Tourism London says Budweiser Gardens needs to grow and warned city councillors a multi-million dollar expansion plan will be coming later this year.
It says the arena's "back of house" area must be expanded if Bud Gardens is to retain its position as a world-class facility.
Increasingly complex concerts and sporting events require much larger back stage areas.
Recently, the World Figure Skating Championships spent $300,000 on a media tent and other outdoor staging areas.
Global Spectrum will unveil an expansion plan later this year.
"I'd like to see the costs and who the partners are and how much the city is going to have to pay out of this. But I do think this will give us an opportunity for different programs," says Councillor Bud Polhill.