To JW Roth, the way forward for the live performance enterprise appears somewhat like his personal yard. At his Colorado Springs, Colo., property, the 62-year-old says he has “the most important residential firepit on this planet” — roughly 300 sq. toes — round which he constructed “a small venue” the place he gathers over 100 folks for personal concert events.
The fifth-generation Coloradan made his identify as a founding father of Roth Premium Meals, at present the third-largest prepared-food firm in the US. However regardless of missing an expert background in leisure or hospitality, the lifelong music fan and concertgoer acquired to considering: What if the traditionally spartan amphitheater expertise was extra just like his spacious, relaxed yard?
With VENU Holding Company, which launched in 2017 as Notes Live, Roth desires to ship his answer to markets throughout America. Right now’s audiences are more and more gravitating towards premium live-music choices, and he’s betting that demand will maintain a fleet of high-end amphitheaters: Roth desires to construct eight a 12 months for the following three years, ranging in development worth from $130 million to $325 million, and he at present has over $1 billion in lively initiatives in markets in Texas (Dallas, El Paso), Oklahoma (Tulsa, Oklahoma Metropolis) and Colorado (Denver). (In June, Billboard struck a three-year partnership with VENU that may energy a few of Billboard’s marquee occasions in addition to a brand new award honoring trade disrupters.)
Roth additionally has a venue he can level to as proof of idea: Colorado Springs’ 9,750-capacity Ford Amphitheater, which VENU opened final August on the base of Pikes Peak. Booked by AEG, Ford’s 2025 calendar consists of dates by Chicago, “Weird Al” Yankovic and King Gizzard & The Lizard Wizard. Throughout reveals, concertgoers get pleasure from such posh facilities as elevated meals and beverage choices, temperature-regulating synthetic turf for normal admission and, for some, 132 luxurious firepit suites — impressed by Roth’s yard.
These suites aren’t simply one of the best locations to look at a present at Ford — out there for buy at a clean $250,000 — they’re core to Roth’s “fractional possession” mannequin, which he compares to how The Ritz-Carlton sells timeshares. 5 months after placing Ford’s up on the market, he says he had offered all of them out to the tune of $33 million.
As Roth eyes growth for VENU, he’s eager on making his prospects traders in his enterprise, which is already listed on the New York Inventory Trade. Sure share purchases even include loyalty perks similar to free concert events.
Roth says his choice to take VENU public was impressed by an entrepreneur very a lot within the information lately. “Love him or hate him, I’m a fan of Elon Musk,” he says. “Some days you like him, and a few days you query him, proper? However I believed he did a terrific job of inviting his buyer to be his shareholder, and I admired him for that.”
Why did you suppose making use of premium experiences to outside amphitheaters would work?
I do know the fan. I am going to so many concert events, and I’m round [them] on a regular basis. I do know that there’s a phase of followers that may embrace the premium expertise. I wanted to show it, however I knew it will occur. Each space [at Ford] is premium, whether or not you’re shopping for a $45 garden ticket — it’s essentially the most premium garden ticket you’ll purchase in all of music — otherwise you’re shopping for a lower-bowl common seat or a membership seat.
What’s your financing mannequin?
The municipalities take part to the tune of about 40% of the general price. And that is available in 3 ways. The municipalities that I work with have contributed the actual property, infrastructure and abatements on property taxes and rebates on gross sales tax. If you take these three buckets, it’s about 40% of your complete venture price. Secondarily, fractional possession represents about 40% of the general price. The final 20% comes from the profitability of our present present operations. And our present and present operations have been all financed by, primarily, me.
How did you select Colorado Springs as the primary market?
That’s the place I grew up. I’ve lived right here for 62 years. I’ve to be hands-on on loopy ideas that I’ve, whether or not it’s constructing a nutty factor in my yard or an amphitheater. I knew that I may finally roll these out throughout the nation, however the first one I needed to reside there day-after-day, and I needed to sit in each seat. All my seats I had custom-made in China. They’re 3 inches wider than another seat in music at present; they’re comfy. Every considered one of them has a cup holder and additional room for folks to stroll by. Every part about [Ford] is completely different. It price me 5 acres extra to construct [Ford] as a result of I needed it roomy in these sorts of areas.
You’re partnered with AEG for Ford and are exploring partnerships with Stay Nation in different markets the place VENU is in improvement. What has fostering relationships with these opponents been like?
In my thoughts, they’re segregated. On the finish of the day, enterprise is about fostering relationships, whether or not I’m promoting rooster or constructing amphitheaters. I foster relationships with each as a result of they each have a spot on this world that I’m attempting to construct.
How do the venues you’re constructing in Texas and Oklahoma differ from Ford?
The subsequent venues that I’m constructing would be the first multiseasonal outside amphitheaters ever created. I need to have the ability to have a present comfortably at 70 to 75 levels when it’s snowing outdoors. Clearly, it’s costing much more cash to construct these, however I’ll program them year-round. There’s a distinction between seeing a present in February in a hockey enviornment and seeing a present in a fan-centric, perfect-sound surroundings outdoors [where] it’s snowing and it’s 75 levels.
How did you select Oklahoma and Texas?
My website choice at all times begins with, “What does pure routing appear like?” Coming from Colorado Springs, pure routing can be Kansas Metropolis, Tulsa, Oklahoma Metropolis [and Texas markets] Dallas, Fort Price, El Paso and/or Houston. I am going into these markets [to determine], “Have they got an amphitheater? In the event that they do, is it cool or is it on the zoo?” Then I attain out to these municipalities. Does the demographic match the demographic of each the firepit suite purchaser and the [standard] ticket purchaser? Is the [metropolitan statistical area] greater than one million folks? Then on the finish of the day, I attain out to my companions, the Stay Nations and the AEGs, and go, “Can we program this? If I do it and I spend $200 million or $300 million doing it, can we program it?”
El Paso — I’m so rattling enthusiastic about it I can’t see straight. As a result of I believe the south facet of the [border] will produce as many ticket consumers because the north facet. Latin music is exploding to the purpose that that amphitheater will roar. I fly to Mexico Metropolis early subsequent week, and I’m working with a giant group there — I can’t let you know who it’s — to essentially develop the concept in El Paso, after which, finally, my first venue I’m going to construct outdoors the nation shall be in Mexico.
You talked about pure routing. As VENU expands, do you envision making a community of venues that artists may route whole excursions by means of?
I don’t know if it finally goes there, however I’m constructing it that means within the occasion that it does. However at present it doesn’t.
With that in thoughts, are you able to share any particulars about future markets you’re concentrating on?
I’m going to come back up by means of Florida, the Carolinas, Georgia, Tennessee. I’ve acquired two routes that we’re very near having the ability to announce later this 12 months, however I’m hell-bent to get onto the East Coast.
This story originally appeared in the June 21 issue of Billboard magazine.