well thank you doctor Desai for inviting me to be here today it's
really an honor to be back here on campus I was telling some people last
night it's probably been 20 years since I've been back here so it really is
exciting to kind of see the changes that have taken place and also be here with
you all today you know I don't do a lot of presentations at academic
institutions most of what I do is with the business community so I thought what
I would do today is start with a quiz
because I know you're all students you've studied you understand who the
lecturer is today so we're gonna do a little quiz let's see a hand go up
anybody to have any idea when the first Rose Parade was held?
ha ha you guys got stumped on a quiz here today right take a guess
not fair not fair it would be 1890 so this year will be the hundred thirtieth
anniversary of the Rose Parade what about the football game Rose Bowl game
any idea when the first Rose Bowl game was held and what year now what would be
the anniversary year that we're holding for the game
how long has football been around anybody have an idea little over a
hundred years so this will be the hundred fifth Rose Bowl game that would
be playing this year so on January 1st 2019 it'll be the hundred and fifth
game any idea sports guys granddaddy of them all who's heard that term raise
your hand if you've heard granddaddy of them all Oh Keith Jackson right Keith
Jackson is the one that coined granddaddy of them all sportscaster for
ABC for many many years did Olympic broadcasts always did a lot of college
football and coined that term that we we use today so before I do we're going to
try some technology and see if this works just show a quick little video here
on behalf of the Tournament of Roses we hope you enjoy a wonderful day and take
home treasured memories the grand marshal for the 2018 Rose
Parade tournament of roses Mr. Gary Sinise ladies and gentlemen it is my
honor to present to you the 2018 Tournament of Roses Royal Court it is my
privilege and honor to crown you as the 100th Rose Queen
that opening number was sick
the group has active choreography of all Japanese marching bands and let me tell you it shows
they bring high-fives, should i say high hooves? -high hooves.
I can't think of a better way to bring in the New Year
Andy Grammer puts a nice button on the end of it quite a way to wrap it up
touchdown
overshoots Sanders and it's intercepted
so what I thought I'd do today first is just give you a little bit of background
history on the tournament who we are and what we do again in the video you saw
different images some of the things you might be familiar with obviously the
parade and the football game but other things you might not be familiar with
what we do throughout the year so we'll start with the history kind of go
through kind of our program of work and then I really want to kind of focus on
what's happening in our industry the disruption that we're faced and the
changes that we have to encounter and how we're dealing with those changes to
move forward and be successful in the future so the history again the
tournament was founded back in 1890 it was really founded by an organization
called the valley Hunt Club in Southern California and it was really just a day
to celebrate the weather of Southern California promote Southern California
that's how it started the football game came years later 1902 was the first
football game it was designed as a game East versus West
you had Stanford played Michigan they expected they did it on in a park in a
field they expected about a thousand people to show up more than ten thousand
people showed up they had to call it in the third quarter because
there was kind of rowdiness going on in the stands people were not behaving
themselves and the tournament didn't do another football game for 14 years
again football was at its infancy and they brought it back in 1916 it's been a
tradition ever since so that's why we'll always say that 105th Rose Bowl game we
don't say the hundred and fifth annual Rose Bowl game some facts about it again
known as the granddaddy of them all it's a tri-party agreement so that
tri-party agreement is the Tournament of Roses, the Big 10 Conference and the
PAC 12 so on a traditional Rose Bowl game we host the top team from the
PAC 12 and the Big 10 on New Year's Day but we're also part of what's called the
CFP and I'll talk about that in a minute so every third year now we host a
non-traditional game people also ask about the stadium the state the stadium
is different than the tournament okay so the tournament membership Association we
host the Rose Bowl game we actually built the Rose Bowl stadium and then we
gave it to the City of Pasadena again that first year 8,000 people showed up
by about year three or four 50,000 people were showing up and so they built
the stadium based off the Yale Bowl back in Connecticut
it's been expanded over the years and that's where it's kind of our home for
our game so the Association what's called the Tournament of Roses is a
membership Association we produce America's New Year celebration obviously
what we call the Rose Bowl game and the Rose Parade it's a volunteer
organization so we have tremendous volunteer participation in Southern
California we have people that come from all over the country to help decorate
these floats right before New Year's Day this year my budget is about 115
million so I manage about 115 million dollar budget so with my volunteers
they'll say oh we're just a small nonprofit and and I have to talk to them
about no we're a significant corporation here and then our economic
impact we do an economic impact every three years a study our last one three
years ago we had about a 350 million dollar economic impact for the Los
Angeles region from our parade and our game so again significant economic
impact the mission of the Association is pretty simple it's we're
volunteer-driven we're about bringing people together and we're about
celebrating the new year that's who we are and that's what our mission is and
that's then done through our volunteers so we have 935 sorry for that error on
there but we have 935 volunteers they're called white suiters any idea why
they're called white suiters does anybody watch the parade on New Year's
Day volunteers have to wear these white suits polyester they're ugly they hate
them but it's a tradition that goes back into the 40s so every year on New Year's
Day they put on their white suits and they're out there working the parade and
sometimes it's pretty cold no coats they have all these rules and regulations
about what they have to look like on New Year's Day all of our volunteers are
assigned to thirty-one committees and they serve a two-year rotation on those
committees and that's going to be something important to remember as I
