Stadium and Arena Reform in Japan: An Uphill Battle to Transform Management from a Cost-Center to a Profit-Center Mindset

Musashino Forest Sports Plaza 5

It’s a bright airy arena – the Musashino Forest Sports Plaza in Chofu, Tokyo.  I attended the NHK Cup on Sunday, May 19, a national championships for artistic gymnastics in Japan, and it was exciting to watch the very best male gymnasts in Japan, and in the world.

Now, if only I could understand what Was going on.

I’m not a deep fan of gymnastics. I knew that Kohei Uchimura, the winner of the previous 9 NHK Cups, was unable to qualify this time around. I knew that one of the most promising young gymnasts, Kenzo Shirai, did poorly to qualify for the NHK Cup, so was not in good shape to win. But I had my guide book and was ready to watch a great competition.

The problem is, the arena – this new arena that opened up in November of 2017 – was so poorly outfitted electronically that it was impossible to know what was going on…unless you were really familiar with gymnastics and could recognize faces and names from a far.

As you can see in the photo at the top of this post, there was only a single large screen to my left. That screen basically provided an NHK feed of the tournament, except without any critical information, like the name of the gymnast being displayed.

In fact, spectators at this new 10,000-seat facility, which will house Olympic badminton, pentathlon fencing and Paralympic wheelchair basketball, were bereft of any basic information about what was happening before them, except for small digital signs at each event site on the floor.

It’s true, that artistic gymnastics, where six different  disciplines are happening at the same time, can be hard for the casual fan to follow. But if the idea is to attract as many fans as possible, particularly casual fans, then providing basic information to the spectator is critical. At the most average arena in the United States, one would expect to see a jumbotron hanging from the ceiling over center court, where the most basic information about scores, player information and video replays can be provided.

But the experience at Musashino Forest Sports Plaza was frustrating at best for the casual observer. You give up to the fact that you have no idea which person is doing what, where and when.

From the sponsors’ perspective, one would hope that their company name and logo is highly visible. But the main arena in Musashino Forest Sports Plaza has no such electronic signage. Instead, small placards hung awkwardly off the edge of the first and second level stands.

If you believe that stadium and arenas should be designed for the spectator (as well as sponsors), then you will have issues with many sports venues in Japan.  Most of the stadium and arena in Japan are owned by government authorities, and that they view these venues as cost centers, not profit centers. In other words, if there is a soccer stadium in some town somewhere in Japan, it will be very hard for a person with an idea to do anything other than soccer in that stadium, this despite the fact that concerts, obstacle sports racing, eSports and other such activities could attract many more and different people.

To change the conservative nature of stadium and arena administrators in Japan, the Japanese government through the Sports Agency have been pushing a plan to triple sports business revenue in Japan from JPY5.5 trillion yen in 2015 to JPY15 trillion yen in 2025. The Sports Agency want stadium and arenas to transform so that they can help contribute to those greater revenues.

In recognition of this need, the Sports Agency published in June, 2017 a report in Japanese called Stadium and Arena Revolution Guidebook. In this report, they highlighted 14 recommendations to drive this revolution.

You can find a fuller translation of that part of the report in this pdf.

Fourteen Requirements for sustainable management that attracts spectators and supports community development:

  • Requirement 1. Improvement to Customer Experience
  • Requirement 2. Realization of various usage scenarios
  • Requirement 3. Establishment of profit model and transformation to profit center
  • Requirement 4. Stadium/arena as the core of community development
  • Requirement 5. Identification of stakeholders and improvement in consensus building
  • Requirement 6. Attracting new customers and providing information
  • Requirement 7. Designing for profitability
  • Requirement 8. Management (operation, maintenance, repair, etc.) critical to sustainability
  • Requirement 9. Compliance and risk management for stadium and arena maintenance
  • Requirement 10. Leveraging the vitality of the private sector
  • Requirement 11. Various financing schemes
  • Requirement 12. Goal setting, evaluation, feedback
  • Requirement 13. IT and data utilization in stadium and arena management
  • Requirement 14: Stadium and Arena management personnel

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