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SYNOPSIS: There are many negative stigmas associated with Newark, NJ. And given some of the economic and crime rate data available, understandably so. But one considerable ray of shining light gleaming from within the community is the Prudential Center. Though they will soon be losing their NBA tenant to Brooklyn, I was thoroughly impressed with the modernness of the facility, its versatility in attracting a wide array of events, and the inclusive feel the facility gives to event attendees. Among the top drawing sports venues of its size in terms of annual event attendance, it is the hope of local leaders that Prudential's success can be a part of Newark's urban renewal.
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According to a facility industry publication called Venues Today, the Prudential Center in Newark, NJ ranked 10th in the world in their 2011 year-end report in concert/event gross revenues for facilities with capacities between 15,000 and 30,000 seats.
Specifically, they generated $30.3 million in gross revenues. For comparison, Staples Center in L.A. and Madison Square Garden in Manhattan generated $60 M and $56 M, respectively. The only other American arenas of that size to out-gross Prudential were the Wells Fargo Center in Philly and the HP Pavillion in San Jose with $37 M and $33 M, respectively.
When I first learned of these statistics, I was admittedly surprised because - like so many of us and perhaps most famously Conan O'Brien - negative stereotypes associated with Newark abound. Given economic data from the Census on the comparative poverty levels in Newark (21% of families living in poverty compared to the national average of 10%) and crime rate data (Newark is ranked 23rd among 400 cities in 2010's city crime rate rankings), one can understand why such stereotypes exist.
The Rock, however, may be a key element to urban renewal.
Newark is currently undergoing a major revitalization. The Prudential Center, the New Jersey Performing Arts Center, The Newark Symphony, Riverfront Stadium and Red Bull Park in nearby Harrison and home to Major League Soccer's New York Red Bulls represent just part of the nearly $2 billion in construction underway.
Robert Sommer, President of Rock Entertainment Management, was kind enough to take me on a walking tour of the facility on Dec 20th just prior to an NHL contest between the New Jersey Devils and the New York Rangers.
Though the Rock's primary tenants are the Devils, the NBA's Nets (though in their last season before relocating), and Seton Hall basketball, facility management has been aggressive and creative finding events that fit their revenue needs as well as the entertainment interests and needs of locals both from Newark and within the neighboring region.
For example, the Rock has a practice ice rink facility located within the same building as their game-day rink. Something that is indeed quite rare, and something that has paid dividends for attracting other events. "We can host boxing matches here, as well as youth hockey tournaments and Seton Hall's club hockey", said Mr. Sommer. "We can accommodate 2500 within the practice facilities' seating area for our boxing matches, and you wouldn't believe the crowds we get just to see weigh-ins for UFC fights. UFC events are among the most successful things we do...by a long shot. The merchandise and beer sales are totally beyond belief."
The diversity of events and flexibility that the Rock has to handle multiple events at once is impressive. On March 27th, 2011 during the NCAA Men's Basketball East Regional Final between legendary programs Kentucky and North Carolina which was being contested on the Rock's primary court, there was a youth hockey game taking place in the afore-mentioned practice facility. As Mr. Sommer recalled, "These kids were about 50 feet from the center of the basketball universe, and they were totally oblivious to that fact as they were just doing their own thing...skating their hearts out. That was pretty neat."
Regarding the aesthetics of the overall facility, I was struck by:
- The plentiful walking space in the concourses;
- The inclusiveness of the facility...meaning that even with a nose-bleed ticket you could still access certain parts of the arena that in other arenas may only be accessible by those paying premium prices;
- The hanging of high school hockey jerseys from every high school team in the state of New Jersey (Qwest Field in Seattle pays similar homage to high school football teams from the state of Washington);
- The volume of original art displayed throughout the facility.
In short, a viewing experience I would recommend to sports fans touring the various sports facilities of the greater NY/NJ area.
The question will be how long it will take for the aesthetics in the surrounding community to catch up. As we strolled through the Rock peering outside at new construction, Mr. Sommer pointed out the rapid growth he's witnessed. "It's amazing how much things have developed in just the 2 years I've been here. And Newark Penn Station is just a few blocks away. Half of our fans come to us by train. Fans are feeling safer, and that's positive for transforming the communities' image."
Along the lines of transformation, Mr. Sommer also noted that one of Newark's favorite sons - Shaquille O'Neal - has designs to give back to the community and may even try to bring the NBA back to Newark...though doing so would likely prove expensive as the Knicks and Nets would surely require compensation for infringement upon their market share.
With or without Shaq, the Prudential Center was an impressive sports facility.
From a fan's perspective, it was a comfortable, all-inclusive, high-quality experience.
From a business perspective, the facilities design and layout help maximize its revenue generating potential.
From a community standpoint, urban progress is being made slowly but surely. The only question that remains is whether their pocket of downtown Newark can continue revitalization amidst an economy that is still slow to recover from the Great Recession.
If they can keep attracting event operators (and subsequently event attendees) at their 2011 pace going forward, then expect Newark's rebirth to continue.
And then maybe, just maybe, those negative stereotypes will begin to dissolve.
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Dr. Patrick Rishe is the Director of Sportsimpacts and Associate Professor of Economics at Webster University in St Louis.
Follow Patrick on Twitter @PatrickRishePhD or visit www.sportsimpacts.net