talked about disruption because I'm not sure that model still works for us as
the world changes quickly and they contribute about an estimated 80,000
volunteer hours in putting together both the parade in the game and then also we
have a full-time staff of about 35 40 40 full-time staff that work year-round on
putting together our events we're governed by a 14-member
executive committee of which eight are in line to move up to be president okay
our chair of the board it's the same thing for an association we call it
the president again that's substantial because it takes about thirty years as a
volunteer if you were to move up to that president's role you have to be involved
with the organization for about twenty five to thirty years again so that takes
a huge commitment so my members are not corporate CEOs a corporate CEO is not
going to wait 30 years to run an organization like a Chamber of Commerce
or Convention Bureau these are people that are very passionate about putting
on this parade and putting on the game and so they spend a lot of time before
they move into leadership I just put this in here because people always ask
about this tournament house where are you officed? and this is actually where
our offices are we have offices on the backside of this but this was originally
the Wrigley mansion in Southern California and Pasadena the
Wrigley's chewing gum factory chewing gum mogul had homes all across the
country and his wife Ada loved to spend Christmas and New Year's in Pasadena and
so the parade would line up in front of this house every year so when she passed
back in the 1940s the family donated that home to the City of Pasadena with
the intent that the tournament always be based there to continue putting on the
parade every year so it's really it's a it's an amazing facility if your ever in
Pasadena so let me talk about our two major product lines the Rose
Parade and the Rose Bowl game so the Rose Parade it's presented by Honda so
Honda is my sponsor on this it is the oldest and largest floral parade that's
what we are as a floral parade and that's what you saw on the floats on the
video we currently have around 700 to a million spectators that line the streets
of Pasadena every year to watch the parade and that's a five and a half mile
parade route so again that's going to be another significant point I'm going to
come back to as we talk about disruption five and a half miles we have about 85
to 90 units that we say is in the parade the parade moves at 1.5 miles per hour
down the street we're on a two-hour telecast we can get about 85 to 90 units
in front of those television cameras and the parade is really three major items
its floral floats, it's equestrian units, its bands we don't
have balloons we're not Macy's Day Parade we don't
have clowns it's not what we are again our tradition is those three items we do
have an opening show a closing show and we're also known for our flyover we have
a very close relationship with the Pentagon so we're all every year able to
do a B2 flyover on both the parade and the game you saw in the video the B2
quickly flying over the stadium there what do these floats look like so we do
not the tournament does not build floats we have float building companies that we
work with that we approve and then we have float building facilities I own
three separate large industrial buildings in Southern California so I'm
also involved in real estate we just bought 110,000 square foot warehouse
last year for over 15 million dollars where we build these floats but they're
really if you look up there it's really a chassis simple chassis that they then
build this infrastructure around it the cocoon it's then covered in this this
material what I would call plastic or rubberized material that you see that
kind of down here in the bottom and eventually that is painted and then the
flower and displays are you know put on to that material again my first day and
the job and I was doing a tour and I saw these little vials like little vials and
thousands I mean huge carts of them and I thought what are we doing here is
there's like drug smuggling going on or what's what were all these vials here
for well if you think about it that flower would die if you just put it onto
that material so every single flower has to be inserted into a vial
so again volunteers that's why it takes so long to decorate these things those
the flowers need to last about a week because it takes two or three days to
decorate you have the parade on the fourth day then we have kind of a
festival event for two days after so about five to six days the flowers need
to survive as far as bands go we have about 100 high school marching bands
that apply every year again we take about 20 bands in the parade it's
through an application process it really is life-changing is anybody here has
anybody here have been in marching band high school a few of you I mean that's a
whole subgroup right and for these kids they spend hours and hours and hours
practicing they have to you know be able to March five
and a half miles they have to raise money it's not cheap it's about two
thousand dollars per person for a high school band to travel to Pasadena but
they get to perform in front of a million people it's pretty amazing when
you turn that corner and you see this sea of people down the street
and what life-changing moments that can mean for some of these students so we're
very excited about again the five to six thousand band students that will
participate in the parade every year and then last is the equestrian units again
since the history the parade started as horse-drawn carriages equestrian has
always been part of what we do we still have a multitude of equestrian to
participate in the parade every year we also have our ambassadors as part of the
parade so our grand marshal again that's a tradition going back to early 1900s
this past year on the video you saw it was Gary Sinise the grand marshal
selected by the president every year there is a theme for the parade and
tries to select a grand marshal that kind of embodies that theme
last year it was making a difference Gary Sinise and his Foundation has done
an amazing work for veterans first responders those type of things and so
he tied very closely into the theme we've had past presidents we've had
animated animals like Mickey Mouse and and Kermit the Frog it really varies on who
we've had as grand marshals you also saw in the video then we also have a Royal
Court these are young women from the Pasadena area we have about a thousand
young women that come and try out for Queen in court every year it's about a
month long tryout process it's basically done just through interviews a very
extensive interview process that is then narrowed down to a court of seven one of
