Wednesday, December 11, 2013

AEG and Los Angeles Convention Center

The Anschutz Entertainment Group (AEG) is an American worldwide sporting and music entertainment presenter, which was selected by the city of Los Angeles to manage what locals are calling the “White Elephant” that is the Convention Center in downtown Los Angeles.  As I have noticed more and more government own buildings designated to the entertainment business such as theaters, sporting arenas and convention centers just to mention few are been transfer to the private sector for its management.   In most cases this has been proven to be a good move but this is the first time that a city the size of L.A. (the second biggest in the nation) have taken this route.

I have read in few other blogs the opposition of a lot of people about this decision, mostly, because the local embarrassment that their government can’t handle the “simple task” of managing their own convention center like most other cities do.  In my opinion this is a win-win situation, for AEG for obvious reasons but the public and residents should benefit as well about this decision.  A private company like AEG can bring more profitable events to the convention center by avoiding the slow process, bureaucracy, restrictions and having to deal with unions that usually interfere when they are handle by the city.

More of these events should translate in more sales of tickets, food and tourist spending in local stores, which will benefit the city by collecting taxes.  Also the city won’t have to spend money on building repairs and maintenance since most of the time that will be AEG’s responsibility as part of the deal.  No matter I can see it this is good for the city of Los Angeles and as this week AEG announced the new changes that the center will experiment in the next few months. Since this is the first time that something like this happened in the US only time will tell if this new alliance will work or not.  What are your thoughts about this?

Sunday, November 10, 2013

A Liability Concern

One current event that seems necessary to discuss in event management is the foreseeable risk involved in hiring subcontractors and vendors who might in turn create liabilities for the event management company. For example, to organize a customer’s dream wedding, most event planning companies have to rely on different vendors such as catering companies, performers, musicians, decorators and valet parking attendants among others to create that desired event.  This event could be ruined if one of these sub-contractors does not perform accordingly as stated in the contract or if the sub-contractors show any type of negligence. Identifying who is responsible might seem obvious on the surface, but it can become complex because some of the responsibilities overlap, certain responsibilities are delegated by the events management company to the sub-contractors and at many times, there are multiple contractors involved.  While there are many variables that are in the control of the events management company and it’s sub-contractors, there are many factors that are out of their control such as natural disasters, death of the customers and other crisis events that often go unforeseen.  As a result, events management companies place themselves in positions of great risk and legal liability that requires the field to create and come up with some sort of legal protections. One such protection is liabilitycoverage, which many companies simply choose to ignore because on the surface their services might seem to pose a limited risk.

There are several current examples of liability issues within the field of events management. For example, AEGLive, the management company for Michael Jackson, faced a very complex situation when Michael Jackson passed away.  The company faced a heavy lawsuit due to the involvement in probate court where Michael’s mother was appointed executor of his estate.  She attempted to sue the events management company as part of the wrongful death suit, albeit she was unsuccessful.