before but would definitely bring new events to a facility there. This organization's goal would be to
have an event every weekend from February to September.
oINTEREST LEVEL: HIGH
67
INTERVIEW SUMMARY (CONT.)
68
RENTAL AGREEMENTS:
Aquatics
•For events under USA swimming, there are two options:
o1) A local club will bid for the meet and then work out financials with the facility.
o2) A local club will Co-host with the local swim committee (LSC).
•Meet fees are depending on the club that’s hosting the event; they work out an agreement and
charge clubs attending accordingly. There’s no threshold for smaller events, but for championship
events there is.
•One interviewee commented they bring their own timing system and that the venue they use could
charge more if they had a system installed permanently.
Basketball
•The interviewee stated they have deals in place with the centers they use because he programs their
facilities so frequently.
Volleyball
•One event organizer stated their organization negotiates agreements with the school systems’
facilities they use.
•Another group has multiple agreements with different sports centers for full weekend rental rates. At
one of these facilities, the organizer is entitled to the gate fee while the venue collects the concession
revenue. The interviewee noted rates vary depending on the facility.
INTERVIEW SUMMARY (CONT.)
LOCAL AND REGIONAL USER GROUP DEMAND SUMMARY
69
•Indoor Sports Center (Courts) – Out of the three (3) organizations surveyed, there is initial interest
for up to 26 annual events*. At least four (4) courts are necessary for a sizeable tournament;
additional courts open the facility up to potentially hosting bigger events.
•Indoor Aquatic Center – Out of the six (6) organizations interviewed, there is initial interest for up to
22 annual events*. State and regional events can be captured because of the size of the pool and
the amenities planned for the center.
Source: Victus research
Notes: (1) Sorted by Group/Organization in alphabetical order. (2) This is a representative sample of potential users, and the potential usage shown above is
based solely on the interviewees contacted by Victus Advisors. (3) Surfaces are sport specific (aquatics, basketball, volleyball) according to Group/Organization
*Please note, all 48 events are not likely to be captured in Jonesboro, as the respondents had varying levels of likelihood to use the venue.
CONCLUSIONS:
LOCAL AND REGIONAL USER GROUP INTERVIEWS
70
CONCLUSION
Various user groups expressed interest in using a new indoor sports center in Jonesboro for
tournaments. While there is competition regionally for basketball and volleyball events, local demand in
addition to some sports tourism demand exists. In terms of aquatics, demand is very strong, and
competition is minimal due to many facilities regionally not having a 50-meter pool.
•Ideal Number of Surfaces: For basketball and volleyball, we found initial demand from a sample of
potential users for a bare minimum of 4 basketball courts and up to 18 volleyball courts. Jonesboro’s
plans right now are for up to 12 basketball courts that could be convertible to 24 volleyball courts,
which will allow the facility to not only host local programming, practices, and games during the week,
but also allow the facility to compete for larger, regional, multi-day sports events that drive economic
impact.
•Ideal Number of Pools: Two (2) pools are ideal for competition, one being the competition pool and
another serving as a warmup/recreation pool. Movable bulkheads are necessary to allow for hosting
of short and long course events. Other key features stressed include air quality, ample space/seating,
and a reliable timing system. Plans for the aquatic portion of the facility meet these demands and
have the potential to be a premier competitive swimming/diving destination in the region.
6. SPORTS TOURISM TRENDS
71
WHAT IS SPORTS TOURISM?
72
•“Sports Tourism” is regional or national travel to observe or participate in a sporting event.
•Visitor spending via sports tourism is typically captured via room nights/hotel spending, restaurants,
retail, and local entertainment and cultural attractions.
•In 2023, US sports tourism exceeded $52.2 billion in annual spending by sports travelers, event
organizers, and venues as shown below:
Sports-related travel
spending reached $52.2 billion in
2023, an 11% increase from 2022
and 16% increase since 2019.
2021 saw a significant recovery
from 2020 (impacted by the
COVID-19 pandemic), and data
from 2021, 2022, and 2023
indicates that sports tourism
spending has returned to or
exceeded pre-pandemic levels.
Annual Sports Tourism Spending in the U.S. (Billions)
Source: Sports Events & Tourism Association (Sports ETA)
Sports-related travel reached 205 million people in 2023, a 7.5% increase from
2022, and a 15% increase since 2019. Sports tourism traveler numbers have
rebounded to and exceeded numbers prior to the COVID-19 pandemic.
