New arenas’ main attraction? Often its concerts, rather than sports events. Los Angeles-based Oak View Group, an entertainment and sports-facilities company backed by private-equity giant Silver Lake, says an arena can generate twice as much net income from hosting a concert than an NBA or NHL game.
Oak View is slated to
develop eight arenas over the next three years, six of which will forgo
major-league teams, largely to keep their calendars clear for concerts. Live
music is expected to balloon to a $38 billion industry by 2030, from
about $28 billion currently. Artists are also making a growing
proportion of their income from live performances.