XL Center could benefit from merger of venue operators

HBJ Photos | Joe Cooper The XL Center in downtown Hartford.

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By Terry Corcoran

The merger of the management company that operates the XL Center with another company could be a positive for the Hartford facility.

Spectra recently merged with the Los Angeles-based Oak View Group LLC, a global advisory, development and investment company for sports and live entertainment industries.

“It’s a merger of the two giants in the business and we don’t know all the repercussions,” said Michael Freimuth, executive director of the Capital Region Development Authority, which operates the XL Center.

The Philadelphia-based Spectra specializes in venue management while Oak View Group is more of an investor of teams and facilities but has experience in facility management, Freimuth said at a Sept. 10 meeting of the CRDA’s Venue Committee.

If the XL Center’s contract with Spectra is assigned to the new entity, the CRDA will have a say and may be able to negotiate something from the new company.

“The interesting thing for us is the Oak View Group has been aggressive in investing in facilities and obviously we want to probe that and push that to the extent we can with Spectra,” Freimuth said. “So maybe we can get something in the way of concessions at least or maybe some other improvements at the XL facility.”

Oak View and Spectra announced their merger Aug. 30 but did not divulge financial terms. The transaction is expected to be completed in the fourth quarter.

Freimuth also said there may be geographical issues with the merger.

“There are generally restrictions if you’re an operator within a certain distance of your facility so there’s no conflict,” he said.

The merger will allow the new company “to compete with the dominant player in the business today, which is ASM Global,” Tim Leiweke, founder and CEO of Oak View Group, said in a statement.

ASM operates about 300 venues worldwide. Among its venue management, food service and corporate partnerships, Spectra is in about 320 arenas, stadiums, convention centers and other venues.