This came up at council tonight, we see nothing about a 60/40 split of profits?   Note page 19 on the report that is linked below.

 

Click here for report

  • SMG management this year was 309,744.
  • Next year it will be that number timed the CPI.
  • What surprises me is that they get 50% of all monies take in that exceed $4,000,000 to a maximum of their mgmt fee.
  • Revenue exceeded 4,000,000 by 1,755,686.
  • 50% of that is 877,843 but it is capped by the 309,744 mgmt fee
  • In total SMG received 619,488 last year

 

SMG received 619,481, while the City of Worcester received 244,515.?  Think about it, the City of Worcester only received 244,515..

Next year SMG will get their management fee of 309,744 times CPI whether there is a profit or not.    They will receive 50% of all revenues past 4,000,000 whether or not there is a profit or not, but can not exceed their mgmt fee.