Billion Dollar Sports Entertainment Facility Market Witnessing Significantly High Revenue Share

/EIN News/ -- PALM BEACH, Fla., June 17, 2025 (GLOBE NEWSWIRE) -- FN Media Group News Commentary - Sports facilities are not just earning revenues from sports but are also creating additional revenues from entertainment and other events. A recent report from Market.us said that the Global Sports Facilities Market size is expected to be worth around USD 1,084.0 Billion by 2034, from USD 132.4 Billion in 2024, growing at a CAGR of 23.4% during the forecast period from 2025 to 2034. The report said: “Sports facilities are dedicated spaces for athletic activities, training, and competitions. They include stadiums, arenas, gymnasiums, and community sports complexes. Some focus on professional events, while others serve schools and local leagues. These facilities support various sports, offering equipment, seating, and amenities for players and spectators. The sports facilities market includes businesses that develop, operate, and manage venues for sports activities. It covers public and private stadiums, fitness centers, and training complexes. The market depends on sports popularity, event hosting, and investments in infrastructure. Revenue comes from ticket sales, sponsorships, memberships, and government funding. Sports facilities are evolving to meet rising demand. Governments and private investors are upgrading stadiums, gyms, and training centers to attract more visitors.” Active Entertainment companies active in the markets include: Venu Holding Corporation (NYSE American: VENU), Live Nation Entertainment (NYSE: LYV), TKO Group Holdings, Inc. (NYSE: TKO), Madison Square Garden Sports Corp. (NYSE: MSGS), DraftKings Inc. (NASDAQ: DKNG).

“Major sports events significantly impact local economies. According to Wikipedia, every $1 spent on operating costs and venues generates $2 for the host city. Additionally, these events create over 18,000 jobs on average. For this reason, cities continue to bid for global tournaments despite the high cost of construction and maintenance. Growth in this market is driven by increased sports participation and tourism. New multi-purpose venues host concerts, exhibitions, and esports events alongside traditional sports. However, competition is intense, with regions vying for sponsorships and government funding. As a result, operators focus on technology, sustainability, and unique fan experiences to stay competitive. The impact of sports facilities extends beyond entertainment. Locally, they create jobs, boost tourism, and promote community engagement. On a larger scale, they strengthen the global sports economy. Well-maintained venues attract international events, driving revenue from ticket sales, sponsorships, and broadcasting rights. Consequently, sports infrastructure plays a key role in economic growth.”

Venu Holding Corporation (NYSE: VENU) Closes $10.125 Million Strategic Investment from Institutional Investor, Issues Convertible Preferred Stock - Venu Holding Corp. ($VENU) has closed a $10.125 million equity investment from a leading institutional investor through the issuance of 675 shares of Series B 4% Convertible Preferred Stock, priced at a Stated Value of $15,000 per share.

Each share of Series B Preferred Stock is convertible into 1,000 shares of common stock, reflecting a conversion price of $15.00 per share, with a 4% annual cumulative dividend, payable in cash or registered common stock.

Proceeds from the investment will support the continued development of the Company’s amphitheater buildout, including high-profile venues underway in McKinney, Texas and Tulsa, Oklahoma.

Key terms of the Series B Preferred Stock include:

• $15.00/share conversion price
• Senior priority to common stock
• Optional redemption rights for the investor if key venues are not operational by August 14, 2027
• Company call option for conversion if common stock trades above $20.00 for 20 out of 30 consecutive trading days
• Mandatory redemption if key long-term service agreements are terminated without replacement

Additionally, the Company has entered into a Registration Rights Agreement and will file a registration statement with the SEC to cover the resale of any common shares issued under the preferred terms. This strategic capital infusion strengthens the Company’s balance sheet and further positions it to capitalize on demand for premium live entertainment infrastructure nationwide.   Read more about Venu Holding at:   https://venu.live/invest/

In other developments and happenings in the sports/entertainment industry recently include:

Live Nation Entertainment (NYSE: LYV), the global leader in live events, recently announced the election of Richard Grenell to its Board of Directors. Mr. Grenell brings decades of experience in diplomacy and negotiations, having served as U.S. Ambassador to Germany, Acting Director of National Intelligence, Presidential Envoy for Kosovo-Serbia Negotiations and Presidential Envoy for Special Missions. Mr. Grenell also currently serves as the President of the John F. Kennedy Center for the Performing Arts, where he oversees operations and programming at one of the nation's premier cultural institutions.

