AEG Converting Dining Space at Staples into Two Loge-style Seating Products

Staples Center

(From Sports Business Journal) AEG, the owner and operator of the Staples Center, has decided to introduce two new loge-style seating products in October for the 2013-2014 season. The reason for the new loge-style seating is to generate revenue in a portion of space that was reserved for sit-down dinners and club-seat holders. The Staples Center’s new Premier Tables and Premier Lounges are ticketed spaces designed to generate premium-seat revenue where there was none before. In the past, many people would sit in the space for the entire game after finishing dinner. The two new products will be separated by design and have four-seat configurations hugging the rim of the lower bowl. The Premier Tables will start at $165,000 annually and the Premier Lounges at $150,000 a year. Patrons will get season tickets to all Los Angeles Lakers, Clippers, and Kings games. With the season tickets, you also get food and beverage which includes beer, wine and soda, for all games. Both products have 27-inch televisions in front of their tables or lounges. One hundred new seats are being distributed among the 18 Premier Lounges and seven Premier Tables. Selling all 100 seats would generate more than $4 million in new revenue. The three tenants of the arena will receive a portion of that income. The construction costs for the lounges and tables are $1.4 million, and the seating should open on October 18th. Not selling the skyboxes is a non-issue; AEG expects to sell all 150 suites this season at $300,000 to $500,000 a unit. This will mark the fifth consecutive season Staples Center has sold all of their suites. AEG plans to start selling the tables and lounges in early October starting first with the firm’s corporate partners before going to the public for offers. AEG expects to generate in the low nine figures for premium seat revenue for the 2013-2014 season, the highest number in the arena’s history