US Airways Center Live Nation RFP Response - City of Glendale

VENUE 

MANAGEMENT 

JOBING.COM ARENA 

RESPONSE TO REQUEST FOR PROPOSAL

May 31, 2013 

Jobing.com Arena RFP 

Gerald Sheehan 

Beacon Sports Capital Partners, LLC 

1244 Highland Avenue, Suite B 

Needham, MA 02492 

Dear Mr. Sheehan, 

We, an affiliate of Phoenix Arena Development Limited Partnership (“Arena 

Operator”) and Live Nation Entertainment (“Booker”), are pleased to present our 

proposal for operating and managing Jobing.com Arena (“Arena”). The unique 

partnership between the Arena Operator and Booker offers the City of Glendale 

an unparalleled opportunity to utilize the valuable assets of the largest producers 

of live entertainment in the local market who collectively manage the most 

dominant venues including the US Airways Center, Comerica Theatre, and Desert 

Sky Pavilion. We are committed to: 

• Providing a smooth transition from the current arena operator 

• Managing costs and increasing revenues 

• Using our influence, leverage, and expertise to book, promote, and develop 

quality Arena events 

• Assisting the City of Glendale in the sales and marketing of advertising and 

premium seating at the Arena 

• Using our best efforts to attract a minor league hockey team or another 

suitable primary tenant 

• Maintaining the Arena as a premier facility in the local market 

• Providing high quality and consistent customer service while utilizing our 

leadership and subject matter expertise of key disciplines within the Arena 

Operations structure 

• Creating a positive working relationship with the City of Glendale and 

Westgate City Center tenants 

We believe that you will find we offer the best partnership for the City of Glendale. 

We look forward to continuing our discussions with you. Thank you for your 

consideration. 

Sincerely, 

Ralph Marchetta 

Senior Vice President and General Manager, 

Phoenix Arena Development Limited Partnership 

and Sports & Entertainment Services 

RESPONSE TO REQUEST FOR PROPOSAL 

2

A 

PROPOSING 

TEAM 

SUMMARY 


PROPOSING TEAM SUMMARY 

BIOGRAPHIES 

OFFICERS AND BOARD OF DIRECTORS, PARTNERS, 

OR OTHER CORPORATE GOVERNING BODY OF THE 

CONTRACTING ENTITY. 

ROBERT G. SARVER 

MANAGING PARTNER & OWNER, PHOENIX SUNS 

Robert Sarver is not simply the managing partner of Arizona’s original sports 

franchise. The Tucson native and Valley resident is a successful businessman 

and a committed philanthropist, husband and father with a lifelong passion for 

basketball, the Suns, the state of Arizona, and—above all—winning. 

As an 8-year-old boy, Robert Sarver attended his first Phoenix Suns basketball 

game after receiving tickets as a birthday gift from Donald Diamond, one of 

the franchise’s original owners. Thirty-five years later in 2004, Sarver became 

the majority owner of one of the NBA’s model franchises, assembling a group 

of investors that purchased the Suns, the WNBA’s Phoenix Mercury, and the 

operating rights to US Airways Center. In eight years under Sarver’s leadership, 

the Suns have enjoyed virtually unparalleled success on the court. Phoenix owns 

the third-best record in the NBA since the start of the 2004-05 season (405- 

235, .633). His tenure includes three appearances in the Western Conference 

Finals and two of the three 60-win seasons in the franchise’s 44-year history. 

With his goal to create sustained success, the Suns’ payroll increased in each 

of Sarver’s first five seasons as owner, and ranked in the top 10 in the league 

in three of those campaigns and three of the last five seasons. Sarver’s passion 

for winning extends beyond the men’s game. His continued commitment to the 

WNBA in Phoenix has resulted in the Mercury winning two league championships 

in 2007 and 2009. The Mercury have made have four Western Conference Finals 

appearances in the last six seasons. In 2009, the Mercury partnered with Tempebased 

LifeLock and became the first team in NBA or WNBA history to secure 

a corporate-branded jersey. Guided by his stated mission, the Suns and Mercury 

organizations are industry leaders in business innovation and community outreach 

and involvement. Sarver is a member of the NBA’s Board of Governors, Labor 

Relations Committee, Advisory Finance Committee, and Audit and Compensation 

Committee. 

Sarver is the Chairman and CEO of Western Alliance Bancorporation, which 

has $7 billion in assets and does business in Arizona, California, Nevada and 

Colorado. Western Alliance is the largest financial institution headquartered in 

Arizona. The company recently moved to the CityScape tower across the street 


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ROBERT SARVER 

AT A GLANCE 

Two Mercury 

Championships 

Chariman/CEO 

Western Alliance 

Phoenix Suns 

Charities 

from US Airways Center. More than 200 of the company’s 1,000 employees are 

in Phoenix. Despite tough economic times, the bank has written more than $1 

billion in local business and real estate loans in Arizona over the last three years, 

and has continued to be one of the most active small business lenders in Arizona. 

