Two years ago, as the city of Las Vegas was making preparations to hold its 2005 centennial celebration, officials were looking for a way to pay for community events marking the occasion without dipping into taxpayer dollars. In stepped Clear Channel, a national media organization that also has produced rock concerts and a Super Bowl halftime show, which signed a contract with the city to stage and promote the centennial events. In return, Clear Channel would receive 20 percent of the proceeds from corporate sponsorships of the year-long celebration and 25 percent of all centennial-related merchandise sales.
Despite the fact that Clear Channel was supposed to put on the centennial celebration without city funds, the corporation is now asking to be reimbursed $627,209 by the city for the costs of a July 2 concert featuring bands such as the Red Hot Chili Peppers and Weezer, which drew more than 47,000 people. The concert, which was free to the public, originally was planned to be held in the parking lot of the Convention Center. But because of concerns over traffic and the possibility of extreme heat from the pavement causing fans to get sick, the concert was moved to a soccer-field complex run by Clark County government.
Clear Channel understood going in that by having an exclusive contract with the city -- a deal that could yield substantial profits -- it also would be responsible for taking on some financial risks. Isn't that part and parcel of the free market? Deputy City Manager Betsy Fretwell said the staff would recommend against paying Clear Channel and, to date, the City Council hasn't shown any indication of wanting to use tax dollars for the celebration. We hope the city holds steadfast. A deal is a deal.
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