Annual Sports Tourism Travelers in the U.S. (Millions)
Source: Sports ETA
WHAT IS SPORTS TOURISM? (CONT.)
73
Spending Breakdown By Industry
Source: Sports ETA
WHAT IS SPORTS TOURISM? (CONT.)
74
Sports travelers, event organizers, and venues spent $13.5 billion on transportation; $10.9
billion on lodging, $9.7B on food and beverage, $6.9B on recreation, $6.5B on retail, and
$4.7B on tournament operations.
Category Spending (in Billions)
Transportation $13.5
Lodging $10.9
Food & Beverage $9.7
Recreation $6.9
Retail $6.5
Event Operations $4.7
Total $52.2
WHAT DRIVES SPORTS TOURISM TO A MARKET?
75
Sports Tourism Site Selection Factors
According to Victus Advisors’ industry experience and data provided by SportsETA, tournament and
event organizers focus on five (5) key factors when making their site selections:
#1 … Venue Characteristics & Costs
#2 … Destination Location/Accessibility
#3 … Destination Offerings & Amenities
#4 … Hotel Rates & Inventory
#5 … Destination Demographics
Regarding these site selection factors, venue characteristics and costs (including meeting the event’s
size/scale criteria, host bids and financial incentives, and venue rental costs) ranked as #1. Destination
location/accessibility and offerings/amenities ranked as #2 and #3, while hotel rates/inventory and
destination demographics ranked as #4 and #5, respectively.
JONESBORO WEEKEND SPORTS TOURNAMENT &
MULTI-STATE EVENT DRIVE-TIME ZONES
Source: Esri
Large MSAs (500K+ Pop) Within
a 2-3 Hour Drive
Memphis MSA
1,344,037
Little Rock MSA
764,872
Large MSA’s (500K+ Pop) Within
a 5-6 Hour Drive
St. Louis MSA
2,824,501
Nashville MSA
2,189,414
Birmingham MSA
1,195,462
Jackson MSA
616,024
Fayetteville MSA
601,399
Huntsville MSA
531,872
3
2
1
4
5
7
There is a population of over 3.4 million people
within a 2.5-hour drive time of the project site, and
over 18 million people within a 5-hour drive to
potentially draw from for sports and event activity.
76
6
8
3
1
5
4
2
6
7
8
TRAFFIC & HIGHWAY ACCESS
77
Source: Esri
Nearly 40,000 people drive past
the project site on I-555 each day.
From a transportation and
accessibility standpoint,
Jonesboro sees steady traffic
flows via I-555 and U.S. 49.
Traffic counts increase towards
the southern part of city.
78
Source: Esri
Convenient, affordable, family-friendly
lodging (preferably within a 10-minute
drive area from the sports venue, as
identified to the left) is an important
component of attracting and hosting multi-
day tournament activity.
Victus found numerous lodging options
(minimum 2-star hotel class) near the
project site.
HOTEL INVENTORY
79
Source: Esri
Nearby dining locations (preferably within
a 10-minute drive area from the sports
venue, as shown to the left) is an
important component of attracting and
hosting multi-day tournament activity.
There are numerous family-friendly dining
options conveniently located near the
project site.
RESTAURANT INVENTORY
80
Source: Esri
Nearby retail locations (preferably within a
10-minute drive area from the sports
venue, as identified to the left) is an
important component of attracting and
hosting multi-day tournament activity.
Retail locations that are conveniently
located near the project site include
Highland Square Shopping Center,
Caraway Plaza, Academy Sports,
Dillard’s, and more.
RETAIL INVENTORY
JONESBORO ATTRACTIONS
ASU Museum
Centennial Bank Stadium
Crowley’s Ridge Nature Center
First National Bank Arena
Fowler Center
Lake Frierson State Park
Convenient access to additional entertainment amenities such as collegiate sports, parks, museums, and
trails can enhance a sports destination by providing families with additional activity options during their
tournament down time. The Jonesboro market features many appealing family attractions, including but not
limited to (in alphabetical order):
1
2
3
4
5
6
81
6
1
3
2 4 5
ARKANSAS HIGH SCHOOLS:
INDOOR SPORTS PARTICIPATION
82
Basketball has the highest number of high school participants in Arkansas for boys in
addition to strong participation from girls. Volleyball has the highest number of participants
for girls. It is expected that Basketball, Volleyball, Competitive Spirit, Wrestling, and
Swimming and Diving user groups could all be accommodated by a new indoor sports
complex in Jonesboro.