The bank also financed the retail component of CityScape, demonstrating his 

commitment to the continued renaissance of downtown Phoenix. Sarver is the 

co-founder of Southwest Value Partners, a 25-year-old contrarian real estate 

fund. He has served as a director of SkyWest Airlines since 2000 and Phoenixbased 

Meritage Corporation since 1996. After the passing of his father, Jack, and 

with very little start-up capital, Sarver founded National Bank of Tucson in 1984, 

becoming the youngest person ever to found a national bank. Robert served as 

the company’s president until its sale in 1994. 

Sarver’s ever-growing philanthropic efforts focus not simply on worthy causes but 

also giving back to Arizona and its local communities, both through Phoenix Suns 

Charities and his own personal contributions. Under Sarver’s leadership, Phoenix 

Suns Charities has made approximately $7 million in donations to local nonprofits. 

Most recently, PSC handed out over $1 million in grants and scholarships 

to 120 non-profit organizations in 2012. And, most notably, Sarver has spearheaded 

SunsCentral, the team’s adoption of an inner-city high school in an effort 

to dramatically affect the graduation rate of the neighborhood school. Among 

his proudest accomplishments, Sarver helped to build the Sarver Heart Center 

at the University of Arizona in memory of his late father, who was among the 

first to undergo heart bypass surgery. The center is composed of more than 150 

physicians and scientists and aims to prevent and cure cardiovascular diseases 

through the three pillars of research, education and patient care. 

The 51-year-old Sarver is a 1979 graduate of Sabino High School in Tucson 

and a 1982 graduate of the University of Arizona. Sarver earned his bachelor’s 

degree in business administration, and became a certified public accountant in 

1983. Sarver and wife Penny have three sons, Max, Jake and Zach. On their first 

date, Robert invited Penny to watch the NCAA Men’s Basketball Tournament at 

his house. Sarver is a “soccer dad,” who can regularly be found at one of his three 

boys’ soccer games or coaching his sons in the Jr. Suns league at the YMCA. 


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JASON ROWLEY 

PRESIDENT, PHOENIX SUNS 

Jason Rowley begins his first season as the Suns’ President and his sixth 

season overall with the team. As President, Rowley is responsible for supervising 

all business operations of the Suns and oversees the club’s interests in the 

management of US Airways Center, the Legends Entertainment District, and 

affiliated entities. Rowley previously served as the team’s Chief Operating Officer, 

as well as its Senior Vice President and General Counsel. 

Rowley began his career in 2001 with the law firm of Snell & Wilmer in Phoenix, 

and while there he represented the Suns’ current ownership group in their 

acquisition of the club in 2004. At Snell, his practice included private and public 

mergers and acquisitions, complex real estate transactions, securities regulation, 

entity formation, commercial contracts and general business law. 

JASON ROWLEY 

After leaving Snell, Rowley served two years as corporate counsel for The Van 

Tuyl Group, the nation’s largest privately held automotive retailer. While at Van Tuyl, 

his practice focused on real estate and dealership acquisitions and development, 

as well as general corporate and contract law. 

Rowley earned his bachelor’s degree in 1994 from the University of Arizona. After 

graduation, Rowley joined the United States Navy, an experience he considers 

one of the proudest and most formative of his life. He worked as an intelligence 

analyst with the Commander 3rd Fleet Intelligence Division until his honorable 

discharge in 1998. He then returned to the University of Arizona to pursue his law 

degree, graduating in 2001. 

Rowley is involved in a number of civic organizations. He is a Thunderbird, the 

non-profit group that hosts the Waste Management Phoenix Open, serves on 

the Board of Phoenix Suns Charities, and also serves on the Downtown Phoenix 

Partnership board. 


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JIM PITMAN 

EXECUTIVE VICE PRESIDENT, FINANCE AND 

ADMINISTRATION, PHOENIX SUNS 

Jim Pitman oversees all accounting, finance, information systems, and insurance 

aspects of the organization and is in his 14th season as executive vice president 

of finance and administration. The Suns’ NBA finance chief also assists with 

salary cap and player contract management. 

JIM PITMAN 

Pitman also oversees all financial aspects of the US Airways Center and Phoenix 

Mercury (WNBA). Pitman serves as treasurer of Phoenix Suns Charities and is a 

board member of the US Airways Center Education Foundation and the Valley of 

the Sun YMCA. He also serves on the Finance Committee for the Valley of the 

Sun United Way. Coming to the Suns in 1992 as assistant controller, he moved 

up to corporate controller and vice president of finance before his most recent 

promotion. Prior to the Suns, he spent nearly five years in the audit division of the 

Phoenix office of Arthur Andersen with client responsibility in the professional 

sports, hospitality, and wholesale distribution industries. A native of Rio, Ill., Pitman is a 

1987 graduate of the University of Illinois where he earned a degree in accountancy. 