those is eventually selected as Queen and they become ambassadors for the
tournament and do appearances throughout the community for about three to four
months around the parade so that's the parade side on the game side again
presented by Northwestern Mutual my title sponsor the Rose Bowl game what
I've got here I'm going to show you statistics from two different games
twenty seventeen was a traditional Rose Bowl game Big 10 PAC 12 USC Penn State
had about 16 million viewers on television sold-out game about 95
thousand attendees in the stadium what's significant here is when I started we do
payouts to the conference right after the game
we pay all the expenses the proceeds of the game what's left over is distributed
back to the conference's for distribution to the university's Big 10
PAC 12 or in a CFP year that the schools that are playing in that game last year
2017 I had them tabulate go back how much
have we paid out since 1975 the Tournament of Roses has paid out over a
billion dollars to America's colleges and universities I said why do we not
talk about that oh the conference's don't want us
talking about it because they don't want to be questioned on where the money goes
I said that's not my problem that's their problem
I need people to know what we're doing to support students just like you right
a billion dollars we paid off I don't think there's another Association out
there that has done something as significant as that last year in fact we
were CFP game I just did a wire transfer last week 95 million dollars I sent back
so again the Rose Bowl game that year 2017 we paid out 35 million that was
again divided between the that was 35 million to each PAC 12
and 35 million to the Big 10 then we're also part of what's called the CFP
college football playoff that's the playoff series with the top four teams
in the country so last year or this year the 2018 game was a CFP semifinal game
that's where either number one and four or two and three play to advance to the
championship game we had OU and Georgia again it was in first-time
double overtime game and again the payout was over 95 million on that game
so again very successful for us and then we have these additional events that we
do you kind of saw some of the stuff in the in the video that people don't even
realize what what we do so Dec places that is where the decorating is taking
place again floats are being built today that material the rubber and you
know the rubber material is all being assembled today there's animation that
goes on these floats so hydraulics and lifts there's pyro there's all kinds of
things that go on these floats last year we have also had our first
augmented reality so if you could wear the little device all of
a sudden you saw fish that were flying up over over a bridge
all that is taking place today but the decorating doesn't take
until the like I said a few days beforehand but we have tours and so we
allow people to come in and actually tour revenue generator for us we charge
$15 we have somewhere around 30-35 thousand people that came through this
year just to watch and see how these floats are decorated so again anybody
here if you want to come out to Southern California and volunteer to decorate
floats absolutely we welcome you you can go to the website and hit the button and
volunteer and they'll reach out to you and invite you out to do that we also do
what's called a quest fest again equestrian units have been a huge part
of the parade so we do an equestrian show at the LA Equestrian Center every
year and again there's a whole segment of society that's I mean I'm back in
Kansas right that's about horses and horse shows and those type of things so
all the units that are in the parade participate in this event I
was there last year again it was my first year and Carson Kressley do you
know Carson Kressley is?
He was a television personality and those type of things
was the emcee for the event I thought what is Carson Kressley doing as an
emcee for an equestrian event turns out he's a huge horse person and works with
a group out of San Diego and so rides horses and shows horses and all those
type of things so you just never know who's going to be interested in these
type of events we also do an event called band fest again we've got 20-23
bands from across the country both the college bands from the universities that
are participating as well as the high schools and so we do three days of field
shows and again if you've been in band these band kids love to perform love to
show off their shows and so there's three days of shows that are going on
again prior to the parade and we sell those out at the stadium
that we use at Pasadena City College holds about 10,000 people it sold out
for three days with people coming out to watch these band shows we also have our
Hall of Fame around the Rose Bowl game we've had a Hall of Fame since the early
1980s and every year we induct three or four
individuals into the Hall of Fame somebody like Keith Jackson as a
radio or an announcer has been inducted last year John Mac from
from the University of Texas was in there Cade McNown former quarterback
from UCLA was inaugurated into the Hall of Fame
we also inaugurated posthumously the first african-american quarterback
playing the game from Jefferson hmm I say Jefferson University back on the
east coast of small liberal arts school back on the East Coast and then
we also last year and we'll talk about this in a minute we start a new event
that we called the Rose Bowl bash again people think everything's in Pasadena
the parade's in Pasadena the game is in Pasadena and since I've been there
I'm telling the story that were Southern California asset we're not just about
Pasadena we put both of our teams in downtown LA their bands are in downtown
LA so they're their team hotels are in downtown LA so we have about thirty
forty thousand people that are coming into the game that are all Centered in
downtown LA so I said why are we not doing an event in downtown LA to provide
activities for these folks again and Drive revenue so we created a new event
Rose Bowl bash again we get into all kinds of issues of Licensing with the
CFP and what we can do and can't do so this was our first attempt to do
something like that it was a four or five hour event and we had
more than 10,000 people show up just to go to our events so again opportunity
for us in the future we're going this year to expand that to a two day event
obviously we're selling sponsorships around that to drive revenue and
really look forward to what the future holds on that and then last is what we
call post parade so after the parade all all the floats are actually
parked in this display area at the end of the route and for two days anybody
