Advantages and Disadvantages of Bringing in a Private Management Company
Using a private management firm has benefits because it may assist in offering a variety of soft services, technical services, and administrative services. These services mostly concern the facility’s general day-to-day operations. They include administrative, general property management, cleaning, security, catering, building management, energy management, pest control, health, and safety (unknown, 2016).
Using a private management business relieves the local government’s financial burden of maintaining the venue and cuts down on time needed to schedule potential annual events. The workers might be saddled by a corporate mentality and find it difficult to negotiate any form of pay raises or promotions, which could take some of the localization away from the community. Another issue is that the management firm might enter and start selling tickets for more than the going rate in the area.
If I were the top government official, my decision would be based on the size of my city and the present economic conditions. I would refuse and not be concerned about my financial burden if asked to employ an outside business to manage a facility that has long been a fixture of the community. In order to jump-start the facility back to a positive financial state and raise awareness within the community, I would hire a company if it had a history of losing money and had a negative impression in the neighborhood.
Schwarz, E., Hall, S., Shibli, E. (2015). Sport Facility Operations Management: A global perspective. New York, NY: Routledge.
Unknown,. (2016). Facilities Management Companies for Sports Venues including Leisure Facility Man agent, Sports Arena Management and Stadium Management | Sport Venue Construction and Facilities Management. Sportvenueconstruction.com. Retrieved 27 October 2016, from http://www.sportvenueconstruction.com/contractors/facilities-management/
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Explain the advantages and disadvantages of bringing in a private management company such as SMG or Global Spectrum to manage a public sport facility. If you were the lead government official in your municipality, would you hire private management or keep the facility under in-house control? Why?
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