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, 2007

                                       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, 2007:

                          Common Stock, $.001 par value
                                6,513,075 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, 2007

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

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

     Condensed Consolidated Statements of Operations (Unaudited) -
     Three Months Ended August 31, 2007 and 2006                             5

     Condensed Consolidated Statements of Changes in Stockholders'
     Equity - Fiscal Year ended May 31, 2007 and Three Months Ended
     August 31, 2007 (Unaudited)                                             6

     Condensed Consolidated Statements of Cash Flows (Unaudited) -
     Three Months Ended August 31, 2007 and 2006                             7

     Notes to Condensed Consolidated Financial Statements                    8

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

Item 3. Controls and Procedures                                             23

PART II. OTHER INFORMATION

Item 1. Legal Proceedings                                                   24

Item 6. Exhibits                                                            24
     Exhibit 31.1
     Exhibit 31.2
     Exhibit 32

                                       2
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                     AS OF AUGUST 31, 2007 AND MAY 31, 2007

                                     ASSETS
<TABLE>
<CAPTION>
                                                                  August 31,            May 31,
                                                                    2007                 2007
                                                                 -----------          -----------
                                                                 (Unaudited)
<S>                                                              <C>                  <C>
CURRENT ASSETS:
  Cash and cash equivalents                                      $ 2,766,047          $ 4,251,542
  Accounts receivable - trade, net
   of $556,809 at August 31, 2007 and May 31, 2007                 1,842,120            3,243,482
  Accounts receivable - other                                             --              102,254
  Prepaid expenses and other assets                                  959,591              790,231
  Prepaid income tax                                                  63,000               63,000
  Deferred income tax asset, net of valuation allowance               14,000               14,000
                                                                 -----------          -----------

      TOTAL CURRENT ASSETS                                         5,644,758            8,464,509

Property and equipment, net                                          201,588              221,099
Construction in progress                                           7,685,833                   --
Intangible assets, net                                             2,739,695            2,743,341
Goodwill                                                             518,750              518,750
Other assets                                                          65,858               79,967
                                                                 -----------          -----------

      TOTAL ASSETS                                               $16,856,482          $12,027,666
                                                                 ===========          ===========
</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)
                     AS OF AUGUST 31, 2007 AND MAY 31, 2007

                      LIABILITIES AND STOCKHOLDERS' EQUITY

<TABLE>
<CAPTION>
                                                                        August 31,               May 31,
                                                                           2007                   2007
                                                                       ------------           ------------
                                                                        (Unaudited)
<S>                                                                    <C>                    <C>
CURRENT LIABILITIES:
  Accounts payable                                                     $  2,208,134           $  3,263,673
  Accrued liabilities                                                     1,801,956              1,431,620
  Deferred revenues                                                         736,601                311,994
  Note payable - current portion                                             63,126                     --
  Other liabilities                                                          58,540                     --
                                                                       ------------           ------------

      TOTAL CURRENT LIABILITIES                                           4,868,357              5,007,287

Deferred income tax liability                                                66,000                 66,000
Notes payable - long term portion                                         6,486,040                     --
                                                                       ------------           ------------

      TOTAL LIABILITIES                                                  11,420,397              5,073,287
                                                                       ------------           ------------

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;
   6,513,075 and 6,508,173 shares issued and outstanding as of
   August 31, 2007 and May 31, 2007, respectively                             6,513                  6,508
  Paid-in capital                                                        10,731,005             10,731,010
  Retained earnings (deficit)                                            (5,301,433)            (3,783,139)
                                                                       ------------           ------------

      TOTAL STOCKHOLDERS' EQUITY                                          5,436,085              6,954,379
                                                                       ------------           ------------

      TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                       $ 16,856,482           $ 12,027,666
                                                                       ============           ============
</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, 2007 AND 2006 (UNAUDITED)


                                                  For the three months ended
                                              ---------------------------------
                                               August 31,            August 31,
                                                  2007                  2006
                                              -----------           -----------
Revenues
  Project management fees                     $   125,052           $ 2,070,589
  Facility management fees                        964,292               344,087
  Licensing and advertising fees                  866,210               679,875
  Ticket service fees                             779,809               557,302
  Automotive part sales                           121,777                    --
  Franchise fees                                  430,025                    --
  Project development fees                        181,250                    --
  Other revenue                                     4,861                    65
                                              -----------           -----------
Gross Revenues                                  3,473,276             3,651,918
                                              -----------           -----------
Operating Costs
  Cost of revenues                              1,846,037             2,623,680
  General and administrative costs              3,182,697             2,037,126
                                              -----------           -----------
Total Operating Costs                           5,028,734             4,660,806
                                              -----------           -----------

