YOUNGSTOWN (CelebrityAccess MediaWire) — Three different companies have thrown their hat into the ring with hopes to manage the city-owned Chevrolet Centre in downtown Youngstown.
According to the Vindicator, the three firms who have indicated an interest include Philadelphia-based rivals Global Spectrum and SMG along with a partnership effort between the NBA Cavaliers management and IFG.
Only one firm has thus far offered significant financial details in their proposal. According to the Vindicator, Global Spectrum would collect $10,000 a month to manage the facility and collect 20% of the revenues generated from such streams as luxury box rentals and advertising. An alternative proposal by Global Spectrum would forgo the monthly management fee but take a larger slice of the revenue generated.
Presently, Youngstown is still paying off on the marker left them by the construction of the facility. According to the Vindy, none of the proposals would meet the $755,650 paid annually to service the $11 million in debt accrued by the city during the construction. To compound matters, the venue has also been running in the red with its last fiscal year, which ended in September, seeing losses of more than $250,000 dollars.
Global Spectrum has also offered inducements of investments up to $250,000 to enhance the facility's revenue generating capabilities and upgrades such as a half-house curtain.
While SMG hasn't put a detailed offer on the table, they are hoping to be a viable candidate as well, citing their experience and extensive contacts with regional and national entities that could help propel the Centre to profitability.
The partnership between the Cavs and IFG has made similar overtures but also offers the advantage of an NBA D-League team to make their home there.
The management opportunity arose after the city terminated its agreement with Global Entertainment in October, after significant financial shortfalls. – CelebrityAccess Staff Writers