RENO
GAZETTE-JOURNAL
2/14/2004 03:28 pm
The Reno-Sparks Livestock Events Center, home of the Reno Rodeo, is
getting a little long in the tooth — and the rodeo and other events that
take place there are growing too big for the venue.
That’s the consensus from those who use the facility and those who work
there, and they’re hoping a recently commissioned study of the center will
clearly show that.
Casinos, it turns out, aren’t the only entertainment venues threatened
by increased competition.
Like gambling, livestock-related activities in general are becoming
more mainstream in American culture, witnessed by the increasing number of
events in Northern California, Las Vegas and across the country.
Even a Northeastern city such as Philadelphia, hardly a cow town, has
booked rodeo dates — a Professional Bull Riders event is scheduled for
Feb. 28 at the Wachovia Spectrum, which seats about 17,000.
In Redding, Calif., in the northern part of the state, an effort is
under way to build the Redding Rodeo a new home, or place it in a larger
one. Rodeo insiders say it’s a matter of when, not if.
In Vegas, Coast Casinos Inc. Chairman Michael Gaughan has expanded
rodeo events at his resorts, and the rest of the city is hosting more as
well.
None of this means the Reno Rodeo is in danger of losing its place, or
fading in popularity as the “Wildest, Richest Rodeo in the West” — at
least not in the near future. In fact, the Reno Rodeo, which takes place
every June and is a staple of Northern Nevada culture, is bursting at the
seams.
It’s the nation’s third-largest regular season rodeo in terms of prize
money and has two national television contracts, one on ESPN and the other
on the Outdoor Life Network. It also set attendance and earnings records
last year.
“The problem is we’re landlocked,” said Alan Kingsley, the Reno Rodeo
Association’s executive director. “We have to make a choice between stalls
and parking.
“We just can’t grow too much because we think if we do that, it’ll add
additional stalls, and if you put too many more stalls on the grounds,
that takes away from parking.”
Instead, the rodeo is focusing on improving the quality of Reno’s
longest-running special event. Officials are spending $100,000 to upgrade
the lighting at the outdoor Reno Rodeo Arena, the same as at the
University of Nevada, Reno’s Mackay Stadium.
This move is being made to accommodate national television coverage for
an ESPN-televised Xtreme Bulls event prior to the rodeo and the rodeo’s
championship go-round, broadcast on the Outdoor Life Network.
That means the Livestock Events Center, owned and operated by the
Reno-Sparks Convention & Visitors Authority, must improve its
infrastructure in some fashion, whether it be a general overhaul, a
replacement of the indoor facility, building a parking garage or some
combination of measures.
RSCVA officials are thinking of doing just that — and have been for
several years.
While the Reno Rodeo is an event that can be counted on to draw big
crowds every year (the outdoor arena seats 9,000), it only lasts a little
more than a week.
Rather, the other, smaller events — equine competitions (barrel races,
cuttings and roping contests), motocross and monster truck bashes — are
the activities in some danger of being lost to larger, more modern
locations.
“People like to go to new facilities,” said Livestock Events Center
General Manager John House. “If you’re looking at a market like Las Vegas
that can just buy events then, yeah, there is a sense of urgency.
“And (RSCVA President/CEO Jeff Beckelman) shares that sense.”
Taking a look
The Convention Sports and Leisure company of Minneapolis is due to
complete a study shortly of what should be done with the Events
Center.
The study was commissioned by the RSCVA to update a 1998 report. Its
cost, “not to exceed $25,000,” came out of the authority’s executive
budget, House said.
Officials agree that the facility is aging and events have outgrown the
center. They hope the study will make that clear.
“At one time, it was state-of-the-art,” said Bob Feist, owner/editor of
Ropers Sports News in Lodi, Calif. and the producer of the Bob Feist
Invitational, an annual one-day professional team roping event scheduled
during Reno Rodeo week. “But the equestrian world today has just expanded
terrifically in the last 10 to 15 years.”
Feist said the center simply has run out of space.
“It’s hard for them to accommodate some of the events,” he said. “The
staff there is excellent. But I’m concerned for the continuation of the
success of these events there.”
His own event, in its 27th year, was just renewed for another three —
but he admits looking elsewhere.
“People are having to board their horses off property, or park their
vehicles off property, which is a real inconvenience,” Feist said. “Times
have changed. Today, some of these people are pulling in with 30- to
40-foot rigs and there’s just not room to accommodate them.”
He said the quality of the concessions is also a problem. Generally,
his clients are far from poor and don’t appreciate offerings of hotdogs or
“day-old burgers.”
So why, then, did he decide to stay on at the Livestock Events
Center?
“I like Reno and the Reno Rodeo has been a great bunch to work with,”
Feist said simply.