can just come by and view the floats and you get very close hands up look at what
the floats are animation is working on those floats in a year where we do a
two-day event this past year we had about 75,000 people show up at fifteen
bucks a pop just to view the floats and if we do a three-day when it's over a
weekend we'll have over a hundred thousand people show up so it's key
there is I look at how do we expand our program of work and drive revenue
for Association I'm in a really enviable
position because I have crowds I'm not trying to start an event and then
attract an audience everything I do has audience and what the tournament has not
done is maximize those events and so that's the fun part of my job now is
looking at what those opportunities are so again very important to us then is
our broadcast so on the parade we're not a single broadcast network we're one
of the very few events left in the country that have multiple broadcasters
did anybody watch the parade this year just raise your hands if you watched the
parade so a good number did anybody watch it on Amazon Prime raise your
hands only one ok well talk in just a sec so
we have, again going back to the 60s and the 70s, been able to maintain a format
of multiple broadcast audience so ABC NBC you'll see who our partners are up
there Univision spanish-language RFD-TV which it's the rural farm network we
have a variety of broadcasters then last year again the world is changing we're
going to talk about this as we talk about disruption young people are
streaming they're not watching NBC and ABC so how do I reach young people and
so we were able to do a partnership with Amazon Prime and they did a streaming a
live stream of of the parade but they did it as part of a comedy show so Will
Ferrell and Molly Shannon part of Funny or Die and what was interesting is a lot
of people didn't realize that's what it was
so people are watching the stream and their feedback about why are
they talking all the time they need to shut up and let me see the floats but
the young people that knew it was a comedy show thought it was hilarious on
social media they're making fun of the old people they didn't get it and all of
a sudden there's this whole social exchange going on and then of course
over the month that went on then there was this whole viral thing about oh my
god you got to watch this broadcast and so the numbers went off the chart on
people that watch the show on Amazon Prime we'll talk a little bit about this
because this was a huge risk on the part of my leadership to do something like
this if you look at the numbers though we still have extraordinary numbers our
households you'll see for 2018 we had almost 31 million households
watch the parade and we had more than 44 million people that watched it
individuals and I'm going to give you some numbers on other shows when we talk
about disruption and keep those in mind so we still have really strong
while other Network shows have declined ours has remained pretty
constant and pretty steady this kind of gives you a breakdown you can see ABC as
kind of a market leader obviously we're very close with ABC Disney ESPN is part
of the Disney family they broadcast that as single broadcast of the games
we're very close but you can see how the other ones break down NBC Univision
Hallmark Channel and then important to us is also just the Southern California
reach KTLA is kind of a local station in Los
Angeles area it's broadcast the parade for 40 years since television started
and you can see they still have about a reach of almost 3 million people and
more than 1.7 million households in Southern California again these are key
for as I try and sell sponsorships as I try and develop those partnerships about
what are the audiences that we're able to reach with our messaging and then
international we also distribute the parade internationally again if you
think about New Year's Day it can be shown live through North America and
South America that time zone really works Europe if you're almost at the end
of New Year's Day when it would show and obviously Asia you've already missed New
Year's Day so we do a lot of streaming with that or they will show the prior
year's parade on New Year's Day but we are distributed to about 220 countries
around the world and our market there is around 30 28 million international
viewers that we have on the parade so again as I talked with our leadership
board global asset we're not just domestic we are global and what we do so
let's talk about leading through change because there's a lot of change that's
going out there that's impacting us and as I came into this job you know one of
the things they said to me is you know we need to change and I would ask what
what does that mean and I really couldn't get an answer about what it was
that we needed to change but they knew they needed to change so you know one of
the things I have this on my on my wall at my office I was reading an article by
by Gary Kelly CEO of Southwest Airlines I'm just
always fascinated with him in kind of his leadership and he talks
about five characteristics of effective leader one you got to care right leaders
leadership is about people the task part is easy the human part is a little bit
more difficult so you've got to care you've got to listen you've got to be
part of your team and so that was really important as I started implementing
changes at the tournament what we're going to do again you've got to
communicate listen and respect other opinions you know the most important
thing is if you don't communicate with staff then they don't feel valued they
don't know what's going on and there's a lot of confusion and so that was also
very important as we started making changes again you got to have character
it is about integrity it's about respect it's about honesty again as you're
going through these type of changes that's really important one you got to
know your stuff right you got to be competent and to be honest I don't know
that much about a parade you know I'm not a parade expert at all on some of
the other things I don't know what we do but I've got really good people that do
and my philosophy is I empower them to do their jobs and then let them do it
and hold them accountable for whatever that area of responsibility is and I
think that's key for a leader and the last one is you know you gotta have
courage and let me tell you it takes a lot of courage sometimes when you're
making these changes to step out on that limb and not play it safe but if I
played it safe if I came into this role and did what the tournament had been
doing for the past 5, 10, 15 years I can tell you we will not be in business
in 25 years the world's changing too quickly around us we won't be in
business so I say in here we're successful despite ourselves okay
