Since taking over the management of the MAC Caesars has brought the losses of the facility to a much more manageable level. In its first ten years of operations, it was not uncommon to have an annual loss in excess of $700,000.  In our initial agreement with Caesars we established a loss of $700,000 as the threshold they would have to meet before they would earn any management fee.  They have continued to grow the business on the convention center side to help make up for the shortcomings on the arena side.  So much so that in the current fiscal year after 11 months the facility is at a loss of $12,810.  Last year at this point, we were looking at a loss of $316,563 but that seems to be due to an anomaly (some shows had to be canceled), in that in the year prior to that at this point we were looking at a loss of $32,104.

In our negotiations with Caesars this year we have made some edits so that the agreement more closely reflects what have become the practice, and in some cases have opted to change the practice to more closely reflect the language in the agreement.