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: August 31, 2006

                                       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)


                        4909 East McDowel Road, Suite 104
                           Phoenix, Arizona 85008-4293
                                 (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 August 31, 2006:

                          Common Stock, $.001 par value
                                 6,495,673 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 AUGUST 31, 2006


PART I. FINANCIAL INFORMATION

     Item 1. Financial Statements                                             3

          Condensed Consolidated Balance Sheets - As of August 31, 2006
          (Unaudited) and May 31, 2006                                        3

          Condensed Consolidated Statements of Operations (Unaudited) -
          Three Months Ended August 31, 2006 and 2005                         5

          Condensed Consolidated Statements of Changes in Stockholders'
          Equity - Fiscal Year ended May 31, 2006 and Three Months Ended
          August 31, 2006 (Unaudited)                                         6

          Condensed Consolidated Statements of Cash Flows (Unaudited) -
          Three Months Ended August 31, 2006 and 2005                         7

          Notes to Condensed Consolidated Financial Statements                9

     Item 2. Management's Discussion and Analysis of Financial Condition
             and Results of Operations                                       15

     Item 3. Controls and Procedures                                         20

PART II. OTHER INFORMATION

     Item 1. Legal Proceedings                                               20

     Item 6. Exhibits                                                        21

                                       2
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS


                                     ASSETS
<TABLE>
<CAPTION>
                                                                              August 31,            May 31,
                                                                                2006                 2006
                                                                             -----------          -----------
                                                                              (Unaudited)
<S>                                                                          <C>                  <C>
CURRENT ASSETS:
  Cash and cash equivalents                                                  $ 5,998,688          $ 5,438,091
  Accounts receivable - trade, less allowance for doubtful accounts
   of $235,133 at August 31, 2006 and $34,945 at May 31, 2006                  5,173,357            6,004,068
  Accounts receivable - miscellaneous                                             48,173               64,460
  Prepaid expenses                                                               492,484              357,682
  Refundable income tax                                                           63,000               63,000
  Deferred income tax asset                                                       14,000               14,000
                                                                             -----------          -----------

      TOTAL CURRENT ASSETS                                                    11,789,702           11,941,301

Accounts receivable - trade - long term portion                                  150,000              300,000

Property and Equipment, net                                                      253,321              222,068

Intangible Assets, net                                                            26,002               29,799

Goodwill                                                                       4,061,466            4,061,466

Non-Marketable Securities                                                         78,489               78,489

Miscellaneous Assets                                                             131,784              127,477
                                                                             -----------          -----------

      TOTAL ASSETS                                                           $16,490,764          $16,760,600
                                                                             ===========          ===========
</TABLE>

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

                                       3
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
                CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)


                      LIABILITIES AND STOCKHOLDERS' EQUITY

<TABLE>
<CAPTION>
                                                                       August 31,              May 31,
                                                                         2006                   2006
                                                                     ------------           ------------
                                                                     (Unaudited)
<S>                                                                  <C>                    <C>
CURRENT LIABILITIES:
  Accounts payable                                                   $  2,184,498           $  3,105,876
  Accrued liabilities                                                   2,480,873              1,281,636
  Deferred revenues                                                     1,291,351                900,386
                                                                     ------------           ------------

      TOTAL CURRENT LIABILITIES                                         5,956,722              5,287,898

Deferred revenues - long term portion                                     392,195                392,195
Deferred income tax liability                                              66,000                 66,000
                                                                     ------------           ------------

      TOTAL LIABILITIES                                                 6,414,917              5,746,093
                                                                     ------------           ------------

STOCKHOLDERS' EQUITY:
  Preferred stock - $.001 par value; 10,000,000 shares authorized;
   no shares issued or outstanding                                             --                     --
  Common stock - $.001 par value; 50,000,000 shares authorized;
   6,487,492 and 6,495,673 shares issued and outstanding as of
   May 31, 2006 and August 31, 2006, respectively                           6,496                  6,488
  Paid-in capital                                                      10,665,773             10,665,781
  Retained earnings (deficit)                                            (596,422)               342,238
                                                                     ------------           ------------

      TOTAL STOCKHOLDERS' EQUITY                                       10,075,847             11,014,507
                                                                     ------------           ------------

      TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                     $ 16,490,764           $ 16,760,600
                                                                     ============           ============
</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 OPERATIONS
                           FOR THE THREE MONTHS ENDED
                      AUGUST 31, 2006 AND 2005 (UNAUDITED)