Loss from Operations                           (1,555,458)           (1,008,888)

Other Income (Expense)
  Interest income                                  45,232                73,541
  Interest expense                                 (8,068)               (3,313)
                                              -----------           -----------
Total Other Income                                 37,164                70,228
                                              -----------           -----------

Loss Before Income Taxes                       (1,518,294)             (938,660)

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

Net Loss                                      $(1,518,294)          $  (938,660)
                                              ===========           ===========

Loss Per Share - basic and diluted            $     (0.23)          $     (0.14)
                                              ===========           ===========
Weighted average shares outstanding
 - basic and diluted                            6,508,700             6,494,428
                                              ===========           ===========


               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, 2007 AND THE
                       THREE MONTHS ENDED AUGUST 31, 2007

<TABLE>
<CAPTION>
                                               Common Stock
                                            -------------------       Paid-in          Retained
                                            Shares       Amount       Capital      Earnings/(Deficit)      Total
                                            ------       ------       -------      ------------------      -----
<S>                                       <C>            <C>       <C>               <C>               <C>
Balance at May 31, 2006                   6,487,492      $6,488    $ 10,665,781      $   342,238       $ 11,014,507

Exercise of options                          10,681          10           8,739               --              8,749

Issuance of common stock                     10,000          10          56,490               --             56,500

Net loss for the year ended
May 31, 2007                                     --          --              --       (4,125,377)        (4,125,377)
                                          ---------      ------    ------------      -----------       ------------

Balance at May 31, 2007                   6,508,173       6,508      10,731,010       (3,783,139)         6,954,379

Exercise of options (Unaudited)               4,902           5              (5)              --                 --

Net loss for the three months ended
August 31, 2007 (Unaudited)                      --          --              --       (1,518,294)        (1,518,294)
                                          ---------      ------    ------------      -----------       ------------

Balance at August 31, 2007 (Unaudited)    6,513,075      $6,513    $ 10,731,005      $(5,301,433)      $  5,436,085
                                          =========      ======    ============      ===========       ============
</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, 2007 AND 2006 (UNAUDITED)

<TABLE>
<CAPTION>
                                                                    For the three months ended
                                                                 ---------------------------------
                                                                  August 31,            August 31,
                                                                    2007                  2006
                                                                 -----------           -----------
<S>                                                              <C>                   <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss                                                       $(1,518,294)          $  (938,660)
  Adjustments to reconcile net loss to net
   cash provided by operating activities:
     Depreciation and amortization                                    56,724                43,583
     Allowance for doubtful accounts                                      --               200,188
  Changes in Assets and Liabilities:
     Decrease accounts receivable, gross
       - trade                                                     1,401,362               780,523
       - other                                                       102,254                16,287
     Increase prepaid expenses and other assets                     (169,360)             (134,802)
     Decrease (increase) other assets                                 14,109                (4,307)
     Decrease accounts payable trade                              (1,055,539)             (921,378)
     Increase accrued liabilities                                    370,336             1,199,237
     Increase other liabilities                                       58,540                    --
     Increase deferred revenues                                      424,607               390,965
                                                                 -----------           -----------
Net cash provided by (used in) by operating activities:          $  (315,261)          $   631,636
                                                                 -----------           -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of fixed assets                                           (33,567)              (71,039)
  Construction in progress                                        (7,685,833)                   --
                                                                 -----------           -----------
Net cash used in investing activites:                            $(7,719,400)          $   (71,039)
                                                                 -----------           -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Notes payable                                                    6,549,166                    --
                                                                 -----------           -----------
Net cash provided by financing activities:                       $ 6,549,166           $        --
                                                                 -----------           -----------

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS:             (1,485,495)              560,597

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD:                    4,251,542             5,438,091
                                                                 -----------           -----------
CASH AND CASH EQUIVALENTS, END OF PERIOD:                        $ 2,766,047           $ 5,998,688
                                                                 ===========           ===========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
  Cash paid during the period for interest                       $     8,068           $     3,313
                                                                 ===========           ===========
  Cash paid during the period for income taxes                   $        --           $        --
                                                                 ===========           ===========
</TABLE>


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

                                       7
<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, 2007 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.

