K.C. Expected To Generate $1.8M From Sprint Center Events
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Number Of Marquee Concerts Helping
Drive Sprint Center Profits In K.C. |
K.C. is "expected to cash in on a rocking year of concerts and events at the Sprint Center to the tune" of $1.8M, according to a front-page piece by Kevin Collison of the K.C. STAR. The "boost comes from a profit-sharing section in the development agreement between the city and the arena's operator," AEG. The agreement specifies that once AEG turns a 16% profit at the facility, the city receives "half of any additional proceeds." AEG President & CEO Tim Leiweke noted that the venue's profitability "challenged arguments that the arena wouldn't be a winner until it attracted a professional sports team as its main anchor tenant." Leiweke said that the "strong, concert-fueled profits at the arena during the fiscal year that ended July 31 means AEG can be more selective about pursuing an NHL or NBA franchise for the facility," which opened in October '07. Any pro team would "likely demand big chunks of the facility's revenues from luxury suites, concessions and sponsorships," and that would "cut the arena's ultimate profits." While "landing a professional sports team as an anchor for the arena remains the ultimate goal for AEG," Leiweke said that the presence of a team "also could diminish its popularity as a concert venue." Leiweke: "There's a lot going on with both the NBA and NHL. … I think it's best for us now to stay focused on keeping this a great arena, and the leagues will sort themselves out over the next two years, and when the time comes, we'll seize the opportunity" (K.C. STAR, 9/23).
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