A Conversation with Beth Paul, General Manager, Bon Secours Wellness Arena

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A Conversation with Beth Paul, General Manager, Bon Secours Wellness Arena

 

The Arts.  Diversity.

Beth Paul has been working at the Bon Secours Wellness Arena on and off since she graduated from Presbyterian College in 1999.  Today, she is the General Manager of a building that has an annual economic impact of over $60M a year to the Greenville community. How do you build that impact to $75M a year?

 

UpstateBizSC:
When did you start to work at the Bon Secours Wellness Arena?

Beth Paul:
Soon after graduating from Presbyterian College in 1999, I bumped into a fellow PC grad who happened to be the finance director at the arena.  I let her know that I was interested in an accounting job. I met her on a Saturday and I started work at the arena on Monday. I wasn’t always interested in a public accounting or tax accounting job so to work in this environment, in this space, was pretty exciting for me.

UpstateBizSC:
What is the core business of the arena?

Beth Paul:
We host and promote live entertainment, sports, concerts, and family shows. Fifty percent of our revenue comes from events, 45 percent from corporate partnerships and suite holders (suite revenue), and about five percent derives from other miscellaneous categories. Events are the primary driver not only of our revenues, but also of our other revenue streams such as corporate sponsors. Event activity needs to continue to increase in order for the suite holders and sponsors to get a good return on their investment in our building.

For quality events, we reach out to artists, agents, promoters, artist managers, and producers of events, most of whom are located outside of the Greenville market. Music is concentrated in Los Angeles, Nashville or New York. For the ticket buying community, as well as corporate sponsors, we market to Greenville, Spartanburg, Anderson, Western North Carolina, North Western Georgia, etc.

UpstateBizSC:
Who owns the arena?

Beth Paul:
The arena is owned by the Greenville Arena District, a special purpose district of the state of South Carolina that was established by an act of state legislation in the 1940’s.  It is also the same entity that owned and managed the old Auditorium. We have a nine-member volunteer board comprised of individuals who are recommended by Greenville County Council and officially appointed by the governor of South Carolina. I report to the Board of Directors. Debt was issued in 1996 for the construction of the building.  In September 1998, we opened with Janet Jackson as our first concert.

Up until 2013, there were no significant upgrades to the building, but over the past two years we have made significant renovations that will establish a strong foundation for us over the next decade.

Often a venue such as ours will receive direct operational subsidies by a city, county or municipality. Any operating loss that might incur (which is common) would be covered by a dedicated tax source. We do not have that luxury!  In order for us to be financially successful, we have to generate an operating profit sufficient to cover debt obligations. We need to sell 100 percent of our sponsorship inventory and suites.  We have to program a minimum of 18 to 20 concerts every year. If we do not generate sufficient profits, we would be unable to pay our debts. It’s a commitment to the city, the county and the residents of Greenville and we take it very seriously. While it’s an extremely challenging and unique financial model under which to operate, it has given us a great opportunity because it forces us to run the arena like an efficient, profitable business.

UpstateBizSC:
What are your plans for future growth?

Beth Paul:
Five years ago, we focused on the financial strength of the arena and also securing funding to do the renovation. I am proud to say that the building is now in the best financial position that it has been in in a number of years. In fiscal year 2015, which wrapped up on June 30, we generated a profit of over $1.6M.  When we are profitable like this, we are able to set aside a reserve fund for our debt obligation of $1.3M. We accomplished this through successful programming and focusing largely on corporate partnerships.

In 2016, the largest opportunity is our partnership with Clemson University. In August, we hosted our first Clemson University graduation and this winter Clemson basketball will play 15 to 17 home games here at Bon Secours Wellness Arena. It is a big win for Greenville, a tremendous opportunity not only for the arena (more activity, more people, greater return for our corporate partners, additional profits) but also for the community (people staying in local hotels and eating at local restaurants). We will deliver excellent service to Clemson University and I am hopeful that Greenville will be home to one or two of their basketball games in the future. I think it will also demonstrate that Greenville can be a basketball town.

Over the next three to five years, we will focus on building the economic impact of the Bon Secours Wellness Arena. Right now we contribute approximately $60 million to the local economy through new or transfer spending. That’s the equivalent of about 500 full-time jobs. What actions do we need to take to build our economic impact to $75 million a year?  What drives that number?  How can we add more diversity to our lineup? How can we be a source of outreach for non profit, charity and philanthropic efforts and initiatives?  How can we have substance in our facility when the Eagles aren’t touring or when Shania Twain isn’t here?

UpstateBizSC:
Describe your partnership with Bon Secours.  How has this changed the way the arena is operated?

Beth Paul:
BI-LO was a great partner. They came on in 1998 at a time when there really was no benchmark in our community for naming rights on an arena.

It’s easy to look at the positive financial impact that Bon Secours has had on our organization. The original bond is now paid off and the naming rights revenue can come straight to operations. What I did not anticipate was the intangible benefits of having Bon Secours as a partner. Their vision of health and wellness information as well as access to healthcare perfectly aligns with our goals of more community involvement, substance, and more soul to our building. Our primary audience is families and people wanting to come and get away from the stress and the fast pace of life.  Bon Secours’ objective as naming partner is to promote health and wellness in a facility that has access to a lot of people. Every Tuesday and Thursday we open up the concourse for “well walkers”. Last Thursday we had 150 people here walking the concourse from nine to one. We turn the music on and create a great communal atmosphere.

UpstateBizSC:
How can someone find out more about what the Bon Secours Wellness Arena has to offer?

Beth Paul:
Our website https://bonsecoursarena.com is a wealth of information and will have our upcoming events, ticket prices and where to purchase tickets, FAQs etc. That is going to be your best source for information. Our Facebook page is also a great source of information that has concert times, fun stuff like contests, promotional ideas, backstage photos and information about what is going on show day.

UpstateBizSC:
What are you most proud of?

Beth Paul:
The business is challenging, but when you really boil it down – we create fun.   It’s hard to not to love your job and engage people into that goal!

 

 

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