Pitman and his wife Linda live in Phoenix. He has two children, Amy (20) and Kyle 

(18), and lists basketball, softball and golf as his favorite out-of-office activities. 

RALPH MARCHETTA 

SENIOR VICE PRESIDENT AND GENERAL MANAGER, 

PHOENIX ARENA DEVELOPMENT LIMITED PARTNERSHIP 

AND SPORTS & ENTERTAINMENT SERVICES 


Ralph Marchetta was promoted to the position of General Manager of Sports 

and Entertainment Services in August, 2007. As General Manager, Marchetta 

oversees all operations of the US Airways Center. In addition to servicing 

professional sports teams that include the Phoenix Suns, Phoenix Mercury and 

the Arizona Rattlers, he books all events at US Airways Center including working 

with the NBA, WNBA and AFL to schedule all regular season and pre-season 

games. Marchetta has booked hundreds of concerts including Barbra Streisand, 

U2, Paul McCartney, Rolling Stones, Vicente Fernandez, Juan Gabriel, Andrea 

Bocelli and many others. He has extensive relationships with Feld Entertainment 

(Disney on Ice and Ringling Brothers Barnum and Bailey Circus), World Wrestling 

Entertainment and many other family show and concert promoters. Marchetta has 

been at US Airways Center prior to the venue’s opening in 1992. In managing 

US Airways Center, as a key asset to the community, Marchetta works with the 

leadership of the City of Phoenix, Phoenix City Council and Downtown Phoenix 

Partnership. In addition, he serves as a board member of the Phoenix Police 

Department Reserve Foundation. Marchetta graduated from Arizona State University. 


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ALVAN ADAMS 

VICE PRESIDENT, FACILITY MANAGEMENT, 



ALVAN ADAMS 

Alvan Adams is responsible for the overall operation of US Airways Center. Alvan 

retired from his center position with the Phoenix Suns Basketball Team in 1988. 

Soon after, he joined Sports and Entertainment Services and was instrumental 

in the development and construction of US Airways Center. In his position, 

Alvan works closely with the purchasing, engineering, maintenance, and events 

departments. In addition, he manages all renovation projects. These areas work 

in tandem with the many events held at USAC. Alvan also participates in Phoenix 

Suns community relations programs as well as Ring of Honor and Legends 

events. The Phoenix Suns’ first-round draft pick in 1975, Alvan Adams enjoyed a 

stellar 13-year career with the Purple Gang from Phoenix. “The Oklahoma Kid” 

was an integral part of the Suns’ drive to the NBA Finals in 1975-76 and was 

named the NBA’s Rookie of the Year. Adams retired after the 1987-88 season 

as the Suns’ all-time career leader in rebounds, assists, steals, games played and 

minutes played. His jersey, number 33, was retired by the Suns and in June of 

1992 was hung in the new America West Arena. 

Working with youth has been a constant of Alvan’s in his adult years. After the 

NBA, Alvan coached youth basketball, baseball and soccer teams for seven years. 

He helped revive Pack 107 serving as Cubmaster before becoming Scoutmaster 

of Troop 401. He considers his involvement in Scouting one of the most 

meaningful activities of his life. Alvan and his son Justin are both Eagle Scouts. 


LIVE NATION BIOGRAPHIES 

Live Nation Entertainment is the world’s leading live entertainment and 

e-commerce company, comprised of four market leaders: Ticketmaster.com, Live 

Nation Concerts, Artist Nation and Live Nation Network. 

Live Nation Concerts produces over 22,000 shows annually for more than 

2,300 artists globally. We are the largest producer of live music concerts in 

the world (based on total attendance at Live Nation Entertainment events as 

compared to events of other promoters) connecting nearly 47 million fans to the 

artists and shows they love. 

Globally, Live Nation Entertainment owns, operates, has booking rights for and/ 

or has an equity interest in 142 venues, including House of Blues® music 

venues and prestigious locations such as The Fillmore in San Francisco, the 

Hollywood Palladium, the Heineken Music Hall in Amsterdam and the 02 Dublin. 

Ticketmaster is the world’s leading ticketing company, operating in 20 global 

markets, providing ticket sales, ticket resale services, marketing and distribution. 

Ticketmaster also operates approximately 6,500 retail outlets and 20 worldwide 

call centers. Ticketmaster celebrated its 35th anniversary in 2011 and currently 

serves more than 9,000 clients worldwide, including 24 of the 30 NBA teams. 

Artist Nation is the world’s top artist management company, representing over 

250 artists. Artist Nation and their affiliates manage musical artists and acts 

primarily in the rock, classic rock, pop and country music genres. 

Without a doubt, our global network is the world’s largest music marketing for 

corporate brands and includes one of the world’s top five e-commerce websites. 

In 2011, we drove almost 27 million average monthly unique visitors to www. 

livenation.com, www.ticketmaster.com and our other online properties. 