                                                 For the three months ended
                                              August 31,            August 31,
                                                2006                  2005
                                             -----------           -----------
Revenues
  Project management fees                    $ 2,070,589           $ 2,471,772
  Facility management fees                       344,087                    --
  Licensing and advertising fees                 679,875               685,842
  Ticket service fees                            557,302                47,146
  Other revenue                                       65                    13
                                             -----------           -----------
                                               3,651,918             3,204,773
                                             -----------           -----------
Operating Costs
  Cost of revenues                             2,623,680             2,043,282
  General and administrative costs             2,037,126             1,314,175
                                             -----------           -----------
                                               4,660,806             3,357,457
                                             -----------           -----------

Loss from Operations                          (1,008,888)             (152,684)

Other Income (Expense)
  Interest income                                 73,541                 1,762
  Interest expense                                (3,313)                 (362)
                                             -----------           -----------
                                                  70,228                 1,400

Net Loss                                     $  (938,660)          $  (151,284)
                                             ===========           ===========

Loss Per Share - basic and diluted           $     (0.14)          $     (0.03)
                                             ===========           ===========
Weighted average shares outstanding
  - basic and diluted                          6,494,428             5,345,738
                                             ===========           ===========

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

                                       5
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
      CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                 FOR THE FISCAL YEAR ENDED MAY 31, 2006 AND THE
                       THREE MONTHS ENDED AUGUST 31, 2006

<TABLE>
<CAPTION>
                                             Common Stock
                                          -------------------         Paid-in          Retained
                                          Shares       Amount         Capital     Earnings/(Deficit)      Total
                                          ------       ------         -------     ------------------      -----
<S>                                     <C>            <C>         <C>                <C>             <C>
Balance at May 31, 2005                 5,345,738      $5,346      $  5,053,098       $  97,183       $  5,155,627

Exercise of options and warrants           62,754          63           218,687              --            218,750

Issuance of common stock private        1,079,000       1,079         5,393,996              --          5,395,075
 placement, net of registration
 costs of $809,175

Net income for period ended
 May 31, 2006                                  --          --                --         245,055            245,055
                                        ---------      ------      ------------       ---------       ------------

Balance at May 31, 2006                 6,487,492      $6,488      $ 10,665,781       $ 342,238       $ 11,014,507

Exercise of options (Unaudited)             8,181           8                (8)             --                 --

Net loss for three months ended
 August 31, 2006 (Unaudited)                   --          --                --        (938,660)          (938,660)
                                        ---------      ------      ------------       ---------       ------------


Balance at August 31, 2006 (Unaudited)  6,495,673      $6,496      $ 10,665,773       $(596,422)      $ 10,075,847
                                        =========      ======      ============       =========       ============
</TABLE>

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

                                       6
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
         FOR THE THREE MONTHS ENDED AUGUST 31, 2006 AND 2005 (UNAUDITED)


<TABLE>
<CAPTION>
                                                                       For the three months ended
                                                                    August 31,            August 31,
                                                                       2006                  2005
                                                                   -----------           -----------
<S>                                                                <C>                   <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss                                                         $  (938,660)          $  (151,284)
  Adjustments to reconcile net loss to net cash
   provided by (used in) operating activities:
     Depreciation and amortization                                      43,583                26,971
     Allowance for doubtful accounts                                   200,188                    --
  Changes in Assets and Liabilities:
     Accounts receivable
       - trade                                                         780,523              (133,596)
       - miscellaneous                                                  16,287                  (568)
     Prepaid expenses                                                 (134,802)              (59,821)
     Miscellaneous assets                                               (4,307)                9,000
     Accounts payable
       - trade                                                        (921,378)              334,061
       - related party                                                      --               (13,252)
     Accrued liabilities                                             1,199,237              (621,453)
     Deferred revenues                                                 390,965               464,606
                                                                   -----------           -----------
           NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:        631,636              (145,336)
                                                                   -----------           -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of fixed assets                                             (71,039)              (16,035)
  Proceeds from sale of fixed assets                                        --                 1,941
                                                                   -----------           -----------
           NET CASH USED IN INVESTING ACTIVITES:                       (71,039)              (14,094)
                                                                   -----------           -----------

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS:                  560,597              (159,430)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD:                      5,438,091               750,159
                                                                   -----------           -----------
CASH AND CASH EQUIVALENTS, END OF PERIOD:                          $ 5,998,688           $   590,729
                                                                   ===========           ===========
</TABLE>

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

                                       7
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
         FOR THE THREE MONTHS ENDED AUGUST 31, 2006 AND 2005 (UNAUDITED)
                                   (CONTINUED)


                                                    For the three months ended
                                                   August 31,         August 31,
                                                     2006               2005
                                                   ---------          ---------
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
  Cash paid during the period for interest         $   3,313          $     362
                                                   =========          =========

  Cash paid during the period for income taxes     $      --          $ 143,256
                                                   =========          =========

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

                                       8
<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.

