Covelli Center Ticketmaster Deal Means More Money
YOUNGSTOWN, Ohio – The city could realize an additional $50,000 annually from ticket sales for events at the Covelli Centre under a new five-year agreement with Ticketmaster LLC, the arena's ticketing agent.
The new deal, approved Thursday by the city’s Board of Control, adds significantly to the bottom line of the arena’s operations, said Eric Ryan, executive director of the Covelli Centre. Ryan’s company, JAC Management, has been managing the city-owned property for Youngstown since October 2007.
“Obviously both Ticketmaster and our management company realized we’ve had a great partnership, that they’re very happy with the partnership that we’ve had and with the number of tickets,” Ryan said. “They recognize us as a valuable client and they wanted to keep us.
“It’s good for us and good for the Covelli Centre,” added Mayor Charles Sammarone, chairman of the board of control. The deal comes in the process of an assessment the city is having performed in preparation for a potential sale or lease of the Covelli Centre. Ryan recommended the extension, he noted.
The city entered into an agreement in May 2008 for Ticketmaster to act as ticketing agent for the Covelli Centre.
Under the new agreement, the city will receive a higher percentage of the convenience charge placed on ticket sales, said Anthony Donofrio, deputy law director. “It’s great for us because Ticketmaster does all the processing,” he said. The consultant the city has contracted with for the assessment, PA Sports & Entertainment Group Inc., agreed it is a “great deal” for the city, he said.
In 2011, the city received about $140,000 in commissions from ticket sales. Under the new agreement the city would have made an additional $40,000- to $50,000, Ryan said.
Being affiliated with Ticketmaster “has really legitimized our arena and our ability to market” both within and outside the region, Ryan said. Ticketmaster has a large database of subscribers “so when we have these bigger-name artists, we’re able to draw outside of our market,” he added.
“It’s been a great partnership,” Ryan said. “We’ve sold a lot of tickets over the last year.”
Sammarone said he hopes to have a final report from PA Sports within 30 days and wants to have proposals back in the first couple months of 2013 from individuals or companies interested in purchasing or leasing the building.
The Board of Control also approved three-year extensions of lease agreements with two tenants at 20 Federal Place, which the city owns. The extensions are for the law firm of Nadler, Nadler and Burdman for 11,988 square feet of space, and for the U.S. Bankruptcy Court’s Chapter 13 trustee for 5,250 square feet of space.
In addition, the board approved a request by downtown events director Lyndsey Hughes for $15,000 to be paid to Comcast/Armstrong Cable for a marketing campaign for downtown Youngstown. The campaign will include 18,000 television spots focusing on downtown establishments, 5,000 cable spots, 450 WFMJ network spots, and two Lamar outdoor billboards, one in Mahoning County and one in Trumbull County.
Copyright 2012 The Business Journal, Youngstown, Ohio.