These businesses power Live Nation Network, the leading provider of 

entertainment marketing solutions, enabling nearly 800 advertisers to tap into 

the 200 million consumers Live Nation delivers annually through its live event 

and digital platforms. 


9

BOB ROUX 

PRESIDENT–NORTH AMERICA CONCERTS, REGIONS 

SOUTH, HOUSTON, TX 

Bob Roux is the President–North America Concerts, Regions South at Live 

Nation Entertainment, where he oversees all of the booking, operations and 

venues in the southern half of the United States. 

Prior to his appointment to President of North America in November 2010, Bob 

held the position of President for the Dallas / Houston / New Orleans Region for 

the company and also served on Live Nation Entertainment’s Board of Governors 

for North America. 

Bob has worked for the company and its predecessors since 1990. 

BOB ROUX 

TERRY BURKE 

TERRY BURKE PRESIDENT SOUTHWEST - MUSIC 

Terry Burke is President of the Southwest Region for Live Nation. He has been 

promoting concerts in the region since 1985 when he was first hired at Evening 

Start Productions. He has been with Live Nation since its inception. In his role 

as President he overseas the booking and operations of the Live Nation operated 

facilities Desert Sky Pavilion and Comerica Theatre in Phoenix and Isleta Pavilion 

in Albuquerque as well as the arena concerts held throughout the region. Burke 

has a Masters Degree in Finance and a Law Degree from the University of 

Arizona. He is a member of the Arizona Bar Association. 

TERRY BURKE 


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MICHAEL EVANS 

PRESIDENT OF LIVE NATION ARENAS 

In his role as President of Live Nation Arenas, Michael is dedicated to serving 

the needs and expectations of Live Nation’s major arena partners. He works with 

the Presidents of Live Nation’s North American Concerts Division to facilitate 

their programming and booking initiatives. He also serves as a liaison to the 

Ticketmaster Division and consults with Artist Nation Management on alternative 

touring projects. 

Michael has been nominated by Pollstar Magazine for Pollstar Awards in both 

the Talent Buyer and Facility Manager categories and has served on the board 

of directors on both the PBR (Professional Bull Riders) and the CMA (Country 

Music Association). 

MICHAEL EVANS 

SID GREENFEIG 

DIRECTOR OF BUSINESS DEVELOPMENT, 

LIVE NATION ARENAS 

In his role as Director of Business Development for Live Nation Arenas, Sid is 

dedicated to handling the day-to-day needs and expectations of Live Nation’s 

major arena partners. He works with all promoters to facilitate programming and 

booking initiatives for our clients. Sid also consults with Artist Nation and Live 

Nation Productions on alternative touring properties. 

Sid has worn many hats in the entertainment industry over the past 15 years. He 

has worked at William Morris Endeavor Agency, Booking Manager for the Verizon 

Center in Washington, DC, the Vice President of Entertainment the BB&T Center 

in Sunrise, FL, and worked in the touring division for Live Nation North American 

Concerts. 

SID GREENFEIG 


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CURRENTLY MANAGED FACILITY 

HOME TO AN NHL OR NBA TEAM 

US Airways Center in Phoenix, Arizona which is home to the Phoenix Suns. 

US AIRWAYS CENTER 

ORGANIZATION PROFILE 

US Airways Center, home to the Phoenix Suns (NBA), Phoenix Mercury (WNBA) 

and Arizona Rattlers (AFL), serves as the premiere sports and entertainment 

venue in Arizona. During an impressive 2012 campaign that marked the arena’s 

20th Anniversary, US Airways Center ranked 38th in the World in venue ticket 

sales, as published by POLLSTAR magazine. 

Since its inception, US Airways Center has hosted more than 3,400 events and 

welcomed 30 million fans through the arena doors. In addition to sporting events, 

music legends’ Lady Gaga, Madonna, Frank Sinatra, George Strait and U2 have all 

performed for sold out US Airways Center crowds. Family events such as the Ringling 

Bros. and Barnum & Bailey Circus, and Disney on Ice, are also an annual staple. 

Upon opening in June, 1992, US Airways Center boasted innovations including 

multi-story suite levels, attached premium parking facilities and an integrated 

team practice facility. In its first full year of operation, the new arena received high 

acclaim, being recognized as the Best New Concert Venue and Best NBA Facility. 

The completion of a $70 million renovation in 2004 added an air-conditioned 

glass pavilion around the arena’s ticket office, as well as a flexible outdoor 

entertainment venue, currently known as the Coors Light Cold Zone. More recent 

projects include the 2005 addition of the APS Gorilla’s Greenhouse, a 7,000 

square foot family-friendly amenity for children and families, as well as the 2011 

installation of 1,125 Suntech solar panels on the fifth level of the arena parking 

garage, securing US Airways Center’s place among the environmentally friendly 

arenas in the United States. 

