Texas Councilman Calls for Audit After OVG’s Ticketmaster Deal Raises Eyebrows

Texas Councilman Calls for Audit After OVG’s Ticketmaster Deal Raises Eyebrows

Hey everyone, have you heard about the latest developments with the Oak View Group, or OVG, here in Texas? It’s creating quite a stir at City Hall. So, here’s the scoop. OVG, which manages the American Bank Center in Corpus Christi, recently held a briefing boasting about its success over the past three years. They reported a 23% increase in revenue, a 55% rise in profits, and even a reduction in expenses. On top of that, the venue’s economic impact was said to have surpassed $15 million, with an additional 10,000 hotel room nights booked and over 50 local vendors now involved. Pretty impressive, right? But, as you’ll see, not everyone is convinced it’s all smooth sailing.

Councilman Eric Cantu has called for a full audit after learning about a new agreement OVG signed with Ticketmaster. Here’s the twist: the deal is set for nine years, running through 2032, even though OVG’s contract with the city is only valid until 2027. Initially, OVG had told city officials that the Ticketmaster deal was just for five years. When confronted, a representative admitted, “I misspoke on that,” explaining that it wasn’t intentional and that the company has about 50 contracts to track.

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But Councilman Cantu didn’t let that slide. He asked the tough question: why would OVG sign a contract longer than their city agreement allows? And more importantly, what other long-term deals might they be entering into without city oversight? These questions have made it challenging for Cantu and others to support additional public funding, especially since taxpayer money still helps cover some costs.

To give some context on the city’s finances: this year, an operating deficit of $475,000 is projected, and that doesn’t even include capital expenses. A new naming rights deal with Hilliard, starting September 1, is expected to bring in $1.3 million annually. However, even with that, a shortfall of nearly $856,000 is forecasted. Interestingly, OVG had turned down a $20 million naming rights offer from attorney Thomas J. Henry, which could have brought in roughly $750,000 more per year.

This situation has sparked broader concerns about transparency and accountability. While OVG has been praised for increasing the venue’s revenue and impact, critics argue that long-term contracts like the one with Ticketmaster raise serious questions about oversight and the city’s ability to monitor commitments. The councilman believes that without clear answers, supporting further public spending is a risky move.

So, for now, all eyes are on City Hall as the call for an audit moves forward. Residents and taxpayers alike are waiting to see how these questions about OVG’s agreements will be addressed, and whether more financial surprises might be revealed.

If you want, I can also make a slightly more “on-air” version

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