Global Update

31 08 2006

Yes, it is true. The Dodge Arena has fired Global Entertainment from its position as manager, and the city of Hidalgo will take over, becoming the third manager since its opening.

According to the McAllen Monitor article, which can be read in full here , the main reason was made out to be that Global wasn’t hiring enough staff from the Hidalgo area, an issue that has been of big concern to the city since its completion. Global has said they will remain in the area, however, “maintaining what [they] do to support the city.”

When you read on, however, you find one distinct difference between the Dodge and the Chevrolet. Dodge was originally managed by Global Spectrum, who was subcontracted by Global/ICC to run the facility, though that relationship was broken off when the city complained of the poor customer service and custodial jobs at the arena. In response, Global created a new company, GECompass, to manage the venue.

Global’s website doesn’t report any news on the event, though they have issued a press release on results of fiscal year 2006. Their net income declined by nearly $200,000, from $435,761 last year to $245,055 this year. In addition, earnings per share were cut in half from .08 to .04. Their reason for lack of revenue growth: not adding new hockey franchises as talks with communities about an entertainment district extended beyond the fiscal year.

Meanwhile, here in Youngstown, Mayor Jay has reported the city’s relationship with Global is just fine. I wonder how much the mayor has looked into the troubles Global has been experiencing in its other places of business, or if he’s even considered looking into other options as far as a manager.

My only comment to conclude this piece is that this current wave of news from Global does nothing to ease my feelings about the company, and only reaffirms my belief the city needs to re-evaluate its relationship with the company, and possibly break off our contract with them. True, they did bring the arena to the city, but since its completion, unfulfilled promises, financial shortfalls, and the facility running at a defecit a year later has plauged it, and I do not think we expected this to happen.

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