Source: 2024-2025 National Federation of High School Associations
Participants
HOW IS JONESBORO CURRENTLY POSITIONED
TO ATTRACT INDOOR SPORTS TOURISM EVENTS?
83
3. DESTINATION OFFERINGS & AMENITIES
There are a number of family friendly attractions in Jonesboro. Examples include collegiate
sports, Arkansas State University, museums, and state parks.
1. VENUE CHARACTERISTICS & COSTS
There is a lack of indoor sports tourism-caliber facilities. Regional sports tournament organizers
confirmed that Jonesboro needs more indoor court space in addition to a competition pool to
better accommodate both local programs and also attract significant new sports tourism events.
2. DESTINATION LOCATION & ACCESSIBILITY
There is a population of over 3.4 million people within a 2.5-hour drive time of the project site,
and over 18 million people within a 5-hour drive time of the site to potentially draw from for sports
tourism events.
4. HOTEL RATES & INVENTORY
There are numerous affordable lodging options near the project site and the Jonesboro area in
general, which indicates that the area may be able to accommodate visitors for regional or
national sports tournaments.
5. DESTINATION DEMOGRAPHICS
Jonesboro’s projected population growth in addition to percentage of population under 18 are
higher than the U.S. as a whole, both of which are positive indicator for sports and recreational
demand.
KEY TAKEAWAYS & CONCLUSIONS:
SPORTS TOURISM TRENDS & OPPORTUNITIES
84
•Regional Drive Time Zones: There is a population of over 3.4 million people within a 2.5-hour drive
time of the project site, and over 18 million people within a 5-hour drive time of Jonesboro to
potentially draw from for sports tourism events.
•Lodging & Attractions: There are numerous hotel and lodging options in the Jonesboro area, which
indicates that the area could sustain large, regional or national sports tournaments. There are a
number of family friendly attractions such as collegiate sports, a Division I university, state parks, and
museums.
•Sports Tourism Facilities: There is a lack of sports tourism-caliber facilities. Additionally, regional
sports tournament organizers confirmed that Jonesboro needs more indoor court space and a
competition pool to better accommodate both local programs and sports tourism events.
CONCLUSION
From a sports and events tourism standpoint, it appears that Jonesboro is in a positive geographic
location that can draw visitation from a multi-state region. There are also numerous affordable lodging
options and family friendly attractions in close proximity to the project site. That said, there is a lack of
sports tourism-caliber facilities currently in Jonesboro that are a capable of hosting tournaments.
7. FACILITY DEMAND ASSESSMENT
85
86
•Courts Area: The plan for 12 basketball courts convertible to 24 volleyball courts and 36 pickleball
courts will satisfy demand for the area. Column-free, hardwood surfaces could also be used by
wrestling, cheer, futsal, etc. During the week, these courts will primarily be used for local programs,
practices, and games, with weekends dedicated to sports tournament activity. When the event center
space isn’t needed for sports activity, events like expos and banquets can be held.
oRationale: One regional volleyball tournament organizer noted that “18 courts is ideal at one
time” for their tournaments. Additionally, one regional basketball tournament organizer stated
that to host a good-sized tournament with around 100 teams, at least four (4) courts were
necessary. With the number of courts planned for the venue, there will be few if any
tournaments in the area that pass on the facility due to space constraints. Overall, we found
initial interest from a representative sample of potential users for up to 26 annual
tournaments/weekend events.
•Aquatic Area: The plan for a 50-meter pool with the ability to run short course and long course events
will meet demand for local clubs in addition to drawing attention from regional meet organizers.
oRationale: If the 50-meter pool is built, one regional event organizer mentioned that it would be
possible to “host sectional meets.” A local club head coach noted that the pool facilities in
Jonesboro aren’t equipped to handle large meets. Ultimately, this 50-meter pool would be one
of very few in the entire state and would also draw from the surrounding states, which this is
why there is initial interest from a representative sample of potential users for up to 22 annual
events.
DEMAND ASSESSMENT
87
SPECIFIC AMENITIES:
•Court Area Features:
oAdequate portable bleachers and spacing. There must be enough room for spectators to sit
down in addition to walkways between courts for teams arriving/leaving during games.
oMost tournament teams do not require locker rooms, however a large lobby and/or concessions
seating area with room for multiple teams to gather in between games would be very desirable.
