UNITED STATES
                        SECURITES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

    For the quarterly period ended: February 29, 2008

                                       OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

    For the transition period from ________________ to ________________

                        Commission File Number: 000-50643


                        GLOBAL ENTERTAINMENT CORPORATION
        (Exact name of small business issuer as specified in its charter)

           Nevada                                        86-0933274
(State or other Jurisdiction of          (I.R.S. Employer Identification Number)
 incorporation or organization)

                       1600 North Desert Drive, Suite 300
                              Tempe, Arizona 85281
                                 (480) 994-0772

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports),  and (2) has been
subject to such filing requirements for the past 90 days. Yes [X] No [ ]

Indicate  whether the registrant is a shell company (as defined in Rule 12b-2 of
the Exchange Act) Yes [ ] No [X]

Number of shares outstanding of each of the registrant's classes of common stock
as of March 31, 2008:

                          Common Stock, $.001 par value
                                6,625,112 shares

Transitional Small Business Disclosure Format (Check one): Yes [ ] No [X]
<PAGE>
                        GLOBAL ENTERTAINMENT CORPORATION
                                      INDEX
                              REPORT ON FORM 10-QSB
                     FOR THE QUARTER ENDED FEBRUARY 29, 2008

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements                                                   3

     Condensed Consolidated Balance Sheets - As of February 29, 2008
     (Unaudited) and May 31, 2007                                              3

     Condensed Consolidated Statements of Operations (Unaudited) -
     Three and Nine Months Ended February 29, 2008 and February 28, 2007       4

     Condensed Consolidated Statements of Changes in Stockholders'
     Equity - Year ended May 31, 2007 and Nine Months Ended
     February 29, 2008 (Unaudited)                                             5

     Condensed Consolidated Statements of Cash Flows (Unaudited) -
     Nine Months Ended February 29, 2008 and February 28, 2007                 6

     Notes to Condensed Consolidated Financial Statements                      7

Item 2. Management's Discussion and Analysis of Financial Condition
        and Results of Operations                                             18

Item 3. Controls and Procedures                                               25

PART II. OTHER INFORMATION

Item 1. Legal Proceedings                                                     25

Item 6. Exhibits                                                              26

                                       2
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                    As of February 29, 2008 and May 31, 2007
                    (in thousands, except per share amounts)

<TABLE>
<CAPTION>
                                                                      February 29,          May 31,
                                                                          2008               2007
                                                                        --------           --------
                                                                       (Unaudited)
<S>                                                                     <C>                <C>
                                     ASSETS
CURRENT ASSETS:
  Cash and cash equivalents                                             $    957           $  4,252
  Accounts receivable - trade, net of $2 and $557
   at February 29, 2008 and May 31, 2007                                   3,402              3,522
  Accounts receivable - other                                                 72                102
  Prepaid expenses and other assets                                          758                790
  Income taxes receivable                                                    138                 63
  Deferred income tax asset                                                   14                 14
                                                                        --------           --------
      TOTAL CURRENT ASSETS                                                 5,341              8,743

Property and equipment, net                                                  177                221
Construction in progress                                                  21,818                 --
Intangible assets, net                                                     2,735              2,743
Goodwill                                                                     519                519
Deferred income tax asset, net of valuation allowance                         44                 --
Other assets                                                                  66                 80
                                                                        --------           --------
      TOTAL ASSETS                                                      $ 30,700           $ 12,306
                                                                        ========           ========

                      LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
  Accounts payable                                                      $  2,285           $  3,263
  Accrued liabilities                                                      1,539              1,710
  Deferred revenues                                                          393                313
  Notes payable - current portion                                            511                 --
                                                                        --------           --------
      TOTAL CURRENT LIABILITIES                                            4,728              5,286

Deferred income tax liability                                                 66                 66
Long-term liabilities                                                      4,699                 --
Notes payable - long-term portion                                         16,077                 --
                                                                        --------           --------
      TOTAL LIABILITIES                                                   25,570              5,352
                                                                        --------           --------
COMMITMENTS AND CONTINGENCIES

MINORITY INTERESTS                                                            20                 --

STOCKHOLDERS' EQUITY:
  Preferred stock - $.001 par value; 10,000 shares authorized;
   no shares issued or outstanding                                            --                 --
  Common stock - $.001 par value; 50,000 shares authorized;
   6,625 and 6,508 shares issued and outstanding as of
   February 29, 2008 and May 31, 2007                                          7                  7
  Paid-in capital                                                         10,921             10,731
  Retained deficit                                                        (5,818)            (3,784)
                                                                        --------           --------
      TOTAL STOCKHOLDERS' EQUITY                                           5,110              6,954
                                                                        --------           --------
      TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                        $ 30,700           $ 12,306
                                                                        ========           ========
</TABLE>
                 The Accompanying Notes are an Integral Part of
                the Condensed Consolidated Financial Statements

                                       3
<PAGE>

                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
   For the Three and Nine Months Ended February 29, 2008 and February 28, 2007
              (Unaudited) (in thousands, except per share amounts)

<TABLE>
<CAPTION>
                                               Three Months Ended                Nine Months Ended
                                         -----------------------------     -----------------------------
                                         February 29,     February 28,     February 29,     February 28,
                                            2008             2007             2008             2007
                                          --------         --------         --------         --------
<S>                                       <C>              <C>              <C>              <C>
Revenues
  Project management fees                 $    132         $  1,861         $    376         $ 13,162
  Facility management fees                     783            1,645            2,482            3,146
  Licensing and advertising fees               876              960            2,842            2,714
  Ticket service fees                        1,040            1,180            2,993            2,991
  Project development fees                     317               --              523               --
  Franchise fees                                --               --              430              115
  Other revenue                                 24                8               42               11
                                          --------         --------         --------         --------
Total Revenues                               3,172            5,654            9,688           22,139
                                          --------         --------         --------         --------
Operating Costs
  Cost of revenues                           1,660            3,918            5,213           17,173
  General and administrative costs           1,543            2,214            6,670            6,501
                                          --------         --------         --------         --------
Total Operating Costs                        3,203            6,132           11,883           23,674
                                          --------         --------         --------         --------

Income (Loss) from Operations                  (31)            (478)          (2,195)          (1,535)

Other Income (Expense)
  Interest income                               15               80               96              228
  Interest expense                             (14)              (4)             (22)             (12)
  Minority interests                            --               98              (20)             194
                                          --------         --------         --------         --------
Total Other Income                               1              174               54              410
                                          --------         --------         --------         --------

Loss Before Income Taxes                       (30)            (304)          (2,141)          (1,125)

Income Tax Benefit                             107               --              107               --
                                          --------         --------         --------         --------

Net Income (Loss)                         $     77         $   (304)        $ (2,034)        $ (1,125)
                                          ========         ========         ========         ========

Earnings (Loss) Per Share
  - basic                                 $   0.01         $  (0.05)        $  (0.31)        $  (0.17)
                                          ========         ========         ========         ========
  - diluted                               $   0.01         $  (0.05)        $  (0.31)        $  (0.17)
                                          ========         ========         ========         ========
Weighted Average Shares Outstanding
  - basic                                    6,542            6,508            6,518            6,501
                                          ========         ========         ========         ========
  - diluted                                  6,542            6,508            6,518            6,501
                                          ========         ========         ========         ========
</TABLE>

                 The Accompanying Notes are an Integral Part of
                the Condensed Consolidated Financial Statements

                                       4
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
      CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
   For the Year Ended May 31, 2007 and the Nine Months Ended February 29, 2008
                                 (in thousands)

<TABLE>
<CAPTION>
                                                Common Stock                        Retained
                                            ---------------------      Paid-in      Earnings
                                            Shares         Amount      Capital      (Deficit)       Total
                                            ------         ------      -------      ---------       -----
<S>                                        <C>           <C>         <C>           <C>            <C>
Balance at May 31, 2006                       6,487        $   7      $ 10,666      $    341       $ 11,014

Exercise of options                              11           --             9            --              9

Issuance of restricted stock                     10           --            56            --             56

Net loss for the fiscal year ended
 May 31, 2007                                    --           --            --        (4,125)        (4,125)
                                           --------        -----      --------      --------       --------

Balance at May 31, 2007                       6,508            7        10,731        (3,784)         6,954

Exercise of options (Unaudited)                  14           --            --            --             --

Issuance of restricted stock (Unaudited)          3           --            27            --             27

Issuance of stock (Unaudited)                   100           --           163            --            163

Net loss for the nine  months ended
 February 29, 2008 (Unaudited)                   --           --            --        (2,034)        (2,034)
                                           --------        -----      --------      --------       --------
Balance at February 29, 2008
 (Unaudited)                                  6,625        $   7      $ 10,921      $ (5,818)      $  5,110
                                           ========        =====      ========      ========       ========
</TABLE>

                 The Accompanying Notes are an Integral Part of
                the Condensed Consolidated Financial Statements

                                       5
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
        For the Nine Months Ended February 29, 2008 and February 28, 2007
                           (Unaudited) (in thousands)

<TABLE>
<CAPTION>
                                                                     For the Nine Months Ended
                                                                  -------------------------------
                                                                  February 29,       February 28,
                                                                     2008               2007
                                                                   --------           --------
<S>                                                                <C>                <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss                                                         $ (2,034)          $ (1,125)
  Adjustments to reconcile net loss to net cash
   used in operating activities -
     Depreciation and amortization                                      149                133
     Provision for doubtful accounts                                     72                 28
     Issuance of stock to vendor                                        163                 --
     Other                                                                4                 14
     Changes in assets and liabilities -
       Decrease (increase) accounts receivable
         - trade                                                         48                648
         - other                                                         30                (12)
       Decrease (increase) in prepaid expenses and other assets          32               (223)
       Increase in income taxes receivable                              (75)                --
       Decrease (increase) in other assets                               14                 (1)
       Decrease in accounts payable                                    (574)              (313)
       Increase (decrease) in  accrued liabilities                     (171)             1,233
       Increase (decrease) in deferred revenues                          80               (487)
                                                                   --------           --------
Net cash used in operating activities                                (2,262)              (105)
                                                                   --------           --------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of property and equipment                                   (119)              (107)
  Proceeds from sale of property and equipment                           21
  Construction in progress                                          (17,119)                --
  Proceeds from sale of fixed assets                                     --
  Purchase of trademarks                                                 --                (90)
                                                                   --------           --------
Net cash used in investing activites                                (17,217)              (197)
                                                                   --------           --------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Notes payable proceeds                                             16,200                 --
  Notes payable payments                                                (16)                --
  Stock options exercised                                                --                  9
                                                                   --------           --------
Net cash provided by financing activities                            16,184                  9
                                                                   --------           --------

