The foodservice contract for the new Amway Center arena in Orlando will give the venue’s prime tenant, the NBA’s Orlando Magic, the lion’s share of foodservice revenues, reports the Orlando Sentinel. The contract with Foodservice Partners, a joint venture entity led by Levy Restaurants, will give the Magic the commission revenue on all concessions sales generated at their games, estimated at almost $6 million a year and almost $30 million over the five year life of the contract. Foodservice Partners will keep the remainder of the net revenues.
At non-Magic-related events held at the venue, such as circuses and concerts, the commission revenue will be paid to the city, which owns the arena. However, the estimated $2.6 million it would reap from this arrangement is substantially less than the $4 million it currently generates from the foodservice contract—also with Foodservice Partners—at Amway Arena, the current home of the Magic, which they will leave for the Amway Center beginning this fall. At Amway Arena, the concessions deal is primarily a fee contract through which Foodservice Partners also earns a small share of revenues but its take is capped at $500,000 a year.
