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SAY GOODBYE TO SUMMER?

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Times Staff Writer

Summertime on Southern California beaches has long been known for blue skies, surfers and bikini-clad bodies. But one staple of the beach lifestyle may soon be on its way out.

The AVP Pro Beach Volleyball Tour is considering moving three of its unprofitable events off local beaches because of a dispute with the California Coastal Commission over how many fans can be charged for admission.

Under one scenario the AVP is considering, the Huntington Beach Open, Hermosa Beach Open, and the Manhattan Beach Open -- beach volleyball’s crown jewel, which begins today -- would all be gone next year, The Times has learned.

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Another option calls for the AVP to reschedule those events before Memorial Day or after Labor Day, to circumvent Coastal Commission regulations for that time period, as it did with its Santa Barbara tournament.

But there is no guarantee the commission would grant more such permits.

“Our Southern California events are the most economically challenging on our schedule,” said Leonard Armato, AVP commissioner. “The rules that are in place make it difficult for us to turn any Southern California event into a sustainable business.”

The Coastal Commission code dictates that no private entity can charge admission for events on a public beach without its approval.

Armato estimates the AVP spends about $1.2 million to stage each local event, including temporary seating, TV production costs and prize money. AVP sponsors such as Crocs, Bud Light and Gatorade pick up some of the tab, but the tour loses close to $1 million in each Southern California event, he said.

AVP events draw 7,500-10,000 spectators a day. If the tour could charge $20 per person, it would add $450,000 to $600,000 in revenue, moving the tournaments closer to break-even, he said.

In 1993, the Coastal Commission amended its no-charging policy for temporary events, such as an AVP tournament, which allows the AVP to charge for 24% of its seats at its main court.

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Currently, at the three local, summertime AVP events, the tour charges admission for 24% of the seats in its 3,135-seat center court stadium, generating revenues of about $70,000 over three days. Admission is free at the 14 other outside courts.

The AVP is also not allowed to charge for parking and can’t sell alcohol on the beach. “To make these events profitable, we need access to all streams of revenue,” Armato said.

And that means charging more spectators for admission, but the Coastal Commission isn’t budging.

“I can’t see a circumstance where the commission would allow them to charge for the entire area,” said Peter Douglas, executive director of the Coastal Commission. “Our concern is that the greatest number of people have free access to a public beach.”

The commission’s 24% rule, however, isn’t applied consistently. When Cirque du Soleil makes its occasional visits to the Santa Monica Pier, there are no free seats for the general public. But at the U.S. Open of Surfing in Huntington Beach two weeks ago, admission was free.

At the AVP tournament in Santa Barbara, the courts are fenced in and all spectators are charged admission fees. The Coastal Commission allowed that because the tournament was in May, outside the main summer season.

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Heal the Bay Executive Director Mark Gold said that the prospect of Southern California beaches without volleyball tournaments would be like “Wimbledon without tennis,” he said.

“Clearly, the presence of the AVP is a huge benefit to anyone who cares about the beach and Southern California lifestyle,” Gold said. “Them leaving would be nothing short of tragic.”

But the AVP has been struggling financially for years. AVP Inc. has not turned a profit since before it filed for bankruptcy protection in 1998. Armato took over in 2001 and set in motion a long-term turnaround plan.

Last year, Armato took the company public. But the AVP still lost nearly $9 million on $15.6 million in revenue in 2005, and its stock is currently worth less than $1 a share.

The AVP developed a new business model for tournaments in 2005. Instead of hauling its stadium equipment from city to city, it sought out cities with existing stadiums, saving approximately $120,000. In Cincinnati, for example, the AVP event is in a tennis stadium; in Birmingham, Ala., they play in a minor league baseball stadium.

Furthermore, promoters in those cities pay the AVP upfront fees. Promoters are responsible for staging costs, but they also receive the revenue generated from ticket sales, parking and concessions.

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Those events, Armato said, all make money.

The three Southern California events are the only ones among the 14 on the AVP schedule that are unprofitable, Armato said. “Our Southern California events are our most prestigious events, but how long can we maintain them when we lose money on them?”

Beach volleyball was born in Southern California. Most players on the AVP tour live in Southern California and they say it would be a shame if there were no local events.

“Boy it would be sad not to have a Manhattan or a Hermosa on the schedule,” said Karch Kiraly, a beach volleyball legend. “It would be nice if they could work something out.”

Part of the concern is the history in Southern California. Beach volleyball has always been free here and some fear alienating longtime fans by charging admission.

Kiraly, a 28-year veteran, said times have changed from the days when fans camped out on the beach to reserve courtside seats.

Now the AVP builds a center court stadium so everyone has a good seat.

“I think people would prefer to pay so that they have a guarantee reserved seat,” he said. “Then you don’t have to worry about losing your seat if you have to go to the bathroom.

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“It costs the tour a lot to put on these tournaments. In Santa Barbara they charge and there was great demand for it. We sold out,” Kiraly said.

The Santa Barbara tournament has been in May the last two years, before Memorial Day.

Kiraly said he wouldn’t mind moving the dates of the Hermosa Beach or Huntington Beach tournaments. But the Manhattan Beach Open -- the so-called Wimbledon of beach volleyball -- must remain in August, he said.

“August is Manhattan time,” he said. “It would definitely lose some of its luster at another time of year.”

Chuck Posner, a planner for the Coastal Commission, said moving tournaments outside of the Memorial Day-to-Labor Day window would still require approval. “The beaches aren’t up for sale to the highest bidder,” Posner said. “The public has the right to access these beaches for free.”

That argument doesn’t fly with Kiraly.

“I don’t understand how it makes the beach any less accessible,” he said. “There are miles and miles of beaches and we’re taking up a small portion of it for three days. And if anything, we’re bringing more people to the beach who wouldn’t normally be there.”

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