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 the  deferred  income  tax asset,  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 further  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

                                       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 (CONTINUED)
--------------------------------------------------------------------------------

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.

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 14 teams
from the WPHL pay an extra $10,000  annually to cover Global's  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  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".

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.  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".

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

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

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.

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  shipment to our
customers.

LOSS PER SHARE

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

Diluted  net loss per share is computed  by  dividing  net 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. As of August 31, 2007 and 2006 there were 414,800 and 85,977
potentially  dilutive  securities  outstanding,  respectively.  As of August 31,
2007, the 414,800 of potentially  dilutive  securities  were not included in the
determination of diluted loss per share as their effect was anti-dilutive.

As  of  August  31,  2007  there  were  578,422  options  and  275,760  warrants
outstanding to purchase  common stock.  As of August 31, 2006 there were 662,149
options and 275,760 warrants outstanding to purchase common stock.

RESTRICTED STOCK

During 2007,  the Company  adopted the 2007 Long-Term  Incentive  Plan. The Plan
authorizes the Company's Board of Directors to grant  restricted stock awards to
selected officers,  employees,  outside consultants and directors of the Company
or its wholly owned subsidiaries for up to an aggregate of 320,000 shares of the
Company's  common stock.  Awards to  non-employee  directors shall vest over two
years,  awards to officers and employees shall vest over four years,  and awards
made  to  consultants  or  advisors  shall  be  determined  by the  Compensation
Committee of the Board of Directors.

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

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

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

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 consolidated financial
statements.

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
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  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 the beginning of the fiscal year starting
after  November  15,  2007.  We do not expect  SFAS No. 159 will have a material
effect on our consolidated financial statements.

--------------------------------------------------------------------------------
                                     NOTE 2
                                INTANGIBLE ASSETS
--------------------------------------------------------------------------------

As of August 31, 2007 and May 31, 2007,  intangible assets were comprised of the
following:

                                              August 31,             May 31,
                                                2007                  2007
                                             -----------           -----------

Trademarks                                   $   107,863           $   107,863
Covenant not to compete                           50,000                50,000
                                             -----------           -----------
                                                 157,863               157,863
Less:  accumulated amortization                  (55,168)              (51,522)
                                             -----------           -----------
Finite life intangibles, net                     102,695               106,341
Trademarks not subject to amortization         2,637,000             2,637,000
                                             -----------           -----------

                                             $ 2,739,695           $ 2,743,341
                                             ===========           ===========

During the fiscal year ended May 31, 2007 the Company  determined that, based on
estimated future cash flows, the carrying amount of Cragar  Trademarks  exceeded
its fair value by $905,716;  accordingly,  an impairment loss of that amount was
recognized in fiscal year 2007.

Total amortization  expense equaled $3,646 and $3,797 for the three months ended
August 31, 2007 and 2006, respectively.  The Company did not add any amortizable
intangible  assets  during the three months ended August 31, 2007. As of August,

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

--------------------------------------------------------------------------------
                                     NOTE 2
                          INTANGIBLE ASSETS (CONTINUED)
--------------------------------------------------------------------------------

31,  2007 the  aggregated  amortization  expense for the next five years for all
intangible  assets  subject to  amortization  is estimated to be $43,455.  As of
August 31, 2007 the weighted average  remaining lives of our intangible  assets,
subject to amortization, are approximately 9.52 years.

As of August 31, 2007 and May 31, 2007, goodwill was comprised of the following:

                                         August 31,            May 31,
                                            2007                2007
                                         ---------           ---------

Investment in ICC                        $ 622,500           $ 622,500
Less: accumulated amortization            (103,750)           (103,750)
                                         ---------           ---------

                                         $ 518,750           $ 518,750
                                         =========           =========

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

During the three months ended August 31, 2007 and 2006, we did not issue options
to purchase shares of common stock.

Effective  October 20, 2006, we issued 4,000 shares of restricted stock with two
year  vesting  terms to various  directors  as  compensation  for service on the
Board,  and 6,000 shares of restricted stock with one year vesting terms as part
of our  financial  consulting  agreement  with Miller  Capital  Corporation.  An
expense for these shares was recorded in the current  period,  prorated over the
vesting period and based on the market price of $4.65 per share as of August 31,
2007.

