LadyStanley
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The home of the ECHL Stockton Thunder is owned by the city and has been operated by IFG. The arena lost $2m in 2009, $9m over five years.
City thinks that the reason for losses is lack of booking events. So, they're buying out the IFG contract ($1.3m from special fund, $1m from next management company, SMG), and putting together a financial-incentive deal.
The city is also anticipating that there will be a $1.7m loss in the first year of the deal.
The home of the ECHL Stockton Thunder is owned by the city and has been operated by IFG. The arena lost $2m in 2009, $9m over five years.
City thinks that the reason for losses is lack of booking events. So, they're buying out the IFG contract ($1.3m from special fund, $1m from next management company, SMG), and putting together a financial-incentive deal.
Deputy City Manager Laurie Montes said the new SMG agreement will be similar to an older draft in that the city will pay the company a $270,000 base annual fee and additional incentive fees for improved financial performance.
...
Though the 2004 contract with IFG has been widely criticized for providing IFG little incentive to post a strong performance, Reinsdorf defended the agreement and said it wasn't fair for people to focus on the facilities' losses.
He said IFG took on tremendous risks when it arrived six years ago and brought minor league hockey to Stockton - the popularity of which has contributed to increased activity downtown, he noted.
"That was a goal of the city, and I think they accomplished that goal," Reinsdorf said.
The city is also anticipating that there will be a $1.7m loss in the first year of the deal.
