Scenario:
?You are the Manager of the School of Hard Knocks Performing Arts Center. The Center is one of the primary entertainment venues in town, and Unprepared is performing in concert this evening. As you are preparing for the financial settlement with the promoter, you discover that the event contract is not signed by both parties. By this time, the concert is well underway and close to intermission.
?Subsequently, Rob Blind, the local promoter, comes into your office to settle the show’s financial arrangements with you. You inform him about the unsigned contract and ask Rob to sign your file copy of the contract prior to the financial settlement. Rob Blind states that the original signed contract is back in his office and he will have it sent overnight to you when he returns to his office the next day.
?Unprepared is a very popular group and the show was almost sold out. Therefore, the School of Hard Knocks Performing Arts Center qualifies for the maximum rent of $10,000.00. Rob Blind states to you that due to the overwhelming success of this event, it is obvious that the School of Hard Knocks Performing Arts Center will derive a lot of ancillary revenues in concessions and merchandise sales that evening. As a result, Rob feels that capping the overall rent at $5,000.00 is only fair.
?As an astute facility manager, you argue vehemently with Rob Blind that there will be no rent reduction. Rob counters back that you do not have a signed agreement in place to enforce and he is willing to pay only $5,000.00 in rent for this event. If you do not meet his demands, Rob threatens that he will no longer bring events to your venue.
Assignment
The financial settlement process represents the formal accounting and distribution of funds related to facility events. It is an activity that is somewhat unique to the public assembly facility management industry. The process itself is not as unique as is the timing of the activity. It is essential for the facility manager to have a signed copy of the facility’s lease agreement if a commercial promoter is renting the facility. The terms of the contract define the financial relationship s between the two parties (i.e. facility management and the event promoter) as well as the details of “the deal” which must be strictly adhered to during the event financial settlement.
Cont.
Please provide a written description of how as the Manager of the School of Hard Knocks Performing Arts Center you will address each of the following questions:
1. How will you resolve the financial settlement dispute regarding the rent cap? (e.g. “resolve” means fix the problem)
2. What leverage do you have to enforce the unsigned contract provision for the facility rental fee?
(e.g. leverage means power/authority, which relates to a person’s position-responsibility)
3. What two (2) issues need to be considered in the resolution process? (e.g. to fix the problem, determine what has to be decided or understood clearly before the decision is made)
4. What major oversight led to this dilemma? (e.g. “oversight” means that something important has not happened due to carelessness or ignorance of the situation-facts)
5. What steps should have been taken to avoid this kind of situation from occurring? (e.g. for maximum credit, the steps should be identified IN THEIR PROPER ORDER)