NET DECREASE IN CASH AND CASH EQUIVALENTS                            (3,295)              (293)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                        4,252              5,438
                                                                   --------           --------
CASH AND CASH EQUIVALENTS, END OF PERIOD                           $    957           $  5,145
                                                                   ========           ========

SUPPLEMENTAL CASH FLOW INFORMATION:
  Cash paid during the period for interest                         $     18           $      9
                                                                   ========           ========
  Cash paid during the period for income taxes                     $     --           $     --
                                                                   ========           ========
</TABLE>

                 The Accompanying Notes are an Integral Part of
                the Condensed Consolidated Financial Statements

                                       6
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
        Notes to Condensed Consolidated Financial Statements (Unaudited)


--------------------------------------------------------------------------------
                                     NOTE 1
        SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, AND USE OF ESTIMATES
--------------------------------------------------------------------------------

BASIS OF PRESENTATION

The condensed consolidated financial statements include the financial statements
of Global Entertainment  Corporation (Global) and its wholly owned subsidiaries,
Western  Professional Hockey League Inc. (WPHL) dba Central Hockey League (CHL),
International  Coliseums Company,  Inc. (ICC),  Global  Entertainment  Marketing
Systems (GEMS), Cragar Industries, Inc. (Cragar), Global Entertainment Ticketing
(GETTIX),   Encore  Facility  Management  (Encore),  and  Global  Properties  I.
(collectively  referred  to  as  "we",  "our",  "us",  or  the  "Company").  All
significant  intercompany  balances and  transactions  have been  eliminated  in
consolidation.

The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial  information and with the instructions  for Form 10-QSB.  Accordingly,
they do not include all the  information  and  footnotes  required by  generally
accepted accounting principles for complete financial statements. In the opinion
of  management,  all  adjustments  (consisting  of  normal  recurring  accruals)
considered necessary for fair presentation have been included.

Operating  results for the three and nine month periods ended February 29, 2008,
are not necessarily  indicative of the results that may be expected for the year
ending May 31, 2008, or for any other period. For further information,  refer to
the financial  statements  and  footnotes  included in our annual report on Form
10-KSB for the year ended May 31, 2007.

Certain  reclassification  are  reflected  in prior  periods  for the purpose of
consistent presentation.

USE OF ESTIMATES

Management uses estimates and assumptions in preparing  financial  statements in
accordance with accounting  principles  generally accepted in the United States.
Those  estimates  and  assumptions  affect  the  reported  amounts of assets and
liabilities,  the  disclosure  of  contingent  assets and  liabilities,  and the
reported revenues and expenses.  Actual results may vary from the estimates that
were assumed in preparing the consolidated financial statements.

Material estimates  include,  but are not limited to, revenue  recognition,  the
allowance  for doubtful  accounts,  facility  management  performance  guarantee
liabilities,  the carrying  value of goodwill  and  intellectual  property,  the
realization of deferred income tax assets,  the fair value of liability  related
to the secondary guarantee related to a worker's  compensation  program, and the
allocation  of expenses and division of profit  relating to the joint  operating
agreement.  Due to the uncertainties  inherent in the estimation process and the
significance  of  these  items,  it is at  least  reasonably  possible  that the
estimates in connection with these items could be materially  revised within the
next year.

REVENUE RECOGNITION

Franchise Fees:  Initial franchise fees represent amounts received from WPHL/CHL
franchisees to acquire a hockey  franchise.  The amount is recognized as revenue
when the  franchise  agreement is signed and we have met all of our  significant
obligations under the terms of the franchise  agreement.  We are responsible for
assisting  the  franchisee  with facility  lease  contract  negotiations,  venue
ticketing  analysis  and  pricing,   concessionaire  negotiations  and  staffing
advisements.  These  generally  occur  at the  time the  franchisee  acquires  a
franchise.  Transfer  franchise  fees  represent  the  amounts  received  from a
franchisee upon the transfer of ownership of a franchise and are recognized upon
completion of the transfer.

                                       7
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
        Notes to Condensed Consolidated Financial Statements (Unaudited)


Licensing and  Advertising  Fees:  Pursuant to the terms of the Joint  Operating
Agreement  (JOA),  each team in the WPHL/CHL pays annual  assessment fees of $75
thousand, plus $15 thousand per annum for officiating costs. In addition, the 14
teams from the WPHL pay an extra $10 thousand  annually to cover our costs.  The
fees are recognized ratably over the year in relation to expenses  incurred.  At
the end of the year, net profits, or losses are shared proportionately with each
member of the JOA. GEMS sells certain  contractual  rights,  including  facility
naming rights, luxury suite sales, club seat license sales, facility sponsorship
agreements, and ticket operations contracts. The revenue from these contracts is
recognized  when earned in accordance with the contract.  Corporate  sponsorship
fees represent  amounts  received from third-party  sponsors.  Revenue from this
source is  recognized  when earned based on the terms of the  agreement.  Cragar
owns the exclusive right to sell,  market, and promote the CRAGAR(R) brand name.
For this right,  we receive  royalties  based on the sale of licensed  products.
This revenue is recognized at the completed sale of the licensed products.

Project  Management  Fees: ICC receives  design/build  and  construction-project
supervisory contract revenue from various  municipalities in connection with the
construction  and financing of municipal  venues.  This is recognized as revenue
ratably over the duration of the contracts. Project management fees also include
amounts we billed  relating to furniture,  fixtures and equipment,  architecture
fees,  and  other  amounts  we incur on behalf of  municipalities.  The  related
revenue and expense for these  amounts are  recognized  in the period  incurred.
Revenues  and costs  from  fixed-price  and  modified  fixed-price  construction
contracts,   if  any,   will   be   recognized   for   each   contract   on  the
percentage-of-completion method, measured by the percentage of costs incurred to
date to the estimated  total direct  costs.  As contracts can extend over one or
more accounting  periods,  revisions in costs and earnings  estimated during the
course of the work are reflected during the accounting period in which the facts
that required  such  revision  become  known.  Project  management  revenues are
recorded based on the gross amounts billed to a customer in accordance with EITF
99-19, "Reporting Revenue Gross as a Principal versus Net as an Agent".

Project  Development Fees: Global Properties I is working in targeted  mid-sized
communities  across the United  States  promoting  our  services  related to the
development of multipurpose events centers and surrounding multi-use real estate
development.  Project  development  fees are  recognized  according  to specific
contract  terms;  typically 50% upon signing of a  development  contract and 50%
upon construction groundbreaking.

Facility  Management Fees:  Encore receives a fee for managing the operations of
various  municipal  venues.   These  activities  include  developing   operating
procedures  and  manuals,  hiring all  staff,  supporting  sales and  marketing,
location maintenance,  concessions  coordination,  preparing annual budgets, and
securing and promoting events.  Revenues from facility  management  services are
recognized as services are rendered and consist of contract fees,  which reflect
the total price of such  services.  When we  principally  manage  people who are
employees at the facility, the payroll costs from such employees are included in
cost of revenues.

Ticket Service Fees: GETTIX is a ticketing agent with various venues,  theaters,
event  centers,  and private  entities  requiring  services to fulfill orders to
ticketed  events.  Revenues are generated  from the fees charged for  processing
ticket  orders.  These  revenues are  recognized  upon  completion  of the sale.
Ticketing  revenues  are  recorded  based on the net fees  retained by GETTIX in
accordance with EITF 99-19.

Automotive Part Sales: Cragar product sales include Cragar Edition Vehicle Kits,
brakes,  exhaust,  and  other  aftermarket  automotive  products.  Revenues  are
generated  from the sale of these branded  products to automotive  retailers and
distributors.  These  revenues  are  recognized  at the time of  delivery to our
customers.

                                       8
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
        Notes to Condensed Consolidated Financial Statements (Unaudited)


EARNINGS (LOSS) PER SHARE (EPS) (in thousands, except per share amounts)

<TABLE>
<CAPTION>
                                                        Three Months Ended                Nine Months Ended
                                                     --------------------------      ---------------------------
                                                     February 29,  February 28,      February 29,   February 28,
                                                        2008          2007              2008           2007
                                                      --------      --------          --------       --------
<S>                                                   <C>           <C>               <C>            <C>
Earnings (loss) attributable to common shares         $     77      $   (304)         $ (2,034)      $ (1,125)
Basic EPS - weighted average shares outstanding          6,542         6,508             6,518          6,501
                                                      --------      --------          --------       --------
     Basic earnings (loss) per share                  $   0.01      $  (0.05)         $  (0.31)      $  (0.17)
                                                      ========      ========          ========       ========

Basic EPS - weighted average shares outstanding          6,542         6,508             6,518          6,501
Effect of dilutive securities                               --            --                --             --
                                                      --------      --------          --------       --------
Diluted EPS - weighted average shares outstanding        6,542         6,508             6,518          6,501
                                                      --------      --------          --------       --------
     Diluted earnings (loss) per share                $   0.01      $  (0.05)         $  (0.31)      $  (0.17)
                                                      ========      ========          ========       ========

Average outstanding securities not included in
 diluted EPS because effect would be antidilutive -
   Stock options                                           397           595               494            599
   Warrants                                                276           216               276            216
   Restricted stock                                         15            15                20              9
</TABLE>

Basic earnings  (loss) per share of common stock is computed by dividing the net
income  (loss)  by the  weighted  average  number  of  shares  of  common  stock
outstanding during the period.  Diluted earnings (loss) per share is computed by
dividing net income  (loss) by the weighted  average  number of shares of common
stock and dilutive securities outstanding during the period. Dilutive securities
are not included in the weighted  average number of shares when inclusion  would
increase the income per share or decrease the loss per share.

