By Don Walker, Milwaukee Journal SentinelMcClatchy-Tribune Regional News May 02--Delta Air Lines has told the Wisconsin Center District that it will not renew its naming rights agreement for the Delta Center when the deal expires on June 30. As a result, members of the Wisconsin Center District, which operates the Delta Center, the Milwaukee Theatre and the U.S. Cellular Arena, voted unanimously on Wednesday to change its name to the Wisconsin Center unless a new partner is found. District officials say they are in discussions with a variety of companies for sponsorship opportunities. But for all practical purposes, the convention center will switch to the Wisconsin Center on July 1. "In our dialogue with them, it became apparent that the powers that be at Delta don't feel Milwaukee is a significant part of their marketing strategy," said Franklyn Gimbel, chairman of the Wisconsin Center District board. "It's nothing we did or didn't do. "They were blunt honest. They said, 'We're going to concentrate our naming rights dollars in cities where we have substantially more traffic.' " Southwest Airlines is the dominant airline at Mitchell Airport, with 52% of the market. Delta is second, with 25% of the market. In September 2012, Delta announced it had assumed a one-year agreement with the Wisconsin Center District for the naming rights to the Delta Center. The airline had assumed the last year of the contract, at a cost of $500,000, with Frontier Airlines through June 30. "We have enjoyed the relationship with the convention center, and Milwaukee continues to be an important market in the Delta network," said Chris Kelly Singley, a Delta spokeswoman. "However, in 2013 our marketing efforts will focus on our hub markets." If the district gets a new naming rights sponsor, the deal includes exclusive industry advertising rights to the U.S. Cellular Arena, Milwaukee Theatre and the convention center. Gimbel said the district may hire an outside agent to look for a new partner. And he said he preferred that the name "Wisconsin Center" be part of any new deal. "Just like the BMO Harris Bradley Center," Gimbel said. The convention center originally was called the Midwest Express Center when it opened in 1998. It was later called the Midwest Airlines Center when that Oak Creek-based carrier modified its name. Midwest was purchased in 2009 by Republic Airways Holdings Inc., which also bought Frontier and combined the two carriers under the Frontier name, leading to another name change. At Wednesday's meeting, district officials reported a poor first quarter, compared with the same period last year. Normally, the first quarter is a slow business time for the convention center, theater and arena. Total operating income through March 31 was $3.2 million, down more than $300,000 from last year. Net income before non-cash items totaled $465,120, more than $850,000 less than the same period last year. "It's not a panic situation," said Richard Geyer, the district's president and CEO. "You will see changes as we go along." "For whatever reason, it was a tough winter," Gimbel added. "We are optimistic. We are going to have a lot of action in this town. I think the numbers will show a healthy improvement." ___ (c)2013 the Milwaukee Journal Sentinel Visit the Milwaukee Journal Sentinel at www.jsonline.com Distributed by MCT Information Services NYSE:DAL, |
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