With eight youth ice rinks operating throughout North Texas, the stars have already made a significant youth sports footprint. But Stars CEO Brad Alberts says that to grow this kind of business, scale is the only way to do it.
“The main driver of revenue for youth sports facilities is dues from parents,” says Alberts. There is a maximum fee that parents are willing to pay. Growing in percentage terms, year-over-year, would have been challenging if we’d stuck to our ice rinks. So, the way we’re looking to expand our youth sports business is through the multi-sports facility backlog. The second major driver of revenue in this business is the sponsorship activities in and around these buildings.”
In late October, the Farmers’ City affiliate and the Dallas Stars agreed to a 25-year land lease and finalized plans to build a multi-sport facility, which would include 16 volleyball courts and eight basketball courts. The naming rights to the building belong to Stars, but the details have not been finalized.
“There is an enormous need for basketball and volleyball facilities throughout North Texas,” Alberts said.
The farmers branch will use the already approved bonds issued by the city to build the complex. The new building will be adjacent to the Farmers Branch Children’s Health StarCenter along Service Highway 35-E, south of Pike Street. Nujoom expects work on the facility to begin in January 2023 and is expected to be completed by December 2023.
The Farmers City chapter projects approximately 900,000 visitors to the new multi-sport venue each year.
For the MAC, which has eight USA regulation volleyball courts, four NBA hardwood basketball courts, a full concession stand, and food court area, Alberts says the facility will be rebranded under the Dallas Stars brand.
“This is a huge advantage in the long run for us. It will allow us to grow our headline revenue and bottom line profitability.
As part of the Farmers Branch acquisition and incorporation, the Stars purchased DFW’s largest youth volleyball organization – Texas Advantage Volleyball – as well as the 14-team Attack Volleyball Club organization. The two clubs would merge under the name Texas Advantage Volleyball and play its games at the new MAC and Farmers Branch facility, once built. Alberts says he doesn’t expect to buy any youth basketball organizations.
No major renovations are expected for the MAC.
Alberts says his team is also looking at a potential purchase of an outdoor sports facility, but he’s making no promises about the purchase. “I don’t aim to build a youth sports monopoly,” he said. “But I have a vision of where I want to take this division financially, and as long as we continue to take advantage of smart opportunities, this will be an important part of our business.”
Ben Swanger is an associate editor at CEO drthe job title of d magazine. Ben manages Dallas 500…