Our 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  month  period  ended  August 31, 2006 are not
necessarily  indicative  of the results that may be expected for the year ending
May 31,  2007 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, 2006.

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 financial statements.  Material estimates include,
but are not limited to, the allowance for doubtful accounts,  the carrying value
of  intangible  assets,  the  realization  of the  deferred  income  tax  asset,
percentage  of  completion   estimates,   potential   liabilities  arising  from
litigation,  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 in future periods.

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.  We are currently in the process of evaluating  our
franchise license agreement and related revenue recognition policy.

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
$75,000, plus $15,000 per annum for officiating costs. In addition, the 12 teams

                                       9
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)

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

from the WPHL pay an extra $10,000  annually to cover Global's  costs.  The fees
are  recognized  proportionately  over the  year.  At the end of the  year,  net
profits, or losses are shared  proportionately with each member of the JOA based
upon the amount of revenue that each member has contributed to the league.  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  billed by the Company  relating to furniture,  fixtures and  equipment,
architecture  fees,  and other  amounts  incurred  by the  Company  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".

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.  Where the Company  principally manages people
who are  employees at the facility,  the payroll  costs from such  employees are
recognized by the Company and are included in "Cost of revenues".

TICKET SERVICE FEES: GETTIX is a ticketing agent with various venues,  theatres,
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.

LOSS PER SHARE

Basic loss per share of common  stock was  computed by dividing  the net loss by
the weighted  average  number of shares of common stock  outstanding  during the
period.

Diluted loss per share are  computed  based on 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 earnings per share or decrease the loss per
share.  As of August 31, 2006 and 2005 there were 85,977 and 12,000  potentially

                                       10
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)

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

dilutive securities outstanding,  respectively. None of the potentially dilutive
securities  were included in the  computation of the weighted  average number of
common stock and dilutive  securities as their effect was  anti-dilutive for the
three months ended August 31, 2006 and 2005.

As  of  August  31,  2006  there  were  662,149  options  and  275,760  warrants
outstanding to purchase  common stock.  As of August 31, 2005 there were 659,523
options and 60,460 warrants outstanding to purchase common stock.

STOCK-BASED COMPENSATION

EMPLOYEE STOCK OPTIONS:

On March 1, 2006 the Company  adopted the fair value  recognition  provisions of
SFAS  123R.  Prior to March 1,  2006,  the  Company  accounted  for  share-based
payments under the recognition and measurement provisions of APB 25, and related
Interpretations,  as  permitted  by SFAS  123.  In  accordance  with APB 25,  no
compensation  cost was required to be recognized for options granted that had an
exercise price equal to the market value of the  underlying  common stock on the
date of grant.

The Company adopted SFAS 123R using the modified prospective  transition method.
Under this transition  method,  compensation  cost for all share-based  payments
granted  subsequent  to March 1,  2006 is based  on the  grant-date  fair  value
estimated  in  accordance  with the  provisions  of SFAS 123R.  The  results for
periods prior to March 1, 2006 are not required to be restated.

The following table  illustrates the effect on net income and earnings per share
if the Company had applied the fair value recognition provisions of SFAS No. 123
to stock-based employee compensation.

                                                                For the three
                                                                months ended
                                                                  August 31,
                                                                     2005
                                                                  ---------
                                                                 (Unaudited)
Net loss, as reported                                             $(151,284)
Deduct: Total stock-based employee compensation
        expense determined under fair value based method
        for all awards, net of related tax effects                 (129,381)
                                                                  ---------

Pro forma net loss                                                $(280,665)
                                                                  =========
LOSS PER SHARE:
  Basic and diluted, as reported                                  $   (0.03)
                                                                  =========

  Basic and diluted, pro forma                                    $   (0.05)
                                                                  =========

The fair  value of option  grants is based on the Black  Scholes  option-pricing
model with the following weighted average assumptions:

                                       11
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)

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

Option issue dates              6/1/2005
                                --------

Expected volatility              40.83%
Risk-free interest rate           3.91%
Expected dividends                  --
Expected life                   10 Years
Option Value                     $3.13

--------------------------------------------------------------------------------
                                     NOTE 2
                                     EQUITY
--------------------------------------------------------------------------------

During the three  months  ended  August 31,  2006,  we did not issue  options to
purchase  shares of common stock.  During the three months ended August 31, 2005
we issued options to purchase 70,000 shares of common stock to directors.  These
options had an exercise price of $5.40 and a term of ten years.

