Miami Venue Bid Raises Eyebrows

On April 11, venue management companies SMG and Global Spectrum submitted bid proposals for a five-year contract to operate the Miami Beach Convention Center.

SMG currently manages the center, but what made the bids unusual was Global Spectrum's announcement it had joined forces with Messe Schweiz, the Swiss company that owns Art Basel Miami Beach, one of the biggest shows at the center.

If Global Spectrum's bid was accepted, it would be the first time one of the mighty messes – Messe Schweiz owns 20-plus shows and 2.1 million square feet of venue space in multiple Swiss cities – had more than just a tradeshow-organizing role on U.S. soil.

More than one eyebrow has been raised about the possible ramifications if Global Spectrum wins the contract with Messe Schweiz by its side.

Not only could it possibly put other shows in the building at a disadvantage, but also it might create problems if Messe Schweiz decided to launch competing shows in the center itself, or at any of the other Global Spectrum convention center venues.

Marc Rosenstock, president of ROC Exhibitions, which has held Americas' Fire & Safety Expo at the Miami Beach CC for 14 years, said he was concerned for many reasons, but mostly because he worried the messe's shows would be given preferential treatment on financial deals and the dates of his show would be affected.

“Obviously, whenever our venue is our competitor that worries me,” he added.

Frank Russo Jr., Global Spectrum senior vice president, said, “Global Spectrum is the entity that would be solely responsible to Miami Beach, and Messe Schweiz would be advisory ... at arm's length. There would be no special treatment for dates or integrity of dates for other show managers there.”

Russo said he didn't know of another similar arrangement between a show manager and a venue and added, “it seems to have caught the industry's attention.”

And he's right.

Steven Hacker, president of the Intl. Assn. of Exhibitions and Events, which will stage its annual Expo! Expo! at the Miami Beach CC in December, said he didn't want to jump to conclusions about what might happen if the Global Spectrum-Messe Schweiz bid was approved. “It's very difficult to tell what's going to happen because it will involve the details,” he added. “It's unprecedented in this market, and there are some issues that (will) need to be managed.”

Mary Beth Rebedeau, president of The Rebedeau Group and executive director of the Society of Independent Show Organizers, said her concern about the possible deal was the number of proprietary shows Messe Schweiz might export to the U.S. that would compete with SISO members' shows.

“The messe model is to replicate shows in other markets,” she added. “It puts the building in direct competition potentially with people who are (already) in the building. I don't think it's wise.”

In fact, Rebeadeau said, she wrote a letter to the mayor and city manager of Miami Beach telling them she thought it was a bad precedent.

A spokesman for Miami Beach Mayor Matti Bower said no one from the city would comment on an ongoing bid process.

Peter Vetsch, communications manager for Art Basel Miami Beach, said Messe Schweiz decided to partner with Global Spectrum on the management bid for the center because the show wanted more say in the facility's infrastructure and management.

“The improvements would be on the operations and logistics side,” he added, “and a smooth-running fair makes for happy exhibitors and visitors.”

Russo also said that if Global Spectrum won the contract, Messe Schweiz had committed to bring a high-end consumer show to the center by 2010 and to use its sales and marketing skills to attract other events as well.

Vetsch said there would not be a conflict of interest between the Global Spectrum-Messe Schweiz combination and other shows in the convention center. “The only remotely similar fair held in the Miami Beach CC is Art Miami, which last year changed its dates to take place during Art Basel and moved its venue to a tent in Miami's Wynwood neighborhood,” he added.

SMG has managed the center for 17 years and, according to Gregg Caren, senior vice president of strategic development, for the last six years that Art Basel has been held there Messe Schweiz has had no complaints.

After the most recent Art Basel event in December, Show Manager Maureen Bruckmayr wrote to Doug Tober, SMG's senior general manager for the center: “This year's edition of Art Basel Miami Beach was one of the most successful in the show's six-year history ... which we were privileged to share with you. We would like to take this opportunity to extend our sincerest thanks for your commitment and the trust you have placed in us. It was a pleasure to be permitted to organize the sixth edition of Art Basel Miami Beach for you.”

Caren declined to comment on the Global Spectrum-Messe Schweiz bid for the center. “It is SMG's belief that it is inappropriate to comment on a public bid process currently underway by the city of Miami Beach,” he added.

Russo said the city is currently evaluating the bid proposals and may request oral presentations as well. He said he thought it would take a few more weeks before the city made a decision on the contract expected to become effective Oct. 1.