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Soccer Center A Kickin' Business
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Soccer Center A Kickin' Business Matt Semonson explained that he and Robert Mills were just a couple of suburban soccer dads who took their passion for the sport to its ultimate conclusion by building this state-of-the-art soccer center, featuring a revolutionary new artificial surface. Metro City Soccer (916-638-4625), which opened in January to rave reviews, includes a snack shop, lockers and showers, and caters to youth teams and leagues as well as adults. Semonsen said he grew up with four brothers, "they all played soccer. I didn't in high school, so I spent those years getting beaten out on the field. I really got into the game, when I became a dad and my kinds got involved. It's the number one youth sport in my area. It just blows everything else away." Formerly a fixed-income broker with Kidder Peabody, Semonson Said he decided after 14 years he had reached all his goals in that business and it was "time to move on." So he retired, and started spending more time with his kids, which led to soccer. He soon became a soccer coach, and then a member of the local soccer club board. "Our club had 1,600 players, 119 teams playing. I did that for three years and just discovered it's such a great game for youth and adults alike. I did my marketing studies, and decided to build a top-of-the-line place. I found this build-to-suit building, it's 37 fee tall, 190 by 120 feet, we put in the best turf money can buy." Metro City Soccer has 144 After three weeks in business, Semonson said, Metro City Soccer has 144 teams playing and 140 more on a waiting list. Rates for an eight-week session are $600. per adult team and $560 per youth team. They also book birthday parties, meetings, soccer camps and clinics and other special events. There is eve a "drop-in" zone, 11:30 a.m. to 1:30 p.m. on weekdays, when adults can play soccer or just work out and use the showers and lockers, for a $7.00 fee. "We marketed very aggressively to youth facilities and groups. I knew a lot of the people. There are 45,000 people playing soccer in my district, and within that district are the individual leagues and clubs. I went to many of those boards and talked to people. It's amazing how close people get in this sport, and the passion for the game." Semonson said he is undecided whether he will take Metro City Soccer into multiple locations or a franchise operation. " I certainly have the capital to consider it.," he said. But, he added, "I am a true entrepreneur. My interest is not necessarily in running this operation day to day," even though, he said, the pleasure and passion people get from the game gives him "a neat feeling." The key to the soccer business, Semonson said, is "knowing where your competition is located, and doing your demographic research, understanding the low of money, whether it's a maturing population or a growing family area."Rancho Cordova's population is just under 100,000 and sits on the eastern edge of Sacramento County whose population is 1.1 million with $37,929 as the median income. An interesting aspect of the new facility is the playing surface, with is being heralded by many sports professionals as the ultimate solution to artificial turf injuries and natural turf problems. Called "FieldTurf," the simulated grass, provides traction and cushioning similar to natural turf. Most importantly, it reduces leg and foot injuries common to traditional artificial turf fields. FieldTurf has formed a strategic alliance with Nike to use Nike Grind a recycled material made from used athletic shoes from Nikes Re-Use-a-Shoe program as part of the rubber mix in the FieldTurf infill. The other part, the company says, is made from recycled tires, making the entire product environmentally friendly. Indoor soccer is a huge business nationwide. Tom Higginson of Sports Marketing Group (619-637-5766), a national chain of "Lets Play" indoor soccer centers headquartered in San Diego, posted reams of personal experience, wisdom and tips on how to choose a location, lease or build a building, make deals with pro shop and snack bar providers, what zoning boards and other governmental entities will do to you, and so on. Some are hilarious: "In Denver you have to remove the prairie dogs humanely from the property (they take them out to the Rocky Mountain Arsenal where the eagles eat them)." Another gem: "If you are the first project in an industrial park youre screwed. The park owner has thousands of permits to get before you can do anything and you get to be the test case where he experiments... If youre the last project in an industrial park the city gets even with you and the developer for all of the injustices that happened prior to you getting involved." Indoor Soccer There are
between 200 and 300 indoor soccer centers in the Higginson now has 15 centers running, and seven more under construction. He expects to do at least four, and as many as 10 a year. Asked how many centers he wants to build overall, he replied, "I want to do all of them." Locations under construction are in Phoenix and Tucson; San Antonio; Shreveport; two in Denver; and one in Fishkill, New York. Before he entered the soccer business, Higginson said, he was a prison guard for eight years, and sold real estate part time since about 1980. He owned a hotel in San Diego which was often empty, so he gave space away to professional sports teams and "anyone who wanted to impress someone." Finally, a soccer team came along, he said, and someone asked him to build a soccer center. Higginsons saga is entertaining, at least, and informative. According to Higginson, there are between 200 and 300 indoor soccer centers