•Aquatic Area Features:
oDeck space, spectator seating, and warm up/warm down facilities. Without enough deck space
it becomes harder to host larger events, regardless of the actual pool amenities. One
interviewee mentioned for a regional event, seating capacity for 1,000-1,500 would be ideal. A
warmup/warm down pool is a must for swimmers who are about to compete.
oAdjustable bulkheads are necessary as it allows for multiple short course events to be run at
the same time. Colorado Timing Systems was mentioned by multiple organizers as the
preferred company for their systems and scoreboards.
oMultiple interviewees mentioned the air quality inside the aquatic facility as a major factor when
deciding whether to host in a specific facility or not.
•Overall Facility Features:
oRestrooms, concessions, and medical/first aid supplies are all necessities when hosting a large
gathering of people, many of which are competing in a physical sport.
oParking and transportation. A convenient parking location when arriving at the facility, in
addition to sufficient parking space for personnel and spectators is important.
DEMAND ASSESSMENT (CONT.)
88
8. USAGE PROJECTIONS & OPERATING PRO FORMA
89
MULTI-SPORT COMPLEX:
KEY OPERATING PRO FORMA ASSUMPTIONS
The following key assumptions were utilized by Victus Advisors in order to develop operating and
financial projections for a multi-sport complex in Jonesboro:
•The indoor sports and events center is estimated to be approximately 200,000 sq. ft.
•It is assumed the complex will be owned by Jonesboro Public Facilities Board (“JPFB”) and thus
exempt from property taxes.
•The complex will be managed by a professional operating staff with experience maintaining and
marketing sports tournament facilities. For purposes of this report, we have estimated a management
fee of $25,000 per month.
•Operating revenues and expenses are based upon the current building program shown later in this
section. For this model, we have assumed this would primarily be a rental venue, with some
additional in-house programs.
•The facility will offer competitive rental rates and aggressively market both locally (for teams,
leagues, camps, and clinics) and regionally/nationally for sports tournaments.
•No assumptions have been made yet for annual debt service, interest, depreciation, or amortization.
•These projections are based on current market circumstances and therefore assume that there will
be no other major changes to the available indoor sports facility inventory within the Jonesboro area.
•The financial projections displayed on the following page utilize a variety of additional assumptions,
including data gathered from third-party sources, information provided by the Client and Victus
Advisors’ industry experience. There will be differences between these projections and actual events,
and these differences may be material.
90
It is conservatively estimated that a multi-sport complex in Jonesboro could host approximately 38 annual
sports tournaments (mostly 1- and 2-day events), primarily on weekends and holidays. While weekend
tournaments and events would draw athletes, spectators, and participants from outside of the Jonesboro
MSA (Friday through Sunday), it should be noted that local use (facility programming, local rentals, etc.)
would primarily be Jonesboro residents (typically Monday through Thursday).
Estimated Annual Basketball Tournaments: 16
Estimated Annual Volleyball Tournaments: 10
Estimated Annual Swim Meets: 12
Total Estimated Annual Visits: 491,300**
_________________________________________________________________________
Notes: (*) Tournament days a calendar day in which tournament activity is held in the facility. (**) Includes estimated athletes, officials, coaches,
parents/family, spectators, etc. (**) Represents unique daily visits. For example, if an athlete participated in practices on a Tuesday and a Thursday
one week, that would count as two (2) unique visits that week.
MULTI-SPORT COMPLEX:
ESTIMATED ANNUAL UTILIZATION
Facility
Event Hours
Local Hourly Court Rentals 6,100
Tournament Rentals 3,900
Local Hourly Pool Rentals 1,700
Swim Meet Rentals 800
TOTAL 12,500
Note: Sorted by Facility Hours in descending order
91
Facility
Hours:
Victus Advisors estimates that peak usage of a potential multi-sport complex in Jonesboro would be
from May through August, however it is expected that all months would see consistent usage of at
least 700 facility usage hours per month, and more than two times that during peak youth sports
tournament seasons from May through August when youth athletes are not in school.
MULTI-SPORT COMPLEX:
ESTIMATED ANNUAL UTILIZATION BY MONTH
92
It is estimated that visitors from outside of the Jonesboro MSA could account for about 59% of annual
attendance at a new multi-sport complex.
It is assumed that weekday usage would primarily be local programming, including youth and adult sports.
Whereas weekend use would primarily be dedicated to regional youth/amateur sports tournaments.
*Notes: (1) “Out-of-market” refers to visitors from
outside the Jonesboro MSA. (2) Visitors include
estimated athletes, officials, coaches,
parents/family, spectators, etc. Visitors also
represent unique daily visits. For example, if an
athlete participated in practices on a Tuesday and
a Thursday one week, that would count as two (2)
unique visits that week.