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

In August 2006 we obtained  an  increase  in our  revolving  line of credit from
$2,000,000 to  $3,000,000.  On November 19, 2006 this line of credit was renewed
and will  mature on  November  19,  2007.  As of  August  31,  2007,  we have no
outstanding balance on this credit facility. At August 31, 2007 we had a maximum
borrowing  capacity of $1,150,000 as a result of a $600,000  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, 2007, the applicable  interest rate was 8.75%. 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
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, 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

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

--------------------------------------------------------------------------------
                                     NOTE 4
                            NOTES PAYABLE (CONTINUED)
--------------------------------------------------------------------------------

period  during the term of the  facility.  As of August 31, 2007 the Company was
not in compliance  with the minimum  consolidated  tangible net worth  covenant,
however, the bank has agreed to waive this covenant violation.

On August 2, 2007,  we entered  into a  Construction-Term  Loan  Agreement  with
Marshall  Financial  Group, LLC to borrow up to $52,000,000 for the construction
of a  multi-purpose  events  center in  Wenatchee,  Washington.  As part of this
agreement,  we have  provided a letter of credit in favor of Marshall  Financial
Group for  $1,250,000.  The  outstanding  principal  balance  of the note  bears
interest at the National Prime Rate plus .25% and is payable  monthly.  The note
is payable in its  entirety on August 2, 2009.  Financial  covenants of the note
require that the Company  maintain a level of  stockholders'  equity of not less
than  $8,000,000 and  unrestricted  cash,  cash  equivalents,  time deposits and
marketable  securities of not less than  $3,500,000.  As of August 31, 2007, the
Company was not in compliance with these financial covenants.

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

LITIGATION

As with all  entertainment  facilities  there  exists a degree  of risk that the
general  public may be  accidentally  injured.  As of August 31, 2007 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 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. A settlement in principal has been reached and
the  Company  has  established  a reserve  at August  31,  2007 to  reflect  the
estimated settlement costs.

Global  is a  plaintiff  and a  counter-defendant  in a  lawsuit  involving  its
franchisee  Blue Line Hockey,  LLC ("Blue Line"),  which operates the Youngstown
Steelhounds.  Global's claim is for  approximately  $115,000 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
August 31, 2007 related to this matter.

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

--------------------------------------------------------------------------------
                                     NOTE 5
                    COMMITMENTS AND CONTINGENCIES (CONTINUED)
--------------------------------------------------------------------------------

Global is the claimant and  counter-respondent  in an arbitration against Global
Spectrum, L.P. ("Spectrum"). This arbitration is 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 seeks the  arbitrators'  declaration that Global is 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. Spectrum denies Global's claims, asserts a claim of breach
of the  Settlement  Agreement,  and seeks  declaratory  relief.  A settlement in
principal  has been reached and the Company has  established a reserve at August
31, 2007 to reflect the estimated settlement costs.

International  Coliseums  Company ("ICC") is the plaintiff in a lawsuit it filed
against  the  City  of  Youngstown,  Ohio  (the  "City").  The  lawsuit  seeks a
determination  that the City took  certain  actions  which  prohibited  ICC from
performing as contracted  under the  management  agreement  between the parties.
Settlement  discussions  are being  conducted and the Company has  established a
reserve at August 31, 2007 to reflect the estimated settlement costs.

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 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 enters into  indemnification  provisions  under its agreements  with
other  companies in its ordinary  course of business,  typically  with  business
partners and customers. Under these provisions the Company generally indemnifies
and holds harmless the indemnified  party for losses suffered or incurred by the
indemnified party as a result of the Company's activities. The maximum potential
amount of future  payments  the  Company  could be  required to make under these
indemnification  provisions is unlimited.  The Company has not incurred material
costs to defend  lawsuits  or settle  claims  related  to these  indemnification
agreements.  As a result, the Company believes the estimated fair value of these
agreements is minimal.  Accordingly, the Company has no liabilities recorded for
these agreements as of August 31, 2007.

As of August 31, 2007 we have entered into various employment contracts with key
employees.  Under certain circumstances the Company may be liable to pay amounts
based on the related contract terms.

