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?