058-2000 LTC
CITY OF MIAMI BEACH
~ITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
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L.T.C. No. <;R-?noo
LETTER TO COMMISSION
March 31, 2000
TO: Mayor Neisen O. Kasdin and
Members of the City Commission
Lawrence A. Levy ~
City Manager
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FROM:
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SUBJECT: SMG PURCHASED LEISURE MANAGEMENT INTERNATIONAL Pi
Attached for your information is a self-explanatory newspaper article entitled "Merger gives
company control of arenas, convention centers," dated March 24, 2000, and a letter from Wes
Westley, SMG President and CEO, dated March 27,2000, regarding same.
If you require information, please don't hesitate to either contact me or Assistant City Manager
Mayra Diaz Buttacavoli.
LAL:~:lcd
Attachment
c: Mayra Diaz Buttacavoli
Janet Gavarrete
Christina Cuervo
Matthew Schwartz
Ronnie Singer
Mary Greenwood
Robert Parcher
Doug Tober
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Stadium ojerators
$M G, LMI merging
,
,I
~:lMI, FROM lC
not expected to change day-to-
day activities at LMI-managed
facilities, said Erin Rush, direc-
tpr of operation for El Paso's
convention and tourism
bureau, and Francis Paez,
executive director of the
Miami Sports and Exhibition
Authority, owner of the Miami
~rena.
, Ron Castell, Huizenga's
spokesman, said the sale will
not,greatly affect Huizenga's
Em; Lauderdale operation.
': "We have investments in
lpts of things," Castell said.
i:We were just part of an own-
ership group."
I Hl,jzenga became involved
with LMI in 1994, 10 years after
Mike McGee co-founded the
~ompany in Houston to chase
'~he Miami Arena contract. In
1984, McGee and two Houston
partners formed Decoma Ven-
,ture, which was designed to
conceive and operate the
,Miami Arena. The group won a
32-year contract at a time
:whcn private management of
public facilities was still a
young industry.
: In 1993, McGee bought out
\lis original partners with a
group of Houston businessmen
and promoted LMI veteran
John Blaisdell to president and
chief operating officer. McGee
,became chairman and chief
,executive. When McGee
;searched for more partners, he
turned to Huizenga, who con-
:trolled one of the Miami Are-
'na's main tenants, the Florida
:Papthers National Hockey
League team. Huizenga Hold-
;ings, which oversees Hui-
;zenga's private investments,
bought a 50 percent stake in
,l..MI.
; The sale is another sign that
'Huizenga is divesting himselti
of sports properties. He has
: sold his Florida Marlins base-
'ball team and his 70 perce!}t
'stake in the sportsChanne~
:cable network. His publicI
,traded Boca Resorts ha
announced that it intends to
sell, the Florida Panther
; hockey team. , '
: ~ SMG grew out of one man' I I
: success owning the Philadel
; phi a Flyers professiona
;hockey team. In the 1980s
: sports mogul Ed Snider per, I
: suaded the city to give him ,
; 50-year lease on the Philadel I
· phia Spectrum, the Flyers'
, home, which he developed int 'l
: the nation's busiest arena. r
_ ' Snider parlayed that succes.i
-info starting Spectator Man~
:agement Group (now SMG}J"
company that manages arena
: stadiums and convention ce
, te" 'em" the country, TOd':
~'
~ AT A GLANCE
, SMG
t Headquarters:
Philadelphia.
t Chief executive:
Wes Westley.
t Employees: 10,500,
about 1,500 full time.
t Manages: 32 arenas
and stadiums, 28
convention centers, 10
theaters and two
aquariums.
t In South Florida:
, Miami Beach
Convention Center,
Jackie Gleason Theater,
. Broward Convention
Center.
I t Some other
clients: Long Beach
(Calif.) Convention &
i Entertainment Center,
i Oklahoma City
Convention Center,
Tampa's Ice Palace,
Nassau Veterans
Memorial Colliseum
I (New York).
, LMI
!.. t Headquarters:
" Houston.
t Chief executive:
Mike McGee.
t Employees: 1,139,
about 911 full time.
t Manages: 14 arenas
and stadiums, five
theaters, three
convention and civic
centers, two tourist
I bureaus. ,
~ t In South Florida: ,
Miami Arena, Pro Player
~ Stadium, National Car
r Rental Center.
't t Some other
'" clients: Astrodome,
!
1: Alltell Arena (Little
Ii Rock),Palm Springs
:: Tourism,
Augusta-Richmond
Ir' County Civic Center.
Ii SOURCE: Company Web
sites, Amusement
Business magazine.
SMG is a leader in the field of
private facilities management.
Last year, SMG said, its facili-
ties were host to 8,800 events
and 30 million people.
In South Florida, it manages
the Miami Beach Convention
Center, the Broward Conven-
tion Center and the Jackie
Gleason Theater.
Snider also has moved on,
after selling his share in SMG.
Today, SMG is owned jointly
by the Chicago-based Hyatt
Hotel chain and Philadelphia-
based Aramark, one of the
world's largest service man-
agement companies.
~CD
00 Hi",R 31 PM 3: 39
PrIvate Management for PublIc FacilitIes
Wes Westley
President & CEO
(" _. -- ',', 1-
'Vj~;r\'_c
March 27, 2000
Ms. Mayra Diaz-Buttacavoli
Assistant City Manager
City of Miami Beach
1700 Convention Center Dr.
Miami Beach, FL 33139
Dear Ms. Diaz~caVOIi: lY'~
I am very pleased to announce that SMG has engaged in a strategic merger with Leisure Management, Inc. (LMI)
of Houston, Texas. The result of this merger will be a stronger company, better suited than ever to meet the needs
of our clients and customers.
