Advantages and Disadvantages of Bringing in a Private Management Company
The advantages of using a private management company is that they can help in providing a range of soft services, technical services and administration services. For the most part these services relate to the overall daily running of the facility. These services include cleaning, security, catering, building management, energy management, pest control, health and safety, administrative and overall property management (unknown, 2016).
When hiring, a private management company the financial burden of operating the facility is taken away from the local government and it reduces the time spent scheduling events that might occur during the year. This can be a great advantage but it could also take some of the localization away from the community as staff could be burdened with corporate mentality and have a hard time in negotiating any type of salary increases or promotions. One other problem is that the management company could come in and sell tickets above the local current market value.
If I was the lead government official, I think it would depend on the size of my city and the current economic factors before I could decide which way I would go. To hire an outside company to run a facility that has been the staple of the city for years I would say no and wouldn’t worry about my financial burden. If the facility had a history of losing money and had an unfavorable perception in the community than I would hire a company to help jump start it back to a positive financial situation and increase the awareness within the community.
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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