OVG Lands Deal With OCESA

A LOFTY GOOOL: OVG Hospitality signed a deal with OCESA, the largest promoter in Latin America, to provide food service at four venues in Mexico City, including the Autódromo Hermanos Rodríguez racetrack (pictured above), which also hosts music events. (Getty Images)

OVG Hospitality Extends To Mexico City

As OCESA ushers in a new era with the reopening of Estadio GNP Seguros, the iconic Mexico City venue formerly known as Foro Sol, it’s also forging partnerships that will continue to develop the live music business in the region. The Mexican promoter announced today that OVG Hospitality will operate food and beverage at four of its venues, including the recently renovated 65,000-capacity stadium, a major deal that expands Oak View Group’s presence in Latin America.

OVG, the parent company of VenuesNow, plants a flag in a fast-growing market by bringing its culinary and hospitality experiences to Estadio GNP Seguros, Autódromo Hermanos Rodríguez (a racetrack that also serves as an outdoor concert venue), Palacio de los Deportes (a 20,000-cap arena) and Centro Citibanamex (Mexico City’s largest convention center). OVG Hospitality is expected to roll out to other OCESA-operated venues early next year. The length of the deal was not disclosed.

“I don’t think the world understands how important and how meaningful live entertainment is in Mexico, largely because of the work that OCESA is doing,” says Chris Granger, president of OVG360, Oak View Group’s venue management business. “We are thrilled to partner with them. We appreciate their entrepreneurial spirit and the fact that they are big thinkers and have such an interest in the guest experience. It’s really perfect for us because we share their values.”

OCESA is one of the largest entertainment companies in the live industry, promoting more than 3,000 events annually and drawing nearly 6 million fans across Mexico. The company, which also does big business in Colombia, was No. 4 on Pollstar’s Top 100 Promoter list in tickets sold (8.3 million) and grosses (nearly $600 million). Live Nation acquired a 51% controlling interest in the Latin American promoter back in 2021, a deal that reportedly cost about $415 million.

Operating the Mexican promoter’s buildings is yet another landmark deal for OVG, which recently partnered with Penn State Athletics and the University of Kansas and handles food and beverage for popular venues like Austin’s Moody Center, Footprint Center in Phoenix and Acrisure Arena in Palm Desert.

Granger said OVG Hospitality did its due diligence leading up to the partnership, spending time in Mexico City at the venues to better understand the culture and ensure that the deal with OCESA would be “a perfect marriage.” As the exclusive food and beverage provider, OVG is working with local, regional and national vendors to deliver items that reflect the country’s culinary heritage, and it hopes to integrate some of its brands and partnerships into the Mexican venues while utilizing every available space in new and unique ways.

“We have a lot of venues that we work with, from arenas to stadiums and music festivals and the whole gamut, but there’s nothing like being there, and more specifically, just to understand their expectations, to walk and see the venue through their eyes to understand how we can help improve the speed of service or things that we can do from a premium standpoint to elevate that product and the experience for their guests,” Granger says. “… They have the gift of so much space there, that we can really be creative and do some things that haven’t been done before.”

The courting between the two parties had been going on for quite some time, with OCESA and OVG executives visiting each other’s buildings to see how they operate and how the partnership would work. Granger says the OCESA execs saw firsthand how OVG maximizes revenue without sacrificing quality, which led to conversations about improving the fan experience in Mexico City.

“There’s a shared empathy between us that I think helps accelerate the brainstorming and innovation process because we are a good sounding board, and we go through what they go through,” Granger says. “Perhaps we’ve seen something that might be interesting to them, and that could be whether or not it’s something we clue into together at the stadium or it could be something that we clue into together at Moody Center when they’re walking the venue with us. But it’s a shared operator viewpoint, and I think that’s what leads to some magical ideas.”

OCESA shares its crown jewel (Estadio GNP Seguros) with OVG, which began running food and beverage at the venue when it reopened in August with three shows from Bruno Mars. The 31-year-old stadium was built specifically for concerts, a testament to the country’s passion for live music, and has been one of the most successful buildings in the business and sold 2.2 million tickets in 2023, more than any other venue in the world. The modernization of the stadium took about six months and included the addition of premium box seats, improved seating, a roof to protect fans and collect rainwater and additional bathrooms.

Mars grossed nearly $18.4 million across three sold-out nights at the stadium, according to Pollstar Boxoffice reports, and Granger was on site to witness 65,000 fans gather each night at the renovated venue, an experience he says was “awe-inspiring.”

“The venue is beautiful and sparkling clean, and then there’s the addition of more points of sale, more menu items, more concession options for people, elevated premium, the addition of clubs — it’s nothing anyone has seen before in this marketplace,” Granger says of Estadio GNP Seguros. “It’s a game-changer, not just for OCESA, but for all of live entertainment in Mexico. This is the point of pride for the country going forward.”

It is also a game-changer for OVG as it extends its global footprint, but Granger isn’t looking too far ahead. He’s focused on the venues that the company currently operates but is aware that working with a major promoter like OCESA can lead to bigger opportunities.

“The fact that [live music] is endemic to the culture is beyond exciting for us, to be a part of that fabric,” Granger says of having a presence in Latin America. “It’s thrilling, but in terms of what it means for us, all I’m focused on … is being a great partner to OCESA. Period. End of story.

“I want to do great things, whether it’s in a stadium, a festival ground, a convention center or a smaller club. Whatever the case may be, we’re going to be a great partner for OCESA, helping them dream big,” he adds. “We’re going to help them execute their vision for a great fan experience, and if that leads to something else in Mexico, in Latin America, so be it.”