Global Spectrum In The News

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SASC Attendance Numbers Up

Arena Attendance Numbers UP 53%

(October 2009 – Rio Rancho, NM – Albuquerque Journal - By Rosalie Rayburn)

Early indications show a change of management has boosted attendance at events held in the financially troubled Santa Ana Star Center.

Figures provided by the city show that from April 1 through the end of September, attendance at Star Center events increased by 53 percent compared to the same period last year.

Rio Rancho's top officials and the Star Center's general manager caution that a complete turnaround from its loss-making days will take more than a few months.

"Attendance figures indicate to us that we're heading in the right direction," City Manager James Jimenez said.

A new company, Global Spectrum, began managing the venue in April. The Philadelphia-based company took over management after the city terminated its contract with Arizona-based Global Entertainment, which had managed the Star Center since it opened in late 2006. During Global Entertainment's tenure, the center experienced a slew of canceled events, sagging attendance and a loss of more than half a million dollars.

The Star Center's poor performance forced the city to use $4.3 million in tax revenues to cover payments for bonds it sold to build the 6,500-seat venue. The city is still putting aside $200,000 per month to cover Star Center debt.

Soon after he took office in March 2008, Mayor Thomas Swisstack urged city staff to hold Global Entertainment's feet to the fire, or failing that, seek a new management company. He has publicly called the Star Center "my albatross," and the city is still embroiled in a lawsuit with Global Entertainment over the terms of the contract and money owed to third-party vendors.

However, Swisstack is beginning to be optimistic about the future. Since Global Spectrum took over, he's received comments about better organization, better service and a more professional attitude by Star Center staffers.

"They have a business plan that makes me feel comfortable about where that facility is headed," Swisstack said.

There were 50 events at the Star Center during Global Spectrum's first six months, which drew a total of 122,511 visitors. That compares to 79,989 visitors in the same period a year ago.

The events generated $153,721 in revenue for the city.

The management contract allows Rio Rancho to receive a surcharge on tickets, merchandise and other items sold at Star Center events.

The surcharge was 12 percent until June, when it was reduced to 7 percent. Jimenez said the city agreed to the reduction after companies interested in winning the management contract said the 12 percent rate was too high.

"It was an inhibiting factor to getting acts here," Jimenez said.

He expects it will be at least a year before Global Spectrum is operating the center at the level the city wants to see. Swisstack has said his goal was for the Star Center to be run on a break even basis.

General Manager Gunnar Fox said his first few months running the Star Center have been "an eye-opening experience" but "things are turning around."

The biggest challenge, Fox said, has been to make vendors and clients understand that business practices will be different under Global Spectrum. He said some vendors are still demanding payment up front for services at the Star Center.

  ABOUT US

Global Spectrum (global-spectrum.com) is the fastest growing venue management firm in the world with more than 85 facilities throughout the United States and Canada. The Philadelphia-based company is part of one of the world’s largest sports and entertainment firm Comcast-Spectacor, which also owns the Philadelphia Flyers of the National Hockey League, the Philadelphia 76ers of the National Basketball Association, Flyers Skate Zone, a series of community ice skating rinks, Comcast SportsNet Philadelphia, a regional sports programming network, Ovations Food Services, a food and beverage services provider, New Era Tickets, a full-service ticketing and marketing product for public assembly facilities, and Front Row Marketing Services, a commercial rights sales company. In a partnership with Disson Skating, Comcast-Spectacor televises 10 ice skating extravaganzas annually on NBC-TV.