Other improvements have included new technology installed in the main bowl, a 

900-foot LED ribbon, a center-hung scoreboard with HDTV screens, a new sound 

system, a new Courtside Club, Blue Moon Club and Verve Lounge nightclub. At 

street level the US Airways Center features a Starbucks, an expanded Team Shop 

and the all-inclusive Blue Moon Club. 

US Airways Center premium seating options consist of five exclusive clubs and 76 

suites. The 2012 construction of 23 theater boxes, four-person all-inclusive mini 

suites offering fans complete with VIP parking, complimentary food and drink, a 

private lounge and access to additional suite-level clubs, offers guests the most 

intimate fan experience. 


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SOLID INK OPTIONS 

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PRO SPORTS TEAMS 

PROVIDE THE NAMES OF THE PROFESSIONAL 

SPORTS TEAM(S) THAT PLAY ITS (THEIR) HOME 

SEASON(S) IN EACH FACILITY. 

NBA PHOENIX SUNS With at least 43 games a year including preseason, 

a typical NBA game welcomes over 12,000 attendees and as high as 18,000. 

Each game features in-game entertainment during breaks of play on top of the 

action on the court. The Phoenix Suns are the all-time fourth-winningest franchise 

in the NBA. 

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WNBA PHOENIX MERCURY Playing at least 17 home games every 

season, WNBA games have attendance ranging from 5,000 to 8,000. The WNBA 

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was founded by the NBA in 1996 as their counterpart for the women. The 

Mercury won league championships in both 2007 and 2009. 

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AFL ARIZONA RATTLERS Arena Football League games also welcome 

between 5,000 and 8,000 attendees per game. While the game may appear similar 

to NFL games, the field is only half as long, and, with no space to run out of bounds, 

the excitement is heightened. The entirety of this field fits in the dimensions of a 

standard hockey floor. The Rattlers have recently been one of the most successful 

ALF franchises, winning three championships since their inception in 1992. 

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EVENTS BOOKED 

BY THE CONTRACTING ENTITY AT THESE FACILITIES 

OVER THE PAST TWO YEARS. 

The Arena Operator books over 130 events every year at the US Airways Center 

that include sporting events such as NBA, WNBA, AFL, as well as concerts, family 

shows and community events. 


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CONCERTS – These events can be set-up to welcome as little as 3,500 

to as many as 18,000 attendees. They feature musical acts performing hit 

songs from all genres of music. The stage can be set-up in a variety of ways to 

accommodate the expected sellable capacity of the event. The most common 

is an end-stage 180 degree set-up, while the set-up for greatest capacity is a 

center stage, 360 degree set-up. 

FAMILY SHOWS – These are typically multi-show runs that last 

approximately a week. Every summer we host 11 performances of the Ringling 

Bros. Circus which features acts and animals from around the world. In the span 

of a week, we will have loaded in the show, created the animal holding areas in 

the arena garage, and welcomed over 40,000 guests. 

COMMUNITY EVENTS – We have worked closely with the City of 

Phoenix to book community events that range from youth sports and high school 

basketball to religious and other non-profit conventions and functions. 


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EVENTS BOOKED COMPARISON 

US Airways Center currently hosts concert and family shows in addition to 

sporting events. The Arena Operator would have the ability to bring comparable 

events to the Arena. The Arena Operator proposes to own a minor league hockey 

team or another suitable primary tenant if the NHL left the market. 

CONTRACTING ENTITY’S 

RESPONSIBILITIES 

PROVIDE A DESCRIPTION OF THE CONTRACTING 

ENTITY’S RESPONSIBILITIES AT EACH FACILITY. 

The Arena Operator is responsible for all areas of operation at US Airways Center, 

including sales and marketing, the facility operating budget, staffing, the City of 

Phoenix relationship and booking. 

FINANCIAL STATEMENTS 

Audited financial statements for the last three fiscal years and examples of financial 

reports have been submitted directly to Beacon Sports Capital Partners, LLC. 

LEGAL FORM 

INCLUDE THE LEGAL FORM OF THE CONTRACTING 

ENTITY AND THE STATE OF ORGANIZATION. 

Phoenix Arena Development Limited Partnership (“PADLP”) is the legal entity that 

operates the US Airways Center and is a Delaware limited partnership. As PADLP 

is a single purpose entity, an affiliate of PADLP would be formed as a Delaware 

limited liability company to operate the Arena (“Arena Operator”). Arena Operator 

would partner with Live Nation Worldwide, Inc., a Delaware corporation to book 

events at the Arena (“Booker”). 


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B 

PROPOSED 

FINANCIAL 

TERMS 


PROPOSED FINANCIAL TERMS 

TERM OF MANAGEMENT 

AGREEMENT 

Five (5) year term with the contracting entity’s option to renew for five (5) 

consecutive one (1) year periods. 

COMPENSATION/FEE 

• Base fixed management fee of $925,000 in year 1 with a four percent (4%) 

increase each year thereafter. 

