"Hoping to squeeze more revenue from Mile High
Stadium," a Denver city committee has recommended
privatizing the city-owned facility instead of keeping it
under the management of the parks and rec department,
according to Alan Snel of the DENVER POST. The committee
recommended Philadelphia-based Spectacor Management Group
(SMG) -- which also manages the city's convention center --
over Ogden Entertainment, which has the food-and-drink
contract at Mile High and McNichols Arena. In its
presentation to the city, SMG "promised to increase revenue
by boosting marketing, selling more ads in the stadium and
drawing more events." The proposed management fee was
$175,000 a year, 25% of the first $500,000 above the current
operating income and 30% on top of that $500,000. Mile
High's '96 revenues of $7.23M included $2.2M from rent, $2M
from concessions/merchandise and $1.2M from ads. Although
the recommendation was made in March, Mayor Wellington Webb
has not yet "taken any action" (DENVER POST, 5/14).
ARENA TALK: At its annual meeting Tuesday, Avalanche
and Nuggets parent Ascent Entertainment Group gave
shareholders an "animated video tour" of the proposed Pepsi
Center, according to Stephen Keating of the DENVER POST.
Ascent President/CEO Charlie Lyons: "Until the sports teams
are housed in a new facility, they will continue to lose
money." Keating notes that Lyons' "trump card" in talks
with Mayor Webb "is that perhaps the sports teams would be
better investments if moved to a city hungrier to provide
tax breaks and help build a new arena" (DENVER POST, 5/14).