again my overall budget is a hundred and fifteen million dollars last year I had
a profit of about two million dollars for the Association but the Rose Parade
itself loses anywhere from six to eight million dollars a year how is that a
sustainable model I came in and said wait I mean how can we do this
well that 115 million eighty five million of that is with a television
contract with ESPN to broadcast the football game and we're going to talk
about the change that's happening in college football today that telecast
if I were to lose that broadcast contract and it will be up for renewal
in 2026 if that goes away that means I shut down the parade because I can't do
it so that's what I'm looking at is I'm looking at the challenges that we've got
coming forward so one I looked at do we have a clear vision of who we are as an
organization to do we have the structure and the talent to actually operate on
that support that vision and three are we putting the right product out there
on the street are we putting a product out there that people want so when you
look at the vision I asked about it do we have a strategic plan do we have a
business plan can I see our plans and the answer was no I met with past chairs
the board and I heard that in 2007 and 8 they did a two-year strategic planning
process that engaged all their volunteers that there was never a plan
developed think about my volunteers they serve two-year assignments remember and
then we rotate them to another assignment so who of my volunteers is
thinking strategically long term none of them they're only worried with the task
in front of them so as an association the association has only been worried
about what's right there in front of them so I said, and I'm not about
hundreds of plans that go into big notebooks and sit on a shelf, I'm not
about that but I do need to know where we're going so I just worked with our
staff and said you know what we are gonna put together what this strategic
plan the basics of what a strategic plan is and what our goals are because I need
to have the focus I need to know when we're stepping off mission and we're
getting mission creep and when we are staying on mission so these are what we
came up with our five major goals one we're about bringing people together to
serve as a leading volunteer-driven organization at the heart of the matter
we are a volunteer Association so that's got to be one of our key driving factors
providing value to our volunteers number two we create these premiere events
right with quality guest experiences that celebrate the hope and joy of the
new year it doesn't say New Year's Day hope enjoy
the new year that gives me flexibilities I try and expand our program of work and
drive revenue that I'm not locked into saying oh we're only about New Year's
Day because some of my volunteers would say that oh we're just about New Year's
Day three grow the tournament's impact
that's sustainability that's me driving revenue that's me maximizing revenue
that's me being able to pay bills right I've got to grow us that were we we have
the resources we need enhance our legacy of community support I didn't really go
into that with any of my other slides but obviously we have a huge legacy of
investing in our community we have a foundation that annually contributes
over the past ten years we've probably invested more than thirty million into
nonprofits and other community associations in the Pasadena area in
addition to the one billion dollars that we that we've supported to to colleges
and universities and then the fifth goal was around our brand we have a really
strong brand I mean when you talk when you do surveys when you do market
research and people say Tournament of Roses Rose Bowl game Rose Parade those
brands are held up here and so we have to guard that and safeguard that we've
got to change and we've got to modernize but we don't want to ruin our brand so
this was the original organizational structure I came into we had three you
had a CEO and there were three basically divisions and they were called Chiefs we
had a chief operating officer chief financial officer and we they called the
person that ran the game the chief administrative officer there was nothing
to do with the CAO but he was the chief administrative officer and the first day
there I had a you know my assistant came to me he said David do you want to meet
with the Chiefs I said what's a chief you know in my mind I'm gonna come back
to Kansas you know you have Chiefs you have Indians you have all that I just
hated that terminology and I said absolutely not one I'm gonna create a
leadership team I need everybody at the table that that plays into this and we
have about nine or ten different divisions so I want a leadership team
with representatives of each of those so I did a restructuring and this is what
the restructuring came back again these are our key market divisions obviously
the Rose Bowl game I created what's called a parade development office the
tournament for all these years when we did a parade can you believe this that
equestrian units and bands were done underneath a staff member in membership
the grand marshal and royal court was done underneath somebody in marketing
communications float sales were done by somebody what
we call strategic partnerships the opening closing show was done by
somebody in operations and they never talked to each other and there was
nobody in charge so basically what we were doing is everybody worked in their
little isolated areas did their work at the end the day you know a week before
we kind of spit up all the work that we've done and that's the parade we put
out onto the street there was no strategy about what we wanted it to look
like what the elements of it were so a parade development office I created I
hired the former CEO of Macy's Day Parade
she had retired mid-50s I said we had a long conversation we'd been meeting over
time she is now running that parade development office and then the third
thing was just the product do we have the right product the Rose Parade the
Rose Bowl game and our Association do we have those so we had to take a really
deep look at those so let's talk about the disruption I just want to run
through some headlines remember I talked about what our ratings were doing ours
44 million holding look at that Grammys this year lowest ratings in history
Oscars lowest ratings in history Olympic
audience shrinks what is happening with television shows people are not watching
linear shows there they are consuming in a different way and we don't have a
method yet to know what that how did how to rank that that consumption what does
that pay for me as a television show I'm really concerned with this let's talk
about football anybody see the headlines in football it's football going to be