• An equal 50/50 split of profits after all operating expenses are accounted for. 

City of Glendale shall be responsible for any operating shortfall. 

INVESTMENT 

The Arena Operator and Live Nation will use its best efforts to own a minor league 

hockey team or another suitable primary tenant if the NHL leaves the market. City 

of Glendale shall be responsible for all capital improvements to the Arena. 


17

C 

PROPOSED 

MANAGEMENT 

PLAN 


PROPOSED MANAGEMENT PLAN 

FINANCIAL PLAN 

PROPOSED STRATEGY FOR MINIMIZING ANNUAL 

OPERATING EXPENSES AND MAXIMIZING ANNUAL 

OPERATING REVENUES. 

Since the Arena Operator manages US Airways Center, there will be savings in 

a number of areas due to economies of scale. The following areas in particular 

will benefit from common management of two arenas in the market: Executive 

Management, Event Booking, Sales and Marketing, Event Staffing, Human 

Resources, Payroll, Accounting and Engineering. There may also be revenue 

opportunities by utilizing our collective leverage with regard to concessions, 

ticketing and merchandise sales. 

COMPETITIVE VENUES 

IDENTIFY ANY COMPETING FACILITIES MANAGED 

BY THE CONTRACTING ENTITY. 

The Arena Operator manages US Airways Center in downtown Phoenix and has 

had a competitive relationship with the Arena. By managing the event mix in the 

market it is our belief that we can ultimately increase revenues for both venues by 

increasing rents and reducing rebates to artists. Preliminary analysis indicates this 

could translate into significant additional revenue annually. 

ANCHOR TENANT PLAN 

PROVIDE EXPLANATION OF THE CONTRACTING 

ENTITY’S EXPERIENCE WITH ATTRACTING AN 

ANCHOR TENANT FOR A FACILITY COMPARABLE TO 

THE ARENA. 

Our organization has owned and/or worked with multiple anchor tenants over the 

years, most notably NBA, ECHL Hockey, Arena Football, WNBA, Indoor Soccer 

and Team Tennis. It is our plan to own and operate a minor league hockey team or 

another suitable primary tenant at the Arena. 


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TRANSITION PLAN 

PROVIDE OVERVIEW OF THE PLAN FOR 

TRANSITIONING FROM EXISTING MANAGEMENT 

ENTITY TO NEW CONTRACTING ENTITY. 

We would immediately begin an in-depth assessment of all arena functions. Once 

the assessment had been completed, we would create an organizational structure 

based upon on-going facility needs with a particular emphasis on those areas 

where we would be able to share services and responsibilities within our existing 

structure in the market. 

MARKETING PLAN 

PROVIDE STRATEGY FOR INCREASING THE NUMBER 

AND QUALITY OF EVENTS AT THE ARENA AS 

COMPARED TO THE PAST SEVERAL YEARS. 

Due to our leverage in the market we would be in a unique position to drive 

content to the Arena through utilization of area wide marketing and advertising, 

joint database usage (we currently have over 400,000 e-mails), sponsor 

engagement across venues and multiple promotion channels. 

ADVERTISING/SPONSORSHIP 

DESCRIBE A PLAN FOR ASSISTING THE CITY AND 

ARENA ANCHOR TENANT IN THE SALES AND 

MARKETING OF ADVERTISING/SPONSORSHIPS. 

We would utilize all of our resources in the market associated with our other 

partners to maximize both marketing sponsorships and premium seating, including 

creative packages between properties. 


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FOOD & BEVERAGE PLAN 

SUMMARIZE A STRATEGY AND MANAGEMENT PLAN 

FOR THE FOOD & BEVERAGE OPERATIONS. 

The Arena Operator would utilize our leverage in the market to obtain the best 

financial terms possible while ensuring high quality concession offerings. We would 

work with our concession partner to create sponsor sub-concessionaire opportunities 

as well. 

MAINTENENCE AND REPAIR 

PROVIDE A PLAN FOR MANAGEMENT OF THE 

MAINTENANCE AND REPAIR OF THE ARENA. 

The Arena Operator would first verify all major equipment and systems are fully 

operational. The Arena Operator would then perform a documentation review 

of all historical repairs and maintenance on all major equipment and building 

systems. The Arena Operator would analyze all data and documentation 

taking into account average life expectancy of equipment and then forecast for 

appropriate capital expenditures. 

CUSTOMER SERVICE 

PROVIDE A PLAN FOR EFFICIENT AND HIGH 

QUALITY DAY OF GAME SERVICES FOR THE ARENA 

ANCHOR TENANT AND A PLAN FOR THE STAGING 

OF OTHER EVENTS. 

The Arena Operator has prided itself in providing the best guest service of any 

facility in the country. We use extensive, organization-wide training, game-day 

shadowing and assessment, and continuous follow-up and reinforcement to 

ensure each and every guest has the positive and pleasant experience they 

expect when attending an event in our building. 