WeekendWeekday
MULTI-SPORT COMPLEX:
TOTAL ESTIMATED OUT-OF-MARKET VISITATION
Weekday Weekend TOTAL
In-Market Visits 188,900 14,100 203,000
Out-of-Market Visits 21,000 267,300 288,300
TOTAL VISITORS 209,900 281,400 491,300
93
MULTI-SPORT COMPLEX:
PRO FORMA (INCLUDING ALL UTILITIES)
Notes: (1) Presented in 2024 dollars, prior to consideration of debt service. (2) Stabilized year of operations typically occurs by Year 3 and revenue/expense
increases after Year 3 represent inflationary adjustments only.
*The management fee for the multi-sport complex is still under negotiation.
In a stabilized year of operations, it is estimated by Victus Advisors that the operations of a new multi-
sport complex in Jonesboro could operate at an approximately 85% cost recovery prior to debt service.
*
nc94
MULTI-SPORT COMPLEX:
PRO FORMA (EXCLUDING CWL PORTION OF UTILITIES)
It is our understanding that City Water & Light (CWL) has offered to waive water and electric utility
costs for the proposed multi-sports complex. Therefore, the model above shows the facility is
estimated to generate a positive net operating margin by Year 3 without water/electric expenses.
Notes: (1) Presented in 2024 dollars, prior to consideration of debt service. (2) Stabilized year of operations typically occurs by Year 3 and revenue/expense
increases after Year 3 represent inflationary adjustments only.
*Utilities in this model excludes Water and Electric utility costs, which typically represent approximately 90% of all utility costs in similar venues.
**The management fee for the multi-sport complex is still under negotiation.
Year:
Operating Revenues: 12345
Court Rental Income - Local & Tournaments $542,500 $658,750 $775,000 $798,250 $822,198
Aquatics Rental Income - Local & Tournaments $351,400 $426,700 $502,000 $517,060 $532,572
Other Event Rentals $262,500 $318,750 $375,000 $386,250 $397,838
In-House Sports/Aquatics Programming $120,960 $146,880 $172,800 $177,984 $183,324
Ticketing/Facility Fees $141,820 $172,210 $202,600 $208,678 $214,938
Concessions (Net) $383,600 $465,800 $548,000 $564,440 $581,373
Naming Rights, Advertising, & Sponsorship $168,000 $204,000 $240,000 $247,200 $254,616
Total Revenues
$1,970,780 $2,393,090 $2,815,400 $2,899,862 $2,986,858
Operating Expenses:
Salaries, Wages, & Benefits $891,000 $891,000 $891,000 $917,730 $945,262
Utilities* $52,500 $63,750 $75,000 $77,250 $79,568
Management Fee** $300,000 $300,000 $300,000 $309,000 $318,270
Event & Program Expenses $367,710 $446,505 $525,300 $541,059 $557,291
General & Administrative Incl. Insurance $300,000 $300,000 $300,000 $309,000 $318,270
Maintenance/Repair $200,000 $200,000 $200,000 $206,000 $212,180
Materials/Supplies $200,000 $200,000 $200,000 $206,000 $212,180
Advertising, Marketing, & Promotion $150,000 $150,000 $150,000 $154,500 $159,135
Total Expenses
$2,461,210 $2,551,255 $2,641,300 $2,720,539 $2,802,155
NET OPERATING MARGIN (LOSS) ($490,430) ($158,165) $174,100 $179,323 $184,703
COST RECOVERY 80% 94% 107% 107% 107%
95
Revenues generated by the multi-sport complex in Jonesboro consists primarily of rental income,
concessions, and advertising. A brief description of each potential revenue source is provided below.
Rental Income:
Facility rent is typically the largest revenue source for a multi-event facility. Rentals typically occur for
practices and league play (primarily local use within the Jonesboro MSA) and tournaments/events
(regional/national usage). We have conservatively assumed, based on competitive rental rates within the
market, that average rental rates would be approximately $55 per hour per court for the indoor sports and
events center, and a $70 per hour per lane for the aquatic center We have also assumed a tournament
rate between $7,000 and $8,000 per day for use of the entire indoor sports and events center and $8,000
per day for the entire aquatic center.
In-House Programming:
Some facilities are able to achieve break-even operations (or at least a higher cost recovery rate) by also
providing daily programming such as camps, clinics, leagues and lessons. These estimates are based
upon the comparable fees for recreational programming and leagues.
