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Conflict-Of-Interest Questions Raised Around Angels, Legends Over Concession Contract

Economic and sports finance specialists claim a study last year that may have resulted in Legends Hospitality gaining the concessions contract to Angel Stadium "considerably overstated the team's economic benefit" to Anaheim, according to Elmahrek & Gerda of the ORANGE COUNTY REGISTER. The study, conducted by CSL Int'l, showed the Angels would generate "more than" $200M in economic benefit by bringing on Legends Hospitality. Both CSL and Legends Hospitality are divisions within N.Y.-based Legends. The report was commissioned by the city of Anaheim as it "entered into stadium-lease negotiations with the team." The finding of $200M in economic benefit "played a central role in the Anaheim City Council majority’s justification for a proposal to give team owner Arte Moreno development rights to 155 acres of city-owned land surrounding the stadium." Legends Hospitality announced that it was chosen for the concessions contract two days after a CSL consultant "made a glowing presentation to the City Council about the team's economic benefits." L.A.-based Center for Governmental Studies President Bob Stern said, "The question obviously is, are they being rewarded for their report?" City of Anaheim Public Information Officer Ruth Ruiz in a statement said that city officials "were not made aware of the relationship until the company made a public announcement on Sept. 26." Ruiz: "As stated in the correspondence from Legends Chairman and CEO, Mr. David Checketts, CS&L is a stand-alone, wholly owned subsidiary of Legends which operates autonomously." However, Angels consultant Marie Garvey said that the city "was told of Legends’ potential as an Angels contractor before the economic report was presented to council members in early September." Still, Garvey emphasized that the two contracts "are not connected" (ORANGE COUNTY REGISTER, 4/25).

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