Creative Commons
A recent Los Angeles Times report is a good microcosm of an issue we are seeing and hearing more about lately — the economics of ice facilities.
The story: A decades-old rink will demolish its full-sized ice sheet, lobby and pro shop this summer. The space will become a medical center for seniors. A smaller practice rink will remain in place.
Local families have launched a petition trying to stop the plan. But the owner says he has no choice, citing increased lease and utility costs.
A club with about 200 athletes across a dozen teams will be displaced if the overhaul goes through. The Los Angeles Kings also host youth programing at the rink as part of a branding agreement.
A new rink is set to open in the area, but club officials are not confident it will give them enough ice availability to avoid downsizing.
The obvious angle here: Hockey is already among the most expensive youth sports and costs will only rise if there are fewer ice rinks and the ones that do stay open are forced to raise their costs.
But two things I’d expect to see in the coming weeks, months and years:
1) More moves along the lines of the Bond Sports/Sub-Zero Software partnership. There is just too much at stake for ice venues to not be operating at maximum efficiency and capitalizing on all potential revenue streams. And ice operations are often too unique to rely on broad management platforms.
2) More consolidation. The ice portfolios of major operators like Black Bear Sports Group (a previous Buying Sandlot sponsor) and The Sports Facilities Companies figure to keep gradually expanding. Efficiencies and synergies are one consideration, but resources are likely a bigger one. Many rinks were built in the 80s and 90s (or earlier) and need significant upgrades to keep going. There are only so many players who can afford the investments.
We’ve used the BBSG/Kalamazoo example before, but it is relevant again here — when the refrigeration system fries and the fix is going to cost millions, it’s usually a situation where either a platform like BBSG buys it or the place closes and the community loses the ice.
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