Other Event Rentals:
It is assumed that the facility will be able to utilize available space for events such as conferences, galas,
banquets, and other event activity. These estimates have been based upon rates and event activity at
comparable facilities.
MULTI-SPORT COMPLEX:
OPERATING REVENUES
96
Facility Fees:
In lieu of a parking fee during weekend events, we have assumed that the facility box office would
assess a facility fee of $2.00 per daily ticket sold on all ticketed sports tournaments.
Concessions (Net):
Concessions revenue consists of sales of various food and beverage items at points-of-sale throughout
the facility. Revenue assumptions are based on estimated usage and attendance, and comparable per
capita spending from facilities across the country. For this model, the per capita spending is assumed to
be $2.00 for local users, and $5.00 for tournament attendees with a 30% profit margin being applied to all
concessions sales.
General Sponsorship & Advertising:
Sponsorship and advertising revenues are assumed to be derived from the sale of wall and board
banners ($350 per banner for the indoor sports center), permanent signage ($350 per sign for the indoor
sports center), scoreboard signage ($500 per sign) and presenting/founding level partnerships ($10,000
per founding partner). Overall, we have conservatively assumed that approximately 80% of available
inventory would be sold.
Please note, a primary naming rights partnership is presented separately on the next page.
MULTI-SPORT COMPLEX:
OPERATING REVENUES (CONT.)
97
Facility Naming Rights:
The sale of facility naming rights is a rapidly growing trend in youth/amateur sports that could potentially
be pursued as an additional revenue source for this venue (with recent deals across the country as large
as $100,000 to $333,333 per facility per year). A sample of naming rights deals for youth and amateur
sports facilities is shown below:
To be conservative we have assumed the multi-sport complex could secure a naming rights deal worth
over $100,000 (net) annually. These deals typically carry a term length of 5-10 years.
Youth/Amateur Sports Complex Location Naming Rights Buyer Total Price Term
Annual
Average
WakeMed Soccer Park Cary, NC WakeMed Health System $1,000,000 3 $333,333
Young Family Athletic Center Norman, OK Donor (Trae Young) $4,000,000 Life $200,000
Mercy Health & Recreation Center Amherst, IL Mercy Hospitals $2,000,000 10 $200,000
Mercy Rockford Health Sportscore Rockford, IL Mercy Health $2,000,000 10 $200,000
Sandhills Global Youth Complex Lincoln, NE Sandhills Global $4,000,000 Life $200,000
UW Health Sports Factory Rockford, IL UW Health $1,940,000 10 $194,000
TCO Sports Garden Vadnais Heights, MN Twin Cities Orthopedics $1,950,000 15 $130,000
Health East Sports Center Woodbury, MN Health East $1,764,000 14 $126,000
Patelco Sports Complex Pleasanton, CA Patelco Credit Union $625,000 5 $125,000
Scheels Overland Park Sports Complex Overland Park, KS Scheels Sporting Goods $625,000 5 $125,000
Woodman's Indoor Athletic Center Janesville, WI Woodman's Food Markets $2,000,000 Life $100,000
Kaiser Permanente Sports Village Bakersfield, CA Kaiser Permanente $500,000 5 $100,000
Citynet Center Bridgeport, WV CityNet $1,000,000 10 $100,000
Average $1,800,308 11 $164,100
Median $1,940,000 10 $130,000
*Note: for naming rights agreements with a lifetime term, we have assumed 20 years is the primary period over which most of the naming benefits will be earned
MULTI-SPORT COMPLEX:
OPERATING REVENUES (CONT.)
98
Operating expenses expected to be generated by the proposed multi-sport complex includes salaries,
wages, and benefits, operations/programming costs, utilities, and other expenses. A brief description of
each potential major source of expense is provided below.
Salaries, Wages & Benefits:
We have assumed that the multi-sport complex would hire seven (7) full-time equivalent employees,
including a General Manager, Event Manager, Sales/Marketing Manager, F&B Operations Manager,
Administrative, Maintenance and Custodial staff, plus $250,000 per year in part-time/seasonal hours.
Utilities:
Utilities often represent one of the largest expenses incurred by facility operators. Cost estimates for
utilities include use of electricity, gas, water, and steam, and are based upon comparable utility costs per
square foot at similar facilities. Please note we have shown two scenarios in this section, both with and
without a waiver of the complex’s water/electric utility costs from CWL.