--------------------------------------------------------------------------------
                                     NOTE 3
                                 LINE OF CREDIT
--------------------------------------------------------------------------------

During the three  months  ended  August 31,  2006 we obtained an increase in our
revolving line of credit from  $2,000,000 to $3,000,000.  As of August 31, 2006,
we have no  outstanding  balance on this  credit  facility.  We have a borrowing
capacity of  $2,600,000  as a result of a $400,000  letter of credit in favor of
Sure Tec Insurance Company for a performance bond to the City of Youngstown, OH.
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.  This line of credit  bears  interest at a rate of 1% plus  prime.  As of
August 31, 2006,  the applicable  interest rate was 9.25%.  In order to continue
borrowing,  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  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,  and a
ratio of funded debt to earnings before  interest,  taxes and  depreciation  and
amortization  of not more than 2.5:1 for each  quarter.  We must maintain a zero
balance for a consecutive  30 day period during the term of the facility.  As of
August 31, 2006, management believes we were in compliance with these covenants.
The facility will mature on November 19, 2006.

--------------------------------------------------------------------------------
                                     NOTE 4
                          COMMITMENTS AND CONTINGENCIES
--------------------------------------------------------------------------------

As with all  entertainment  facilities  there  exists a degree  of risk that the
general  public may be  accidentally  injured.  As of August 31, 2006 there were
various claims outstanding in this regard that management does not believe these
will have a material effect on the financial  condition or results of operations
of the Company. 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.

                                       12
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)

--------------------------------------------------------------------------------
                                     NOTE 4
                    COMMITMENTS AND CONTINGENCIES (CONTINUED)
--------------------------------------------------------------------------------

Global is a plaintiff in a lawsuit filed against a current franchisee.  The suit
asks for a ruling on the interpretation of the protected territory clause of the
license  agreement.  Subsequent to our action,  the franchisee  filed a separate
claim for  unspecified  damages for alleged  breach of the  protected  territory
clause of the licensing agreement. These suits were filed in August 2005 and are
pending in Maricopa County Superior Court,  Maricopa County,  Arizona.  Although
the outcome of this matter cannot be predicted with  certainty,  we believe that
we have valid  defenses to the alleged  claims and intend to  vigorously  defend
this action.  As such no liability  has been recorded at August 31, 2006 related
to this matter.

Global is named as a defendant, along with the local municipality,  in a lawsuit
filed by the family of an employee of the Dodge  Arena in  Hidalgo,  Texas.  The
suit alleges negligence against Global and asks for unspecified  damages related
to the death of the employee  resulting from an accident at the arena. This suit
was filed in November 2005 and is pending in the 332nd  Judicial  District Court
of  Hidalgo  County,  Texas.  Although  the  outcome  of this  matter  cannot be
predicted with certainty,  we believe that we have valid defenses to the alleged
claims and intend to  vigorously  defend this action.  As such no liability  has
been recorded at August 31, 2006 related to this matter.

Global is a defendant in a lawsuit filed by Nustadia  Developments  Inc. and PBK
Architects.  The suit  arises out of certain  contracts  between  Global and the
plaintiffs,  pursuant to which  Global  agreed to use  architectural  design and
development  management services of the plaintiffs with respect to certain arena
development  projects.  The suit asks for direct damages of $4,500,000 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 is pending in the  Maricopa
County Superior Court of Arizona.  Although the outcome of this matter cannot be
predicted with certainty,  we believe that we have valid defenses to the alleged
claims and intend to  vigorously  defend this action.  As such no liability  has
been recorded at August 31, 2006 related to this matter.

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 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.

The Company has entered into contracts  with the  facilities in Rio Rancho,  New
Mexico,  Youngstown,  Ohio and Prescott Valley,  Arizona which guarantee certain
economic performance standards. As of August 31, 2006, neither of the facilities
in Rio Rancho nor  Prescott  Valley has  commenced  operations  and based on our
current  performance  estimates  of  the  facilities,  we  believe  there  is no
liability due under these contracts.  Based on our current performance estimates
of the Youngstown  facility,  we believe there is no material liability accruing
to the Company as of August 31, 2006.

As of August 31,  2006 we have  provided a  secondary  guarantee  on a letter of
credit in favor of Ace  Insurance  Company for  $860,000  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 August 31, 2006.

