Ascend Amphitheater Set for Major Upgrades Under New Opry Entertainment Group Agreement
Ascend Amphitheater and its surrounding greenway are on track for significant improvements as part of a new management deal between Opry Entertainment Group, the entertainment arm of Ryman Hospitality Properties (NYSE: RHP) and Nashville Mayor Freddie O’Connell.
The 10-year agreement, which includes an option to extend, designates Opry Entertainment Group as the operator of the downtown riverfront venue. The proposal is subject to Metro Council approval, with its first reading scheduled for Sept. 16.
In April, Metro awarded the $41 million operating bid to Opry Entertainment Group, selecting the Nashville-based hospitality and entertainment company over competitors Live Nation and AEG.
“We look forward to rolling up our sleeves and making this a fabulous destination for both the local community as well as the tourist community,” Colin Reed, executive chairman of Ryman, told the Business Journal when the bid was awarded.
Planned Investments
As part of the agreement, Opry Entertainment Group has committed a minimum of $11 million in capital improvements over the next decade. Planned upgrades include:
- New IT, sound, and production equipment
- Updated seating, assets, and furniture
- Enhanced hospitality and food & beverage offerings
If Ascend generates at least $75 million in gross box office revenue within the first five years, an additional $4 million in upgrades will be invested during the last four years of the initial contract. Each five-year extension option would bring another $2.5 million minimum capital investment.
In addition to venue upgrades, Opry Entertainment Group will also invest $1.1 million to design and construct improvements to the greenway bordering Ascend. The greenway will remain open to the public at all times.
Financial & Safety Commitments
Other key terms of the agreement include:
- A $2 per concert ticket investment by Opry Entertainment Group toward safety and activation enhancements
- Metro receiving 25% of net profit from title sponsorships or naming rights deals
A Prime Location for Growth
Reed emphasized the amphitheater’s unique place in the market:
There is not another place on the planet that has that same attribute. … Music is going to continue to grow on a global basis and Nashville is going to be the beneficiary of that. So, when I see a piece of real estate sitting there that’s operating 35 days a year in one of the epicenters of entertainment on the planet, I think the opportunity here is extraordinary.
