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AEG on the Rebound After a Rough Year

Thursday, June 5, 2014   (0 Comments)
Los Angeles Times (04/20/14) Vincent, Roger

Anschutz Entertainment Group (AEG) appears to be on an upward trajectory after suffering various misfortunes in the past year, including its failure to bring a pro football team to Los Angeles and a major corporate shakeup. The company's rebound is marked by a surge in most of AEG's global operations, which currently number 27,000 employees in 17 countries, including the new Chinese market, where AEG runs three arenas. "We're coming off our most successful year in 2013," says AEG CEO Dan Beckerman. He says the company is concentrating on cities and countries where strong customer bases are present, and notes an "overwhelming majority" of profits originate from its arenas. AEG also has been a key player in the revitalization of downtown Los Angeles' economy in the last 15 years, with venues such as Staples Center and the Convention Center encouraging wide-ranging investment in residential, retail, and hotel construction. "They were the great catalyst for reinvigorating the economy, drawing new investment toward the east side of the city and downtown in particular," says former Los Angeles City councilwoman Jan Perry. A critical factor in AEG's profitability and continuing growth is multimillion-dollar sponsorships of company arenas, events, and sports teams. For example, U.K. mobile phone giant O2 is paying AEG $11.3 million annually to have its name on the O2 Arena in London.

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