GUARANTEES

The Company has 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, the Company
is obligated to subsidize for 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 the Company could be required to make under the  performance  guarantee

                                       14
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

--------------------------------------------------------------------------------
                                     NOTE 5
                    COMMITMENTS AND CONTINGENCIES (CONTINUED)
--------------------------------------------------------------------------------

is theoretical due to various  unknown  factors.  However,  the subsidy would be
limited to the operating loss of the facility,  including debt service, for each
year of the guarantee. We have never made a material subsidy from this guarantee
and do not believe that any potential loss would be material.

The Company  has  entered  into a contract  with the  entertainment  facility in
Youngstown,  Ohio which guarantees certain economic performance  standards.  The
term of this contract is for a period of 20 years and expires in September 2025.
In the event these economic  performance  standards are not reached, the Company
is liable for 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 the Company
could be required to make under the performance  guarantee is theoretical due to
various  unknown  factors.  However,  the loss would be limited to the operating
loss of the facility, including debt service, for each year of the guarantee. As
of August 31, 2007,  the Company has accrued a liability of $600,000  related to
currently incurred performance  obligations of the Youngstown facility operating
budgets.  The Company's future  obligations under this agreement are a component
of the  settlement  discussion  with the  City of  Youngstown,  Ohio as  further
discussed in the "Litigation" section.

The Company  has  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  $250,000,  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 the Company's annual  management fee. There are no
recourse  provisions under this agreement.  The Company has never  experienced a
material loss under this  contract and does not believe that any potential  loss
would be material.  As such,  no value has been  assigned to the guarantee as of
August 31, 2007.

As of August 31,  2007 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,  2007.  We
believe the amount of payments under this guarantee is negligible,  and as such,
have recorded no value to this guarantee at August 31, 2007.

--------------------------------------------------------------------------------
                                     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.
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

                                       15
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

--------------------------------------------------------------------------------
                                     NOTE 6
                            JOINT VENTURE (CONTINUED)
--------------------------------------------------------------------------------

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 which we  estimate  to be
approximately $250,000.

We did not earn income or incur any losses from PVEC for the three  months ended
August 31, 2007.

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 August 31, 2007.

                                       16
<PAGE>
                GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

SEGMENT INFORMATION

Each of Global  Entertainment's  seven  subsidiaries  is a separate legal entity
with  a  separate  management  structure.   Global   Entertainment's   corporate
operations  exist solely to support its subsidiary  segments.  As such,  certain
corporate  overhead  costs were  allocated to the  operating  segments in fiscal
years 2008 and 2007. There are no differences in accounting  principles  between
the operations.  The following is a summary of certain financial  information of
the Company and its seven areas of operation:

Three months ended August 31, 2007

<TABLE>
<CAPTION>
                                           Global
                                        Entertainment        Central
                                         Corporate           Hockey           Global         International
                                         Operations          League        Properties, I       Coliseums
                                         ----------          ------        -------------       ---------
<S>                                      <C>              <C>               <C>               <C>
Revenues                                    163,155          757,100           31,250            275,209
Cost of revenues                            194,667           11,853               --            102,082
General and administrative costs            632,487          371,933          197,344          1,090,745
                                        -----------         --------         --------         ----------

Income / (Loss) from Operations            (663,999)         373,314         (166,094)          (917,618)

Other Income (Expense)
Interest income                              39,647               --            1,755                 --
Interest expense                             (4,641)          (3,427)              --                 --
                                        -----------         --------         --------         ----------
Net Income (Loss)                          (628,993)         369,887         (164,339)          (917,618)
                                        ===========         ========         ========         ==========

Total Assets                             16,418,222          475,931         (831,642)         1,293,587
Depreciation and Amortization                11,776            2,427              399              1,705
Capital Expenditures                         14,839            1,186               --                 --

                                                             Global
                                                          Entertainment       Global
                                        Encore Facility     Marketing      Entertainment       Cragar
                                          Management         Systems         Ticketing       Industries
                                          ----------         -------         ---------       ----------
Revenues
Cost of revenues                             964,292         255,000          780,252           247,018
General and administrative costs           1,007,734           3,395          380,156           146,150
                                             146,135         213,252          361,999           168,802
                                          ----------         -------          -------        ----------
Income / (Loss) from Operations
                                            (189,577)         38,353           38,097           (67,934)
Other Income (Expense)
Interest income
Interest expense                                  --              --            3,830                --
                                                  --              --               --                --
Net Income (Loss)                         ----------         -------          -------        ----------
                                            (189,577)         38,353           41,927           (67,934)
                                          ==========         =======          =======        ==========
Total Assets
Depreciation and Amortization               (375,135)        431,147          646,255        (1,201,883)
Capital Expenditures                             370           1,080           20,587            20,217
                                                  --              --           19,914                --
</TABLE>

                                       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 annual  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.