The merging of these two companies will provide enhanced operating efficiencies for all of our clients. In
addition, the expanded network will strengthen SMG's event booking capabilities to assure maximum live
entertainment programming for all of its facilities.
With the addition of the LMI accounts SMG will now manage 97 facilities worldwide. We will continue to strive
to provide the quality service, attentiveness and results you have come to expect from SMG.
This is a very exciting time for SMG and our employees. As we grow we are able to offer our employees
enhanced career opportunities which enable us to recruit and promote the most qualified people to manage your
facilities.
For your information I've attached a copy of the press release regarding this merger. As always, if you have any
questions, please feel free to call.
Sincerely,
w~~
W es Westley
President & CEO, SMG
Attachment
WW/jm
StadIums. Arenas. ConventIon Centers. Theaters
701 Marlfet Street. 4th Floor. PhiladelphIa, PA 19106. VoIce: 215.592.6604. Fax: 215.592.0361
SM G Contact:
Maureen Ginty
(215) 592-6665
SMG AND LMI MERGE TO CREATE WORLD'S LARGEST
PUBLIC ASSEMBLY FACILITY MANAGEMENT COMPANY
(March 27, 2000 - Philadelphia, PA and Houston, TX) -- SMG and LMI today
announced a strategic merger that will create the largest public assembly facility
management company in the world.
The new combined entity will cany the SMG name and manage facilities from
Oslo, Norway to Melboume, Australia. As the premiere management company in its
field, SMG will deliver live entertainment booking and management services for nearly
one hundred stadiums, arenas, convention centers and theaters around the globe, The
company will be headquartered in SMG's Philacelphia offices.
The merger will combine SMG's and LI\'II's best management practices to create
a company of unmatched depth of operational shll, event booking, development
expertise and facility management excellence. The new company's unparalleled
resources of industry talent and knowledge will enable it to offer its clients enhanced
event-booking capabilities, increased purchasing power and the largest support team in
the industry.
Wes Westley, SMG President and CEO will be President and CEO of the new
SMG. Mike McGee, LMI Chairman and CEO, will serve as Senior Consultant to the
SMG and LMI Merge
Page 2
combined companies on transition and business development issues.
Wes Westley said, "the next several years will be an exciting and challenging
time for our industry. The merger of these companies will provide for the best practices
of these industry leaders to be melded together for the benefit of our clients. By joining
forces with LMI, we will create a company that can provide the best opportunity for our
clients to realize the benefits of private management."
Westley added, "we have tremendous respect for Mike McGee and his
management team. They have built a terrific company whose culture and approach to
business will mesh well with ours."
Mike McGee said, "I have had a healthy respect for SMG over the years. Their
business success and accomplislmlent is well known and documented throughout our
industry. McGee added, "The merging of our two companies will create expanded
opportunities for clients and our employees and fits very well with each company's
strategic growth plan."
McGee continued, "The merging of SIvlU and LMI will provide better
opportunity for our employees and insure our ability to deliver for our clients, I'm
looking forward to working with Wes and the SMG team as we mold this new company
and develop future opportunities. While there are immediate benefits to us all, the real
value will be long ternl for our clients,"
The new company will provide management services for the following:
SMG and LMI Merge
Page 3
ALL TEL Arena
ALL TEL Stadium
The Arena in Oakland
Astrodome
Atlantic City Convention Center
Atlantic City Convention Hall
Augusta-Richmond County Civic Center
Baltimore Arena
Baton Rouge Riverside Centroplex
Bill Graham Civic Auditorium
Bossier City Arena
Broward County Convention Center
Claremore Expocenter
Cleveland State Convocation Center
Colonial Stadium
Compaq Center
De Vos Hall
Denver Convention Complex
Dixon-Myers Hall
EI Paso Civic Center
EI Paso Tourism
Florence Civic Center
Gaylord Entertainment Ccnter
Georgia International and Maritime Trade Center
Grand Rapids Grand Center
Greater Columbus Convention Center
Gwimlett Civic Center
Hawaii Convention Center
Jackie Gleason Theater
Jacksonville Veterans Memorial Coliseum
Kansas Expocentre
Ladd-Peebles Stadium
London Arena
Long Beach Aquarium of The Pacific Food & Beverage
Long Beach
Long Beach Convention Center
Louisiana Superdome
Mellon Arena
Memphis Cook Convention Center
Miami Arena
Miami Beach Convention Center
Mile High Stadium
Millemlium Youth Entertainment Center
Mobile Civic Center Arena
Mobile Civic Center Theater
SMG and LMI Merge
Page 4
Mobile Convention Center
Mom-oe Civic Center
Moscone Convention Center Complex
Nassau Veterans Memorial Coliseum
National Car Rental Center
National Trade Centre
Nationwide Arcna
Network Associates Coliseum
New Haven Veterans Memorial Coliseum
New Oklahoma City Arena
New Orleans Arena
Odyssey Arena
Oklahoma City Convention Center & Myriad ,\rena
Ontario Convention Center
Oslo Spektrum
Palm Springs Convention Center
Palm Springs Tomism Department
Paul E. Tsongas Arena
Peoria Civic Center
Pepsi Arena
Pontchartrain Center
Prime F. Osbome III Convention Center
Pyramid Arena
Rhode Island Convention Center
Riclunond Coliseum
Salt Palace Convention Center
Soldier Field
South Towne Expo Center
Sovereign Center
Tampa Ice Palace
Terrace Theatcr
Three Rivers Stadium
Times Union Center
Univ. of North Carolina Smith Center
Van Andel Arena
Wolfson Park
Worcester's Ccntrum Centre
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