Concord Hires Clainos As Contract Consultant

(CelebrityAccess MediaWire) — The city of Concord, California, has reportedly hired former Bill Graham Presents executive to help negotiate a contract as it shops around for a new promoter. Current promoter, BGP, has projected that it probably will not make a profit for the second straight year, which is jeopardizing community events based on the Concord Pavilion’s profit-sharing agreement.

The city hired former BGP co-president Nicholas Clainos and his Tonic Entertainment company for a $35,000 consultant fee to aid in the search and negotiations, according to the Contra Costa Times. Clainos negotiated the original contract between Concord and BGP on behalf of the company.

Under the current contract, BGP could take several years to recoup losses before honoring the profit-sharing agreement with the city. Officials reportedly are looking to renegotiate with the company when the contract runs out in 2006, but will be seeking other promoters as well.

The Concord-owned 12,500-capacity Pavilion is the area’s largest concert venue aside from The Arena in Oakland and McAfee Coliseum.

BGP began operating the Pavilion in 2000, and turned a profit each year until 2004, when it lost $1 million.

Under the current contract, according to the paper, BGP gets to make up last year’s $1 million deficit before Concord receives any proceeds. The company has only once turned more than a $1 million profit, and has averaged only $171,000 in each of the past five years.

The promoter has four five-year options to renew its contract, the first of which comes up January 1, 2007. BGP has reportedly proposed financial changes that neither side will discuss publicly.

“They have done a very good job of maintaining the Pavilion and presenting events,” Mark Deven, Concord’s assistant city manager told the Times. “Our concern is with the volatility of the entire live entertainment industry.”

BGP President Lee Smith told the paper that his company is best for the job because of its operational expertise and booking leverage.

The original contract had BGP and Concord evenly splitting profits up to $200,000, with BGP pulling 70 to 80 percent of anything above that mark. The city used their proceeds to fund community arts events, such as the Pops in the Plaza and the long-running Jazz Festival. –by CelebrityAccess Staff Writers

Related Post