around in 20 years the whole concussion issue you know the NFL kind of really
stumbled through that mom's not wanting their kids to play football we'll put
them into soccer what does that say for the football and I'll say football
industry okay there is football there I think there is a future for a football
but it's going to be drastically different than what it is today again I
have an 85 million contract what's that going to do for me I'm scared right and
then let's talk about terrorism let's talk about Las Vegas what happened in
New York I'm a tier-one event
highest-rated event for terrorist activities so how is that impacting me
so that's what I want to talk about here as we talk about disruption and then
finally Toys-R-Us going out of business right I grew up at Toys-R-Us
I hear my volunteers say well the Rose Parade will always be here no the Rose
Parade will not always be here if we don't change we will not be here and so
that's what I'm working with our leadership on is just the world is
changing around us so we'll go through three scenarios here one is how
disruption affects the Rose Parade one escalating costs any idea how much it
costs to build a float just to build put a flow down the street
100,000 a million
didn't cause one flow doesn't cost millions but it is minimum for a basic
float is $300,000 you want to do animation you want to do pyro you want
to put a band on top of that float there's another couple hundred thousand
dollars so now you're talking about a half a million it's a lot of money what
companies are out there ready to pay a half a million dollars again we talked
about how to can chambers view how they view television in the broadcast
you know we're still doing linear broadcast in a digital world young
people here are consuming everything on their phones their tablets it's on the
go they're not sitting down in front of a television set and watching a two-hour
show again the terrorism threats that I mentioned right huge concern for us also
entertainment value again people it used to be a pretty float went down the
street and that was entertaining today young people you're you're bombarded by
all kinds of stimuli you see a pretty float within two or three seconds you're
like I'm done with that what else can I see right so how do I
increase the entertainment value of what we're putting out there on the street
and then sponsors you know I depend a lot on sponsorship dollars and what
sponsors want for me has changed dramatically used to be a logo we want
to associate with your brand those days are gone now it's about metrics how am i
driving customers to them and how do I measure it how can I prove that their
million dollar investment is me in me is driving business to them we weren't
prepared for these things so here's how we're trying to do that one I mentioned
the parade Development Office that is strictly I've hired people from the
entertainment industry to help put this parade
together so when we put something out on the street it's through the view of
entertainment asset extremely important one the partnership with Amazon Prime so
did you enjoy the broadcast was it funny hilarious okay it was it was Will
Ferrell playing this court guy and Molly Shannon playing Tisch and it was this
whole banter between court and Tisch you know we just asked they do you know they
don't talk negatively about anything in the parade they did pretty good they
stayed on script for the most part they did kind of bash one float because it
was like Riverside Californian it's kind of meth capital and they kind of talked
about the meth capital and that was probably not good you know and so my
leadership was like huh we just don't know about this but here's what happened
their 16, 17, 18 year-old kids are like oh my god that's great kids that would
never watched the parade watched a parade so all the parents now are hearing about
oh my god my kids love the parade and we introduced them to something they
would never watch before so we're gonna do a partnership again with Amazon Prime
and and the goal this year is that we do both a digital you know a Funny or Die
type of broadcast but a traditional broadcast as well again focus on social
media again taking elements of the parade taking elements of the game
through social media so you can get that 10 second 20 second clip you're not
going to watch an entire parade but we can introduce you to it through through
those type of things we didn't have an app I got there so so what's our app
look like that when you mean an app I said well an app I mean let's make it
easy for people to get here where do you park where the bathrooms where's your
seating we do an opening and closing show with with talent that we spend
hundreds of thousands of dollars on but unless you sit in one grandstand at the
corner of Orange Grove and Colorado you never see it so why can we not stream
that opening and closing show on the app so even you're sitting three miles down
the parade route you know at 8 o'clock you can watch the opening show so did a
lot of work on app development again to get information to people in a much
better way I also asked about a VIP experience what's our VIP experience and
the answer was well we in this grandstand we serve hot chocolate and
coffee and Krispy Kreme Doughnuts
if you know anything about business you've got different market segments
there are people that will pay for a VIP experience so again I was told I don't
know if that's gonna work well we'll do it on a beta well test it so he worked
with IMG we sold a sponsorship to a company we did a tent behind a
grandstand opened at 5 o'clock in the morning cocktails full buffet food
television all of that sold it out four hundred bucks a person 150 seats sold
so this year now or it could expand that's probably 500 seats so again just
looking at the market how do we meet some market demands and then data
collection that's the other thing we never we never collected data I sell
35,000 tickets to post parade I've got 60,000 tickets sold to the football game
I have no idea who those people are now we're collecting that data that we
can share that with our sponsors again do promotions that help them hit those
metrics they want the Rose Bowl game what about the game well again football's
under attack I already talked about that the CT challenges decline in football
participation and support not as many kids if you if you read the newspapers
up in the northeast part of the country schools are having to combine teams
because they just don't have enough kids coming out for football football is
strong in Texas it's strong in the south but it's waning everywhere else what
does that mean for me ESPN is my broadcast partners they lost what thirty
