From the NFL to the US Open: 5 ways technology changed the stadium experience

Whereas sports venues were built historically to serve a single purpose, as technology transforms the live sports experience in modern times, the stadium has by definition become more than a physical asset. Venues are nowadays international destinations for rights holders. Through modernization, they shape local government policy and the development of social infrastructure. 

Sports venues of old are today being transformed into smart stadiums whereby new-generation technologies such as a mobile and 5G are used to enhance the fan experience. This includes a reduction in the number of physical touchpoints inside an arena, with many venues now going ticketless and cashless, and some also incorporating more environmentally friendly operations.

Despite evidence younger generations prefer short-form sports content, the live event is still the industry’s most valuable commodity within a fragmented rights market.

Keeping this in mind, as the digitalization of stadium infrastructure moves to enhance the fan experience, including the capacity for producing direct-to-consumer (D2C) broadcasts and second-screen content, the introduction of new in-stadia technologies is providing rights holders with new levels of data intelligence that help them to better understand what fans enjoy most during the live event. This, thereafter, helps the rights holder drive additional value via in-game activations and ecommerce campaigns customized to the fan.  

For example, San Antonio Spurs’ AT&T Center moved to a cashless ecosystem as part of a multi-year partnership with mobile payment system Tappit signed in March 2021. Tappit’s service was merged with Spurs Pay, the National Basketball Association (NBA) franchise’s dedicated mobile app, which allows subscribers to make in-venue food, drinks, and merchandise purchases via their smartphones.

“The digitalization of sporting arenas is changing the way rights holders communicate with their fans and stakeholders,” explains Omar Zerrad, N3XT Sports Senior Consultant, Digital Transformation. “As rights holders integrate data-based solutions into game-day operations, this is informing how traditional venues modernize their digital infrastructure and how new stadiums are being built from scratch.

“This presents leagues and event organizers scope to reframe how the sporting arena is perceived and its purpose beyond sport. In the modern day of stadium development (and redevelopment), the sports arena serves communities in far more ways than it used to, providing stakeholders with a platform to innovate and bring digital solutions to mainstream audiences.

“This can perhaps be demonstrated by Tottenham Hotspur’s ambitions to deliver net zero carbon matchday experiences at the Premier League club’s home stadium by leveraging sustainable transport and broadcast solutions (see examples below). In a new age of smart stadia, there are many ways technology can help drive value, reduce operational costs and emissions, while promoting advances in local infrastructure development that support people and their communities.”

In April, the Buffalo Bills, the National Football League (NFL) franchise, announced plans to develop a new home stadium as part of an expansive, data-led partnership with sports and entertainment company, Legends. The collaboration acts as an extension of the Bills’ existing ecommerce partnership with Legends and will see the stadium’s doors open in 2026.

At the heart of plans to bring a new US$1.4 billion stadium to Orchard Park, in New York state, Legends Chief Executive, Shervin Mirhashemi, said their planning application to build a “data-intelligence-fueled, 360° service solution” would bring fans “a new, modern stadium that will dramatically enhance the game-day experience”, adding to the company’s portfolio of high-profile stadium and venue projects.

While fan data is improving the D2C experience, fan intelligence is imperative for building the in-stadia experience, too. According to research recently published by Oracle, more fans now expect similar experiences inside the venue as they would from watching an event at home and welcome innovations that improve the game-day experience inside the sporting venue.

For three years running, English top-flight football club Tottenham Hotspur has finished top of the Premier League sustainability table produced by the UN-backed Sport Positive initiative and published by BBC Sport. Behind the club’s sustainability drive, its US$1 billion Tottenham Hotspur Stadium incorporates LED lighting and high efficiency building systems to reduce its energy usage. 

This included an array of sustainable initiatives, which saw the players arrive at the stadium on coaches powered by green biodiesel, lowing their travel emissions by more than 80 percent; fans travel a collective 225,000 miles to the game in electric or hybrid vehicles; 94 percent more vegetarian and plant-based meals sold during the game; and a 70 percent reduction in broadcast emissions.

The redesign and development of Spanish football’s stadium infrastructure forms a major part of LaLiga’s €1.994 billion investment deal with CVC Capital Partners, signed in December. Speaking ahead of the announcement, LaLiga president Javier Tebas told the media at Sportel that the modernization and digitalization of its stakeholders' stadia will help raise the league’s value.