Nothing substantive in his contract was changed, he said, and no
improvements to today’s problems were worked out.
Profits not expected
The Events Center, like all RSCVA properties, operates at a loss. The
properties are not necessarily intended to make profits, but to provide
venues for events that generate revenues throughout the community,
officials said.
House, who has been with the center since taking an entry-level job
eight years ago, said the facility maintains an annual operating deficit
of $75,000 to $200,000, or an average of $160,000.
Recently released RSCVA figures from the past four years show an
average loss of more than $221,000 at the center.
In fiscal 2003 (July 1, 2002 through June 30, 2003), statistics from
the RSCVA’s Finance Department show the center generated $1.46 million in
revenues, down more than $174,000 from the previous year.
Expenses were up from about $110,000, to $1.8 million, for a loss of
almost $342,000.
“The market analysis is what’s going to drive any future budget needs
or expansion,” House said. “Jeff (Beckelman) felt that it would be to our
best interests to make sure we’re staying up with the trends.”
House called the study the most serious effort to date to gauge what
needs to be done with the facility. But he said any concrete changes would
be slow in coming, and even 2005 would be “probably too soon.”
“What we have done is interview our major clients and potential
clients,” he said. “We want to make sure we’re taking care of our existing
clients and attracting new clients, including larger horse shows.”
A list of potential funding sources for improvements also is part of
the study.
Final interviews were being conducted with clients early this month,
House said.
Among the facility’s clients are such annual shows as the Breeders
Invitational (which debuted last year) and the Snaffle Bit Futurity (it
returned in 1999), which are expected to continue growing. That presents
the Events Center with more opportunities for cash flow than other
events.
Still, equine events are subject to the weather, rendering them
somewhat seasonal. If you think maneuvering your Suburu Outback over
Donner Pass in January is harrowing, try it with a pick-up hauling prize
horses in a trailer.
That means other events make use of the indoor arena’s space in the off
months, such as the University of Nevada, Reno’s track team. The indoor
arena seats 6,200.
Truck competitions, bicycle races, motorcycle events and collegiate
wrestling also take place inside. House said that means the entire
facility is idle only four or five weekends a year.
The rodeo — at cost
A priority at the center is the Reno Rodeo, which draws more than 1,000
competitors and has a regional economic impact of more than $34
million.
“The RSCVA’s management talks about improving the exhibitor facilities,
and that certainly would help us,” said Kingsley, the rodeo’s executive
director. “They have talked about another indoor arena, but I’d be very
surprised if that happened, or if it came out in the report.
“We have additional interests in getting more events in the indoor
arena (for the Reno Rodeo), but we’re maxed out on usage there.”
For starters, Kingsley said the center needs at least 1,000 horse
stalls, up from 660. During the past few years, a few hundred temporary
stalls typically have been trucked into the facility.
To deal with the space problems for parking and stalls, officials
struck a deal with the Reno Hilton two years ago to use some of its
parking spaces, although “the cowboys don’t like it,” he said.
Property at the university, across the street from the Events Center,
is being considered for use.
Kingsley said the infrastructure problems shouldn’t threaten the
rodeo.
But he added that he hopes the tourism agency will help out.
Reno Rodeo officials will spend about $100,000 on TV-quality lighting
this year, and he would like the authority to “participate” in some of
that expense.
Reinventing itself
“When the RSCVA took over management of this property from the Nevada
State Fair, there were provisions in that agreement that the Reno Rodeo,
the Nevada State Fair and the Nevada Junior Livestock Show were protected,
and done at cost,” House explained.
“This is no different than a lot of cities that have state fairs and
rodeos.”
An agreement from the 1980s about the definition of “at cost” — what
each party provides — expired in 1998. House said negotiations went back
and forth for several years, including conversations about upgrading the
venue.
Last summer, a contract was finalized that is in effect through
2050.
“It outlines our relationship, and is basically the same agreement,” he
said. “ ‘At cost’ typically means between $80,000 and $95,000.
“That’s what they reimburse us for, for all our costs, labor and
benefits, electrical, trash removal, etc.”
The Reno Rodeo Association is a nonprofit enterprise, sanctioned by the
Professional Rodeo Cowboys Association.
Through its charitable arm, the Reno Rodeo Foundation, it donates tens
of thousands of dollars annually to regional youth organizations and
scholarships.
This year, the rodeo’s format will be all prime time, meaning the
finals will be on a Saturday night instead of in the heat of a Sunday
afternoon.
For the rest of the year, the Livestock Events Center must continually
reinvent itself to meet the changing demands and needs of its customers,
officials said.
“The basic layout of the center is great,” House said. “The destination
is what drives this; it’s probably one of the best facilities on the West
Coast.
“We hear time and time again from people that Reno is like a vacation.
There are plenty of things to do away from the rodeo.”