AEG and MelroseInc

The show must go on.

Los Angeles-based AEG is a leader in the global sports and live entertainment industry.  It owns, manages, or consults with over 350 venues, has 50 premier sports franchises, annually produces more than 22,000 live events, and hosts over 160 million guests.  Producing these events is a monumental undertaking supported by a network of diverse-owned suppliers that play a crucial role in making sure every show goes on.  And, for suppliers like MelroseINC, that sometimes can become a 24/7 proposition.

Founded by CEO Sandy Nasseri, MelroseINC is an umbrella for four companies: MelroseMAC, a 20-year-old Apple Premier reseller with stores in Hollywood and Burbank; MelroseTEC, a systems engineering, and technology integration division focused on high-performance customized storage equipment and networking solutions; MelroseSRC, a national procurement, sourcing, and distribution division; and MelrosePMC, a private cloud technology company supporting collaborative editorial workflows.

The Women’s Business Enterprise National Council- and Small Business Association Woman Owned Small Business-certified firm has grown from a staff of six employees to almost 60 today.  It earned approximately $70 million in revenue last year and counts among its other clients Bad Robot, Fox, NASA, Netflix, Paramount Pictures, Red Bull, Snapchat, Universal Music Group and Viacom.

But the company’s growth trajectory took a hit in 2020.  Civil rights protestors looted and then torched its Hollywood Apple storefront and systems integration division.  The resulting $10 million loss was the largest protest-related claim filed in California. “I always wanted skylights.  I just had to wait for the roof to burn,” Nasseri says lightheartedly.

The loss of the Hollywood store came on the heels of a nationwide COVID-19 pandemic shutdown that upended scores of Hollywood players, forcing them to create almost overnight a remote-based, tech-dependent workforce.  AEG was one of them.

“Sandy and her team were rebuilding their business after the civil unrest when we asked their help transitioning to a remote-based workforce, restocking our supplies and equipment, and strengthening our supply chain,” says AEG Supply Chain and Operations Vice President Maricruz Saucedo.  “They put their recovery on hold to make sure we had what we needed to thrive.”

That request proved a major undertaking.  MelroseINC equipped AEG’s graphic designers, event producers and other key staff, now working from home, with the laptops, desktops, and ancillary supplies they needed to deliver the company’s slate of festival and special events.

For Nasseri, whose formal education is in electronics and electrical engineering, it was another lesson in a string of lessons that have guided her company’s growth.

■ Adapt to a changing environment – “As a supplier, some things are out of your control.  Embrace it.  Like with surfing, when the wave moves, you move with it.  Where else can you apply your knowledge?  Where else can you leverage your skills and expertise?  They apply to a lot of other areas, too.” COVID-19 forced many clients to quickly shift hundreds of editors from their offices to their homes and remote workflows in just days.  But it also spurred the company’s fastest staff and revenue growth.

■ Leverage what you know – “While I may not have found joy in working directly with or troubleshooting computers, I did find my passion in collaborating with people,” explains Nasseri, who began her career in the Israeli military where she led female teams that installed and maintained mobile communications systems.  “My technical background has proven invaluable in effectively overseeing our engineering and workflow teams.  Moreover, it’s equipped me to delve into intricate technical discussions when engaging with client chief technology officers and IT managers.”

■ Diversify your business – “It’s good to focus on one market but it’s important to have other expertise in different verticals, too.  What we know about media and entertainment applies to every vertical.  Hospitals might need to record surgeries.  Real estate agents are using technology to show properties.  Expanding our business divisions enabled us to tap into more opportunities and survive the back-to-back screen actor and writer strikes that last year paralyzed Hollywood and devasted its smaller suppliers.”

■ Don’t burn bridges – “Hollywood is a relationship town and relationships are paramount.  Individuals may change roles, but they often remain within the industry.  By treating people with respect, I cultivate a network that can potentially carry me along their professional journey,” says Nasseri, who relies predominantly on word-of-mouth referrals.  That business ethos paved the way for a four-year relationship between AEG and MelroseINC.

MelroseINC’s involvement in AEG’s corporate IT procurement grew from a long relationship the company had with Saucedo who worked closely with Nasseri, before joining AEG nearly three years ago.  For AEG, that relationship has yielded major dividends.

“MelroseINC came through like heroes,” says Saucedo, “Not once did they say, ‘We don’t have the stock’ or ‘We can’t get that for you.’ It’s why they remain a preferred supplier not only to AEG but to many other entertainment studios that trust and value their work.  Diverse suppliers may be small but don’t underestimate the power of a small business.”