NEW ACCOUNTING PRONOUNCEMENTS

In June 2006,  the FASB issued  FASB  Interpretation  No. 48 (FIN No.  48),  "An
Interpretation  of FASB  Statement No. 109," which  clarifies the accounting for
uncertainty in income taxes  recognized in a company's  financial  statements in
accordance  with FASB Statement No. 109,  "Accounting  for Income  Taxes".  This
Interpretation  prescribes a recognition threshold and measurement attribute for
the financial  statement  recognition and measurement of a tax position taken or
expected  to be  taken  in a  tax  return.  FIN  No.  48  reflects  the  benefit
recognition  approach,  where a tax benefit is recognized when it is more likely
than not to be  sustained  based on the  technical  merits of the  position.  We
adopted  FIN No. 48 on June 1,  2007,  and there was no  material  effect on our
financial position or results of operations.

In September 2006, the Financial Accounting Standard Board issued a Statement of
Financial Accounting Standard No. 157 (SFAS 157), "Fair Value Measurements". The
statement  defines fair value,  establishes a framework for measuring fair value
in generally accepted  accounting  principles  (GAAP),  and expands  disclosures
about fair value  measurements.  This statement is effective for our fiscal year
beginning  June 1, 2008,  and  interim  periods  within that  fiscal  year.  The
adoption of SFAS 157 is not expected to have a material  effect on our financial
position or results of operations.

In February  2007,  the FASB issued  SFAS No.  159,  "The Fair Value  Option for
Financial Assets and Financial Liabilities".  This statement permits entities to
choose to measure many  financial  instruments  and certain  other items at fair
value. An entity shall report unrealized gains and losses on items for which the
fair value  option has been  elected in  earnings at each  subsequent  reporting
date. This statement is effective for our fiscal year beginning June 1, 2008. We
do not expect SFAS No. 159 will have a material effect on our financial position
or results of operations.

                                       9
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
        Notes to Condensed Consolidated Financial Statements (Unaudited)


In December  2007,  the FASB issued SFAS No. 160,  "Noncontrolling  Interests in
Consolidated  Financial Statements,  an amendment of ARB No. 51". This statement
establishes accounting and reporting standards for noncontrolling interests in a
subsidiary  and for the  deconsolidation  of a subsidiary.  The  statement  also
provides  consolidated  income  statement  presentation  guidance  and  expanded
disclosures.  This  statement is effective for our fiscal year beginning June 1,
2008.  We have  not yet  evaluated  the  effect  SFAS No.  160 will  have on our
financial position or results of operations.

--------------------------------------------------------------------------------
                                     NOTE 2
                         INTANGIBLE ASSETS AND GOODWILL
--------------------------------------------------------------------------------

Intangible assets were comprised of the following (in thousands):

                                               February 29,         May 31,
                                                  2008               2007
                                                --------           --------
Trademarks                                      $    108           $    108
Covenant not to compete                               50                 50
                                                --------           --------
                                                     158                158
Less: accumulated amortization                       (60)               (52)
                                                --------           --------
Finite life intangibles, net                          98                106
Trademarks not subject to amortization             2,637              2,637
                                                --------           --------
                                                $  2,735           $  2,743
                                                ========           ========

                                               February 29,       February 28,
                                                  2008               2007
                                                --------           --------
Amortization expense -
  Three months ended                            $      3           $      3
                                                ========           ========
  Nine months ended                             $      8           $      8
                                                ========           ========

During  the  fiscal  year  ended May 31,  2007,  we  determined  that,  based on
estimated future cash flows, the carrying amount of Cragar  trademarks  exceeded
fair value by $906 thousand;  accordingly, an impairment loss of that amount was
recognized in fiscal year 2007.  We have  evaluated  the  recoverability  of the
trademarks as of February 29, 2008, and believe no additional impairment existed
at that date.

As of February 29, 2008, the aggregated  amortization  expense  expected for the
next  five  years for all  intangible  assets  subject  to  amortization  is $41
thousand.  As of February 29, 2008, the weighted  average  remaining life of our
intangible assets subject to amortization is approximately 9 years.

At February 29, 2008 and May 31, 2007, goodwill relates to our ICC segment.

--------------------------------------------------------------------------------
                                     NOTE 3
                                     EQUITY
--------------------------------------------------------------------------------

During the nine months ended February 29, 2008 and February 28, 2007, we did not
issue options to purchase shares of common stock.

During  fiscal 2007,  we adopted the 2007  Long-Term  Incentive  Plan.  The plan
authorizes the Board of Directors to grant  restricted  stock awards to selected
officers,  employees,  outside consultants and our directors or its wholly owned
subsidiaries  for up to an  aggregate of 320  thousand  shares of common  stock.
Awards to  non-employee  directors  vest over two years,  awards to officers and
employees vest over four years, and awards made to consultants or advisors shall

                                       10
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
        Notes to Condensed Consolidated Financial Statements (Unaudited)


be determined by the Compensation  Committee of the Board of Directors.  Through
February 29, 2008, 34 thousand shares of restricted stock have been granted.

The following table summarizes our restricted stock plan status (in thousands):

<TABLE>
<CAPTION>
                                         Three Months Ended                 Nine Months Ended
                                    -----------------------------     -----------------------------
                                    February 29,     February 28,     February 29,     February 28,
                                       2008             2007             2008             2007
                                       ----             ----             ----             ----
<S>                                    <C>              <C>              <C>              <C>
General and administrative costs       $ 54             $  8             $ 66             $ 14
Restricted stock shares -
  Unvested as of period end              21               15               21               15
  Granted during the period               6               --               19               15
  Vested during the period               --               --               13               --
</TABLE>

Restricted stock grants to consultants are revalued as of each period end.

In February 2008, we issued 100 thousand shares of common stock, valued at $1.63
per share, in connection with the settlement of a legal matter.

--------------------------------------------------------------------------------
                                     NOTE 4
                                  NOTES PAYABLE
--------------------------------------------------------------------------------

We had a $3.0 million line of credit  which  matured on January 19, 2008,  at an
interest  rate of 1% plus  prime.  The line of credit has been  amended.  It now
matures on July 1, 2008, has been reduced to $1.75  million,  and bears interest
at a rate of 2% plus prime (8.0% at February 29, 2008). As of February 29, 2008,
we have no outstanding balance on this credit facility. At February 29, 2008, we
had a maximum borrowing capacity of $0.5 million, as a result of a $1.25 million
letter  of  credit in favor of  Marshall  Financial  Group,  which  reduced  our
available line of credit.  No amounts have been drawn upon this letter of credit
to date.  The  credit  facility  has been  secured by  substantially  all of our
tangible and intangible assets,  including  Cragar's  trademark  portfolio and a
pledge of  Cragar's  capital  stock.  In order to borrow,  we must meet  certain
financial  covenants,  including  maintaining a minimum  current ratio  (current
assets  compared  to current  liabilities)  of 1.05 as of the end of each fiscal
quarter, a minimum consolidated tangible net worth of $5,000,000, as of the date
of the  amendment,  August 21, 2006, and an increase in tangible net worth of at
least 75% of  consolidated  net income plus 100% of all  increases  of equity in
Global  (including  the  amount  of any  stock  offering  or  issuance)  on each
anniversary  date of May 31 thereafter  until maturity.  We must maintain a zero
balance for a consecutive  30 day period during the term of the facility.  As of
February  29,  2008,  we were not in  compliance  with the minimum  consolidated
tangible net worth covenant; however, the bank has agreed to waive this covenant
violation.

In August 2007 we entered into an agreement with Marshall  Financial  Group, LLC
to borrow up to $52.0 million for the  construction  of a  multi-purpose  events
center in Wenatchee, Washington. As part of this agreement, we provided a letter
of  credit  in  favor  of  Marshall  Financial  Group  for  $1.25  million.  The
outstanding  principal balance of the note bears interest at the prime rate plus
0.25%  (6.25% at  February  29,  2008).  The note is payable in its  entirety in
August 2009. Financial covenants of the note require that we maintain a level of
stockholders'  equity of not less than $8.0 million and unrestricted  cash, cash
equivalents,  time  deposits  and  marketable  securities  of not less than $3.5
million. As of February 29, 2008, we were not in compliance with these financial
covenants.

At February 29, 2008, the $15.9 million  outstanding balance on the construction
loan is  classified as a long-term  notes payable in the condensed  consolidated
balance  sheets.  Interest on the loan  accumulates  monthly and increases  note
payable and construction in progress.  Accumulated interest through February 29,
2008, totals $0.5 million.

                                       11
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
        Notes to Condensed Consolidated Financial Statements (Unaudited)


In the  third  quarter  of  fiscal  2008,  we  entered  into a note  payable  in
connection with settlement of a legal matter.  The note calls for 36 payments of
$10 thousand monthly through December 2010. We recorded the present value of the
payments,  discounted at 7.0%,  as notes payable and general and  administrative
costs.

In the third quarter of fiscal 2008, we entered into an agreement  with a vendor
to  finance  $0.4  million  of  accounts  payable  under a note.  The note bears
interest at 8.3% and is payable in monthly  installments of $84 thousand through
July 2008.

Principal maturities of notes payable are as follows (in thousands):

     Twelve Months
    Ended February
    --------------
        2009         $    511
        2010           15,980
        2011               97
                     --------
       Total         $ 16,588
                     ========

--------------------------------------------------------------------------------
                                     NOTE 5
                          COMMITMENTS AND CONTINGENCIES
--------------------------------------------------------------------------------

PURCHASE COMMITMENTS

In connection with the construction  project in Wenatchee,  Washington,  we have
purchase   commitments  for   construction,   furniture  and  fixtures  totaling
approximately $25 million at February 29, 2008.

OPERATING LEASES

The minimum  lease  payments and minimum  annual fees for  operating  leases and
software contracts are as follows (in thousands):

     Fiscal Year
     -----------
        2008                  $ 283
        2009                    877
        2010                    863
        2011                    716
        2012                    295
     Thereafter                 295

LITIGATION

As with all  entertainment  facilities  there  exists a degree  of risk that the
general public may be accidentally  injured. As of February 29, 2008, there were
various claims  outstanding in this regard that management does not believe will
have a material effect on our financial  condition or results of operations.  To
mitigate this risk, we maintain insurance coverage, which we believe effectively
covers any reasonably  foreseeable  potential  liability.  There is no assurance
that our insurance  coverage will  adequately  cover all liabilities to which we
may be exposed.

