Two firms submit bids to run Sears Centre
Two arena management companies have submitted bids to Hoffman Estates to oversee the day-to-day operations of the Sears Centre.
The village's arena committee is to meet on Friday, Oct. 23, to interview officials from SMG World and from Global Spectrum, Mayor William McLeod said late Tuesday.
Hoffman Estates is searching for a national firm to run the arena once the village takes control of the 11,000-seat venue from the current owners, which includes the Ryan Companies.
The village is targeting a Jan. 1 transition date, and the village board has already voted to file foreclosure proceedings against the owners to speed up the process to take control of the arena near the Jane Addams Memorial Tollway and Route 59.
Ryan is the Minnesota-based developer that has run the arena since 2006. Hoffman Estates backed a $55 million loan to Ryan to build the $62 million facility.
If Ryan walks away, the village would assume responsibility for repayment of the loan, possibly $88.4 million over 22 years, unless the building is sold to another party.
A gloomy economy and sagging concert business led Ryan and village officials to start negotiating a deal to transfer control of the building.
The village lacks experience running an entertainment venue and solicited bids from four arena management firms. Besides SMG and Global Spectrum, that included Live Nation and VenuWorks.
SMG, based in West Conshohocken, Penn., manages Soldier Field in Chicago as well as other National Football League and Major League Baseball stadiums and arenas.
Global Spectrum, based in Philadelphia, is part of the Comcast-Spectator family. The cable network giant has recently been linked to a possible purchase of NBC. Like SMG, Global Spectrum runs a variety of arenas where pro and college sports teams play.
As a direct competitor with Chicago's Jam Productions, hiring Live Nation could have prevented Jam from bringing shows to the Sears Centre. Jam co-founder Jerry Mickelson previously came out against bringing Live Nation to the Sears Centre.
Live Nation also has a proffered agreement with the Allstate Arena in Rosemont, the Sears Centre's chief rival.