--------------------------------------------------------------------------------
                                     NOTE 5
                                  JOINT VENTURE
--------------------------------------------------------------------------------

During  the fiscal  year ended May 31,  2006,  we entered  into a joint  venture

                                       13
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)

--------------------------------------------------------------------------------
                                     NOTE 5
                            JOINT VENTURE (CONTINUED)
--------------------------------------------------------------------------------

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.
Global is the managing  member of Prescott  Valley Events  Center,  LLC ("PVEC")
(the joint venture  entity) and is responsible  for the planning,  promotion and
fulfillment  of the  joint  venture  operations.  We  plan  to  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 paid $1,000 for a 50%  interest in the joint  venture.  We will also
contribute  $250,000  as  preferred  capital  while  Prescott  Valley  Signature
Entertainment,  LLC contributed land with an approximate  value of $1,500,000 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  or  construction,  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.  Upon  completion  of the
Prescott Valley Events Center the Company has 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 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
PVEC of $250,000,  2) $100,000 per year (increasing  annually by inflation) from
the Town of Prescott Valley and 3) retained  earnings from the arena operations.
The maximum  potential future payments required under this guarantee are limited
to our annual management fee of approximately $250,000. As of August 31, 2006 we
believe the amount of payments under this guarantee is negligible  and, as such,
have recorded no value to the guarantee.

We did not earn income or incur any losses from PVEC for the three  months ended
August 31, 2006.

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
"Miscellaneous Assets" as of August 31, 2006.

                                       14
<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, 2006 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 quarterly report 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.

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  operates  and  manages  a  minor
professional hockey league known as the Central Hockey League (the "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") develops and manages multipurpose
events centers in mid-market  communities.  ICC's  development  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.

In March 2004, we completed a merger with Cragar Industries, Inc., a licensor of
a well-known automotive  aftermarket wheel trademark and brand - CRAGAR(R).  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.

                                       15
<PAGE>
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,  theatres,  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 a
multipurpose events center developed by ICC. Facility management  operations are
conducted under separate limited liability companies established by the Company.

During the three  months  ended  August 31,  2006 we began  operations  of a new
entity,  Global  Properties  I.  This  entity  will work 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.

OVERVIEW - OPERATIONS

During the three  months  ended  August  31,  2006 the  Company  incurred a loss
primarily  attributable  to certain  non-recurring  expenses as described in the
operating  cost  section  below.  Also during the current  period,  we continued
investing in our infrastructure  including the creation of a subsidiary,  Global
Properties  I, an entity  that will  focus  solely on  marketing  to  interested
communities our multiplatform company with its broad range of services.

Consistent with our goal of expanding our national presence, we recently entered
into  agreements  for two new  projects.  First,  we have  entered  the  Pacific
Northwest market as the exclusive  development and management  company for a new
events  and  entertainment  center in  Wenatchee,  Washington.  Second,  we have
entered  the  Western  Canada  market  with an  agreement  to  oversee a capital
enhancement project for a multi-purpose facility,  which also includes long-term
facility management, sales and marketing support, and ticketing services for the
events center.

In addition to  traditional  licensing,  Cragar has  created a new  program,  in
partnership  with  its  licensees,  to  directly  sell  a new  line  of  vehicle
components  to new car  dealerships.  This program will provide auto dealers the
ability to create  Special  Edition  vehicles,  leveraging  the Cragar  brand in
promoting  vehicle sales. We anticipate the first sales of these products during
the second fiscal quarter.

ICC is scheduled to complete its project  management  duties with the opening of
three new events  centers  before the end of the second  fiscal  quarter.  These
projects include: 1) the Santa Ana Star Center in Rio Rancho, New Mexico; 2) the
Prescott Valley Convention and Events Center in Prescott Valley, Arizona; and 3)
the Broomfield Event Center in Broomfield, Colorado. Following the completion of
these projects we anticipate new revenue  sources as CHL hockey teams will serve
as major tenants in each of the facilities. In addition, in both the Rio Rancho,
New Mexico and  Prescott  Valley,  Arizona  locations,  Encore  will  manage the
facilities,  Gettix will provide ticketing services, and GEMS will provide sales
and marketing services.

CRITICAL ACCOUNTING POLICIES, ESTIMATES AND JUDGMENTS

Significant  accounting  policies  are  described  in the  audited  consolidated
financial  statements and notes thereto  included in the Company's Annual Report
on Form 10-KSB for the year ended May 31,  2006.  We believe  our most  critical
accounting policies and estimates relate to revenue  recognition,  the allowance
for doubtful accounts,  facility management  performance guarantee  liabilities,
and the carrying value of goodwill.