We will bring these high-quality techniques and standards to this new facility and 

use our many years of experience to find the most efficient and effective way to 

staff events to the benefit of both the guests and the bottom line. 


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SYNERGIES 

PROVIDE A STRATEGY TO MAXIMIZE THE USE OF 

LOCAL GLENDALE BUSINESSES. 

We would engage partners at Westgate and other businesses in the City of 

Glendale to create pre-event functions with radio partners and sponsors to drive 

traffic to local businesses. The Arena Operator would create post-event functions 

as well, such as drive to retail events with a ticket stub or happy hour parties for 

events that end earlier in the day. 


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D 

PERSONNEL 

PLAN 


PERSONNEL PLAN 

STAFFING PLAN 

FOR OVERALL MANAGEMENT OF THE ARENA. 

As the Arena Operator, we will be able to leverage our senior leadership and 

centers of excellence to deliver events and management of the Arena. This will 

offer the opportunity to share resources and create financial and operational 

efficiencies in administration. 

EVENT STAFFING PLAN 

FOR EVENTS AT THE ARENA. 

The Arena Operator will establish specific staffing plans for events after a full 

analysis of the Arena’s operational needs. We expect to staff security, guest 

and suite services, ticket office, parking, and other pertinent event positions. 

Because we manage events staffing for multiple locations, employees benefit 

from opportunities to work year round at a variety of locations/venues. This 

currently helps us retain staff, simplify training and therefore enhance the guest 

experience. This benefit will extend to the management of the Arena. 

EMPLOYEE RETENTION 

PROVIDE A PLAN FOR MAINTAINING AND 

RETAINING CURRENT EMPLOYEES. 

Our goal is to make this transition as seamless as possible. Our Human 

Resources team will meet with the Arena management staff to conduct a 

talent assessment of current employees and determine staffing needs. We 

understand these transitions can be stressful for teams so we will engage quickly, 

communicate often and work to retain high-performing critical staff. 


24

PERSONNEL PLAN 

REPORTING STRUCTURE 

DESCRIBE THE REPORTING STRUCTURE BETWEEN 

THE ARENA GENERAL MANAGER AND THE 

CONTRACTING ENTITY TO THE CITY. PROVIDE THE 

NAMES AND RESUMES OF PROPOSED GENERAL 

MANAGER CANDIDATES. 

The Arena will be managed by Ralph Marchetta within our current Arena 

Operations structure. He serves as SVP and GM, Phoenix Arena Development 

Limited Partnership and Sports & Entertainment Services (see bio on page #6). 

We will also leverage Leadership and subject matter expertise of key disciplines 

within the Arena Operations structure. This support will be allocated from Event 

Operations, Ticketing, Marketing, and centers of excellence such as IT, Human 

Resources, Finance, Payroll, Accounting, and Legal. 


25

PROPOSED ORGANIZATION STRUCTURE 


26

E 

MANAGEMENT 

AGREEMENT 


MANAGEMENT AGREEMENT 

DETAILS TO BE NEGOTIATED. 

