INDUSTRY RESEARCH : VENUES
HOW MUCH DOES RENTING A VENUE COST?
Obviously the bigger the event the higher the investment and operational costs. Take for example the Ultra Music festival run by Russell Faibisch. Production costs might reach $25-30 million dollars this year but when he started it in 1999 at the age of 21 and still attending Florida International University, he borrowed 10k from the bank and drew 10,000 fans. In 2014 he is expected to attract 300,000 fans and 300 performers. It might generate as much as 25 million a day or 75 million dollars in economic activity for the city of Miami including the rental of the Bayfront-Bicentennial Park and other city services. His event alone brings in 12% of the total revenue for the parks operator and $500,000 on top of the previous $600,000 he payed for almost 200 police officers to patrol the event. Rental for the park should last 15 days from set-up to breakdown and cost another $250,000 or 15K per day. ( According to an NHL report on arenas the cost of operating an arena ranges from 6 million a year for small arenas 6K or less to 16 million for 20k+ which is equal to a monthly cost of 500k-1.3 million usd. The figures below are per day based on an NBA report wich found operational costs of $700-800 usd per seat for much larger arenas of 20-40k seats. Leasing payments for rental ranged from $3-7 million per year while there are many venues that publically price their venues online others handle it privately. )
Below are a few estimates based on this research and other public rental information on some of South Florida's most popular venues.
Venues / Promoters Capacity Operator Rental Fees
Bicentennial Park 45,000 Bayfront Park Trust $7K-15K+
Bank Atlantic Center 20,737 Broward/SSE/BBT $10k-40k +
American Airlines Arena 19,600 Basketball Properties $20k-40K +
Broward Center Au Rene 2,700 Broward County Greater of 10K or 10% tkts ( * ** )
Dreyfoos Hall 2,195 Palm Beach County $7k-15k + $1-3 tkt + fee ( * )
Fillmore Theater 2,500 LIVE NATION Varies on Season and Style
Parker Playhouse 1,168 Broward County $2.5k + 3.5% tkts + fee ( ** or $1K)
* Services Included : Single performance of 4 hrs with Box Office Services, House Management, Internal Security, Existing Sound and Lighting Inventory.
** Extra Charges : Front office, Security and Cleaning $100-150 per hour,
4% of Credit Card processing 10% Group Sales 25% Merchandise
4% Production Fees + Drapes, Lights Sound, Spots, Mics, Pianos...
*** Not Included : Stage Labor, Extraordinary sound/lighting equipment rental, Props, Credit card charges, Insurance, Sales Tax, Ticket Surcharge, Traffic Control (external), Piano/Piano tuning, Spotlights $50-150 Fees.
**** Bar and Catering : Hosted Bar Beer & Wine $10 per hour per person top Shelf $20
Catering HORS D’OEUVRES $30-50 per dz ( Butler, BBQ Luau
20% Gratuity and sales Tax extra
