New ownership could bring quick change in arena management

Local group trying to buy the team has had formal discussions with a national arena management company that could bring more concerts, advertising and corporate sponsorships

Email | Print By Richard Lawson

10-04-2007 8:43 AM — If the deal for the Nashville Predators goes through, the new owners could immediately sign Anschutz Entertainment Group to manage the Sommet Center, replacing Powers Management, according to sources.

Executives with Los Angeles-based AEG, one of the world's premier concert tour companies and facilities managers, have been in town several times for formal discussions with David Freeman, chief executive officer of 36 Venture Capital and leading the group to buy the Predators from Craig Leipold. The company has also looked at the arena's finances.

Such a deal with AEG would unite the company with one of the investors, Silicon Valley venture capitalist William "Boots" Del Biaggio. The two had a deal if could get a team to Kansas City. He ended the deal when he joined with Freeman and the local investors to make the bid on the Predators. Kansas City is still hopeful to get the Predators should the deal fall apart here.

Improving the Sommet Center's non-hockey performance is key to the future of the Nashville Predators should the local group succeed in renegotiating the lease and completing the purchase of the team. The group is counting on a significant increase in non-hockey business to help the fund the hockey operations.

The thinking is that a national firm such as AEG has more leverage to bring in concerts than Powers Management. Now, acts take guaranteed money up front and companies like AEG own the tours and decide the tour routes.

AEG Facilities, a division of AEG, has been making a push into managing arenas. Earlier this year, it won a contract with the New Jersey Devils to manage the Prudential Center in Newark, N.J. In May, AEG took over management of the Target Center in Minneapolis. And other deals are in the works. The company manages others, including The Forum in Inglewood, Calif., The Staples Center in Los Angeles, Colosseum at Caesar's Place in Las Vegas, and Nokia Theatre Times Square in New York City.

In pushing this direction, AEG is integrating its arena management with its concert tour business and advertising and corporate sponsorships deals. Under AEG, Sommet Center and the Predators could pick up more national advertising and corporation sponsorships and share in the revenue, one industry insider said. The insider said AEG can sell across all the arenas it manages.