                                       16
<PAGE>
Revenues from 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.  Project
management  and facility  management  revenues are  recognized  ratably 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.

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.

Estimates of liability relating to facility  management  performance  guarantees
are based on current facility performance estimates. Actual facility performance
may not meet expectations and may result in additional liability.

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

THREE  MONTHS  ENDED  AUGUST 31, 2006  COMPARED TO THREE MONTHS ENDED AUGUST 31,
2005

REVENUES:

<TABLE>
<CAPTION>
                                   Three                        Three
                                months Ended   Percent of    months Ended   Percent of   Dollar Change   Percent Change
                                 August 31,       2006        August 31,       2005       Between 2005     Between 2005
                                   2006          Revenue        2005          Revenue       and 2006        and 2006
                                   ----          -------        ----          -------       --------        --------
<S>                              <C>            <C>         <C>              <C>         <C>                <C>
Project management fees          $2,070,589       56.7%      $2,471,772        77.1%       $ (401,183)        -16.2%
Facility management fees            344,087        9.4%              --         0.0%          344,087          N/A
Licensing and advertising fees      679,875       18.6%         685,842        21.4%           (5,967)         -0.9%
Ticket service fees                 557,302       15.3%          47,146         1.5%          510,156        1082.1%
Other revenue                            65        0.0%              13         0.0%               52         400.0%
                                 ----------      -----       ----------       -----        ----------        ------
   Total                         $3,651,918      100.0%      $3,204,773       100.0%       $  447,145          14.0%
                                 ==========      =====       ==========       =====        ==========        ======
</TABLE>

Total revenues  increased  $447,145,  from $3,204,773 for the three months ended
August 31, 2005 to $3,651,918 for the three months ended August 31, 2006.

Project  management  revenues  decreased  $401,183 from $2,471,772 for the three
months ended August 31, 2005 to $2,070,589 for the three months ended August 31,
2006.  This  decrease  occurred  primarily as ICC completed the contract for the
Chevrolet  Centre in Youngstown,  Ohio. The  Youngstown  contract  included more
revenue  related to furniture,  fixtures and  equipment,  architecture  fees and
other  amounts paid on behalf of the project  owner in comparison to the current
three ICC  projects.  The related  revenue  and  expense  for these  amounts are
recognized in the period incurred.  Project management  revenues represent 56.7%
of our total  revenue for the three months  ended  August 31, 2006,  compared to
77.1% of our total revenue for the three months ended August 31, 2005.

During the third  quarter of the year ending May 31, 2006 Encore began  facility
management  operations  at the Dodge Arena in Hidalgo,  Texas and the  Chevrolet
Centre in Youngstown,  Ohio.  Facility  management revenues totaled $344,087 for
the three months ended August 31, 2006 and account for 9.4% of our total revenue
for the three months ending August 31, 2006.  Effective August 2006 the contract
for facility management of the Dodge Arena was cancelled.

Licensing and  advertising  activities  were  consistent  with the prior period;
decreasing  $5,967 from  $685,842  for the three months ended August 31, 2005 to
$679,875 for the three months ended August 31, 2006.

                                       17
<PAGE>
Ticket service fees  increased  $510,156 from $47,146 for the three months ended
August 31, 2005 to $557,302 for the three  months  ended  August 31, 2006.  This
increase  in ticket  service  fees  occurred  as GETTIX has  entered  additional
ticketing contracts since the prior period, including ticketing of the Chevrolet
Centre in Youngstown, Ohio.

The  CHL did not  recognize  any new  franchise  sales,  or  franchise  transfer
revenue, in the current and prior period.

OPERATING COSTS:

<TABLE>
<CAPTION>
                                        Three                        Three
                                     months Ended   Percent of    months Ended   Percent of   Dollar Change   Percent Change
                                      August 31,       2006        August 31,       2005       Between 2005     Between 2005
                                        2006          Revenue        2005          Revenue       and 2006        and 2006
                                        ----          -------        ----          -------       --------        --------
<S>                                   <C>            <C>         <C>              <C>         <C>                <C>
Operating Costs
  Cost of revenues                   $2,623,680        71.8%      $2,043,282        63.8%       $  580,398        28.4%
  General and administrative costs    2,037,126        55.8%       1,314,175        41.0%          722,951        55.0%
                                     ----------       -----       ----------       -----        ----------        ----
      Total                          $4,660,806       127.6%      $3,357,457       104.8%       $1,303,349        38.8%
                                     ==========       =====       ==========       =====        ==========        ====
</TABLE>

Total operating costs increased by $1,303,349, or 38.8%, from $3,357,457 for the
three  months  ended  August 31, 2005 to  $4,660,806  for the three months ended
August 31, 2006.