We  are  a  plaintiff  and  a  counter-defendant  in  a  lawsuit  involving  our
franchisee,  Blue Line Hockey,  LLC (Blue Line),  which  operates the Youngstown
Steelhounds.  Our claim is for  approximately  $115 thousand in unpaid franchise
and assessment  fees owed by Blue Line,  plus our attorneys'  fees.  Blue Line's
counterclaim alleges that the WPHL fraudulently induced Blue Line's principal to
enter the  license  agreement  by failing to comply  with  franchise  disclosure

                                       12
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
        Notes to Condensed Consolidated Financial Statements (Unaudited)


requirements,  and that the WPHL made fraudulent  representations to induce Blue
Line into signing the  franchise  agreement.  Blue Line seeks  rescission of the
license  agreement,  reimbursement  of its franchise fee, and  reimbursement  of
travel  expenses for the 2005-2006  season.  Although the outcome of this matter
cannot be predicted  with  certainty,  we believe that we have both valid claims
and valid defenses to the counterclaims. Thus, we intend to vigorously prosecute
our claims and defend the  counterclaims.  No liability has been  established at
February 29, 2008 related to this matter.

We were a defendant  in a lawsuit  filed by Nustadia  Developments  Inc. and PBK
Architects.  The  suit  arose  out of  certain  contracts  between  us  and  the
plaintiffs,  pursuant  to  which  we  agreed  to use  architectural  design  and
development  management services of the plaintiffs with respect to certain arena
development  projects.  This suit was filed in December 2005, and was pending in
the Maricopa  County  Superior  Court of Arizona.  We  established  a reserve to
reflect the estimated  settlement  costs in the first quarter of fiscal 2008. In
February  2008,  we settled the matter with a combination  of stock,  cash and a
note payable,  for $0.3 million less than  originally  estimated.  Third quarter
results reflect this change as a reduction in general and administrative costs.

Global was the claimant and  counter-respondent in an arbitration against Global
Spectrum, L.P. (Spectrum).  This arbitration was being conducted by the American
Arbitration  Association  in Phoenix,  Arizona,  and stemmed  from a  settlement
agreement   entered  into  between  Global  and  Spectrum.   Global  sought  the
arbitrators' declaration that Global was not obligated to make any more payments
to Spectrum under the settlement agreement alleging that Spectrum misrepresented
material  facts to  induce  Global  to  execute  the  settlement  agreement.  We
established  a reserve to reflect the  estimated  settlement  costs in the first
quarter of fiscal year 2008 and we settled  the matter in the second  quarter of
fiscal year 2008.

International  Coliseums Company was the plaintiff in a lawsuit it filed against
the City of Youngstown,  Ohio. The lawsuit sought a determination  that the City
took certain actions which  prohibited ICC from  performing as contracted  under
the  management  agreement  between the  parties.  We  established  a reserve to
reflect the estimated  settlement costs in fiscal 2007 and we settled the matter
in the second quarter of fiscal 2008. The settlement  eliminated the contingency
related to certain guaranteed economic performance  standards in the Youngstown,
Ohio, facility contract.

CONTINGENCIES

Pursuant to the joint operating  agreement between the CHL and the WPHL, the CHL
has an option to purchase all of the WPHL's interests and rights related to WPHL
teams  operating  under  the joint  operating  agreement,  and any other  hockey
related  assets of the WPHL.  Although our strategy is to increase  revenue from
our arena  development and marketing and licensing  businesses,  the exercise of
this  option by the CHL  would  require  us to enter  into an  agreement  not to
compete with the CHL for a period of five years, and eliminate a current primary
source of revenue.  The earliest such a transaction  could occur would be at the
end of the 2011 fiscal year. We are currently in negotiations with CHL regarding
their  payment of  outstanding  receivables  totaling  $0.2  million,  and other
matters.

We enter  into  indemnification  provisions  under  our  agreements  with  other
companies in our ordinary course of business,  typically with business  partners
and customers.  Under these provisions we generally  indemnify and hold harmless
the indemnified  party for losses suffered or incurred by the indemnified  party
as a result of our activities.  The maximum  potential amount of future payments
we  could  be  required  to  make  under  these  indemnification  provisions  is
unlimited.  We have not  incurred  material  costs to defend  lawsuits or settle
claims related to these indemnification  agreements. As a result, we believe the
estimated  fair value of these  agreements is minimal.  Accordingly,  we have no
liabilities recorded for these agreements as of February 29, 2008.

                                       13
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
        Notes to Condensed Consolidated Financial Statements (Unaudited)


As of February 29, 2008, we have entered into various employment  contracts with
key employees. Under certain circumstances we may be liable to pay amounts based
on the related contract terms.

GUARANTEES

We have entered into a contract with the  entertainment  facility in Rio Rancho,
New Mexico which guarantees certain economic performance standards.  The term of
this  contract is for a period of 10 years and expires in December  2014. In the
event these economic performance  standards are not reached, we are obligated to
subsidize  the  difference  between the actual  performance  and the  guaranteed
performance.  There are no recourse  provisions under this agreement.  It is not
possible to estimate a potential  liability under this guarantee  because of the
conditional  nature of our  obligations  and the unique facts and  circumstances
involved in the  agreement.  The maximum  amount of future  payments we could be
required to make under the  performance  guarantee is theoretical due to various
unknown factors.  However, the subsidy would be limited to the operating loss of
the  facility  for each year of the  guarantee.  We have  never  made a material
subsidy from this guarantee and do not believe that any potential  subsidy would
be material.

We have  entered  into a contract  with the  entertainment  facility in Prescott
Valley,  Arizona which provides a limited guarantee of the debt service payments
of the facility.  The term of this contract is for a period of 25 years.  In the
event of any shortfalls in debt service payments,  amounts will first be paid by
third  party  escrow  accounts  funded by 2% of the  Transaction  Privilege  Tax
collected  from  the  surrounding  project  area  and  from  a  lockbox  account
containing 1) an initial  contribution by the Prescott Valley Events Center, LLC
(see  Note  6,  Joint  Venture)  of $250  thousand  2) $100  thousand  per  year
(increasing  annually  by  inflation)  from the Town of  Prescott  Valley and 3)
earnings  from the arena  operations.  The  maximum  potential  future  payments
required  under this guarantee are limited to our annual  management  fee. There
are no recourse  provisions  under this agreement.  We have never  experienced a
material  loss under this  contract and do not believe that any  potential  loss
would be material.  As such,  no value has been  assigned to the guarantee as of
February 29, 2008.

In February 2008, we entered into a management agreement with the City of Allen,
Texas relative to a  multi-purpose  event center to be constructed in that city.
The initial term of this agreement is fifteen years,  with an option by the city
to renew for an additional five years under certain  conditions.  This agreement
includes a guarantee  that the event center will  operate at a break-even  point
and without cost to the city,  not including any capital  reserves and any other
off-sets  described in the agreement.  This guarantee  requires that all amounts
reasonably  required for the operation and  maintenance of the event center will
be generated  by the  operation of the event  center,  or otherwise  paid by us.
Should  we be  obligated  to fund  any  operational  shortfalls,  the  agreement
provides for reimbursement to us from future profits from the event center.  The
maximum  amount of future  payments  we could be  required  to make  under  this
operational  guarantee is theoretical due to various unknown  factors.  However,
the  guarantee  would be limited to the  operational  loss from the facility for
each year of the guarantee, less any reimbursements from the facility. We do not
believe that any potential guarantee payments would be material.

As of February 29, 2008, we provide a secondary guarantee on a standby letter of
credit in favor of Ace American  Insurance Company for $1.5 million related to a
guarantee under a workers compensation  program.  This letter of credit is fully
collateralized  by a third party and our  secondary  guarantee of this letter of
credit  does not  affect our  borrowing  capacity  under our line of credit.  No
amounts  have been drawn on this letter of credit as of February  29,  2008.  We
believe the amount of payments under this guarantee is negligible,  and as such,
have assigned no value to this guarantee at February 29, 2008.

                                       14
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
        Notes to Condensed Consolidated Financial Statements (Unaudited)


--------------------------------------------------------------------------------
                                     NOTE 6
                                  JOINT VENTURE
--------------------------------------------------------------------------------

During  the fiscal  year ended May 31,  2006,  we entered  into a joint  venture
partnership  agreement with Prescott Valley Signature  Entertainment,  LLC. This
joint venture was formed to engage in the business of developing,  managing, and
leasing the Prescott  Valley Events Center in Prescott  Valley,  Arizona through
the  Pre-Annexation  Development  Agreement with the Town of Prescott Valley. We
are the managing  member of Prescott  Valley Events  Center,  LLC (PVEC) and are
responsible  for the planning,  promotion and  fulfillment  of the joint venture
operations.  We account for our  investment  in PVEC by the equity  method.  Our
interest  in this entity is not a  controlling  one, as we do not own a majority
voting  interest  and as our  ability  to  affect  the  business  operations  is
significantly limited by the partnership operating agreement. The PVEC operating
agreement also provides that a  majority-in-interest  of the members may replace
the   managing   member,   or  if  the   managing   member  is  in  default,   a
majority-in-interest  of the remaining  members may replace the managing member.
Each member must contribute  $1,000 for a 50% interest in the joint venture.  We
will also  contribute  $250 thousand as preferred  capital while Prescott Valley
Signature Entertainment,  LLC contributed land with an approximate value of $1.5
million as preferred capital.  Each member will receive a 5% return on preferred
capital  contributions  and will share  equally in the gain or loss of PVEC.  If
funds available to PVEC are insufficient to fund  operations,  the members agree
to  contribute  100% of the cash needed until each  member's  preferred  capital
account  balances are equal and 50% of the cash needed if its preferred  capital
contribution  balances are equal. We have a limited contingent liability for the
debt service  payments on the facility.  In the event of any  shortfalls in debt
service payments,  amounts will first be paid by escrow accounts funded by 2% of
the Transaction  Privilege Tax collected from the  surrounding  project area and
from a lockbox  account  containing 1) an initial  contribution  by PVEC of $250
thousand,  2) $100 thousand per year (increasing annually by inflation) from the
Town of Prescott Valley and 3) earnings from the arena  operations.  The maximum
potential  future  payments  required  under this  guarantee  are limited to our
annual management fee which we estimate to be approximately $140 thousand.

