Bad Business Blues

The two entertainment behemoths that vied for the lucrative contract to run the city’s Greek Theatre have finally made peace. But the agreement they forged--to jointly book events at the Greek and share expenses and revenues while refraining from poaching on each others’ talent pool--is a better deal for the companies than for Los Angeles taxpayers. The Recreation and Parks Commission should improve, then quickly approve, this less-than-perfect arrangement between the Nederlander Organization and House of Blues Concerts so that the 1929 landmark can at last get the repairs and upgrades Nederlander had let slide for so long.

Remember the sordid tale? Nederlander has run the Greek for 25 years. Two years ago, after critics bashed Nederlander for its neglect of the 70-year-old facility, shamed City Council members and parks department staffers finally opened the Greek’s operating contract to competitive bids. Only House of Blues went up against Nederlander, promising the city higher revenues and more extensive upgrades. It should have won hands down. Instead, Nederlander cranked up the pressure on its City Hall pals and parks commissioners, who took the wimp’s way out and voted to start the bidding process again. The joint operating deal was struck after House of Blues indicated it might not play that silly game.

Nederlander and House of Blues, which holds exclusive promotional rights at the Universal Amphitheater, will pool revenues and expenses from the two venues and sink at least $8 million into renovations.

The Parks and Recreation commissioners can still show some business acumen by pushing Nederlander to make further financial concessions for this 10-year contract. But the whole, grinding war could have been avoided altogether had commissioners focused more on the public’s needs than on currying favors. Mayor James K. Hahn might remember this while making new appointments to the parks panel.