Cost of revenue  increased by $580,398,  or 28.4%,  to $2,623,680  for the three
months ended August 31, 2006. This change  resulted  primarily from a negotiated
payment related to the favorable  restructuring of an arena facility  management
contract,  an increase in facility  management  costs  associated  with facility
management  of the Dodge Arena in  Hidalgo,  Texas and the  Chevrolet  Centre in
Youngstown,  Ohio, and ticket service related fees as a result of an increase in
ticket service revenues.  These increases were partially offset by a decrease in
project management costs resulting from the completion of the Youngstown project
which generated more cost than the current three projects as ICC incurred higher
amounts  of  furniture,  fixtures  and  equipment,  architecture  fees and other
amounts on behalf of the project owner.

General and administrative costs increased $722,951, or 55.0%, to $2,037,126 for
the three months ended August 31, 2006. This increase is primarily  attributable
to an  increase in the  allowance  for  doubtful  accounts  receivable,  a large
recruiting fee for a key new executive and certain higher than anticipated legal
fees.  In  addition,  we incurred  costs for  additional  staffing  and overhead
expenses associated with the growth of Encore's facility management  operations,
the start-up of Global Properties I , expanded development and marketing efforts
related to Cragar, and continued expansion of GETTIX ticketing operations.

NET INCOME:

<TABLE>
<CAPTION>
                           Three                        Three
                        months Ended   Percent of    months Ended   Percent of   Dollar Change   Percent Change
                         August 31,       2006        August 31,       2005       Between 2005     Between 2005
                           2006          Revenue        2005          Revenue       and 2006        and 2006
                           ----          -------        ----          -------       --------        --------
<S>                      <C>            <C>         <C>              <C>         <C>                <C>
Net loss                 $(938,660)       -25.7%     $(151,284)       -4.7%        $(787,376)        520.5%
</TABLE>

Net loss was $938,660 for the three months ended August 31, 2006,  compared to a
net loss of $151,284 for the three  months  ended  August 31, 2005.  The current
quarterly loss is primarily  attributable to a negotiated payment related to the
favorable  restructuring of the Company's  management  compensation at an events

                                       18
<PAGE>
center, an increase in the allowance for doubtful  accounts,  a large recruiting
fee associated with the addition of a key executive and legal fees pertaining to
various  issues that were higher than  normal  during the  quarter.  The company
continued to invest in placing highly qualified personnel in strategic positions
as  development  projects and  operational  expansion  dictated and, to a lesser
extent,  the start-up costs for our newest  subsidiary,  Global  Properties I, a
division  that  will  meet  with   communities   regarding  the  development  of
entertainment districts.

LIQUIDITY AND CAPITAL RESOURCES

For the  three  months  ended  August  31,  2006,  cash  provided  by  operating
activities  totaled  $631,636  compared to cash used in operating  activities of
$145,336  for the three  months  ended  August 31,  2005.  The  increase in cash
provided  by  operations  primarily  occurred  as a  result  of  the  timing  of
collections  on accounts  receivable  and an  increase  in accrued  liabilities,
partially  offset by a decrease  in accounts  payable  relating to the timing of
vendor payments.

A significant  source of operating  capital during the three months ended August
31, 2006 was from CHL league  assessments and also from project  management fees
from ICC. Since these project  management  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 franchise fees, project management fees
or other sources.

Cash used in  investing  activities  totaled  $71,039 for the three months ended
August 31,  2006,  as compared to $14,094 for the three  months ended August 31,
2005.  The use of funds in both  periods  relates  primarily  to the purchase of
capital  equipment  related to the  expansion  of Cragar  branded  products  and
equipment related to the expanded GETTIX ticketing operations.

During the three months ended August 31, 2006 and 2005 we did not have cash flow
related to financing activities.

During the three  months  ended  August 31,  2006 we obtained an increase in our
revolving line of credit from  $2,000,000 to $3,000,000.  As of August 31, 2006,
we have no  outstanding  balance on this  credit  facility.  We have a borrowing
capacity of  $2,600,000  as a result of a $400,000  letter of credit in favor of
Sure Tec Insurance Company for a performance bond to the City of Youngstown, OH.
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.  This line of credit  bears  interest at a rate of 1% plus  prime.  As of
August 31, 2006,  the applicable  interest rate was 9.25%.  In order to continue
borrowing,  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  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,  and a
ratio of funded debt to earnings before  interest,  taxes and  depreciation  and
amortization  of not more than 2.5:1 for each  quarter.  We must maintain a zero
balance for a consecutive  30 day period during the term of the facility.  As of
August 31, 2006, management believes we were in compliance with these covenants.
The facility will mature on November 19, 2006.