Management Fees:
We have preliminarily estimated a monthly management fee of $25,000 paid to a third-party facility
operator to manage and market the complex on behalf of the JPFB.
(Note: subject to negotiation)
Event & Program Expenses:
For this model, we have assumed that youth sports and other event rentals could operate at a 75% profit
margin, while in-house programming could operate at 35% profit margin. These assumptions are based
on operating margins seen at comparable facilities across the country.
MULTI-SPORT COMPLEX:
OPERATING EXPENSES
99
Other Expenses:
Other expenses expected to be incurred by the proposed indoor sports and events center include:
•Maintenance and repairs for structures, equipment, grounds, etc.
•Materials and supplies for administration and operations of the facility such as office supplies, sports
equipment, janitorial supplies, etc.
•General liability insurance to cover the grounds, restrooms, and other such areas (Note: events and
users are typically required to carry their own liability insurance specific to their activities at the
facility)
•Office and administrative expenses, including but not limited to marketing and advertising,
telecommunications, travel costs, permits, bad debt, bank service charges, licenses,
dues/subscriptions service fees, and other such operating expenses.
These expenses have been estimated based upon expenses at comparable venues.
MULTI-SPORT COMPLEX:
OPERATING EXPENSES (CONT.)
9. ECONOMIC & FISCAL IMPACT ANALYSIS
100
In order to estimate the potential economic and fiscal impacts of the proposed multi-sport complex in
Jonesboro, Victus Advisors utilized the following four (4) step process:
1. Estimate the Gross Direct Spending Associated with Facility Annual
Operations
2. Identify the Relevant Economic Area for Net Impact Analysis
3. Estimate the Net Direct Spending Occurring within the Defined
Economic Area by Outside Visitors
4. Utilize the Multiplier Effect to Estimate Total Economic & Fiscal
Impacts (including Direct, Indirect & Induced Spending)
ECONOMIC & FISCAL IMPACT METHODOLOGY
101
1. ESTIMATE DIRECT GROSS SPENDING
102
The first step in projecting the potential economic and fiscal impacts of the proposed multi-sport
complex in Jonesboro is estimating the Gross Direct Spending activity that could occur due to the on-
going operations of the new facilities.
Gross Direct Spending represents all of the direct spending that could be associated with the project,
regardless of income source or spending location.
In-Facility Revenues: City-Wide Visitor Spending:
Facility Rental Fees Lodging
Concessions Sales Restaurants
Sponsorships/Advertising Entertainment
Retail
Transportation
Primary Sources of Direct Spending from
from Potential New Sports Facilities in Jonesboro
Ongoing Facility Operations
2. IDENTIFY THE PRIMARY ECONOMIC AREA
103
For purposes of this study,
Victus Advisors has been
tasked with identifying the
potential economic and fiscal
impacts on Jonesboro and
Craighead County. Therefore,
the local economy studied in
this analysis is the physical area
solely within the Craighead
County limits (as shown at left).
As described on the next page,
“Net” Direct Spending only
occurs when the spending
source originates outside of
County limits and occurs within
County limits, which most often
occurs during tournaments and
swim meets. Local practices
and games typically do not drive
net economic impacts.
Source: Esri
3. CALCULATE THE INCREMENTAL OR “NET NEW” IMPACTS
104
After estimating the “Gross” economic activity associated with the potential new multi-sport complex in
Jonesboro, Victus Advisors estimated the portion of Gross Direct Spending that could represent
incremental (or “Net”) spending within the County’s economy. Net Direct Spending accounts for the
phenomenon of “displacement”, as described below.
DISPLACEMENT is the economic principle that assumes a household
(or business) sports and recreation budget would be spent within the local
economy with or without the development of the new multi-sport complex. For
purposes of this study, we have assumed that local usage spending would be
displaced (i.e. spent elsewhere within the Jonesboro economy) without the
presence of a new multi-sport complex. Therefore...
NET IMPACTS estimated by Victus Advisors will only include the
estimated dollars spent within Craighead County limits by visitors who come to
the County because of the presence of a new multi-sport complex, thus injecting
new incremental dollars into the County’s economy.
4. THE MULTIPLIER EFFECT VIA IMPLAN
105
Direct Spending that is captured in the Jonesboro economy is subsequently re-spent, both inside and
outside the local economy. The cumulative impact of the re-spending cycles that occur within
economic limits is called the “Multiplier Effect”, which Victus Advisors estimates via the nationally-
recognized IMPLAN economic multiplier system as shown below.
