In a remarkable transformation, AEG, the company behind Crypto.com Arena and the L.A. Live district, has turned a once-questionable corner of downtown Los Angeles into a multibillion-dollar empire of venues and events.
Established in 1995 by Denver billionaire investor Philip Anschutz, AEG has become one of the planet’s biggest venue and event companies, boasting over 20,000 employees and overseeing numerous projects worldwide.
AEG’s expertise in hosting and promoting major sports and music events is a formula that it has successfully implemented across five continents.
The company has become adept at maximizing the use of its spaces, accommodating multiple events in a single day, a strategy shaped by L.A.’s dense population of sports teams and musical talent.
Dan Beckerman, AEG’s Chief Executive, emphasized the company’s agility in transitioning from one event to another to optimize efficiency and profits.
The latest addition to AEG’s portfolio is the IG Arena, located within the historic grounds of Nagoya Castle in Japan. Opened recently, this venue reflects AEG’s commitment to developing modern spaces that cater to a variety of events.
While hosting a traditional sumo wrestling tournament this month, the arena is poised to host an array of events in the near future, including basketball clinics and concerts by international artists like Sting.
AEG excels at creating arenas that are multifunctional, often designing them alongside hotels, restaurants, and other amenities to create a comprehensive entertainment ecosystem.
The journey of AEG began with the purchase of the Los Angeles Kings and the subsequent opening of the then-Staples Center in 1999, a project initially viewed as a gamble given its location in a gritty area of downtown Los Angeles.
However, the success of these venues paved the way for further developments, including the $3 billion L.A. Live complex established in 2007.
This revitalization of the South Park district has attracted other developers, leading to a vibrant community of hotels, restaurant, and residential units.
AEG’s venues have hosted some of the most significant events in entertainment and sports, such as 22 Grammy Awards shows, a Democratic National Convention, and multiple NBA and NHL championships.
The company’s notable reputation has given it a competitive advantage in both building and acquiring venues worldwide.
The organization operates over 100 venues across the globe, serving an impressive 100 million guests annually.
Besides its significant investments in sports, including ownership stakes in the Los Angeles Galaxy soccer team and the German ice hockey team Eisbären Berlin, AEG is also the second largest event promoter worldwide.
AEG’s reach extends to major festivals including Coachella Valley Music & Arts Festival and the American Express Presents BST Hyde Park music festival in London.
Despite facing challenges, including a downturn during the COVID-19 pandemic that led to the cancellation of live events beginning in March 2020, AEG managed to navigate through the crisis and rebound.
Live events resumed gradually in 2021, and as audiences returned, AEG’s revenue hit new records in 2022, surprising many within the industry.
Reflecting on the recovery, Beckerman remarked that the pandemic underscored the irreplaceable value of live experiences for audiences.
However, AEG’s growth was not without its hurdles. The company lost a significant tenant when the Los Angeles Clippers relocated to a new arena in Inglewood after their lease at Crypto.com Arena expired in 2024.
Clippers owner Steve Ballmer desired a dedicated home for the team, separate from other franchises.
AEG’s ascent in music promotion began with a concert by Britney Spears at Staples Center in 2001, a pivotal moment that elevated the company’s prominence in the industry.
Randy Phillips, a former AEG music promotions manager, stated that the success of Spears’ tour opened the door for the company, paving the way for future engagements with talented artists like Tom Petty, Paul McCartney, and Tina Turner.
In response to the growing demand for large-scale events, AEG expanded its touring business by constructing multipurpose arenas in locations like Las Vegas and Kansas City, alongside developing smaller venues like the El Rey Theatre in Los Angeles and the Showbox in Seattle.
Further enhancing its roster, AEG recently unveiled the Pinnacle at Nashville Yards, a concert hall integrated within a mixed-use district combining housing and offices within downtown Nashville.
One of AEG’s most notable accomplishments outside the United States is the redevelopment of the O2 Arena in London, which has since become an immensely popular venue for sports and entertainment, attracting around 10 million visitors each year.
In Berlin, AEG constructed the Uber Arena, which has ranked as one of the highest-grossing arenas globally alongside its surrounding entertainment district.
The new IG Arena in Nagoya is part of AEG’s strategy to reinforce its presence in Asia, a region ripe for modern venue development.
Ted Fikre, AEG’s head of development, has highlighted Japan as a top priority for the company, emphasizing the age and limitations of existing venues there.
The newly opened IG Arena, designed to accommodate around 17,000 attendees, is projected to host 150 events per year, drawing an estimated 1.4 million visitors through various concerts, sports matches, and entertainment activities.
In Osaka, AEG plans to build an 18,000-seat venue as the centerpiece of a $1 billion entertainment district, consisting of hotels, offices, shops, and residential areas.
These ambitious plans are set to commence construction in 2027, further solidifying AEG’s investment in the Asian market.
Previously, AEG collaborated with the NBA to create the Mercedes-Benz Arena in Shanghai in 2010 and is now exploring developments in South Korea, Singapore, and Thailand.
Fikre has reiterated AEG’s commitment to expanding throughout Asia, describing their efforts as strategically positioned for growth.
In Bangkok, AEG opened a venue capable of hosting 4,500 attendees, with a concert featuring Ed Sheeran marking the site’s debut.
The company also has plans to construct an 18,000-seat arena in partnership with one of Thailand’s largest mall operators, a project anticipated to open in 2028.
By establishing a network of venues in Asia, AEG is facilitating the booking of major artists, overcoming the logistical challenges commonly encountered in traversing the region.
Touring in Asia can be particularly complex and expensive compared to the straightforward logistics in the U.S., where bands can easily transport equipment between cities.
AEG has successfully handled international acts; for instance, Taylor Swift’s recent tour involved performances in countries like Singapore and Japan, managed by AEG Presents as her global promoter.
Similarly, Ed Sheeran has made concert stops in Bhutan, India, and other nations in Asia under AEG’s guidance.
The dynamics of the entertainment industry now work both ways, as popular K-pop acts such as BTS and Blackpink are drawing large crowds in AEG venues across Western territories.
AEG’s ability to pivot and adapt in this ever-evolving landscape highlights its role as a key player in the global arena of live entertainment.
image source from：latimes
