American Renegotiating Arena Naming Deals

[Hatu]

FORT WORTH, Texas (AP) -- American Airlines is renegotiating naming-rights deals at sports arenas in Dallas and Miami to reduce costs, the company''s chief executive said Wednesday.
Gerard Arpey said the company had reached a deal with operators of the American Airlines Center in Dallas to reduce costs by selling back advertising space.
Fort Worth, Texas-based AMR signed a $195 million, 30-year naming-rights deal with the Dallas arena in 1998 that calls for annual payments of $6.5 million. The arena is home to pro basketball''s Dallas Mavericks and the Dallas Stars hockey team. The venue is also used for concerts.

Arpey said company officials were negotiating a similar deal with the American Airlines Arena in Miami, home of basketball''s Miami Heat. American has a 20-year contract worth $42 million for that building.

http://biz.yahoo.com/ap/030521/american_ai...s_arenas_1.html

 

[coldplay]

are they going to use the same ole renegotiate or we declare bankruptcy BS with the arena people? wonder if it''ll work.

 

[MiAAmi]

Isn''t it interesting that 6 months ago when people suggested that AA change their agreements with these arenas that management said that it couldn''t be done. The only way to cut costs was to look at labor. These are all the same people that ran this company 6 months ago less Mr Carty. This has never been a labor friendly company and never will.

 

[FrugalFlyer]

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On 5/21/2003 855 PM coldplay wrote:

are they going to use the same ole renegotiate or we declare bankruptcy BS with the arena people? wonder if it''ll work.

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I doubt AA has to use the bankruptcy angle. People that run the arenas are probably more reasonable to negotiate with than unions.

 

[Oliver Stone''s Apprentice]

I don''t remember anyone saying it couldn''t be done, but that it wasn''t a high priority when compared to renegotiating contracts with vendors and labor.

 

[FWAAA]

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On 5/21/2003 10:31:07 PM MiAAmi wrote:

Isn''t it interesting that 6 months ago when people suggested that AA change their agreements with these arenas that management said that it couldn''t be done. The only way to cut costs was to look at labor. These are all the same people that ran this company 6 months ago less Mr Carty. This has never been a labor friendly company and never will.

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As with all other concessions, I''m pretty sure that the arenas told AA that there was no way they would reduce the obligation until AA had its own house in order (meaning LABOR expenses). Same with the other vendors, lessors, suppliers, etc. No way those people would waste time if AA was heading to Ch 11 anyway due to failure to get wage cuts. But having obtained wage cuts, AA is in a much better position to demand cuts (and get them). And, as eolesen mentioned, these deals (8.5 million/year) are really small potatoes compared to labor costs.

 

[air_guy]

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On 5/21/2003 10:31:07 PM MiAAmi wrote:

Isn''t it interesting that 6 months ago when people suggested that AA change their agreements with these arenas that management said that it couldn''t be done. The only way to cut costs was to look at labor. These are all the same people that ran this company 6 months ago less Mr Carty. This has never been a labor friendly company and never will.

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I od not recall anyone saying that it could''t be done but I cannot believe anyone can thing that 6.5 million deal per year can even compare with the billions that we are loosing righ now.....

 

[FWAAA]

If this good news keeps up - Bob Owens will be all out of reasons why AMR needs to file Ch 11.

Let''s see - concessions from every constituency WITHOUT the need to spend hundreds of millions on bankruptcy. Even concessions on the naming rights. Wow.

Bob Owens'' son-in-law wouldn''t be a bankruptcy lawyer, would he??