Festivals in Las Vegas: How Much is Too Much?

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Festivals have been a game-changer in Las Vegas, but how much is enough? John Katsilometes asks this question in his column for the Las Vegas Sun today. His answer provides a few details on how Rock in Rio USA did during its inaugural run in the summer of 2015…

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A key barometer of Las Vegas’ capacity for large-scale outdoor festivals is Rock in Rio USA, the American version of the fest that started in 1985 in Brazil and evolved into a series that would dwarf even Woodstock. Drawing such superstars as the Rolling Stones, Bruce Springsteen, Paul McCartney and virtually every contemporary artist of merit, Rock in Rio now alternates between Rio de Janeiro, Madrid and Lisbon.

The festival is divided into two parts, Rock Weekend and Pop Weekend, and boasts considerable range in its multistage setup. It has drawn huge turnouts, including 1.5 million fans at the first event three decades ago in Rio. Lisbon and Madrid have since surpassed 350,000 attendees. But in Las Vegas, the inaugural Rock in Rio USA was a comparatively difficult draw. Unlike Rio, where the festival is the only significant entertainment event in May for a population base of 6 million, Las Vegas offers top-flight entertainment along the Strip all the time in a metro area of about 2 million.

From the stacked headliners ranging from Britney Spears and Jennifer Lopez to Celine Dion and Elton John to the seven resident Cirque du Soleil shows, the volume of options for ticket-buyers in Las Vegas is staggering, especially to outside promoters. So initial projections of 82,000 fans per weekend of Rock in Rio USA (328,000 over four nights) were swiftly dialed back. The official tally was 172,000 over two weekends, but sources familiar with the hard numbers put them lower, around 140,000.

Financial losses in the festival’s kickoff year were considerable — estimated to be $24 million to $28 million. Rock in Rio officials were willing to accept some losses as part of their $50 million investment in delivering the brand to the U.S. for the first time, but industry experts weren’t expecting a shortfall of more than $20 million.

The festival did produce $25 million in gross revenue, which is impressive, until you consider the huge outlays it made for big-name acts and environmental flourishes. Dedicated to brand and format, Rock in Rio brass built extensive and expensive “Rock Streets” emulating the U.S., UK and Brazil. And attractions included a zipline over the main stage, a Ferris wheel in the middle of the parcel and a reinforced VIP tent that cost upwards of $4 million to construct.

“When you look at what Rock in Rio actually delivered, if they made $25 million, most festivals would be doing backflips over that,” says MGM Resorts Senior Vice President of Entertainment Development Chris Baldizan, who books events at all MGM Resorts properties, including the outdoor venues. “They stuck to their guns on a lot of things, and the first event was definitely a learning experience for everybody.”

Will Rock in Rio return to Las Vegas in 2017? After a successful edition in Lisbon in May, there’s no definitive word on where it will land when (or even if) it rotates back to the U.S. “We’re like everybody else, just waiting to hear back to pull the trigger,” Baldizan says. “We will need to hear in the next month or two. We need that information. We should be getting ready to be booking Rock in Rio right now. We are kind of behind the eight ball.”

Rock in Rio executives say they’re coming back, but nothing is confirmed. “We are still working on the next edition of Vegas,” CEO Luis Justo said in an email.

{ SOURCE: https://goo.gl/BQHMY4 }