Quote:
Originally Posted by Calgary '89
Back to arena talk, does anyone know about case studies of AEG or AGM Arena Management and how they get involved with cities? I'm curious to see how that type of company would enter an Arena negotiation.
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I think I posted briefly about this before, but I think the Stampede may be one of [if not the main] 3rd party being hinted at here.
My "insider" info is long out of date, but there are a number of dots to connect here that could make a lot of sense, even if ultimately it ends up as a leverage play to make CSEC bargain in good faith.
Simple reasons it makes sense...Stampede has:
- an existing relationship with Ticketmaster/Livenation (in multiple capacities - selling their own productions like rodeo/evening show, serving as promoter for concerts (Stampede time and a few other examples), and operating multiple venues for other promoters
- obvious efficiencies in operations and staffing for concessions, security, parking, building ops, custodial, etc.
- existing year-round sales and events team - there is a lot to unpack here, but adding even more inventory of concourses, hosting spaces, and the seating bowl could present some very interesting revenue opportunities
- there's a lot more that's hard to articulate succinctly...down to general calendars and daily event flows
The interesting scenario here is if the city+Stampede could come up with a sensible plan, setting them up to charge CSEC fair market rates as a tenant. CSEC is confronted with losing a lot of peripheral revenue opportunities and general control. The city is delivering a new building, which makes it a lot harder for CSEC to play the relocation card (not to mention the relocation fee)...
If CSEC doesn't like it (spoiler alert: they won't), their main options would be:
1. To sell...which opens up a lot of suitors who may just want into the pro sports club, without necessarily taking on the concert promotion game, nor a lot of the aforementioned operational stuff.
2. Come back to the bargaining table with a more competitive offer...