CLAYTON COUNTY, Ga. — A metro Atlanta school district is ending its contract with a third-party company that manages its 8,000-seat arena and will take over operations itself at the end of the year.
The Clayton County School Board recently voted not to renew its contract with The Right Productions, Inc., or TRP, which currently manages the Arena at Southlake on behalf of the district.
When the contract ends Dec. 31, the district will take over management and maintenance of the property.
Currently, The Right Productions, Inc., also referred to as TRP, is managing the arena on behalf of the Clayton County Board of Education.
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A presentation by TRP to the CCBOE said the company was committed to the work they’re doing at the arena and they want to continue doing so.
“TRP Now is committed to CCPS, the community and our children’s children,” TRP said in a presentation. “We are ready to continue the work and deliver revenue and opportunities for the students, staff and residents of Clayton County.”
However, school district staff recommended switching management to the district to provide more financial oversight, operational control and to better align with school district priorities.
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A separate presentation from district staff showed that the yearly cost for TRP’s operations was just shy of $2.1 million for personnel.
Under the school district’s proposal for self-management, the personnel costs would be an estimated $649,422, including both wages and benefits.
The presentation said switching to district management “Eliminates the $650,000 annual management fee” and “reduces personnel costs by 54.8%,” all while maintaining core operations and positioning for long-term financial stability.
The presentation also shows that TRP is paid a $50,000 monthly management fee, and other approved costs, and would also have a 25% revenue share in fiscal quarters that earn more than $280,000 in revenue.
From marketing costs to concessions to even the venue’s appearance, the CCSD presentation says the time for change is now.
As proposed, the district would be repainting the arena while still saving costs per year by cutting out third party companies that are currently collecting fees from the contract in place.
District officials also said the switch would provide more oversight, as right now, there is no right for the district to audit, access facility fees or customer data, nor have rights of enforcement.
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