In tennis they have an official statistic called unforced errors. If you watch the sport on television, you’ll hear the commentators mention it a lot. They’re essentially mistakes players make that are not the direct result of their opponents’ good technical or tactical play. Gaffes, if you will.

In professional tennis, the average unforced error rate across the ATP and WTA tours this past season was just over 8 percent. That’s not a lot when you think about it. But when the average margin of victory is 11.2 points per match, they can be absolutely critical.

Sports real estate development isn’t much different. Mistakes aren’t uncommon, but far more costly. That’s why getting the right guidance is essential. Here are four of the biggest unforced errors we see and how to avoid them.

1. Site Myopia

Everything emanates from the site. Whoever controls the site controls the project, so site control is critical. However, reducing or eliminating other potentially viable site options can limit an owner’s maneuverability. Sometimes owners get sold on a site, get a little too locked in on it, and put all their eggs in that basket. It’s not only limiting, but it dramatically reduces your leverage in negotiations. Instead, keep your options open. Initiating a Contingent Purchase Sale Agreement to control an attractive site is generally a good idea, depending on the economics. But don’t discontinue the process of identifying alternative sites for backup. Because what seems obvious isn’t always right. And by the time you find that out, you might be starting from square one again and will have lost a lot of time and money in the process.

2. Under-Resourcing

These projects are not for the faint of heart. They’re expensive and they take a lot of time and expertise. So if you’re not properly funded, don’t have the bandwidth, or don’t know the process, you’re probably going to be inefficient and that’s going to cost you money at the end of the day.

It’s incredibly important to know what resources are necessary and how those resources need to be applied to make these projects go. If you’re going for a public-private partnership, you’ll likely benefit from retaining a lobbyist, for example. You’re going to need other resources, too, maybe PR and certainly legal. That’s why you put a realistic pre-development budget together at the very beginning. Because if you’re not appropriately funded and resourced, you’re going to struggle.

3. Unbridled Enthusiasm

Sports-related development projects get everyone excited, and for good reason. But keeping your project confidential during the early due diligence and planning stages is most often the smart play. These are high-profile projects and others may see them as a platform for whatever messages they’re trying to deliver – many of which will be in opposition to the project regardless of its value proposition. There may also be competing projects, and you don’t want to provide the competition with information that could be used for their benefit.

Lastly, and apologies to our industry architect friends, but paying for visuals and renderings too early could be detrimental in the long run. Too often, early visuals come back to haunt a project because the reality of it can be much different, usually for financial reasons. This can create confusion and, in the worst case, damage trust among the stakeholders in the market. So hold your cards close to your vest for as long as you can.

4. No ROM

Creating a base facility program (allocation and size of spaces, amenities) is the starting point for project budgeting and, eventually, cost estimation. This is where you prioritize revenue-producing amenities (e.g., premium seating), fan experience features, team/tenant infrastructure (locker rooms, etc.), stakeholder experiences (e.g., players, coaches, media). This exercise, called a Rough Order of Magnitude or ROM budget, will give you a sense of the project cost, financing feasibility, and initial design.

The ROM program is also essential to creating project financial operating projections. If you don’t have or can’t afford the proper infrastructure to attract concerts, for example, you can’t put concerts in your financial projections. Financial projections are then linked to financing and capital structuring.

Lastly, your ROM program should be the basis for any concept design, visuals or renderings that may be produced.  We get the need for “sizzle” to get stakeholders excited about a project. But the “steak” is how the project gets developed, how it will perform, and how it gets financed.

Mistakes happen in every endeavor, but unforced errors are avoidable. In the case of large-scale mixed-use developments or stadiums, they’re costly, too. Sometimes incredibly costly. So get the guidance you need up front so you can avoid them. And make your project a grand slam.

Ready to plan, fund, design, build, or optimize your facility? Contact McCullers Group founder and president Mark McCullers for three decades of experience and insight.