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 (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")  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.

                                       18
<PAGE>
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
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,  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 centers developed by ICC. Facility management operations are
conducted under separate limited liability companies established by the Company.

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 three months ended August 31, 2007 the Company incurred a net loss of
$1,518,294  primarily  attributable  to legal fees and loss reserves  associated
with the settlement of various legal claims, as well as expenses associated with
the launch of our Cragar  Edition  vehicle kits.  These  expenses were partially
offset by franchise fees at the CHL.

ICC completed its project management duties in November 2006 with the opening of
three new events centers.  These projects include:  1) the Santa Ana Star Center
in Rio Rancho,  New Mexico; 2) Tim's Toyota Center in Prescott Valley,  Arizona;
and 3) the  Broomfield  Event  Center  in  Broomfield,  Colorado.  Each of these
facilities will continue providing the Company with additional revenue in future
periods.  CHL hockey teams began play in the 2007/2008 season and serve as major
tenants  in each of the  facilities.  In both the Rio  Rancho,  New  Mexico  and
Prescott Valley,  Arizona locations Encore provides facility management,  GETTIX
provides ticketing services, and GEMS provides sales and marketing services. ICC
is  currently   performing  project  management   services  for  an  events  and
entertainment center in Wenatchee, Washington. Upon completion of this facility,
Encore will provide facility management services and GEMS will provide sales and
marketing services.

Cragar has begun  selling its new Special  Edition  vehicle kits and  components
through new car  dealerships.  We have  invested in this new program  during the
current fiscal quarter in advertising and various promotional events.

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,  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,

                                       19
<PAGE>
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,  and the  carrying  value of  goodwill  and  intellectual
property.

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.

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 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.

Revenue on automotive part sales is recorded upon shipment.

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

Construction  in progress  consists of those fees and costs  associated with the
construction of an events center in Wenatchee,  Washington, including all direct
and indirect costs (including interest during the construction period) until the
building is completed and placed into service.

THREE  MONTHS  ENDED  AUGUST 31, 2007  COMPARED TO THREE MONTHS ENDED AUGUST 31,
2006

REVENUES:

<TABLE>
<CAPTION>
                                    Three months                 Three months
                                       Ended                        Ended
                                     August 31,    Percent of     August 31,    Percent of                     Percent
                                       2007          Revenue        2006         Revenue      Dollar Change     Change
                                       ----          -------        ----         -------      -------------     ------
<S>                                  <C>            <C>         <C>              <C>         <C>                <C>
Revenue
  Project management fees          $  125,052          3.6%      $2,070,589        56.7%       $(1,945,537)      -94.0%
  Facility management fees            964,292         27.8%         344,087         9.4%           620,205       180.2%
  Licensing and advertising fees      866,210         24.9%         679,875        18.6%           186,335        27.4%
  Ticket Service Fees                 779,809         22.5%         557,302        15.3%           222,507        39.9%
  Automotive parts sales              121,777          3.5%              --         0.0%           121,777         N/A
  Franchise fees                      430,025         12.4%              --         0.0%           430,025         N/A
  Project development fees            181,250          5.2%              --         0.0%           181,250         N/A
  Other revenue                         4,861          0.1%              65         0.0%             4,796      7378.5%
                                   ----------        -----       ----------       -----        -----------
  Total                            $3,473,276        100.0%      $3,651,918       100.0%       $  (178,642)       -4.9%
                                   ==========        =====       ==========       =====        ===========      ======
</TABLE>

Total revenues decreased $178,642, or 4.9%, from $3,651,918 for the three months
ended August 31, 2006 to $3,473,276  for the three months ended August 31, 2007.

                                       20
<PAGE>
This decrease was the result of ICC project management revenues which realized a
decrease of  $1,945,537  from  $2,070,589  for the three months ended August 31,
2006 to $125,052  for the three months  ended  August 31,  2007.  This  decrease
resulted  as  ICC  construction  project  management   agreements  were  in  the
completion stages  generating less revenue.  The related revenue and expense for
these amounts are recognized in the period incurred. Project management revenues
represented  56.7% of our total  revenue for the three  months  ended August 31,
2006,  compared to 3.6% of our total  revenue for the three  months ended August
31, 2007.

