SMG to manage arena for next 10 years

WILKES-BARRE TWP. – The company that has been managing Wachovia Arena for the past several years now has a contract to manage it for the next decade.

SMG – one of the world’s largest sports and entertainment facility managers – also will have exclusive rights on retail sales at the arena and will take over food and beverage services at the end of the year.

The Luzerne County Convention Center Authority board of directors on Wednesday voted to ratify three 10-year agreements with SMG for those services.

Board solicitor Murray Ufberg said SMG will receive a fixed fee for the management contract, and there will be an additional monetary incentive based on the arena’s profitability.

Ufberg refused to release copies of the contracts or to provide specific details because the contracts had not been signed by board President Patrick Judge, who was out of town on Wednesday. Judge participated in the meeting through a conference call.

Ufberg said the board hoped to improve efficiency and profitability at the arena by consolidating management of the three services with one company.

Food services/facilities management giant Aramark Corp. of Philadelphia will continue providing food, beverage services and retail services at the arena until the corporation’s 10-year concessionaire contract expires in November.

Based in West Conshohocken near Philadelphia, SMG was a joint venture between Aramark and hotel operator Hyatt Corp.

SMG has been managing the arena since the board voted to accept the company as the new manager in July 2000 – three months after Aramark bought Ogden Entertainment – the original arena manager.

SMG regional manager Bob Belber thanked the board for “giving us another 10 years.” He said the vote of confidence “means a lot” to facility manager Rebecca Bonnevier and her staff.

In her monthly report, Bonnevier said ticket sales for the “Walking With Dinosaurs” show June 3-7 have been phenomenal. She said show producers told her this is “one of the most successful markets they had on this tour,” with ticket sales double the goal producers set for this market.

Bonnevier said a fall prevention system for crews working high above the arena floor during shows has been ordered and should be installed in time for “Walking With Dinosaurs.”