Arena Events Group (LON: ARE) shares are climbing on Monday after the company announced its recently acquired US subsidiary, Arena Aztec Shaffer, has agreed to a new multi-year contract with Championship Management, a division of the PGA TOUR.
The company said the agreement, which runs until May 2023, covers the exact scope of events as previously served by Arena Aztec, with pricing adjusted to reflect current market conditions.
According to ARE, the significant majority of the historical revenues of the previous Arena Aztec Shaffer part of the business had come from golf, supporting more than seven tournaments a year, including the Players Championship and the Presidents Cup.
Arena Aztec originally signed a contract with Championship Management in 2000, which was renewed in 2008, 2012 and 2017.
Before Arena acquired Aztec Shaffer, the multi-year long-term contract with Championship Management was replaced by a short-term amended contract until the end of May 2021 and extended again through to the end of December 2021.
Greg Lawless, CEO of Arena, commented: “I am delighted that the team at Arena Aztec Shaffer and Championship Management have been able to agree to a new contract. This reflects the continued strong delivery of events by the team at AAS since we acquired our stake in the company in April and allows all parties to plan for a busy upcoming golf calendar, including the Presidents Cup in 2022.
“With a strong trading performance since we made the acquisition, this agreement further supports the rationale for our investment in AAS.”
Arena Events Group shares are currently up 0.85% at 14.75p after rising to 15.05p earlier in the session.
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