MIAMI BEACH (CelebrityAccess MediaWire) — Cirque du Soleil might seem like the heir-apparent for the Jackie Gleason theater in Miami Beach, but there remain hurdles to overcome.
Cirque is asking for a number of waivers and an exit clause before it enters into a contract with the city, the Miami Herald is reporting.
In over 200 pages of documents released this week by City Manager Jorge Gonzalez, a number of issues are highlighted.
The exit clause that Cirque is requesting is based in part on demographics. Being that there are less hotel rooms and less tourists than in other places where Cirque operates theaters, Cirque is hedging it's bets. They are specifying a 50 percent rent cut if attendance levels at their performances drop to under 65%. Typically, they sell about 80 percent of the available tickets in the other six theaters that they operate.
Additionally, although their contract gives them control over the theater for 50 years, there is a clause that allows them to back out in ten years, paying a 5 million dollar fee if the city hasn't come even on it's investment.
They also stipulate a clause to close the show in 3 years if it is unprofitable for 12 months. This clause would allow them to retain control of the venue.
They would also require a waiver from the liquor commission to allow risqué content in their matinee shows.
Cirque would also be released from the agreement if they cannot secure funding.
Cirque isn't the only bidder with exit clauses. AEG's offer includes a provision to let them slide away if they lose more than 500,000 dollars annually.
Live Nation included no exit clauses in their 15 year offer. The documents included mocked up fliers for the Indigo Girls and punk group New Found Glory while AEG offers a return of touring Broadway arranged through their strong theatrical division as well as noting that MTV Movie Awards and VH1's Video Diva awards were produced by an AEG partner.
City managers will select a winning proposal on October 18. – CelebrityAccess Staff Writers