His career experience will help support Live Nation's mission to bring more live music to the world, while also advocating for industry reforms that protect both fans and artists. "We are pleased to welcome Ric to our Board," said Randall Mays, Chairman of the Board of Live Nation Entertainment. "His background will bring a valuable perspective as Live Nation continues to contribute to a growing live music industry around the globe."

TKO Group Holdings, Inc. (NYSE: TKO), a premium sports and entertainment company, recently announced that its board of directors has declared a quarterly cash dividend pursuant to which TKO’s Class A common stockholders will receive their pro rata share of an aggregate distribution of approximately $75 million from TKO Operating Company, LLC to its equityholders. The per share dividend to the holders of TKO’s Class A common stockholders will be $0.38 per share. The dividend will be paid on June 30, 2025 to Class A common stockholders of record as of the close of business on June 13, 2025.

Future declarations of quarterly dividends are subject to the determination and discretion of TKO based on its consideration of various factors, such as its results of operations, financial condition, market conditions, earnings, cash flow requirements, restrictions in its debt agreements and legal requirements and other factors that TKO deems relevant.

Madison Square Garden Sports Corp. (NYSE: MSGS) recently reported financial results for the fiscal third quarter ended March 31, 2025. Fiscal 2025 third quarter operating results reflected growth in average per-game revenues, including for tickets, sponsorship and premium hospitality offerings, across a combined two fewer New York Knicks ("Knicks") and New York Rangers ("Rangers") games played at the Madison Square Garden Arena ("The Garden") as compared to the prior year quarter. In addition, fiscal 2025 third quarter operating results reflected the impact of expected reductions in local media rights fees as a result of proposed amendments to the Knicks' and Rangers' local media rights agreements with MSG Networks Inc. ("MSG Networks") (as announced on April 25, 2025 and discussed in further detail in the Other Matters section of this earnings release), as well as the impact of the Knicks' and Rangers' rosters for the 2024-25 seasons.

In March, the Company launched its 2025-26 Knicks and Rangers season ticket renewal initiative, which has seen strong demand to date. Subsequent to the end of the fiscal 2025 third quarter, both teams concluded their regular seasons, with the Knicks currently competing in the NBA playoffs.

For the fiscal 2025 third quarter, the Company generated revenues of $424.2 million, a decrease of $5.8 million, or 1%, as compared to the prior year period. In addition, the Company reported operating income of $32.3 million, a decrease of $47.4 million, or 59%, and adjusted operating income of $36.9 million, a decrease of $51.8 million, or 58%, both as compared to the prior year period.

In response to the recent and prior sports wagering tax increases passed by the Illinois state legislature on all mobile and online sports wagers placed with licensed operators, DraftKings Inc. (NASDAQ: DKNG) recently announced that it will implement a 50-cent transaction fee on all mobile and online bets placed in Illinois through DraftKings Sportsbook, effective September 1, 2025.

“Illinois has been an important part of our growth, and we’re proud to have contributed meaningfully to the state through tax revenue, job creation, and a sustained investment in responsible gaming tools and resources,” said Jason Robins, Chief Executive Officer and Co-Founder of DraftKings. “We are disappointed that Illinois policymakers have chosen to more than triple our tax rate over the past two years, and we are very concerned about what this will do to the legal, regulated industry. Meanwhile, Illinois continues to fuel the rapidly growing illegal industry, which pays no taxes or fees and provides none of the consumer protections that regulated operators offer.”

DraftKings continues to support collaborative policymaking that works for the state and allows for the long-term sustainability of the industry. Should the legislation be repealed, the company will immediately remove the Illinois-specific per wager transaction fee.

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