We did not earn income or incur any losses  from PVEC for the nine months  ended
February 29, 2008.

During the fiscal year ended May 31, 2006,  we purchased a liquor  license to be
used in the operations of the Prescott  Valley Events Center.  This license will
be  contributed to the PVEC and as such is classified on our balance sheet under
other assets as of February 29, 2008.

--------------------------------------------------------------------------------
                                     NOTE 7
                               SEGMENT INFORMATION
--------------------------------------------------------------------------------

Each of our  subsidiaries is a separate legal entity with a separate  management
structure.  Our  corporate  operations  exist  solely to support its  subsidiary
segments.  As such,  certain  corporate  overhead  costs  are  allocated  to the
operating  segments.  There are no differences in accounting  principles between
the operations.  The following is a summary of certain financial information for
our areas of operation (in thousands):

                                       15
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
        Notes to Condensed Consolidated Financial Statements (Unaudited)


<TABLE>
<CAPTION>
                                                       Nine Months Ended
                                               ---------------------------------
                                                                    Income (Loss)
                                                                       Before
                                                Gross Revenues      Income Taxes         Assets
                                                --------------      ------------         ------
                                                                         (e)
<S>                                                <C>                <C>              <C>
February 29, 2008
  Global Entertainment Corporate Operations        $    174           $ (2,268)        $ 23,793 (a)
  Central Hockey League/WPHL                          1,907                543              903
  Global Properties I                                   373               (211)             566
  International Coliseums                               527                 36              674
  Encore Facility Management                          2,482               (534)             141
  Global Entertainment Marketing Systems                629                (32)             147
  Global Entertainment Ticketing                      2,994                543            1,532 (c)
  Cragar Industries                                     602               (218)           2,944
                                                   --------           --------         --------
                                                   $  9,688           $ (2,141)        $ 30,700
                                                   ========           ========         ========
February 28, 2007
  Global Entertainment Corporate Operations        $     --           $     --         $  5,875
  Central Hockey League/WPHL                          1,700               (449)           1,551
  Global Properties I                                    --               (640)             269
  International Coliseums                            13,162 (b)            324            3,858 (b)
  Encore Facility Management                          3,146               (633)             146
  Global Entertainment Marketing Systems                719                143              210
  Global Entertainment Ticketing                      2,991                624              161 (c)
  Cragar Industries                                     421               (494)           4,064 (d)
                                                   --------           --------         --------
                                                   $ 22,139           $ (1,125)        $ 16,134
                                                   ========           ========         ========
</TABLE>

----------
(a)  Global  Entertainment  Corporate Operations assets include the construction
     in progress of $21.8  million at February  29, 2008.  Global  Entertainment
     Corporate  Operations  assets  include  cash and cash  equivalents  of $957
     thousand at February 29, 2008, and $4,252 thousand at February 28, 2007.
(b)  International  Coliseums  gross revenues for the nine months ended February
     28, 2007, include revenues for furniture,  fixtures and equipment,  as well
     as  management  fees and other items on projects  not  recurring  in fiscal
     2008. Assets as of February 28, 2007,  include  receivables for such items,
     not  in  receivables  as  of  February  29,  2008,  as  well  as  retainage
     receivables on those projects.
(c)  Global Entertainment  Ticketing assets as of February 29, 2008, were higher
     than  assets  as of  February  28,  2007,  primarily  due to the  timing of
     collection of credit card sales.
(d)  In the  quarter  ended May 31,  2007,  we recorded  an  impairment  of $0.9
     million to the carrying value of the Cragar trademarks.
(e)  In the nine  months  ended  February  28,  2007,  all Global  Entertainment
     Corporate  Operations actual costs were allocated to the operating segments
     as a  management  fee. In the nine months  ended  February  29,  2008,  the
     management fee is fixed at a lower rate.

--------------------------------------------------------------------------------
                                     NOTE 8
                            CONSTRUCTION IN PROGRESS
--------------------------------------------------------------------------------

Construction  costs  associated  with the Wenatchee  Events Center in Wenatchee,
Washington,  including all direct and indirect costs,  including interest during
the  construction  period,  are being recorded as  construction  in progress and
capitalized until the building is completed and placed into service. Accumulated
interest through February 29, 2008, totals $0.5 million. We expect project costs
to total  between $52 million and $54 million and  completion in our fiscal 2009
second quarter.

                                       16
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
        Notes to Condensed Consolidated Financial Statements (Unaudited)


--------------------------------------------------------------------------------
                                     NOTE 9
                                     CRAGAR
--------------------------------------------------------------------------------

In March  2008,  a  Special  Committee  of the  Board of  Directors  engaged  an
investment  advisor to market our Cragar  business  and  assets,  which  consist
primarily of trademarks. That investment advisor has an active program to locate
a buyer for all or part of the Cragar business and assets.


                                       17
<PAGE>
ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

FORWARD-LOOKING DISCLOSURE

This Quarterly Report on Form 10-QSB contains forward-looking  statements within
the meaning of the Safe Harbor  provision of the Private  Securities  Litigation
Reform Act of 1995 regarding future events,  including statements concerning our
future  operating  results and financial  condition and our future capital needs
and sources.  These  statements  are based on current  expectations,  estimates,
forecasts, and projections as well as our beliefs and assumptions. Words such as
"outlook",   "believes",   "expects",   "appears",   "may",  "will",   "should",
"anticipates" or the negatives thereof or comparable  terminology,  are intended
to identify such forward-looking  statements.  These forward-looking  statements
are only  predictions  and are subject to risks,  uncertainties  and assumptions
that are difficult to predict.  Therefore,  actual results may differ materially
and adversely from those expressed in any  forward-looking  statements.  Factors
that might cause or contribute to such differences  include, but are not limited
to those discussed in our Annual Report on Form 10-KSB for the fiscal year ended
May  31,  2007,   under  the  section  entitled   Management's   Discussion  and
Analysis--Factors  That May Affect  Future  Results.  You should not place undue
reliance on these forward-looking statements, which speak only as of the date of
this Quarterly  Report.  We undertake no obligation to revise or update publicly
any forward-looking statements for any reason, unless otherwise required by law.

GENERAL

The following is  management's  discussion  and analysis of certain  significant
factors  affecting  our  financial  position and  operating  results  during the
periods  included  in  the   accompanying   condensed   consolidated   financial
statements.

OVERVIEW - COMPANY DESCRIPTION

Global Entertainment  Corporation (referred to in this form as we, us, Global or
GEC) is an integrated event and entertainment  company that is engaged,  through
its seven wholly owned subsidiaries,  in sports management,  multipurpose events
center and related real estate  development,  facility and venue  management and
marketing,  venue  ticketing and brand  licensing.  We are primarily  focused on
projects located in mid-size communities.

We were  organized as a Nevada  corporation  on August 20, 1998,  under the name
Global II, Inc. In April 2000, Global II acquired all of the outstanding  shares
of Western  Professional Hockey League, Inc. (WPHL) from WPHL Holdings,  Inc., a
British Columbia, Canada corporation.  Contemporaneously with the acquisition of
WPHL, we changed our name to Global Entertainment Corporation.

Our seven  subsidiaries are Western  Professional  Hockey League,  International
Coliseums Company,  Global Entertainment  Marketing Systems,  Cragar Industries,
Global  Entertainment   Ticketing,   Encore  Facility  Management,   and  Global
Properties I.

Pursuant to a joint  operating  agreement  between us and Central Hockey League,
Inc.,  Western  Professional  Hockey League,  Inc.  operates and manages a minor
professional  hockey  league known as the Central  Hockey  League  (CHL),  which
currently consists of 18 teams located in mid-market  communities throughout the
Central and Western regions of the United States.

International   Coliseums  Company,  Inc.  (ICC)  manages  the  construction  of
multipurpose  events  centers in mid-market  communities.  The  construction  of
multipurpose  events  centers  promotes the  development of the CHL by assisting
potential  franchisees  in  securing  quality  venues  in  which  to play  minor
professional hockey league games. The inter-relationship between ICC and WPHL is
a key factor in the viability of a managed multipurpose entertainment facility.

Global  Entertainment  Marketing Systems (GEMS),  promotes,  markets,  and sells
various services related to multipurpose entertainment facilities, including all
contractually  obligated  income (COI) sources such as facility  naming  rights,
luxury suite sales, club seat license sales,  facility  sponsorship  agreements,
and ticket operations contracts.

                                       18
<PAGE>
In March 2004, we completed a merger with Cragar Industries, Inc., a licensor of
an automotive  aftermarket  wheel trademark and brand - CRAGAR(R).  In addition,
Cragar is currently offering Cragar Edition Vehicle Kits, brakes,  exhaust,  and
other  aftermarket   automotive  products.  Our  expertise  gained  through  the
operation  and  management  of the CHL and  related  activities  blends with the
development of additional  licensing and marketing  opportunities  for CRAGAR(R)
branded products.

In June 2004, we formed Global Entertainment  Ticketing,  Inc. (GETTIX), a third
party  provider  of  ticketing  services  for  the  multipurpose  event  centers
developed by ICC,  existing CHL  franchisees,  and various  other  entertainment
venues,  theaters,  concert halls, and other facilities and event  coordinators.
GETTIX provides a full in house ticketing solution by way of box office,  phone,
internet and print-at-home  service that utilizes  distribution  outlets in each
market. GETTIX uses state-of-the-art  software to deliver ticketing capabilities
that include  database  flexibility,  easy season and group  options,  financial
reporting and full marketing resources.

In February 2006, we formed Encore Facility Management (Encore), a single source
management entity that provides a full complement of multipurpose  events center
operational  services.  These services provide  administrative  oversight in the
areas of facility/property  management and finance, sales and marketing (through
GEMS),  arena/event  ticketing  (through GETTIX),  event bookings,  and food and
beverage.  Encore is currently involved with facility management of multipurpose
events centers  developed by ICC. Facility  management  operations are conducted
under separate limited liability companies.

Global Properties I works in targeted  mid-sized  communities  across the United
States related to the development of multipurpose events centers and surrounding
multi-use real estate development.