RECITALS 

ARENA MANAGEMENT AGREEMENT 

TABLE OF CONTENTS 

ARTICLE 1 

ARTICLE 2 

ARTICLE 3 

DEFINITIONS 

TERM 

CITY USE AND ACCESS 

3.1 Use 

3.1.1 Reimbursement 

3.2 Access 

3.3 Announcements 

3.4 Signage 

ARTICLE 4 

OPERATIONS 

4.1 General 

4.2 Management 

4.3 Promotion 

4.4 Advertising 

4.5 Booking 

4.6 Facility Contracts 

4.7 Vendor Contracts 

ARTICLE 5 

FINANCIAL OBLIGATIONS 

5.1 Payments 

5.2 Operating Fee/Management Fee 

5.3 Renewal and Replacement Accounts 

5.4 Records and Audits 

5.4.1 Records 

5.4.2 Arena Audit 

5.4.3 City Audit 


28

ARTICLE 6 

IMPROVEMENTS 

6.1 City 

6.2 Operator 

ARTICLE 7 

ARTICLE 8 

IMPOSITIONS 

INDEMNIFICATION 

8.1 General 

8.2 Insurance 

8.3 Claims 

ARTICLE 9 INSURANCE 

9.1 Casualty 

9.2 Business Interruption 

9.3 Liability 

9.4 Workers’ Compensation 

9.5 Waiver of Recovery 

9.6 Failure to Maintain Insurance 

9.7 Proceeds Disposition 

ARTICLE 10 DAMAGE OR DESTRUCTION 

10.1 Adequately Insured Damage 

10.2 Insurance Deficiency and Termination 

10.3 End of Term 

10.4 Distribution 

10.5 Underinsured 

10.6 Payment Abatement 

ARTICLE 11 EMINENT DOMAIN 

11.1 Substantial 

11.2 Partial 

11.3 End of Term 

11.4 Distribution 

11.5 Suspension and Payment Abatement 

ARTICLE 12 LIENS 

ARTICLE 13 ASSIGNMENT AND TRANSFER 

13.1 Definition of Transfer 

13.2 Prohibition Against Assignment of Agreement by the Operator 

13.3 Prohibition Against Transfers of Interest in the Operator 

13.4 Prohibition Against Assignment of Agreement or Transfer of the Arena by City 


29

ARTICLE 14 PARKING 

ARTICLE 15 REPRESENTATIONS, WARRANTIES AND COVENANTS 

15.1 City Representations, Warranties and Covenants 

15.1.1 Authority 

15.1.2 No Conflicts 

15.1.3 No Violation of Laws 

15.1.4 Litigation 

15.1.5 Site Possession and Title 

15.1.6 Environmental and Historical Laws 

15.1.7 Non-Competition 

15.1.7.1 Competing Facilities Defined 

15.1.7.2 Prohibition Against Economic Assistance to Competing Facility 

15.1.7.3 Arena Use by the City Which is Competitive With Use by Operator 

15.1.7.4 Ownership or Control 

15.1.7.5 Enforcement 

15.1.7.6 Optional Remedy of Operator 

15.1.7.7 Severability 

15.1.8 No Interference 

15.1.9 Adverse Governmental Action Specific to Arena 

15.2 Operator Representations, Warranties and Covenants 

15.2.1 Organization 

15.2.2 Authorization; No Violation 

15.2.3 Litigation 

15.2.4 Non-Competition 

15.2.5 No Conflicts 

15.2.6 No Violation of Laws 

15.2.7 Environmental and Historical Laws 

15.3 Mutual Covenants 

15.3.1 Additional Documents and Approval 

15.3.2 Good Faith 

15.3.3 No Termination 

15.3.4 Cooperation 

15.3.5 Notice of Matters 

15.3.6 Compliance with Laws 

15.3.7 Survival of Covenants and Warranties 

ARTICLE 16 DEFAULTS, REMEDIES AND TERMINATION 

16.1 Events of Default 

16.2 Rights and Remedies are Cumulative 

16.3 Costs, Expenses and Fees 


30

16.4 Acceptance of Legal Process 

16.4.1 Service on City 

16.4.2 Service on Operator 

16.5 Termination 

16.5.1 Termination of Operator by City 

16.5.2 Termination of Agreement by Operator 

16.5.3 Automatic Termination of Agreement 

16.5.4 Rights After Termination of Agreement 

ARTICLE 17 DISPUTE RESOLUTION 

ARTICLE 18 MISCELLANEOUS PROVISIONS 

18.1 Tickets 

18.2 Operator Suite 

ARTICLE 19 GENERAL PROVISIONS 

19.1 Notice 

19.2 Time of Essence 

19.3 Conflicts of Interest 

19.4 Relationship of Parties 

19.5 Severability 

19.6 Force Majeure 

19.7 Interpretations 

19.8 Binding Effect 

19.9 Captions 

19.10 Entire Agreement 

19.11 Amendment 

19.12 Applicable Law 

19.13 Nondiscrimination 

ARTICLE 20 LIABILITY LIMITATION 

20.1 City 

20.2 Operator 


31

F 

REFERENCES 


REFERENCES 

CHASE FIELD 

TOM HARRIS 

EXECUTIVE VP & CHIEF FINANCIAL OFFICER 

602-379-6500 / THARRIS@DBACKS.COM 

RUSS AMARAL 

VICE PRESIDENT, FACILITIES & EVENT SERVICES 

602-379-6500 / RAMARAL@DBACKS.COM 

COMERICA THEATRE 

MEL SHULTZ 

PRINCIPAL, JDM PARTNERS 

602-224-2307 / JENGRAY@JDMAZ.COM 

DESERT SKY PAVILION 

TERRY BURKE 

LIVENATION - PRESIDENT SOUTHWEST - MUSIC 

(602) 870-5300 / TERRYBURKE@LIVENATION.COM 

US AIRWAYS CENTER 


SENIOR VICE PRESIDENT AND GENERAL MANAGER, 



602-379-2049 / RMARCHETTA@PHXSES.COM 

JIM PITMAN 

EXECUTIVE VICE PRESIDENT, FINANCE AND 

ADMINISTRATION, PHOENIX SUNS 

602-379-2049 / JPITMAN@SUNS.COM 


33

DISCLAIMER 

Beacon Sports Capital Partners, LLC and the City of Glendale 

understands that this response to their RFP is not binding upon either 

of the parties unless and until an agreement setting forth all of the 

terms and conditions of the transaction have been fully executed and 

unconditionally delivered by all parties thereto and all necessary consents 

and approvals have been obtained. 


34

US Airways Center Live Nation RFP Response - City of Glendale

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