The industry had an earthquake this month. The landscape has changed.
Tim Leiweke, high profile visionary and a past Publisher’s Pick in Venues Today, abruptly left AEG, where he was CEO from nearly its inception and architect of its development. Leiweke brought all the elements of this business, from promoting concerts to owning and managing venues to operating sports teams, aided by ticketing, merchandise and sponsorship and premium seating sales teams, to create a global powerhouse in live entertainment and sports.
Leiweke’s cellphone is cut off, he’s left the office and he’s probably enjoying a severance-package-fueled respite before making his next move, but the conventional wisdom is that he’ll be back. The rumor mill has him in Toronto building a new empire… or Denver, back with Stan Kroenke… or in New York at his revered competitor Madison Square Garden Enterprises, which now has an L.A. foothold in the Forum.
Wherever he goes, we need visionary leaders like Tim, always willing to take risks. Check out what John Meglen has to say on Tim’s immediate grasp 10 years ago of the vision for the Colosseum in Las Vegas as a residency for Celine Dion and others of her ilk, when most were naysayers of the concept. Who ever heard of the audience traveling instead of the artist? Dave Brooks conducted a fascinating Q&A with Meglen about the evolution of the Colosseum, published on page 51.
Published and murmured rumor has it Leiweke exited because he was unable to bring AEG to market for the $8- to $10-billion owner Phil Anschutz desired. The best offers on the table were in the $5- to $6-billion range. It’s mindboggling.
Knowing your market is the key to the success of business worldwide, on any scale. In Malaysia, they have identified and served a unique market need.
AEG Ogden’s Harvey Lister noted that “in Malaysia, food is a fundamental part of any meeting. It is a country that lives on its stomachs.” The city is also jam-packed with high rises housing the corporate headquarters located downtown and space is at a premium.
So, knowing the market, wise management at the Kuala Lumpur Convention Centre combined a cluster of meeting rooms and a buffet that runs up to 18 hours a day and turned that space into every company’s conference room. Businesses don’t need to set aside valuable real estate for a lot of dead meeting rooms put aside in office towers. With as little as 30 minutes notice, they can book a meeting at the nearby convention center.
In a building that is operating at very near its potential capacity, this has resulted in not only incremental income but also a high profile among businesses that might influence peer group associations to meet in Malaysia. VT Reporter Jessica Boudevin provides further details on page 59 in this issue.
Whatever the scale of the problem, God grant you many years to know your market.