New operator to boost reach of Atlantic City venues

Tourism District officials are banking on a new operator of two major Atlantic City venues to draw more people to the resort with a revamped lineup of events and a large database of customers.

After a selection process that took more than a year amid legal challenges, the Casino Reinvestment Development Authority selected Philadelphia-based Global Spectrum last month as the new operator of Boardwalk Hall and the Atlantic City Convention Center. The decision marks the first operator change for the venues in 17 years and takes effect Jan. 1.

“All things being equal, it was time for a change,” CRDA Executive Director John Palmieri said. “Innovation was part of the appeal for us. (Global Spectrum has) a good relationship with Live Nation and Ticketmaster. You can’t undervalue those connections.”

Global Spectrum is a subsidiary of Comcast-Spectacor, which owns Philadelphia’s Wells Fargo Center and the Philadelphia Flyers, among other ventures. Global Spectrum also manages the Sun National Bank Center in Trenton and Temple University’s Liacouras Center. Officials are hoping Global Spectrum’s database will help draw a Philadelphia-based migration toward Atlantic City and possibly expand a reach toward other cities as well.

Advertisements for Atlantic City’s venues soon will be unveiled at the Wells Fargo Center, and Global Spectrum has plans to offer event packages spanning Philadelphia to Atlantic City. One possibility could be packaging preseason Philadelphia Flyers and 76ers tickets with American Hockey League games in Atlantic City, Palmieri said.

“We know what Atlantic City means to the area and we’re looking to sell that experience,” Global Spectrum Chief Operating Officer John Page said. “Obviously, Philadelphia is bigger, but we’ve got the shore, the retail — just a lot of exciting, vibrant activities.”

Page said he doesn’t see Global Spectrum’s interests in Philadelphia as a drawback for Atlantic City — an issue some local stakeholders raised during a public comment session under a previous selection process. Instead, Page said, Global Spectrum plans to leverage its interests in Philadelphia to persuade acts to also stop in Atlantic City.

“It’s telling agents that they can do Philly and then do Boardwalk Hall on the front end or back end of tours,” Page said, adding that larger acts drawing 5,000 to 8,000 people to Boardwalk Hall have been missing from lineups.

Acts including electronic dance music, or EDM, could help fill that void, said Page, who noted EDM artists have the potential to draw younger crowds with more discretionary spending to the resort.

“We’re working to create a destination environment here with a compelling pitch to conventions and big shows,” Palmieri said. “Between now and this time next year, we’re going to see a difference. We’re going to be able to show that we have more of a draw.”

Specific benchmarks for progress have not yet been agreed upon, said Karen Martin, a spokeswoman for the Convention Center Division of CRDA.

Global Spectrum also will be charged with booking convention business for the Atlantic City Convention Center. Lagging business there was called out in a 2010 state report that preceded the creation of the Atlantic City Tourism District. Known as “the Hanson report,” for Governor’s Advisory Commission on Gaming and Entertainment Chairman Jon Hanson, the report called for increasing meeting and convention business in Atlantic City by 30 percent per year for five years.

Both Palmieri and Page noted it may be difficult to see immediate results in convention business, as many large conventions book two or three years in advance. Still, they said, there’s room for improvement now.

“There are opportunities to focus on smaller groups for short-term business. We have a lot of sales people ready to do that,” said Page, who noted Global Spectrum has more than 800 leads for potential bookings.

Additional air service at Atlantic City International Airport also will be leveraged as Global Spectrum seeks more business for the Atlantic City market. Last month, United Airlines announced it would begin service in April from Atlantic City to its hubs in Chicago and Houston.

West Conshohocken, Pa.-based SMG has operated the venues since 1997 and faced a contract that expired earlier this year. Palmieri said SMG has a more robust background in venue management and has handled the venues competently. Still, he said, a selection committee determined that Global Spectrum will be in a better position to leverage its marketing assets.

The Atlantic City Convention & Visitors Authority, which has now been merged with CRDA, selected Global Spectrum as the new operator for the venues last year. SMG disputed the award, citing conflicts of interest, and a hearing officer later threw out the proposals for unrelated reasons. CRDA restarted the selection process this year following the merger with ACCVA.

Global Spectrum was awarded a three-year contract worth $180,000 annually in addition to performance incentives. Boardwalk Hall and the Convention Center have roughly 100 SMG employees combined. Global Spectrum traditionally takes on roughly 90 percent of the existing employees in a transition, Page said.

Source: Press of Atlantic City