in the country, and that many being built every year, which means there is a high attrition rate. He looks for free-span buildings. Its difficult to find them, he notes, and his tale of searching for them is worth reading. (See accompanying sidebar.) The buildings need to be 23,000 square feet or more and have 300,000 to 400,000 people within a 25-minute circle of the location. He even shows how to avoid bad locations that may meet those criteria. "I saw a facility in San Diego that was five minutes from the Pacific Ocean," Higginson writes. "If you believe in my 25 minute circle theory, you have just lopped off 25% of your potential customer base. Dolphins play football, not soccer. In addition, since it was outside, at night the fog would roll in around the 10 p.m. game and the field would get real slippery, increasing your odds of player and spectator lawsuits. "In another city a facility was built right up against a river which had no accessible bridges within 15 minutes. So while they had a great customer base within 25 minutes, they couldnt get to 50 percent of it because of access problems. Natural barriers are something to watch for. In business you do everything you can to increase your odds. Cutting off potential customers is not the way. I saw a facility in Denver which was on the northeast side of town. It was flush up against Stapleton Airport on one side, Rocky Mountain Arsenal on another, and the new airport. It was suicide. Nobody lives in any of those locations." "We have to find a free span building," Higginson explains, "or at least a building where the poles are 80 feet apart so you can squeeze a field in there. Sure you can build a smaller field and it will probably work as long as you dont have a competitor. But once a full size competitor comes along, you have your work cut out. Most full size fields are in the 175 to 200 feet in length and 75 to 85 feet wide. Its hard to tell the difference in those sizes. If you have ceiling height in the 20-foot range or more youll be okay. "I havent had
much luck with real estate agents. I have "Its hard to tell from outside which buildings are free span. Lots of times they have a domed roof. Those are usually older buildings, Pay and Pak for example. 84 Lumber buildings come in three sizes. Their largest is 200 by 100. Those are great buildings but not well insulated. Ive bought one and come close to two more. Roller skating rinks generally dont have poles, nor do ice skating rinks. Airplane hangars work and buildings where they use to build pre fab homes, trusses for houses, or aluminum recycling centers. Tennis clubs are hurting and acceptable alternatives with high ceilings. You need at least three to four courts. Mayflower, Bekins, and Allied storage buildings work about a third of the time. "I havent had much luck with real estate agents. I have found over 90% of the existing buildings on my own. I have driven many cities in the country in my 79 Ford Fairmont. It got up to about 400,000 miles before it finally got towed off. One of my neighbors kept reporting me to the smog enforcement division and pretty soon the tickets were more than the value of the car. I bought a 1981 Ford Fairmont with only 120,000 miles on it. Its a puppy. Got another 300,000 miles to go." On Higginsons web site also is a model business plan that is packed with cogent information. "I have taken our last six business plans and merged them together to make a mythical business plan, but very close ... (to) business plans that we have submitted to SBA and been approved." The customer base is from eight to 60 years old, 70 percent male. Adults play year-round, with little drop-off in play during the outdoor season. Youth practice twice a week during outdoor play and play on the weekends. Adults play on the weekends and sometimes one weekday. Customers will travel 20 to 25 minutes. Youth games are 40 minutes long and adult games 50 minutes. When the drive to and from becomes longer than the playing time, players are more difficult to obtain. A freeway ramp within 10 minutes will increase the range of the 25-minute circle. Higginson doesnt fear competitors. "We have had competitors. Permian Basin (Its a Kick) out of business. Salt Lake (Utah Indoor Soccer) closed for the summer and we purchased it in March of 1994. Denver, (Colorado Indoor Sports) went bankrupt and (Soccer Dome) moved one summer night leaving no forwarding address. In El Cajon (Lakeside Indoor Soccer) is a truck stop. In San Diego (Mission Valley Soccer Center) now a condominium project and (Sorrento Valley Soccer Center) folded three years ago selling their equipment to a group out of Mexico City." When Higginson tired of searching for usable free span buildings, he began building his own and, once again, embarked on a new phase of education. "What a learning experience," he says. You build a full size field, 200 by 85 feet, in a building 210 by 110 feet, he says. "Thats 23,100 square feet. You still have room for player boxes, three rows of seating and adequate office space, bathroom, pro shop, and snack bar. Not much else however. Im into simple." Now, he says, "I pretty much construct buildings 260 by 110 and put a big field and small field in them. Depending on the circumstances in the various cities some are larger and some are smaller but this is about average. The first building was 34,000 square feet. Yeah, I know. I just said Im into simple and I didnt build simple. I had an in-house tenant who wanted to lease. So I built extra room for him. He was already in a couple of our other buildings. However what he learned, that we had previously learned, when it comes to your first expansion, imagine everything that can go wrong, times that by four and youll be real close. Fortunately we