OVERVIEW - OPERATIONS

During the nine months ended  February 29, 2008,  we incurred a net loss of $2.0
million primarily  attributable to legal fees, loss reserves associated with the
settlement of various legal claims,  expenses  associated with the launch of our
Cragar Edition vehicle kits, and operating revenues were lower than anticipated.

In March  2008,  a  Special  Committee  of the  Board of  Directors  engaged  an
investment  advisor to market our Cragar  business  and  assets,  which  consist
primarily of trademarks. That investment advisor has an active program to locate
a buyer for all or part of the Cragar business and assets.

CRITICAL ACCOUNTING POLICIES, ESTIMATES AND JUDGMENTS

Significant  accounting  policies  are  described  in the  audited  consolidated
financial  statements  and notes  thereto  included in our Annual Report on Form
10-KSB for the year ended May 31, 2007. We believe our most critical  accounting
policies and estimates relate to revenue recognition, the allowance for doubtful
accounts, facility management performance guarantee liabilities, the realization
of the deferred  income tax asset,  the fair value of  liability  related to the
secondary  guarantee related to a worker's  compensation  program,  the carrying
value of goodwill and intellectual  property, and the allocation of expenses and
division  of  profit  relating  to the  joint  operating  agreement.  Due to the
uncertainties  inherent in the estimation  process and the significance of these
items, it is at least reasonably  possible that the estimates in connection with
these items could be further materially revised within the next year.

Revenues from annual  assessment  fees are  recognized  ratably over the year in
relation  to  expenses  incurred.  Revenues  from  initial  franchise  fees  are
recognized  when the  franchise  agreement  is signed and we have met all of our
significant  obligations  under the terms of the franchise  agreement.  Revenues
from transfer  franchise fees are recognized upon approval of the transaction by
the league.  Project management and facility  management revenues are recognized
as  earned  over the  respective  contract  life,  as is the  revenue  from most
contractually  obligated and sales contract  revenues.  Revenues  generated from
ticket sales are recognized upon completion of the sale.

Revenue on automotive part sales is recognized upon delivery.

Project  development fees are recognized  according to specific  contract terms;
typically 50% upon signing of a development  contract and 50% upon  construction
groundbreaking.

                                       19
<PAGE>
The allowance for doubtful accounts is based on specific credit  information and
historical  collection  experience.  Actual  collection  experience may not meet
expectations and may result in increased delinquencies.

The carrying value of goodwill and trademarks  includes estimates of future cash
flows from operations and is dependent on projections that may not materialize.

The  allocation of expenses and division of profits are based upon the number of
active teams that each joint partner has in the league.

THREE MONTHS ENDED  FEBRUARY 29, 2008,  COMPARED TO THREE MONTHS ENDED  FEBRUARY
28, 2007

REVENUES (in thousands):

<TABLE>
<CAPTION>
                                                  Three Months Ended
                                   ------------------------------------------------
                                   February 29,     % of     February 28,    % of
                                      2008        Revenue       2007        Revenue      Change     % Change
                                      ----        -------       ----        -------      ------     --------
<S>                                 <C>           <C>         <C>          <C>          <C>         <C>
Project management fees             $   132          4.2      $ 1,861         32.9      $(1,729)      (92.9)
Facility management fees                783         24.7        1,645         29.1         (862)      (52.4)
Licensing and advertising fees          876         27.6          960         17.0          (84)       (8.8)
Ticket service fees                   1,040         32.8        1,180         20.9         (140)      (11.9)
Project development fees                317         10.0           --           --          317         NA
Other revenue                            24          0.8            8          0.1           16       200.0
                                    -------      -------      -------      -------      -------     -------
Gross Revenues                      $ 3,172        100.0      $ 5,654        100.0      $(2,482)      (43.9)
                                    =======      =======      =======      =======      =======     =======
</TABLE>

Total revenues decreased $2.5 million, or 43.9%, from $5.7 million for the three
months  ended  February  28,  2007,  to $3.2  million for the three months ended
February 29, 2008. This decrease was primarily the result of the decrease in ICC
project  management  revenues  of $1.7  million  and the  decrease  in  facility
management revenues of $0.9 million.

ICC project  management  revenues  decreased $1.7 million,  or 92.9%,  from $1.9
million for the three months ended  February 28, 2007,  to $132 thousand for the
three months ended February 29, 2008. This decrease resulted as ICC construction
project  management  agreements  were in the  completion  stages in fiscal  2007
creating  significant  revenues from  procurement  of furniture,  fixtures,  and
equipment on behalf of project owners. The related revenue and expense for these
procurements are recognized in the period incurred. In February 2008, ICC signed
a project management  agreement with the City of Allen,  Texas. The agreement is
expected to yield ICC monthly project management fees, and other fees, in excess
of $2.0 million over the course of the twenty months beginning February 2008.

Facility management fees decreased $0.9 million, or 52.4%, from $1.6 million for
the three months ended  February 28, 2007,  to $0.8 million for the three months
ended  February  29,  2008.  This  decrease  occurred  primarily  as a result of
cancellation of the management contract with the Chevrolet Center in Youngstown,
Ohio. Encore's current facility management contracts include the Santa Anna Star
Center in Rio Rancho,  New Mexico,  and Tim's Toyota Center in Prescott  Valley,
Arizona,  and  preopening  service  fees  for  Wenatchee,   Washington.   Encore
principally  manages  employees  under each of its current  facility  management
contracts  and,  therefore,  payroll costs from such employees are recognized by
Encore as revenue and are also included in cost of revenues.

Licensing  and  advertising  fees  decreased  $0.1 million,  or 8.8%,  from $1.0
million for the three  months ended  February 28, 2007,  to $0.9 million for the
three months ended February 29, 2008. This decrease  resulted  primarily from 1)
decreased  GEMS sales and marketing  revenue  relating to the  facilities in Rio
Rancho,  New Mexico and  Prescott  Valley,  Arizona and 2)  cancellation  of the
management contract with the Chevrolet Center in Youngstown, Ohio.

                                       20
<PAGE>
Ticket service fees decreased $0.1 million,  or 11.9%, from $1.2 million for the
three months ended February 28, 2007, to $1.0 million for the three months ended
February 29, 2008.  This decrease in ticket  service fees occurred  primarily as
attendance in facilities in Rio Rancho, New Mexico and Prescott Valley,  Arizona
was below prior year events.

Project  development  fees were $0.3 million in the three months ended  February
28, 2007,  compared to zero in the prior year,  as Global  Properties I signed a
project management  agreement with the City of Allen, Texas in February of 2008.
With the signing,  we recognized 50% of our  contractual  development  fees. The
agreement is expected to yield Global  Properties I another  project  management
fee of $0.2 million in the first quarter of fiscal 2009.

OPERATING COSTS (in thousands):

<TABLE>
<CAPTION>
                                                  Three Months Ended
                                   ------------------------------------------------
                                   February 29,     % of     February 28,    % of
                                      2008        Revenue       2007        Revenue      Change     % Change
                                      ----        -------       ----        -------      ------     --------
<S>                                 <C>           <C>         <C>          <C>          <C>         <C>
Cost of revenues                    $ 1,660        52.3       $ 3,918        69.3       $(2,258)     (57.6)
General and administrative costs      1,543        48.6         2,214        39.2          (671)     (30.3)
                                    -------       -----       -------       -----       -------      -----
Total Operating Costs               $ 3,203       101.0       $ 6,132       108.5       $(2,929)     (47.8)
                                    =======       =====       =======       =====       =======      =====
</TABLE>

Total operating costs decreased by $2.9 million or 47.8%,  from $6.1 million for
the three months ended  February 28, 2007,  to $3.2 million for the three months
ended February 29, 2008.

Cost of revenues  decreased by $2.3 million or 57.6%,  from $3.9 million for the
three months ended February 28, 2007, to $1.7 million for the three months ended
February 29, 2008.  This decrease  resulted  primarily from 1) ICC  construction
management  projects  being in the final stages  during the prior year's  fiscal
quarter,  which  generates  costs  associated  with  the  purchase  and  sale of
furniture, fixtures, and equipment on behalf of project owners and 2) a decrease
in facility management payroll associated with the facility in Youngstown, Ohio,
due to cancellation of the management agreement.

General and administrative  expenses decreased $0.7 million, or 30.3%, from $2.2
million for the three  months ended  February 28, 2007,  to $1.5 million for the
three months ended February 29, 2008. The decrease in general and administrative
expenses relates to a $0.6 million decrease in legal and settlement costs due to
1) a reduction in legal defense costs with the settlement of several significant
legal  issues  and  2)  the  $0.3  million  reduction  in a  settlement  reserve
established in the first quarter of fiscal 2008 to reflect the actual settlement
costs in the third quarter of fiscal 2008.

NET INCOME (in thousands):

<TABLE>
<CAPTION>
                                         Three Months Ended
                          ------------------------------------------------
                          February 29,     % of     February 28,    % of
                             2008        Revenue       2007        Revenue      Change     % Change
                             ----        -------       ----        -------      ------     --------
<S>                        <C>           <C>         <C>          <C>          <C>         <C>
Net Income (Loss)            $ 77          2.4        $ (304)       (5.4)        $ 381      (125.3)
                             ====          ===        ======        ====         =====      ======
</TABLE>

Net income was $77  thousand  for the three  months  ended  February  29,  2008,
compared to a net loss of $304 thousand for the three months ended  February 28,
2007.  The  current  period  net  income  includes a $75  thousand  tax  benefit
resulting  from the release of a portion of the  valuation  allowance on tax net
operating  losses when we utilized losses with a carryback.  The near break-even
operations  before taxes are primarily  attributable to reduced  revenues at our
ICC  subsidiary  due  to  a  reduction  of  projects  under  management  and  to
cancellation  of  the  management   agreement  with  the  Chevrolet   Center  in
Youngstown,  Ohio, offset by the $0.3 million reduction in a settlement  reserve
established in the first quarter of fiscal 2008 to reflect the actual settlement
costs in the third quarter of fiscal 2008.

