VOL. 40, NO. 43
OCTOBER 28 - NOVEMBER 3, 2019
Source Lunch
Akron Main Street Gourmet was enticing option for PE firm. Page 20
The List
Elyse Ball, University of Akron Research Foundation Page 22
NEO’s top privately held companies Page 16
TRANSIT
PRESSURE POINTS
An RTA train heads west on a rail viaduct in the Flats. A recent report claims the cost of maintaining the RTA’s extensive rail lines does not match expected revenues. (David Kordalski)
Fiscal analysis questions RTA’s administrative costs and $240M railcar replacement plan By Kim Palmer kpalmer@crain.com @kimfouroffive
This year, while dealing with continual declines in funding and ridership and conducting a nationwide search for a new general manager, the Greater Cleveland Regional
Transit Agency (RTA) began the initial steps of a comprehensive systemwide redesign. In the month before the new general manager, India Birdsong, came on board, the first of five studies commissioned by RTA, an analysis of fare rates and collection methods, was released. That analysis held few surprises, with the excep-
tion of the revelation of a decade-old contract for a transit “smart card” that was never delivered. On Oct. 22, a fiscal analysis and economic forecast study commissioned by the Greater Cleveland Partnership (GCP) and conducted by Canadian firm WSP made some decidedly more pointed observations about the eco-
nomic viability and future of RTA. The Financial Analysis and Economic Forecast report questioned RTA’s current and future funding gaps and recommended, among other things, privatization of the paratransit operations and cutting more than $12 million in administrative costs “to gain efficiencies and maximize revenue.”
The report also questioned the viability of a pending RTA railcar replacement plan set to cost an estimated $240 million. RTA has so far acquired less than half ($108 million) of the funds. Recently, the state rejected a request for Transportation Review Advisory Council (TRAC) funds for the project. SEE RTA, PAGE 6
SPORTS BUSINESS
Subscription plans connect Cavs to new fans By Kevin Kleps kkleps@crain.com @KevinKleps
Sports fans who aren’t looking for a long-term commitment are finding a partner in teams that are offering monthly subscription plans. And the clubs believe quite a few of the fans who participate will end up getting hooked. The Cleveland Cavaliers’ monthly subscription program recently tipped off, and more than 1,000 passes have been sold for October and November.
A limited number of lower-level passes, which are $89 a month, quickly sold out. The $49 monthly option, with Loudville seat locations that are delivered via Flash Seats within 24 hours of the game, is a few hundred subscriptions away from reaching its cap for October and November. At its current pace, the Cavs’ monthly pass would result in more than 42,000 tickets sold, which is a nice boost for a rebuilding club that no longer plays before a capacity crowd on a nightly basis. SEE CAVS, PAGE 18
Entire contents © 2019 by Crain Communications Inc.
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The Cavs are offering monthly passes that start at $49 for games at the renovated Rocket Mortgage FieldHouse. (Ken Blaze for Crain’s)
How it works Some key features of the Cavs’ monthly subscription plan: Cost: $49 for Loudville seats and $89 for lower-level seats. The $89 option is sold out for October and November. Ticket delivery: Via Flash Seats, 24 hours before the game. Game selection: The passes are good for every home game each month. Auto-renewal: Fans who want to opt out of the program must do so by the 25th to avoid a charge the following month. All together: Passes purchased at once will sit together. The limit is six passes per account, and there is no discount for purchasing multiple passes. Resales: Passes can’t be resold and can’t be transferred.
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