Facility Revenues & Visitor Spending
Fees, Concessions, Sponsorships, Lodging,
Restaurants, Entertainment, Retail, etc.
Manufacturing, Wholesalers (Food & Beverage, Merchandise),
Shipping/Freight, Utilities, etc.
Additional spending by businesses, households, government
entities, and other economic sectors.
Initial
Direct
Spending
Indirect
Spending
Induced
Spending
ESTIMATED “NET NEW” ANNUAL ECONOMIC &
FISCAL IMPACTS OF ONGOING OPERATIONS
106
Notes: (1) Only includes direct spending by visitors from outside of Craighead County
(2) Assumes average daily room rate of $105
It is estimated that the operations of the proposed new sports facilities in Jonesboro could generate the
following “net new” impacts within Jonesboro on an annual basis:
•$42.8 million in combined annual economic output (direct + indirect/induced)
•956 combined annual sustainable jobs throughout the economy (full- and part-time)
with $41.2 million in associated annual labor income
•54,000 annual hotel nights via new sports tourism
•$637,000 in incremental annual City taxes, and $173,000 in new County taxes
HOTEL IMPACTS
Facility Option
Estimated
Annual Out-of-
Market Visitors
Estimated
Net New
Direct
Spending (1)
Total Output Employment Labor Income
Estimated Annual
Hotel Nights
City Sales
Tax (1%)
County
Sales Tax
(1%)
City
Lodging
Tax (4%)
City
Prepared
F&B Tax
(2%)
Multi-Sport Complex 288,000 $22,384,000 $42,819,000 956 $41,183,000 54,000 $173,000 $173,000 $226,000 $238,345
TOTAL 288,000 $22,384,000 $42,819,000 956 $41,183,000 54,000 $173,000 $173,000 $226,000 $238,345
VISITATION & SPENDING
ANNUAL ECONOMIC IMPACTS
ANNUAL FISCAL IMPACTS
SUMMARY OF “NET NEW” IMPACT OVER TIME (30 YEARS)
107
Over a 30-year period, it is estimated that proposed new sports facilities in Jonesboro could generate
overall long-term impacts within Jonesboro with a net present value (NPV) of:
•$926 million in total economic output
•956 sustainable annual jobs with $891 million in associated labor income
•$13.8 million in incremental City taxes
•$3.7 million in incremental County taxes
Notes: (1) Assumptions include 3.0% annual inflation and 4.5% discount rate. (2) Employment represents new full- and part-time jobs sustained on an annual basis.
Model Total Output Employment Labor Income
City Sales
Tax (1%)
County
Sales Tax
(1%)
City Hotel Tax
(4%)
City Prepared
F&B Tax (2%)
Multi-Sport Complex $926,188,000 956 $890,800,000 $3,742,000 $3,742,000 $4,888,000 $5,165,000
TOTAL $926,188,000 956 $890,800,000 $3,742,000 $3,742,000 $4,888,000 $5,165,000
ECONOMIC IMPACTS (30-YR NPV)
NET PRESENT VALUE (NPV) OF INCREMENTAL IMPACTS OVER 30 YEARS (1)
FISCAL IMPACTS (30-YR NPV)
108
KEY TAKEAWAYS & CONCLUSION:
ECONOMIC & FISCAL IMPACT ANALYSIS
•Estimated Incremental or “Net New” Annual Economic & Fiscal Impacts of Ongoing Operations: It is
estimated that the operations of the proposed new sports complex in Jonesboro could generate “net
new” annual impacts of $42.8 million in economic output, 54,000 hotel nights, and $637,000 in
combined annual City taxes, among other economic impacts.
•Summary of “Net New” Impacts Over Time (30 Years): Over a 30-year period, it is estimated that the
sports complex in Jonesboro could generate incremental long-term impacts within Jonesboro with a
net present value (NPV) of $926 million in combined total economic output and $13.8 million in
combined City taxes, among other economic impacts.
CONCLUSION FOR JONESBORO
As shown in this section, the proposed multi-sport complex in Jonesboro are estimated to generate
significant economic and fiscal impacts for the Jonesboro economy on an annual basis and over a 30-
year period.
CONTACT INFORMATION
109
VICTUS ADVISORS LLC
2700 Homestead Road
Suite 220
Park City, Utah 84098
(435) 776-5728
www.victusadvisors.com
C:\Users\Brian Connolly\Dropbox (Victus Advisors)\Victus Advisors - Shared Folder\Logo Biz Cards\Logos\Victus - white on red.png