                                       21
<PAGE>
NINE MONTHS ENDED FEBRUARY 29, 2008,  COMPARED TO NINE MONTHS ENDED FEBRUARY 28,
2007

REVENUES (in thousands):

<TABLE>
<CAPTION>
                                                   Nine Months Ended
                                   ------------------------------------------------
                                   February 29,     % of     February 28,    % of
                                      2008        Revenue       2007        Revenue      Change     % Change
                                      ----        -------       ----        -------      ------     --------
<S>                                 <C>           <C>         <C>          <C>          <C>         <C>
Project management fees             $    376         3.9     $ 13,162         59.5      $(12,786)      (97.1)
Facility management fees               2,482        25.6        3,146         14.2          (664)      (21.1)
Licensing and advertising fees         2,842        29.3        2,714         12.3           128         4.7
Ticket service fees                    2,993        30.9        2,991         13.5             2         0.1
Project development fees                 523         5.4           --           --           523         NA
Franchise fees                           430         4.4          115          0.5           315         NA
Other revenue                             42         0.4           11          0.1            31       281.8
                                    --------      ------     --------       ------      --------      ------
Gross Revenues                      $  9,688       100.0     $ 22,139        100.0      $(12,451)      (56.2)
                                    ========      ======     ========       ======      ========      ======
</TABLE>

Total revenues  decreased  $12.5 million,  or 56.2%,  from $22.1 million for the
nine months ended  February 28, 2007,  to $9.7 million for the nine months ended
February  29,  2008.  This  decrease  was the result of ICC  project  management
revenues which decreased  $12.8 million,  from $13.2 million for the nine months
ended  February 28, 2007, to $0.4 million for the nine months ended February 29,
2008. This decrease resulted as ICC construction management projects were in the
completion stages in fiscal 2007, creating significant revenues from procurement
of furniture,  fixtures,  and equipment on behalf of project owners. The related
revenue and expense for these amounts are recognized in the period incurred.

Facility management fees decreased $0.7 million, or 21.1%, from $3.1 million for
the nine months ended  February  28,  2007,  to $2.5 million for the nine months
ended  February  29,  2008.  This  decrease  occurred  primarily  as a result of
cancellation of the management contract with the Chevrolet Center in Youngstown,
Ohio. Encore's current facility management contracts include the Santa Anna Star
Center in Rio Rancho,  New Mexico,  and Tim's Toyota Center in Prescott  Valley,
Arizona,  and  preopening  service  fees  for  Wenatchee,   Washington.   Encore
principally  manages  employees  under each of its current  facility  management
contracts  and,  therefore,  payroll costs from such employees are recognized by
Encore as revenue and are also included in cost of revenues.

Licensing and advertising fees increased $0.1 million, or 4.7% from $2.7 million
for the nine months ended February 28, 2007, to $2.8 million for the nine months
ended February 29, 2008.

Ticket  service  fees were  relatively  unchanged  at $3.0  million for the nine
months ended February 29, 2008, and the comparable prior year period.

Project development fees were $0.5 million in the nine months ended February 29,
2008,  compared  to zero in the  prior  year,  as Global  Properties  I signed a
project  management  agreement with the City of Allen,  Texas in the period, and
received other development fees. With the signing of the agreement with the City
of Allen, we recognized $0.2 million,  or  approximately  50% of our contractual
development fees. The agreement is expected to yield Global Properties I another
project management fee of $0.2 million in the first quarter of fiscal 2009.

Franchise fee revenue  represents the fees  associated  with the transfer of CHL
franchises.

                                       22
<PAGE>
OPERATING COSTS (in thousands):

<TABLE>
<CAPTION>
                                                   Nine Months Ended
                                   ------------------------------------------------
                                   February 29,     % of     February 28,    % of
                                      2008        Revenue       2007        Revenue      Change     % Change
                                      ----        -------       ----        -------      ------     --------
<S>                                 <C>           <C>         <C>          <C>          <C>         <C>
Cost of revenues                    $  5,213       53.8       $ 17,173        77.6      $(11,960)    (69.6)
General and administrative costs       6,670       68.9          6,501        29.4           169       2.6
                                    --------      -----       --------       -----      --------     -----
Total Operating Costs               $ 11,883      122.7       $ 23,674       106.9      $(11,791)    (49.8)
                                    ========      =====       ========       =====      ========     =====
</TABLE>

Total operating costs decreased by $11.8 million,  or 49.8%,  from $23.7 million
for the nine months  ended  February  28,  2007,  to $11.9  million for the nine
months ended February 29, 2008.

Cost of revenues  decreased by $12.0 million,  or 69.6%,  from $17.2 million for
the nine months ended  February  28,  2007,  to $5.2 million for the nine months
ended  February  29,  2008.  This  decrease  resulted   primarily  from  1)  ICC
construction  management  projects  were in the final  stages  during  the prior
fiscal quarter,  which generates costs  associated with the purchase and sale of
furniture,  fixtures,  and  equipment  on behalf  of  project  owners,  and 2) a
decrease  in  facility  management  payroll  associated  with  the  facility  in
Youngstown, Ohio, due to cancellation of the management agreement.

General and administrative  expenses increased $0.2 million,  or 2.6%, from $6.5
million for the nine months ended  February  28,  2007,  to $6.7 million for the
nine months ended February 29, 2008. The increase in general and  administrative
expenses  relates to costs due to the  settlement of several legal issues offset
by a reduction in bad debt expense and legal fees.

NET INCOME (in thousands):

<TABLE>
<CAPTION>
                                    Nine Months Ended
                    ------------------------------------------------
                    February 29,     % of     February 28,    % of
                       2008        Revenue       2007        Revenue      Change     % Change
                       ----        -------       ----        -------      ------     --------
<S>                  <C>           <C>         <C>          <C>          <C>         <C>
Net Loss             $(2,034)       (21.0)     $(1,125)       (5.1)        $(909)       80.8
                     =======        =====      =======        ====         =====        ====
</TABLE>

Net loss was $1.1 million for the nine months ended February 28, 2007,  compared
to net loss of $2.0  million for the nine months ended  February  29, 2008.  The
additional  current  period loss is  primarily  attributable  to legal costs and
reserves established for settlements of several litigation issues.

LIQUIDITY AND CAPITAL RESOURCES

As of February  29,  2008,  we have $1.0  million in cash and cash  equivalents,
including cash collected for GETTIX tickets with a value of  approximately  $0.7
million in connection with events scheduled to occur in the future.

Cash used by operating  activities  for the nine months ended February 29, 2008,
was $2.3 million  compared to cash used by operating  activities of $0.1 million
for the nine months ended  February 28, 2007.  This decrease in cash provided by
operations is  attributable  primarily to the current period net operating loss,
as well as a  reduction  in trade  accounts  payable and an increase in accounts
receivable.  We also funded legal and settlement reserves of $0.7 million in the
nine months ended  September  29, 2008,  which were  reserved in the fiscal year
ended May 31, 2007.

A $0.4 million source of operating capital during the nine months ended February
29, 2008 was from CHL franchise  transfer fees. Since CHL franchise fees are not
regularly recurring and are difficult to predict,  there is no assurance that we
will be able to increase or sustain our operating capital through these or other
sources.

Cash used in  investing  activities  totaled  $17.2  million for the nine months
ended February 29, 2008,  compared to cash used in investing  activities of $0.2

                                       23
<PAGE>
million for the nine months ended February 28, 2007. This use of funds in fiscal
year 2008 related  primarily to  construction  of the event center in Wenatchee,
Washington.  These  construction  costs are being funded via a construction loan
with  Marshall  Financial  Group,  LLC, as reflected as a source of funds in the
financing section.

Cash provided by financing  activities totaled $16.2 million for the nine months
ended February 29, 2008. These are primarily  related to funds received from the
construction loan with Marshall Financial Group, LLC.

We had a $3.0 million line of credit  which  matured on January 19, 2008,  at an
interest  rate of 1% plus  prime.  The line of credit has been  amended.  It now
matures on July 1, 2008, has been reduced to $1.75  million,  and bears interest
at a rate of 2% plus prime (8.0% at February 29, 2008). As of February 29, 2008,
we have no outstanding balance on this credit facility. At February 29, 2008, we
had a maximum borrowing capacity of $0.5 million, as a result of a $1.25 million
letter  of  credit in favor of  Marshall  Financial  Group,  which  reduced  our
available line of credit.  No amounts have been drawn upon this letter of credit
to date.  The  credit  facility  has been  secured by  substantially  all of our
tangible and intangible assets,  including  Cragar's  trademark  portfolio and a
pledge of  Cragar's  capital  stock.  In order to borrow,  we must meet  certain
financial  covenants,  including  maintaining a minimum  current ratio  (current
assets  compared  to current  liabilities)  of 1.05 as of the end of each fiscal
quarter, a minimum consolidated tangible net worth of $5,000,000, as of the date
of the  amendment,  August 21, 2006, and an increase in tangible net worth of at
least 75% of  consolidated  net income plus 100% of all  increases  of equity in
Global  (including  the  amount  of any  stock  offering  or  issuance)  on each
anniversary  date of May 31 thereafter  until maturity.  We must maintain a zero
balance for a consecutive  30 day period during the term of the facility.  As of
February  29,  2008,  we were not in  compliance  with the minimum  consolidated
tangible net worth covenant; however, the bank has agreed to waive this covenant
violation.

We continue to evaluate the  profitability  of, and synergies among, our various
subsidiaries  and may  determine  to dispose of one or more of them,  as we move
forward with our business  plan.  Based on our current  forecast and  historical
results, we expect to have adequate cash flow from available sources to fund our
operating needs through  February 28, 2009. We expect cash and cash flow will be
low in the fourth  quarter of fiscal 2008. We expect that our current ratio will
be  close to the  minimums  required  under  our  line of  credit.  If we do not
maintain  compliance  with  these  covenants,   our  business  or  profitability
deteriorates or we incur unexpected expenses or asset impairments, it could have
a material  adverse effect on our liquidity and financial  resources.  We may be
required to refinance all or part of our existing debt. We cannot guarantee that
we would be able to do so on terms acceptable to us, if at all.