Among the few clubs to reject the deal, Spanish top-flight champions Real Madrid instead agreed a long-term partnership with California-based investment firm Sixth Street worth €360 million focused on generating business opportunities across the club’s Santiago Bernabéu stadium, which is currently undergoing a significant redevelopment.

The stadium project, also being delivered in partnership with Legends, will see the Bernabéu transformed into a multi-purpose sports, entertainment, and cultural venue, and provide a platform for the club and its partners to invest in a wide portfolio of stadium experiences, including music concerts, tennis tournaments, and, one day, NFL games.

“The flexible, solutions-oriented capital and comprehensive capabilities provided by our team, combined with the deep expertise of Legends offers in-venue and sports-brand operations, will support Real Madrid in its mission to compete and remain a leader in global sports for many years to come,” said Alan Waxman, Sixth Street Co-founder and Chief Executive.

Stadium projects and the events they host don’t only serve the sports fan. They also have a bearing – and provide a platform – for their city or region’s urban modernization projects, including how fans travel to and from major sporting events and how data informs their experience. 

In 2019, the City of Los Angeles assembled a Smart City Committee made up of 24 departments and elected officials as part of its SmartLA 2028 program focused on the city’s modernization. This includes the delivery of the Los Angeles 2028 Olympic and Paralympic Games in collaboration with the LA28 Olympic and Paralympic Organizing Committee.

As part of this endeavor, LA28 is working closely with the City of Los Angeles to implement frictionless, mobile-friendly experiences for fans visiting the city in 2028, including the ticketholder’s journey via the city’s international airports and the way they travel to the Games’ host venues themselves, including the Los Angeles Memorial Coliseum and SoFi Stadium. 

“While not a silver bullet, technology provides solutions that were previously unavailable to generations who lived before us,” said Ted Ross, Chief Information Officer (CIO) for the City of Los Angeles’ Information Technology Agency (ITA). “As technology evolves, our Smart City must evolve too. That’s why we have developed a Los Angeles Smart City strategy […} as a roadmap to the 2028 Summer Olympics.”

Whether the metaverse will fundamentally change the way fans watch live sports in the future, or simply provide another avenue to engage fans, is still up for debate. However, it’s important to note that virtual reality (VR) solutions are already being leveraged in some corners of the industry, particularly around the digitalization of stadium infrastructure and venue experiences. 

As rights holders integrate data-based solutions into game-day operations, this is informing how traditional venues modernize their digital infrastructure and how new stadiums are being built from scratch.

Omar Zerrad, Senior Consultant, Digital Transformation, N3XT Sports

Ahead of this year’s US Open tennis grand slam, event organizers collaborated with the tournament's official partner, Grey Goose, to launch its traditional US Open VIP lounge via the metaverse. “This is our first foray into the metaverse,” said Aleco Aqueta, Grey Goose Vice President of Marketing, North America. “We know it’s an important touchpoint for our fans.”

The US Open becomes the latest property to launch a virtual destination for fans. In January, Premier League champions Manchester City announced a partnership with Sony to develop a virtual Etihad Stadium that allows fans to watch live games via the metaverse. In May, LaLiga announced a partnership with Korean company TVM to build a metaverse for its supporters.

The future of sports venues will be shaped by the technologies that rights holders adopt into the digital ecosystem. While digital media is giving sports properties license to distribute content from live events directly to the consumer, the stadium remains a reliable constant for all the teams and leagues which felt the pinch when the Covid-19 pandemic forced sports behind closed doors.

According to Oracle, as the industry reached a level of normalcy and ticket holders have returned to the terraces, fans want to take more control of their game-day experience. For example, 61 percent of fans surveyed claim that they would buy more in stadia if they were able to pre-order, while 44 percent would exchange their personal information for game-day offers.

While this transition is already happening inside sports venues worldwide, digital transformation remains a tricky road to navigate, especially for sports properties yet to adopt a centralized data hub to manage customer data. How new solutions fit into your existing infrastructure is also a question many rights holders don’t have the answer to and requires a detailed assessment before the best course of action can be decided.  

Our team at N3XT Sports works tirelessly to develop and implement digital strategies across a multitude of sports properties at federation level, competition level, and club level. To learn more about how digital transformation can support the growth of your sports organization, fill out the form below and we’ll be in touch. Our goal is to drive the digitalization of the sports industry and our clients.