found another tenant." His costs were $130,000 for land, right around two acres, which is roughly 90,000 square feet. Then the 34,000-square-foot building came in at about $17.37 a foot. If you have to sprinkler the building you can add about $1.25 to $1.50 a foot, Higginson says. The costs include heat and air conditioning, office space, finishing out the bathrooms, and snack bar and pro shop space. As of May, 1998, Higginson said, his costs were about $20 a foot in six states. "I will tell you that costs are increasing pretty rapidly and they are up about 15% from a couple of years ago when I began building," he said. Higginson has built soccer centers in every way imaginable, and says he has found it much easier to find vacant land than existing free-span buildings. But new construction is fraught with its own set of special nightmares. Here are some of his hard-earned lessons. "If you can find land zoned recreational it will save you time and money. Except in Vegas. Recreational in Vegas is apparently for casinos. Recreational is the cheapest, industrial or light manufacturing, depending on the city, is next, commercial is the worst. Unless its recreational youll have to get a variance. Some industrial areas dont allow metal buildings. They want you to spruce up the front of the buildings to either make them brick or look like brick." Beware of recreational zoning, Higginson warns. It is "not the dream I thought it was. If you dont make it for whatever reason there is not much you can do with the building. You rarely can get your zoning changed to warehouse. Youre in trouble if you dont make it." Things to know about new construction: "You must have some green area..." Parking requirements vary. "If you have a single-field facility you can probably survive on 50 to 60 but its tight. Most cities have some sort of regulation, based on either square footage or seating, whether you need sprinklers. If you put your bathrooms and snack bar in the part of the building closest to the street youll save some sewer and water costs." "When youre trying to decide how much lighting you need, keep in mind the reflection off the white dasher boards will help, as will white insulation, but I promise you that the turf will eat up the light. Have you heard the theory that light bulbs dont really create light, they suck up dark? The customer base is
from 8 to 60 years old, 70% male. Adults "When you design the pro shop you need wall space. You need more depth than width. Snack bar is better if people walk by it all the time. (Put) railings on your bleachers... Many cities require one-hour firewalls on your buildings, if you put your player boxes on the far side of the building away from the players you will have to add a couple of more exit doors and certainly have to sprinkler the building. Some cities (Wichita) require a fire hydrant, some (Salt Lake) required everything hanging have metal straps attached in case of earthquake (but not San Diego). "Some industrial parks require brick facade or concrete on either the whole building or in most cases the side facing the street, (Phoenix, Northglenn (Denver), Shreveport), in some instances you can get away with just four feet high and in others just brick the columns. Boise has massive hook-up fees, it was around $30,000 something. "If somebody finds bones while they are digging youre screwed. The Bureau of Indian Affairs, enealogical Society, and several more organizations youve never heard of will show up and halt your construction/financing/purchase (Tucson three times). If youre backed up to an Air Force base dont plan on being able to use their water/sewer/gas/electric connections. You will have to bore under the freeway to get access (San Antonio). "If somebody was once going to build a huge sports arena on your site for a pro team and the city voted that sports arenas require a minimum of ten acres you will inherit that requirement because you area sports arena and have to buy all ten acres (New York). Know for sure where youre utility hook-ups are before you pave your parking lot (Colorado Springs). You get an assessment for weird animals that are in short supply (Boise desert hare?). "Encinitas California told me they dont want indoor soccer in their city because they saw all those riots in Europe and they dont want that happening in their city. A few years later they gave the YMCA permission to build an indoor soccer facility which they did." "Usually there is a ten foot easement to build within a property line and you can extend it to 20 feet for streets. If you paint your ceiling white after the sprinkler heads have been installed the fire marshall will show up and make you replace all the heads that have sprinkles of paint on them (about $15,000, Edmond Oklahoma, not my facility)." "We own the local soccer magazine so we can run articles about our facilities to the soccer community," Higginson said. A soft drink manufacturer provides us with scoreboards in exchange for putting their product in our facility. We have quality staff that we can use from (nearby facility we own) should we have a shortfall. "We will bring our best people in numbers to insure the facility has a strong beginning. A new business (or revised one) takes maximum effort to get off the ground and the first six months are crucial. "Soon each facility will be hooked to the others by modem. Salt Lake enters its problem at night when it leaves and each facility leaves a potential solution to browse when Salt Lake comes in. The follow up process never ends. San Diego and El Cajon have modems hooked up and use them to communicate between each other and S.M.G., there are still a few bugs to work out but the idea is working well.
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