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.

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 December 2004, the FASB revised Statement of Financial  Accounting  Standards
No.  123  ("SFAS  123(R)"),  "Share-Based  Payment."  The SFAS  123(R)  revision
established  standards for the  accounting for  transactions  in which an entity
exchanges its equity  instruments for goods or services and focuses primarily on

                                       19
<PAGE>
accounting  for  transactions  in which an entity obtains  employee  services in
share-based payment transactions. It does not change the accounting guidance for
share-based payment  transactions with parties other than employees.  For public
entities  that file as small  business  issuers,  the  revisions to SFAS 123 are
effective as of the beginning of the first annual  reporting  period that begins
after December 15, 2005. See Note 1--Summary of Significant  Accounting Policies
and  Use of  Estimates  in the  accompanying  condensed  consolidated  financial
statements for disclosure  information regarding pro forma stock option expense.
The  adoption  of SFAS 123 (R) did not have a material  effect on our results of
operations or financial position.

In June 2006, the FASB issued FASB  Interpretation 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.  This Interpretation is
effective for fiscal years  beginning  after  December 15, 2006.  The Company is
evaluating the impact of FIN No. 48 on its financial statements.

In September,  2006, the Financial  Accounting Standard Board issued a Statement
of  Financial  Accounting  Standards  SFAS 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 financial  statements  issued for fiscal years  beginning after November 15,
2007, and interim periods within those fiscal years. The adoption of SFAS 157 is
not expected to have a material  affect 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-14(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 August
31, 2006 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 August 31, 2006 there were
various claims  outstanding in this regard that management does not believe will
have a material  effect on the  financial  condition or results of operations of
the Company.  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.

Global is a plaintiff in a lawsuit filed against a current franchisee.  The suit
asks for a ruling on the interpretation of the protected territory clause of the
license  agreement.  Subsequent to our action,  the franchisee  filed a separate
claim for  unspecified  damages for alleged  breach of the  protected  territory
clause of the licensing agreement. These suits were filed in August 2005 and are
pending in Maricopa County Superior Court,  Maricopa County,  Arizona.  Although
the outcome of this matter cannot be predicted with  certainty,  we believe that
we have valid  defenses to the alleged  claims and intend to  vigorously  defend
this action.

Global is named as a defendant, along with the local municipality,  in a lawsuit
filed by the family of an employee of the Dodge  Arena in  Hidalgo,  Texas.  The
suit alleges negligence against Global and asks for unspecified  damages related

                                       20
<PAGE>
to the death of the employee  resulting from an accident at the arena. This suit
was filed in November 2005 and is pending in the 332nd  Judicial  District Court
of  Hidalgo  County,  Texas.  Although  the  outcome  of this  matter  cannot be
predicted with certainty,  we believe that we have valid defenses to the alleged
claims and intend to vigorously defend this action.

Global is a defendant in a lawsuit filed by Nustadia  Developments  Inc. and PBK
Architects.  The suit  arises out of certain  contracts  between  Global and the
plaintiffs,  pursuant to which  Global  agreed to use  architectural  design and
development  management services of the plaintiffs with respect to certain arena
development  projects.  The suit asks for direct damages of $4,500,000 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 is pending in the  Maricopa
County Superior Court of Arizona.  Although the outcome of this matter cannot be
predicted with certainty,  we believe that we have valid defenses to the alleged
claims and intend to vigorously defend this action.

ITEM 6. EXHIBITS

(a) Exhibits. See Exhibit Index attached.

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<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)



October 16, 2006           By /s/ Richard Kozuback
                              --------------------------------------------------
                              Richard Kozuback
                              President & Chief Executive Officer



October 16, 2006           By /s/ J. Craig Johnson
                              --------------------------------------------------
                              J. Craig Johnson
                              Executive Vice President & Chief Financial Officer

                                       22
<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  of the  Company,
             dated April 14, 2000. (1)

     3.2     Bylaws of the Company, 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 J. Craig Johnson, Chief Financial Officer.*

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

----------
* Filed herewith.

(1)  Incorporated   herein  by  reference  to  Exhibit  3.1  of  the   Company's
     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  the   Company's
     Registration  Statement  on Form S-4 (No.  333-109192),  as filed  with the
     Commission on September 26, 2003.