Sphere in Las Vegas, Nevada. (Photo by Greg Doherty/Getty Images)
The companies behind unique $2.2 billion Las Vegas venue Sphere, the New York Knicks and Rangers and their iconic Madison Square Garden home, have partnered with arena-builder and operator Oak View Group to launch a new organization focused on selling and managing naming rights, sponsorships, partnerships and similar relationships for sports and entertainment venues.
Crown Properties Collection will be headed by President Jay Voelker, who recently left the PGA Tour, where he was SVP of business development, selling sponsorships and rights deals to the Tour’s many corporate partners.
Oak View Group will run the organization, with minority stakes from Madison Square Garden Entertainment and its subsidiary Sphere Entertainment Co., both controlled by James Dolan.
“We are unique,” said Oak View co-founder Tim Lieweke in an interview. “If we didn’t have the largest sponsorship operation in the world before, we do now. I have 250 people who will do nothing but sell sponsorships for our group.”
Crown Properties will focus on high-end sports and music venues, Leiweke said, taking the “luxury brand representation” path common in other corners of entertainment and hospitality such as hotels, but seldom seen in the world of big arenas and stadiums. That means the company will be looking for other clients to further scale up operations.
“That’s part of reason MSG is an equity partner, because we do intend to grow,” Leiweke said.
“Crown Properties Collection will represent only the most valuable properties in all of sports and entertainment together with the most revolutionary venue in the world, Sphere in Las Vegas,” Leiweke said.
Naming rights and corporate sponsorships are already big business, but Leiweke said even more opportunities should lie just ahead, given the turmoil in other parts of sports sponsorships, such as the collapse of regional sports networks, uncertain future of ESPN, and challenges facing the economics of broadcast, cable and streaming video.
“It’s not cluttered, (their represented venues) are unique in the category they operate,” Leiweke said. “I think that’s the future, that’s the biggest opportunity you can walk into today.”
Oak View already had a big platform for selling sponsorships, naming rights and related partnerships and deals, selling more than $4.5 billion worth of naming rights. The new organization now will add more than 40 people from MSG and Sphere operations.
“Crown Properties Collection’s purpose is to provide unprecedented global representation for world-renowned sports and entertainment brands and venues, and there is no greater portfolio to begin with than the MSG family of companies’ world-class assets,” said Voelker, who in a release called Crown Properties “a new model for global partnerships in our industry.”
Leiweke called the hiring of Voelker, a long-time business associate who will report to him, “a huge coup for us. He sells more sponsorship packages to CEOs and companies than probably just about anybody.”
Oak View Group is one of the world’s biggest stadium builders, its recent projects including the home for Seattle’s NHL expansion franchise, the New York Islanders’ new arena in suburban Elmont, N.Y., and the University of Texas’ Moody Center in Austin, as well as international venues in cities such as Manchester, England, Vienna, Madrid, and Sao Paulo. Oak View also runs live entertainment and hospitality services for about 350 venues.
Leiweke co-founded Oak View in 2015 with Rock and Roll Hall of Fame member Irving Azoff, known for his long-time management of The Eagles and stint as chairman of live-entertainment power Live Nation Entertainment
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The Crown Properties agreement further formalizes long-time relations between the leaders of Oak View, Sphere and MSG, including Azoff’s partnership with MSG announced in 2015, Azoff MSG Entertainment, which acquired and remade the Forum in Los Angeles suburb Inglewood, Calif., into a highly regarded music venue.
Sphere’s 18,600-seat Sphere at the Venetian Resort in Las Vegas is scheduled to host its first live events later this month after four years of construction with concerts by the band U2, which Azoff also has represented for many years.
MSG’s companies also include Madison Square Garden, Radio City Music Hall, Beacon Theatre, The Chicago Theatre, New York Knicks, New York Rangers, MSG Networks
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“The alliance of our two global powerhouses through Crown Properties Collection will revolutionize the partnership space across the sports and entertainment industries,” said MSG President and COO David Hopkinson in a release. “Together, we will be on the forefront of creating game-changing opportunities for our venues, teams, and brands.”