In August 2007 we entered into an agreement with Marshall  Financial  Group, LLC
to borrow up to $52.0 million for the  construction  of a  multi-purpose  events
center in Wenatchee, Washington. As part of this agreement, we provided a letter
of  credit  in  favor  of  Marshall  Financial  Group  for  $1.25  million.  The
outstanding  principal  balance  of the note bears  interest  at prime rate plus
0.25%  (6.25% at  February  29,  2008).  The note is payable in its  entirety in
August 2009. Financial covenants of the note require that we maintain a level of
stockholders'  equity of not less than $8.0 million and unrestricted  cash, cash
equivalents,  time  deposits  and  marketable  securities  of not less than $3.5
million. As of February 29, 2008, we were not in compliance with these financial
covenants.

At February 29, 2008, the $15.9 million  outstanding balance on the construction
loan is  classified as long-term  notes  payable in the  condensed  consolidated
balance  sheets.  Interest on the loan  accumulates  monthly and increases  note
payable and  construction in progress.  As of February 29, 2008, $1.2 million of
our initial  investment in the project was included in construction in progress;
we did not finance this initial  investment  with the loan. We expect to finance
future investments in the project with the loan. Expenditures on the project are
generally  incurred  in one month and  financed  with the loan in the  following
month,  when a draw request is  submitted to the bank.  As of February 29, 2008,
$4.3 million of payables related to expenditures on the project were included in
long-term liabilities, as we expect to finance them with draws on the loan.

SEASONALITY

We experience some  seasonality in our cash flows from assessment fees, and must
budget our cash flow  accordingly.  Approximately 75% of our assessment fees are
received prior to the start of the CHL hockey season in October of each year.

                                       24
<PAGE>
INFLATION

We do not  believe  that  inflation  has been a  material  factor  in our  prior
operations,  nor do we  anticipate  that  general  price  inflation  will have a
significant impact on our operations in the near future.

NEW ACCOUNTING PRONOUNCEMENTS

In June 2006,  the FASB issued  FASB  Interpretation  No. 48 (FIN No.  48),  "An
Interpretation  of FASB Statement No. 109",  which  clarifies the accounting for
uncertainty in income taxes  recognized in a company's  financial  statements in
accordance  with FASB  Statement  No. 109,  Accounting  for Income  Taxes.  This
Interpretation  prescribes a recognition threshold and measurement attribute for
the financial  statement  recognition and measurement of a tax position taken or
expected  to be  taken  in a  tax  return.  FIN  No.  48  reflects  the  benefit
recognition  approach,  where a tax benefit is recognized when it is more likely
than not to be  sustained  based on the  technical  merits of the  position.  We
adopted  FIN No. 48 on June 1,  2007,  and there was no  material  effect on our
financial position or results of operations.

In September 2006, the Financial  Accounting  Standard Board issued a "Statement
of Financial  Accounting Standard No. 157 (SFAS 157), Fair Value  Measurements".
The statement  defines fair value,  establishes  a framework for measuring  fair
value  in  generally   accepted   accounting   principles  (GAAP),  and  expands
disclosures about fair value  measurements.  This statement is effective for our
fiscal year beginning June 1, 2008, and interim periods within that fiscal year.
The  adoption  of SFAS 157 is not  expected  to have a  material  effect  on our
financial position or results of operations.

In February  2007,  the FASB issued  SFAS No.  159,  "The Fair Value  Option for
Financial Assets and Financial Liabilities".  This statement permits entities to
choose to measure many  financial  instruments  and certain  other items at fair
value. An entity shall report unrealized gains and losses on items for which the
fair value  option has been  elected in  earnings at each  subsequent  reporting
date. This statement is effective for our fiscal year beginning June 1, 2008. We
do not expect SFAS No. 159 will have a material effect on our financial position
or results of operations.

In December  2007,  the FASB issued SFAS No. 160,  "Noncontrolling  Interests in
Consolidated  Financial Statements,  an amendment of ARB No. 51". This statement
establishes accounting and reporting standards for noncontrolling interests in a
subsidiary  and for the  deconsolidation  of a subsidiary.  The  statement  also
provides  consolidated  income  statement  presentation  guidance  and  expanded
disclosures.  This  statement is effective for our fiscal year beginning June 1,
2008.  We have  not yet  evaluated  the  effect  SFAS No.  160 will  have on our
financial position or results of operations.

ITEM 3. CONTROLS AND PROCEDURES

Under the supervision and with the  participation  of our management,  including
the Chief Executive Officer and Chief Financial  Officer,  we have evaluated the
effectiveness  of the  design  and  operation  of our  disclosure  controls  and
procedures  pursuant to Exchange Act Rule  13a-15(c) as of the end of the period
covered by this report.  Based on that evaluation,  the Chief Executive  Officer
and Chief Financial  Officer have concluded that these  disclosure  controls and
procedures were effective as of the end of such period. There were no changes in
our internal control over financial  reporting during the quarter ended February
29, 2008, that have materially affected,  or are reasonably likely to materially
affect, our internal controls over financial reporting.

                           PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

As with all  entertainment  facilities  there  exists a degree  of risk that the
general public may be accidentally  injured. As of February 29, 2008, there were
various claims  outstanding in this regard that management does not believe will
have a material effect on our financial  condition or results of operations.  To
mitigate this risk, we maintain insurance coverage, which we believe effectively
covers any reasonably  foreseeable  potential  liability.  There is no assurance
that our insurance  coverage will  adequately  cover all liabilities to which we
may be exposed.

                                       25
<PAGE>
We are a plaintiff and a counter-defendant in a lawsuit involving its franchisee
Blue Line Hockey,  LLC (Blue Line),  which operates the Youngstown  Steelhounds.
This suit was filed in the  Maricopa  Superior  Court of Arizona on  November 7,
2006.  Our claim is for  approximately  $115  thousand in unpaid  franchise  and
assessment  fees  owed by Blue  Line,  plus our  attorneys'  fees.  Blue  Line's
counterclaim alleges that the WPHL fraudulently induced Blue Line's principal to
enter the  license  agreement  by failing to comply  with  franchise  disclosure
requirements,  and that the WPHL made fraudulent  representations to induce Blue
Line into signing the  franchise  agreement.  Blue Line seeks  rescission of the
license  agreement,  reimbursement  of its franchise fee, and  reimbursement  of
travel  expenses for the 2005-2006  season.  Although the outcome of this matter
cannot be predicted  with  certainty,  we believe that we have both valid claims
and valid defenses to the counterclaims. Thus, we intend to vigorously prosecute
our claims and defend the  counterclaims.  No liability has been  established at
February 29, 2008, related to this matter.

We were a defendant  in a lawsuit  filed by Nustadia  Developments  Inc. and PBK
Architects.  The  suit  arose  out of  certain  contracts  between  us  and  the
plaintiffs,  pursuant  to  which  we  agreed  to use  architectural  design  and
development  management services of the plaintiffs with respect to certain arena
development  projects.  The suit sought direct damages of $4.5 million and other
unspecified damages for alleged breach of contract,  tortious  interference with
business  expectancy,  and  breach of  implied  covenant  of good faith and fair
dealing.  This suit was filed in December  2005, and was pending in the Maricopa
County  Superior  Court of  Arizona.  We  established  a reserve to reflect  the
estimated  settlement  costs in the first  quarter  of  fiscal  year 2008 and we
settled the matter in the third quarter of fiscal year 2008.

Global was the claimant and  counter-respondent in an arbitration against Global
Spectrum,  L.P.  (Spectrum)  filed on July 28, 2006. This  arbitration was being
conducted by the American Arbitration Association in Phoenix, Arizona, and stems
from a  settlement  agreement  entered into  between  Global and  Spectrum  (the
Settlement  Agreement).  Global sought the arbitrators'  declaration that Global
was not  obligated to make any more  payments to Spectrum  under the  Settlement
Agreement alleging that Spectrum  misrepresented material facts to induce Global
to execute the  Settlement  Agreement.  We  established a reserve to reflect the
estimated  settlement  costs in the first  quarter  of  fiscal  year 2008 and we
settled the matter in the second quarter of fiscal year 2008.

International  Coliseums  Company  (ICC) was the plaintiff in a lawsuit it filed
against  the  City  of  Youngstown,  Ohio  (the  City).  The  lawsuit  sought  a
determination  that the City took  certain  actions  which  prohibited  ICC from
performing as contracted under the management  agreement between the parties. We
established a reserve to reflect the estimated  settlement  costs in fiscal 2007
and we settled the matter in the second  quarter of fiscal 2008.  The settlement
eliminated the contingency  related to certain guaranteed  economic  performance
standards in the Youngstown, Ohio, facility contract.

ITEM 6. EXHIBITS

(a) Exhibits. See Exhibit Index attached.

                                       26
<PAGE>
                                                     SIGNATURE

Pursuant to the  requirements  of the  Securities  and Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                              Global Entertainment Corporation
                                        (Registrant)


April 14, 2008                By /s/ Richard Kozuback
                                 -----------------------------------------------
                                 Richard Kozuback
                                 President & Chief Executive Officer


April 14, 2008                By /s/ James Yeager
                                 -----------------------------------------------
                                 James Yeager
                                 Senior Vice President & Chief Financial Officer

                                       27
<PAGE>
                                                   EXHIBIT INDEX

The following  exhibits are filed herewith or  incorporated  herein  pursuant to
Regulation SB-601:

Exhibit
-------

  3.1          Amended and Restated Articles of  Incorporation,  dated April 14,
               2000. (1)

  3.2          Bylaws, dated April 18, 2000. (2)

  31.1         Certifications  Pursuant to 18 U.S.C.  Section  1350-Section 302,
               signed by Richard Kozuback, Chief Executive Officer.*

  31.2         Certifications  Pursuant to 18 U.S.C.  Section  1350-Section 302,
               signed by James Yeager, Chief Financial Officer.*

  32           Certification  Pursuant to 18 U.S.C.  Section  1350-Section  906,
               signed by Richard  Kozuback,  Chief  Executive  Officer and James
               Yeager, Chief Financial Officer.*

----------
*    Filed herewith.
(1)  Incorporated  herein  by  reference  to  Exhibit  3.1 of  our  Registration
     Statement on Form S-4 (No.  333-109192),  as filed with the  Commission  on
     September 26, 2003.
(2)  Incorporated  herein  by  reference  to  Exhibit  3.2 of  our  Registration
     Statement on Form S-4 (No.  333-109192),  as filed with the  Commission  on
     September 26, 2003.