CONCORD, CA (CelebrityAccess MediaWire) — The city of Concord has agreed to a new management contract with Live Nation over the Sleep Train Pavilion, but has conceded to a smaller share of the revenue from the venue.
According to the Mercury News, the new contract will see Concord receive $500,000 in revenue each year, as well as the proceeds from a $3 surcharge attached to each ticket, which the city estimates will generate an additional $300,000 a year. The contract is good for two years, with an option for a third.
The prior contract saw the city receive a guaranteed $1.1 million from the venue each year, as well as the gravy from a $2 dollar ticket surcharge.
Despite the reduction in revenues, the city still expects that generate a slim profit, even after servicing the debt incurred from the venue's most recent renovation, but only because the city borrowed money from the sewer and insurance funds to repurchase $8 million out of $12 million in outstanding bonds. According to Mercury News, the city is still on the hook to the tune of $450,000 year to external bondholders and $250,000 a year to repay the internal debt.
Live Nation (formerly Clear Channel) has been managing the 12,500 capacity shed since 2000 when they acquired Bill Graham Presents, the former promoter at the venue.
According to LN, some of the artists who will be playing at the shed this year include Rush, Journey and Dolly Parton. – CelebrityAccess Staff Writers