million subscribers or whatever it was last year what does that mean for me
again disruption and then the rising cost of securing that stadium okay I'm
always having to deal with so how do we address some of these things one we went
to we went to three tiered pricing that we'd only ever done two-tier pricing in
the Rose Bowl stadium basically we have 60,000 seats in the bowls 40,000 seats
in between the goal lines it was two prices so if you set on the goal line
you were sent you're paying the same prices if you were sitting on the
50-yard line it doesn't make sense to me so we went to three-tier pricing and
guess what we drove huge amount of revenue and we still sold out the game
people will pay for what they you know for quality of the perceived value of
that we also one of the issues that we have and again part of our brand is on
New Year's Day two o'clock that game goes live we have a sold-out stadium
even it's not sold out we will fill that Stadium so that's just a little secret
we will have a full stadium and so one of the things is loading
a hundred thousand people into a stadium in about an hour hour and a half is
really really difficult so one of the things we did we had a fan fest we said
well why don't we take the fan fest and do security as you go into the fan fest
so we'll take them through the through the metal detectors in the bag searches
before you know at ten o'clock when it opens and then they're in a secured area
so we were able to put thirty thousand people that that bought tickets for this
fan fest and they just walked into the stadium so they didn't have to stop and
go through metal detectors and bag searches so we were able to load the
stadium much much quicker so again guaranteed as we went live at
two o'clock stadium was full again one of the things we've been around for
a long time is that history that that hundred year history of the ball
game where the only bowl game that's been alone so you'll see in our
broadcast we highlight that history that's that granddaddy of them all and
then again I talked about the Rose Bowl bash and the last thing I want to talk
about is the Association again disruption from my association remember
right 951 volunteers that put all this stuff together again we're a volunteer
driven organization but Millennials aren't joiners right they're not
interested in joining an association they're not joining Kiwanis and optimists
and those type of things I mean we we really struggle with that time poverty
volunteers used to be able to give lots of time to volunteer and help us we're
all have that time crunch that two year rotation I talked about that's a real
challenge for us because it's a very short term focus and it complicates
knowledge transfer right you did this really well for two years now you go
over here and the next guy comes in behind you and doesn't know what worked
and what didn't work so we have some really
strong challenges with the Association so one the utilization of social media
platforms for member recruitment again we've got to go to the markets where
these young people are we have to go to diverse markets where these people are
we cannot wait for people to come to us and up until this past year the
tournament just waited for people to come to them we've been lucky we still
hit our volunteer numbers but again we've got to be more aggressive moving
forward again new year round member programs again once they join if they're
not going to do anything until December January what are they doing for the
other ten months of the year we've got to have programming that keeps them
engaged as volunteers so we've launched a whole series of programing
membership in that comes out of my experience in working with Chambers of
Commerce as membership organizations again on the professional staff side I
have to recruit better talent I just need more qualified people working for
me that come from the perspective that I think we need and that's about
we're entertainment assets and then coming in I had to just address real
nuts and bolts things with my professional staff you know our benefit
plans and how we were structured those type of things that was just you know
simple crossing T's and dotting I's of basics that had to be addressed really
quickly to kind of move this staff and move them to look at doing work
differently so that's kind of what we're doing at the tournament of roses who we
are what we're doing the challenges that we face and how we're trying to address
those challenges so I'd be happy to take any questions that you all have
you know my favorite part is again taking something from nothing and
building it into something it's what I used to call the art of the deal and
that was a Donald Trump thing so I don't say that as much but it it is that
you know you have a vision and you work with the team to try and figure out
how do you put this together then you go through those steps to make it happen
and at the end of the day you see out there on the street what you've what
you've done you know I was never I was never somebody that could work in a job
where I never saw the output right I'm I have to see some output of what my work
is so that's the best part of what I do on New Year's Day when I see a million
people out there on the streets and you see that you and that laughter from
these little kids or you hear people talking about how wonderful it is that's
what we're about we're about bringing hope and joy to the new year that's what
we do
so the issue of the questions about the Big 10 / PAC 12
relationship and then switching also the CFP underneath if you remember before
the CFP was the BCS underneath the BCS model we did a traditional Rose Bowl
game on New Year's Day and then a week later was a championship game and we
hosted two or three of those BCS championship games that wasn't working
for college football so they went to this model of the top four teams
everybody wants you know a playoff system so what the CFP said is well what
we'll do is take the major six bowl games the new year's six as they call
them so it's the Rose Bowl the Fiesta Bowl the Cotton Bowl the Sugar Bowl the
Peach Bowl and Orange and we're gonna rotate those playoff between those six
bowl games so every third year then is a CFP year it was important for the Rose
Bowl that we not be cut out of that right again we have to maintain our
relevancy so we needed to be part of that process not that we like it because
it's a much greater financial risk on our side when we host a CFP game in a
traditional Rose Bowl game with Big 10 / PAC 12 it's a guaranteed sellout the
schools buy the tickets it's a sellout in a CFP the schools only are required
to buy half of the tickets twelve thousand five hundred and we don't know
if those teams are going to travel to Pasadena
