lubu wrote:
I think sparks is unwittingly on to something but again he presents a wishful thinking end that is not supportable. He says it would make sense for the city to work directly with talent agents to run shows at the Civic Center and use the profits to maintain and upgrade the facility there. That doesn't make sense because he doesn't know, or he doesn't confess to know, what the expenses are, let alone the income from ticket and vendor sales that no one will know until after the fact. Will loses, if there are any, be paid from funds that would otherwise have been spent to maintain and upgrade our public asset? If taxpayers are indeed the promoters of this show, on what authority are public funds spent? Can the city speculate and buy oil futures with public dollars?
As to Matt's points, can anyone give a reliable account of the Nellie event? Since decent and bust aren't synonymous, we have reports that are at odds. I'll withhold judgment on the show until it comes to pass or is cancelled. If taxpayers are indeed on the hook, I hope it does well. However even with that outcome, government managers should not be shuffling public like Monopoly money in activities where real loses are possible.
Ok .... this is back of the napkin business planning .....but here goes .....
Most concerts are a 50/50 split to the promoter and the artist. Hammond owns the venue so the costs are minimal other than staff costs. You have some marketing costs, some of which is picked up by sponsorships. Pick up a sponsor or 2 to pay the booking fee and you are done.
It's even safer business wise than Festival of the Lakes where sponsorships have to pay all of the fees or the city is on the hook. Only here you have actual revenue coming in .....