An experienced operator

3.8 The Anschutz Entertainment Group is the largest owner of sports teams across the world, including four in Europe and major soccer, ice hockey and basketball franchises in the USA. It has a track record of designing, building and operating major indoor arenas, notably the Staples Center in Los Angeles, which besides sports events also hosts very large conventions and concerts. The Group's access to a roster of top international artists is a key factor in its business model. Another crucial business advantage enjoyed by Anschutz Entertainment lies in its links with other parts of the wider Anschutz Company, which owns several thousand cinema screens as well as movie production companies. In principle, these outlets could be used to distribute events in the Dome Arena to pay-per-view audiences around the world.

15	Sports and entertainment arenas in the United Kingdom

The Dome Arena will be the largest and most modern in the Country.					NOTES
Arena		Capacity1	Year Built	Ownership	1 Arena capacities are approximate and vary according to the
Manchester²		16,000-21,000	1995	Anschutz Entertainment Group	type of event and the layout of seating.
National Indoor Athletics, Brimingham		8,000-13,000	1991	National Exhibition Centre Ltd	2 Claims to be the largest multipurpose indoor arena in
The Odyssey, Belfast		10,000	2001³	Odyssey Trust Company	Europe. Purchased by Anschutz in 2004 after they sold their London
Earls Court, London		14,000	1937	Candover Investments and the Morris Family	Arena (note 4), and after their conditional deal for the Dome.
Wembley Indoor Arena, London		12,500	1934	Bought by Quintain in August 2002	3 The Odyssey Arena is part of a £90 million complex which also includes a science
The London Arena, Docklands⁴		12,500	1989	50 per cent owned by Anschutz, from 1998	discovery centre, cinemas and leisure facilities, completed in 2001.
Proposed Dome Arena		16,000-26,000	2007	Anschutz	4 In May 2002 it was announced that this Arena would be demolished to make way for a housing, retail and leisure redevelopment by the developer Ballymore.
Source: Meridian Delta limited

THE STAPLES CENTER

This modern centre in Los Angeles is owned and operated by Anschutz and represents a tested model for the Dome.

3.9 Such additional Dome-related income streams from Anschutz's businesses away from the Dome were essential to enable them to justify their investment in building the Arena. Before concluding their agreement English Partnerships asked their financial advisers Deloitte and Touche to review the viability of Anschutz Entertainment's business plan for the Dome. The advisers concluded that income earned from within the Arena alone would not generate a fully commercial return. The rate of return on investment would be unlikely to be more than four per cent, and could be negative if assumptions over income from sponsorship and corporate hospitality proved to be overly optimistic in the UK market.