The Gwinnett Center Complex in Duluth, Ga., includes an arena, performing arts center and convention center.
After four years of self-operation, 10-year-old Gwinnett Center, Duluth, Ga., is back in a fold, this time with AEG Facilities.
Included in the three-year support services deal is a switch to AXS Ticketing, which has already gone live, though the venue is also still using Ticketmaster. Joey Dennis, general manager of Gwinnett Center, said there is a “burn off” period as shows already on sale with Ticketmaster wind up and AXS takes over completely, which he estimated will take until July.
However, AXS is already handling some venue tickets through gwinnettcenter.com, and Dennis has already talked to the convention center’s boat show promoter about selling his $6-tickets through the venue. The public announcement of the switch will coincide with the first big concert onsale through AXS, which Dennis said is imminent. He was particularly enamored of the mobile apps potential through AXS.
The formal agreement with AEG Facilities took effect March 1, but it has been three years in the making. Financial details were not revealed but, basically, AEG Facilities and Gwinnett Center have entered into a partnership calling for AEG to provide support services, including event programming, sponsorship and premium seating sales, purchasing, vendor venue services, advertising, and event-day operations to the three anchor venues of the facility.
Dennis said that, basically, AEG Facilities will receive a commission on services rendered when they increase revenues or cut costs. “I’d rather have part of something than 100 percent of nothing. If they bring something to us, they should get paid for it. And there are limits to what we can do by ourselves.”
Located in the lucrative Atlanta area, Gwinnett Center is owned by the county and operated as Gwinnett Center LLC, which answers to the board of Gwinnett Convention and Visitors Bureau, Inc. Dennis and CEO Preston Williams answer to the GCVB board. The complex includes the 13,000-seat The Arena at Gwinnett Center built 10 years ago, a 702-seat performing arts center and a 125,000-square-foot convention center that opened 20 years ago. The arena opened with Leisure Management International as its management company. LMI was bought by SMG in 2000 and SMG managed the venues until 2009, at which point the GCVB took management in-house.
AEG Facilities President Bob Newman called this a “great opportunity to combine the best of two worlds. It’s a great market and a great venue … Together there is great potential on several fronts.”
“Bob is very creative,” Dennis added. They have been visiting about the potential deal for over a year.
AEG Live already books up to 50 percent of the concerts and events at the arena, Dennis said, adding that they are, and will continue to be, an open venue doing business with all promoters.
Overall, the complex drew 1.2 million visitors last year to 500 events. “We used to be up to 700 events, but now we have less events but some are longer,” Dennis added.
The number and diversity of events impressed Newman in his dealings with Gwinnett Center. Newman noted the arena was among the top markets for the post-Olympics tour of the USA Gymnastics team and successfully hosts a myriad of sports events, from collegiate competition to pro teams. The new partnership gives AEG Facilities the chance to explore new content on the sports as well as entertainment realms.
AEG will not have any personnel on site or on payroll dedicated to Duluth. The staff at Gwinnett Centers stays the same. However, they will now have access to AEG Facilities expertise in several areas, including procurement and sponsorships.
Dennis said the county and board are now open to the idea of a title sponsor for Gwinnett Center, and AEG is shopping that opportunity. Newman noted that AEG has full ownership of 12 sports teams worldwide and often has new and tested ideas on marketing premium seats and club seats, marketing plans that could be implemented in Duluth. The same is true of environmental upgrades through AEG’s 1Earth. The list of resources Gwinnett Center now has, has more direct access to also include AEG Global Partnerships (sponsorships), AEG Development (real estate), AEG Encore (marketing) and AEG Creative (packaging).
The partnership grew out of existing relationships. Dennis has been attending AEG Corporate meetings in Los Angeles for the last three years. The deal “grew organically,” Newman said. Now Dennis and staff are in on the weekly conference calls with booking experts like AEG’s Eric Bresler and Dale Adams. When interviewed, Dennis was just about to jump on a conference call regarding procurement. And real estate? “We have 100 acres,” Dennis said. A headquarters hotel on the property is finally underway, and further destination development is not out of the question. It’s just slow going.
The L.A. Live development around Staples Center and Nokia Theater in Los Angeles is a great calling card for AEG Facilities regarding what is possible, Newman admitted. The great thing about it is “L.A. Live is scalable.” Parts of it can apply in many different situations.
“Being out here for four years, all by yourself, it’s tough,” Dennis said of post-private management operation. “This is a great fit for us.”
Interviewed for this story: Joseph Dennis, (770) 813-7511; Bob Newman, (213) 763-5425