3 min read May 2023 — CEO of the Atlanta Hawks and State Farm Arena, Steve Koonin, sat down with Focus: to discuss the factors contributing to a booming sports entertainment industry in Atlanta, community engagement projects and anticipated successes in 2023. “The Sun Belt will continue to flourish,” he said. “People want to be where the weather is better, taxes are better and opportunities are better. The South has all of those qualities.”
What is the current state of Atlanta’s sports industry?
The sports industry in Atlanta is very healthy. In fact, Sports Business Journal recently named Atlanta the fifth-best sports business city. There are a couple factors playing into this. Sports have become a unifying element in a more fractured society. People also see sports as a great entertainment option, a great night out. The venues in Atlanta, between Truist Park for the Braves, Mercedes-Benz Stadium for the Falcons and the United MLS Team and our State Farm Arena are the highest quality in the country. The results of having these 21st-century buildings are really paying dividends. People are coming to town for concerts and games in record numbers. Hospitality has grown significantly in the marketplace; we’re seeing buyers from across the Southeast choosing Atlanta. Overall, the business is terrific. From a team perspective, assembling a winning and championship-competitive team is a difficult task. You have one winner and 29 who don’t win. The slate gets reset every year, and we are very bullish about the future. We are excited about a new head coach and front office, as well. Our city is responding well to our product and plans in a really positive way.
How are the market’s current economic conditions affecting your conversations and strategies?
We are a beneficiary of this economy. People are slowing down their purchase of durable goods; the U.S. economy is always based on consumerism. Right now, we’re in a cycle where experiences are king. I’m seeing this in airlines, hotel pricing and the sports industry – people will wait six months to buy something new, but they will buy a ticket today. We have not seen a slowdown; if anything, we have a record number of events this year at 170, about one every two days. This is significant because in a building that can host 18,000 people, we don’t put on acts that host 800. There is a big crowd coming to State Farm Arena. The experience economy is on fire.
What do ticket sales and event attendance look like today?
We have sold out 31 out of 34 games – that is an all-time record. Our concert business has also seen an all-time record 35% growth in number of shows and events. We are seeing significant growth. It’s more than just sports teams; airfare prices are tied to demand, and they are rising. The same is true for hotels. I have been hearing through the grapevine that the average hotel price today is about $300 per night – we have never seen that before, but it doesn’t surprise me, either. In a world of cycles, the cycle is currently set on experiences.
How has technology significantly impacted event experience?
COVID has allowed us to use tech to catch up. By that, I mean there is no paper ticketing today and we are cashless. There was resistance prior to 2020 in those transitions, but COVID allowed those tech adoptions to be made. The game itself is still played with people on the court, but the experience sees more technology seeping in every day. From the business side, the growth of analytics tools has exploded. We now know every movement of every player when they are on the court, and that allows for better training and development for our players. Tech isn’t the core of our business, but it definitely supplements it.
What successes have the Atlanta Hawks seen in community outreach lately?
We recently set out to revisit our community strategy, and we saw community service being tied to virtually every single department of the organization. I recently realized we are holding six different sites for our summer basketball camps, and all of them are sold out as of March 2023. Most of the children who attend are on scholarship. Last year, we unveiled Good Neighbor Clubs with our partner, State Farm, and we continue to support Atlanta through them. With State Farm, we have built 28 courts across the Atlanta Metro Area that we are able to use as town squares in underserved communities. We have done everything from tournaments, to pop-up grocery stores, to vaccination sites. Now, we are partnering with State Farm to implement the Good Neighbor Clubs at nine of these locations to meet the needs of our community, including a dance studio, a unique autism sensory room, a computer room for after-school homework and more. Whatever the community needs, we provide through the Good Neighbor Club. The Hawks have tremendous connectivity to the city, and we work to be a part of the solution. Our ‘Beyond Basketball’ reports display our intentionality in community impact – this year, a big focus was sustainability. Some of the highlights include being the first zero-waste sports entertainment venue to earn True Platinum certification, having kept one million pounds of waste out of landfills and unique projects such as the Million Meal Pack with State Farm.
What should those new to Atlanta be aware of when doing business?
There are three words that describe Atlanta’s greatness: talent, talent, talent. If you are a corporation or business and are looking for the next generation of talent that is well-educated, diverse and brimming with youthful ideas, there is no place like Atlanta. With our combination of HBCUs, Georgia Tech and Georgia State, which is the No. 1 most diverse university in the United States, there is a treasure trove of talent here. Companies are finally discovering that diversity is great for business – hiring those with different thoughts and experiences is how you grow your business and do great things. Traffic is traffic, but next-generation talent is where Atlanta shines.
How do you foresee Atlanta evolving as it enters its next chapter?
Most great cities have a great downtown, and Atlanta has historically not had a great downtown, but we are on the cusp of it. Five years from now, our downtown landscape will look radically different. We are partnering with CIM to redevelop an 8 million-square-foot area we are calling Centennial Yards, which is right in the heart of Downtown Atlanta. It will be a spectacular mixed-use, live, work, play area that we plan to continue working on this year. It will connect the North and South ends of our community, where historically there has been a dividing line. The economic success of Downtown Atlanta will drive the economic success of the region.
What are your top priorities looking ahead?
Sports and live events in general are in a very good place. One could argue that COVID having folks staying inside more than normal has created a more intense type of demand today than we have ever seen before. I’m not sure how long that will last. Looking into 2024, the demand for concerts, season tickets and more have the NBA on track to break all sorts of attendance numbers. The Sun Belt will continue to flourish. People want to be where the weather is better, taxes are better and opportunities are better. The South has all of those qualities.
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