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Spectra Scratches Head Over Glendale Loss
The loss of the University of Phoenix Stadium to SMG was particularly painful for Spectra, and company officials are now scratching their head trying to figure out how they lost their only NFL account.
Ultimately, it was SMG’s financial package that prevailed, explained SMG VP Doug Thornton, who said his team won by creating a fee structure that only rewarded SMG if it hit certain financial and qualitative bench marks.
“Those benchmarks were proposed by us and not the Authority,” Thornton told the Real. “Our competition, Spectra, had the same opportunity to propose benchmarks. Depending on how aggressive one was with the benchmarks really made the difference.”
Photo: AP Photo
The new agreement comes as ASATA faces new financial pressure after an audit revealed a drop in tourism revenues had meant decreased funding for the state agency, which also manages Arizona’s Cactus League ballparks. The financial picture worsened when a Maricopa County judge ruled that a car rental surcharge that raised $14 million a year for the authority was unconstitutional.
A key recommendation in the audit was for the authority to use the RFP process for UOPS Stadium to “consider several options for improving the agreement to help ensure it can generate sufficient revenues to pay its operational expenses.”
Thornton said SMG structured its proposal with benchmarks to increase revenues at the facility.
“We are confident that we can move the needle on the top and bottom line and we were willing to bet on ourselves,” he said.