Why Aras and Emin Agalarovs Spent $ 20 Million on Miss Universe - FORBES

09:59 | 15.11.2013
The father and son Agalarovs told Forbes, why the site Crocus City benefits from Miss Universe and how Donald Trump has agreed to host the contest in Moscow.On November 9 the beauty contest Miss Universe was first held in Russia, in the Crocus City Hall. Forbes spoke with the owners of the site Aras Agalarov (No 56 in the ranking of the richest Russians, according to Forbes, - $ 1.8 billion) and his son Emin about what benefits they want to extract from the image project, the budget of the activity and the new transaction with the host of the contest, the American billionaire Donald Trump (President of Trump Organization, No 134 in the ranking of the richest Americans according to Forbes, the state - $ 3.5 billion).Forbes: Why did your business project, Crocus City Hall, take this event?Aras Agalarov: It's not just about the Crocus City Hall, and in general about the site Crocus City (trade fair and business center in Moscow - Forbes). For us it is very important positioning Crocus City on a global scale, because we are already here and are planning to hold spending in future international events: exhibitions, forums and conferences. The fact that it hosted the Miss Universe is yet another confirmation of the fact that our site is certified under this kind of event. As for live performances, Emin knows this better.Emin Agalarov: When managers are planning to tour an artist, they choose the rooms, in which they will see their artist. Every city has its flagship Hall: Madison Square Garden (the biggest arena in New York) or Royal Albert Hall (a prestigious concert hall in London - Forbes). Now the Crocus City Hall gets on the map of Russia as the main hall, in which already known artists should act. Accordingly, we have the artist for a third of his fee - we do not need to pull him out into the country at a huge cost, as is usually the case. Thus, we raise the bar for concerts that take place in the Crocus City Hall (and there are now about 270 per year). It will not be just Russian artists whom we love and respect. We complement them with artists such as Sade, Elton John, with proper economy. That's the problem of the Crocus City Hall.We generally believe that such events are properly carried out on our site. As Aras Iskenderovich rightly said, it will develop our exhibition and our hospitality. We will be in three hotels. The total number of rooms is 1,500. We have a shopping center with a total area of about 480,000 square meters. So for us it is important to accumulate all bright and international that is a reminder of our Crocus Expo. We believe in the feasibility and profitability of such projects.Forbes: Do you have any plans for joint projects with Donald Trump - perhaps building?A.A.: Just ahead of our meeting with you we watched the projects that we have with him. We just exchanged views and he said it was quite interesting.E.A: Let’s draw one, and start doing the next one. Theoretically, we can consider the possibility that one of the skyscrapers in the Crocus will be Trump Tower.E.A.: We did not have to persuade. We met and talked, and Aras Iskenderovich and all liked each other much, shook hands, and in a week the contract was signed. More effort was by the two teams - Crocus and Miss Universe, which is owned by Trump - as we arrange it technically and financially.Forbes: You gave a figure U.S. $ 20 million in the budget of the competition. How is this amount distributed?E.A.: Approximately one third of this amount is the value of the rights. Another third is all organizational expenses. And one-third of this amount is spent on decorations, productions, live, rent of MTS (mobile TV stations to record and broadcast the show - Forbes) with high resolution, which are not available here – we deliver them from England. We will first introduce screens with a 3-mm distance between pixels, so you can play the picture in HD. It is integrated into the scenery that changes about nine times during the competition. The light specialists and the entire team that is working on the production are the same people who make the "Grammy" and "Oscar".Forbes: Do you have any contacts with other foreign businessmen or an agreement on the level of the Miss Universe event?A.A.: If you look at our schedule of events, you'll see that the day before yesterday, I think, the Medical Forum ended. It was the world forum, by the way. In September we will have a big car show, which is among the five largest dealers in the world. There are very large exhibitions associated with construction and furniture. We conduct more than 250 exhibitions and about 200 of them are international. Just the Miss Universe is more meaningful and colorful in this list.E.A.: And there is a broader segment. Those are professional and interesting for industry.A.A.: Events at the level of Miss Universe are only ten in the world.E.A.: The Olympics, Formula 1, FIFA World Cup, Eurovision, Oscar, Grammy, Miss Universe... On the rating it competes with the Winter Olympics. Forbes: What about the Miss World?E.A.: There is no beauty contest, which, according to the number of people watching it, could approach to the Miss Universe. A billion people watch it on live TV, but on the whole there are 2.5 billion people in 175 countries, where it is broadcast. That is, only the Olympics are larger. Forbes: Right, I understand that it all started with a clip featuring the Miss Universe-2012?E.A.: It always starts with the simple. The Miss Universe starred in my music video Amor for the single. Then we met with her management and then they came to Russia and met with Aras Iskenderovich. We met with Donald Trump and shook hands. A few months passed and the Miss Universe came to the Crocus City Hall.Forbes: Will you burn a clip with the new Miss Universe?E.A.: We just got back from shooting a video (the interview took place the morning of Nov. 9 - Forbes). We filmed all the participants of the show and Donald Trump in this new clip. It will be released next week.

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