First Mariner Arena deal draws bids from SMG, Global Spectrum and AEG
Baltimore Business Journal by Jack Lambert, Researcher/Reporter
Date: Thursday, September 27, 2012, 9:53am EDT - Last Modified: Thursday, September 27, 2012, 9:54am EDT
The 14,000-seat First Mariner Arena sits off Howard and Baltimore streets.
- Jack Lambert
- Researcher/Reporter- Baltimore Business Journal
Two outside companies are taking on the existing First Mariner Arena operator, SMG Corp., for the chance to run the 14,000-seat Baltimore venue.
SMG, Global Spectrum LP and AEG Facilities submitted bids to help find a naming rights deal and manage the advertising and operations at the arena. The bids were due to the city comptroller’s office Sept. 26.
The arena proposals contained two parts. The first part was a one-time price the operators would charge the city to find a new naming rights deal. The second was pricing sheets that would show estimated percentages of “net annual operating profit” for the arena over five years.
The city declined to disclose the proposed percentage of revenue the management companies are requesting.
AEG, operator of the Staples Center in Los Angeles and Barclays Center in Brooklyn, N.Y., told the city it would not charge anything to help broker a sponsorship deal.
SMG, the West Conshohocken, Pa.-based company that has managed the arena since 1990, submitted a price of $100,000. Philadelphia-based Global Spectrum, which manages Wells Fargo Arena and Citizens Bank Park in Philadelphia, proposed a price of $250,000.
First Mariner Arena was ranked the top grossing venue in North America between 10,000 and 15,000 seats by Billboard Magazine in 2011. The arena brought in $16 million in an estimated gross revenue that year.
The naming rights to the arena is currently held by former First Mariner Bancorp CEO Edwin F. Hale Sr. ’s holding company, Arena Ventures LLC.
Arena Ventures LLC had its deal extended by the city on a monthly basis until Dec. 31.
Hale could not be reached for comment.
Hale signed a 10-year, $750,000 deal for the arena’s naming rights in 2002 and has said he remains interested in re-upping the deal.
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