FOS PM: Rams Plan New $1B Mini-City – Front Office Sports

June 7, 2022

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Hilton has created “Hilton on the Green” — a one-bedroom hotel room near the third hole at this year’s RBC Canadian Open on June 6-12. Aside from the views at St. George’s Golf & Country Club, guests will receive a personal concierge, golf cart, and gourmet meals.

Los Angeles Rams owner Stan Kroenke already has a state-of-the-art stadium and a mini-city in the works. Now he’s plotting out a secondary development centered on team facilities.

Kroenke Group purchased a building next to a plot of land he already owns for around $175 million, according to the Los Angeles Times. He is reportedly eyeing a new Rams practice facility, with fields, team offices, and headquarters surrounded by a commerce area.

The group has spent roughly $325 million on property in Los Angeles’ Warner Center area between this latest purchase and a neighboring shopping center it snapped up earlier this year.

• The property, previously occupied by health insurer Anthem Inc., holds a 13-story building on a 25-acre site.
• In addition to a training facility for the Rams, a new $1 billion development could add retail, housing, restaurants, and hotels.

SoFi So Good

The Warner Center site is a 27-mile drive from the Rams’ SoFi Stadium, where the Kroenke Group has one of the world’s largest stadium “mini-city” projects under construction.

The $5 billion venue, also home to the NFL’s Los Angeles Chargers, opened in September 2020 and hosted February’s Super Bowl LVI, which the Rams won.

A 300-acre development in Hollywood Park surrounding the stadium is set to open next year. The colossal project will include 890,000 square feet of retail space, plus offices, housing, and a park.

The retail area is already 65% leased.

Arcis Golf has acquired Four Bridges Country Club in Liberty Township, Ohio, marking the course operator’s ninth club acquisition in less than a year.

Terms of the deal weren’t disclosed. 

Launched by Arcis Equity Partners in 2015, Arcis Golf operates nearly 70 private, resort, and public golf clubs in the U.S., making it the second-largest operator of courses behind ClubCorp.

ClubCorp has more than 200 golf clubs, resorts, country clubs, and athletic clubs in the U.S. 

• Four Bridges Country Club will be Arcis Golf’s fifth property under management in Ohio.
• The club has a par-72, 18-hole golf course that stretches 7,200 yards. 
• It also has a sports complex that includes a fitness center, pool, and racquet courts. 

Arcis Golf is taking advantage of a growing golf market that has reached 66.6 million players worldwide — up from 61 million golfers five years ago. The company has invested more than $90 million in upgrades and amenities over the last few years to better serve customers. 

It is also investing in courses outside the U.S. 

In November 2021, Arcis Golf agreed to provide management and operating services to Kilada Country, Golf, and Residences, a new luxury golf resort community in southern Greece.

Billon-Dollar Business Partner 

Last August, Phil Mickelson sold six Arizona golf courses — three private and three daily-fee — to Arcis Golf for an undisclosed amount.

The sale could bring Mickelson within reach of a $1 billion net worth. The 51-year-old golf legend had $800 million in career off-course earnings before the sale, per Forbes.

Academy Sports + Outdoors reported $1.47 billion in first-quarter net sales, a 7.1% year-over-year decline and a 36.3% increase from 2019.

E-commerce sales for the company jumped 18.8%, and comparable sales fell 7.5%.

“The decline in sales was primarily due to lapping 38.9% comparable sales in the prior year quarter, partially driven by the first-quarter 2021 release of government stimulus paychecks,” Academy noted.

Academy Sports + Outdoors isn’t the only company whose revenue is starting to decline following a sales streak over the last two years. 

• Big 5 Sporting Goods reported first-quarter revenue of $242 million compared to the $272.8 million in posted the same period the year prior.
• Dick’s Sporting Goods saw $2.7 billion in first-quarter revenue, falling from $9.92 billion in Q12021.

Academy’s Economy

The retailer opened its first new store in more than two years during the quarter. Academy has plans to open eight new locations by the end of 2022, and between 80 and 100 over the next five years.

Academy CFO Michael Mullican said the company revised its 2022 outlook “to reflect the current macroeconomic challenges.” It now expects total net sales of $6.43 billion to $6.63 billion — lower than its previous estimate of $6.56 billion to $6.77 billion.