After years of disappointment, frustration and negative return on taxpayer investment, the Glendale City Council’s pending selection of a new arena manager brings more expertise, potential, and permanence to the city’s beleaguered building and its neighboring entertainment district than any other decision made to date.
While still negotiating the terms and conditions of the city’s first independent arena management contract, the City of Glendale issued a Notice of Intent to Award to AEG Facilities Feb. 3.
The current Professional Management Services and Arena Lease Agreement with Ice Edge Arizona will officially terminate June 30, 2017. While time is of the essence, getting it right from the start is imperative for the stability of the city’s assets and financial interests, as well as for the new manager’s success and growth opportunities.
Drawing upon its events, experience, partnerships, relationships, resources, and transparency, AEG may just be one of the best things that has come to Glendale, and without a doubt, the best thing ever to come to the city’s ever-fledging arena.
With a world-wide footprint as a world-class operator, AEG touts one straightforward mission: Provide fans with an unforgettable experience…giving them a reason to cheer. And if the company’s performance measures up to its impressive presentation before council during the April 5 workshop, AEG’s fan base and following is likely to increase exponentially.
Among its professional ventures are more than 125 elite venues located in the world’s top cities, 14 professional sports teams, the largest equity investor in stadiums and arenas across the globe, the second largest concert promoter worldwide, and more than 50 million guests entertained each year. Of specific note, half of AEG venues throughout the U.S are owned by local governments and 55 percent of the touring music events staged at Gila River Arena over the last four years were delivered by an AEG affiliate.
Equally exciting is the company’s commitment to transparency in its financial reporting. Beyond an annual budget, AEG promises monthly financial statements and forecasts, quarterly review meetings with the city, and a full financial statement and review annually. In addition, the company plans to create individual budgets for each event, provide flash reports to measure real time performance and routine benchmarking across all AEG venues.
AEG touts global experience in arena-anchored entertainment districts. As owners of both the Staples Center and Los Angeles Kings, AEG holdings have produced back to back NHL Stanley Cup Championships, as well as the creation, development and successful operation of LA Live.
A 27-acre mixed use development, LA Live features a 20,000-seat arena, 7,000-seat theater and two large music clubs, 20 restaurants, a 14-screen cinema, 1,001 hotel rooms, 225,000 square feet of office space and 120,000 square feet of museum and special-event space. Abroad, AEG operates similar state-of-the-art entertainment facilities, such as the 02 in London and the Mercedes Benz Platz in Berlin.
With or without a hockey team, an independent arena manager is essential to Glendale and long overdue for economic solvency, a positive return on investment and just perhaps the creation of a profit center. AEG is a proven performer with a solid portfolio of industry assets, professional expertise, and extensive resources that are more than capable of operating our arena. So much so, the eventual purchase of the arena, as well as Westgate, is well within their wheelhouse.