we don't have a relationship with those teams so it's a huge risk for us on a
CFP game again this year was amazing for us
oh you hadn't been in our game since 2003 Georgia hadn't played in the Rose
Bowl since 1943 or something I don't know is 75 years so they traveled
heavily and so we sold that game out but we were scared for it but the
reason that we're part of that CFP model is we need to be relevant we look at
ourselves as the top of that food chain when it comes to bowl games there's 42
Bowl games out there in my opinion 20 of them can go away they're just they're
just clutter but I can't be the one to say that to them so that's why we did
the see that's why we're part of the CFP model you know if they go to an 18
playoff I'm really scared if they go to an 18 playoff that means
the best teams that I can have my game are number 9 and 10 when again the Rose
Bowl game trip typically would attract top four teams you know they usually the
winner of the Big 10 was somewhere in the top five and PAC 12 was usually in
the top five so if they go to an eight game playoff what's that do to my game
again disruption that's so you can you can understand why on the backside
working with the National Football Foundation the NCAA were opposed to an
18 playoff
No so we don't have a back-up plan again I'm okay too 2026 because I've got a
I've got a contract with ESPN at 85 million dollars but that's why I have
seven-eight years to get this parade sustainable I've got to figure out how
to either reduce our expenses or increase our revenues by that six to
eight million dollar mark to make it sustainable
oh yeah it you know back in the history of the tournament the tournament was
never just about a parade and a football game
it was chariot races it was tug-of-war pulls it was all kinds of things so I've
been looking at we're looking at maybe we wanna host a rug me an international
rugby match at the Rose Bowl stadium we're looking at all kinds of
alternatives what we can do and because I'm not just about New Year's Day I'm
about the hope and joy that gives me flexibility we've looked at doing a pre
a preseason kickoff game we're looking at all kinds of alternatives on what we
might do to expand our platform of work
yes so we work very closely with both local and federal officials on emergency
planning both along the parade route as well as at the stadium you know that the
issue for us with disruption this year with Las Vegas and and with what
happened in New York we did two things one is Las Vegas was obviously a shooter
down on people on that five and a half mile parade route I've got lots of tall
buildings so we had to again expand our security budget working and we don't do
the security we work with Pasadena police
we're tier 1 we have Homeland Security FBI we had to have snipers on buildings
hopefully you didn't see them but we had snipers on buildings looking for that
type of activity we also had to close the parade route 8 hours earlier we have
people that camp out along the parade route it's like a family tradition and
there used to be cars going up and down Colorado Boulevard so we had to close
that again remember I said 5 and a half miles
we have 55 cross streets so now I have to barricade 55 cross streets you can
see how my costs have just exponentially gone off the roof and again to your
point that's more money and but we have to do it we have to make sure we provide
us safe as an environment for our people as we can
I was concerned whether there will come out for the parade this year after
what's been going on and we had a huge turnout I think because people we did a
lot of communication to the public about what we were doing how we were trying to
secure the area that they felt safe and coming out and thank goodness nothing
happened
yeah I think long-term where we're going to again it's a weird model
right I go out I sell a company a $500,000 deal and then I turn them over
to a third party and they work with a third party and then at the end of the
day I have something in my parade and the float builder would say that's my
client you don't talk to my client so we we have issues with our float builders
but that's exactly where we're going we will pretty soon move into the float
building business and then contract with builders to do that we need to control
our product we need to control our assets
yeah we have we have kind of our what we would call our principles of who we are
and what we do and you know anything we do we would hold up against that again
and part of that is you know we we operate in ethical ways and those type
of things but as an organization I think what we what we do in facing disruption
is again I'm not a parade expert you know I love college athletics I don't
come from an athletic background of organizing major athletic events like
you know I didn't work in athletic department putting on events for many
many many years we're a business at the other day we're just a business right we
have we have revenues we have expenses we have clients we have customers and so
I think the principles that we use any business can use as they look at
disruption how they handle disruption
you know it's actually I actually went to bed this year I did get to bed by
about midnight one o'clock and I was up at 4:00 on New Year's Eve we have to
move these floats so these floats are built in facilities at around 20-25
miles away and so there's this whole convoy caravan thing that occurs and
these only move they can only move about five miles an hour these again they're
not huge motors on these things they move about five miles an hour so it
takes around five six seven hours to move all these floats and those convoys
started about five o'clock we go through like six or seven different cities and
so you have to involve the Highway Patrol you have to invite the police
departments all those type of things so they start lining up around they start
arriving in Pasadena around ten o'clock eleven o'clock at night we'll I have
35,000 people that just come out and watch this happen just people watch it
happen and so that's how I spent New Year's Eve was watching all this happen
and then again as I when I started this job I said you know what you don't need
my help and get in a parade down the street you know for 130 years this
association has lined up a parade and you've gotten it down the street I'm
just gonna muck it up if I get involved with that you don't need my help and so
I went home because I don't need my help with that these volunteers are really
well trained where they need my help again what is the vision what is the
strategy how are we going to change who we are and that's what I see my role as
but New Year's Eve I was just out there watching and then I went home went to bed
thank you very much
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