Facility management revenue increased $620,205, or 180.2%, from $344,087 for the
three months ended August 31, 2006 to $964,292 for the three months ended August
31, 2007. This increase occurred primarily as a result of the opening of two new
facilities. Encore's current facility management contracts include the Chevrolet
Center in  Youngstown,  Ohio,  the Santa  Anna Star  Center in Rio  Rancho,  New
Mexico, and Tim's Toyota Center in Prescott Valley,  Arizona. 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  $186,335,  or 27.4%, from $679,875 for
the three  months  ended  August 31, 2006 to $866,210 for the three months ended
August 31, 2007. This increase  resulted  primarily from 1) increased GEMS sales
and marketing  revenue  relating to the two new  facilities  in Rio Rancho,  New
Mexico and Prescott Valley, Arizona and 2) increased CHL revenues resulting from
two new hockey  franchise  teams in  Broomfield  Colorado and  Prescott  Valley,
Arizona as well as licensing fees received from hockey equipment suppliers.

Ticket service fees increased  $222,507,  or 39.9%,  from $557,302 for the three
months  ended  August 31, 2006 to $779,809 for the three months ended August 31,
2007.  This increase in ticket  service fees occurred  primarily as GETTIX began
ticketing  operations  at two new  facilities  in Rio  Rancho,  New  Mexico  and
Prescott Valley, Arizona.

Franchise fee revenue represents amounts charged for franchise transfers.

OPERATING COSTS:

<TABLE>
<CAPTION>
                                      Three months                 Three months
                                         Ended                        Ended
                                       August 31,    Percent of     August 31,   Percent of                    Percent
                                         2007          Revenue        2006         Revenue    Dollar Change     Change
                                         ----          -------        ----         -------    -------------     ------
<S>                                    <C>            <C>         <C>             <C>        <C>                <C>
Operating Costs
  Cost of revenues                   $ 1,846,037        53.2%     $ 2,623,680       71.8%      $ (777,643)      -29.6%
  General and administrative costs     3,182,697        91.7%       2,037,126       55.8%       1,145,571        56.2%
                                     -----------       -----      -----------      -----       ----------
  Total                              $ 5,028,734       144.9%     $ 4,660,806      127.6%      $  367,928         7.9%
                                     ===========       =====      ===========      =====       ==========       =====
</TABLE>

Total operating  costs  increased by $367,928,  or 7.9%, from $4,660,806 for the
three  months  ended  August 31, 2006 to  $5,028,734  for the three months ended
August 31, 2007.

Cost of revenue  decreased by $777,643,  or 29.6%, from $2,623,680 for the three
months ended August 31, 2006 to $1,846,037 for the three months ended August 31,
2007.  This decrease  resulted  primarily from 1) two ICC  construction  project
management  agreements were in the final stages during the prior fiscal quarter,
2) a decrease in facility management payroll and other costs associated with the
facilities in Youngstown,  Ohio, Prescott Valley,  Arizona,  and Rio Rancho, New
Mexico,  and 3) a decrease in ticket  service  fees as a result of a decrease in
ticket service revenues.

                                       21
<PAGE>
General  and  administrative  expenses  increased  $1,145,571,  or  56.2%,  from
$2,037,126  for the three  months ended  August 31, 2006 to  $3,182,697  for the
three months ended August 31, 2007.  The increase in general and  administrative
expenses  relates  to  costs  for  additional  staffing  and  overhead  expenses
associated with the startup  operations of Global  Properties I, increased legal
fees,  additional  staffing and overhead expenses  associated with the growth of
Encore's facility  management  operations,  additional sales and  administrative
staff and expanded  development  and marketing  efforts  related to Cragar,  and
increased legal fees and settlement  costs  associated with the reserves related
to International Coliseums.

NET INCOME:

<TABLE>
<CAPTION>
                    Three months                 Three months
                       Ended                        Ended
                     August 31,     Percent of    August 31,    Percent of                    Percent
                       2007           Revenue       2006          Revenue    Dollar Change     Change
                       ----           -------       ----          -------    -------------     ------
<S>                    <C>           <C>        <C>              <C>        <C>                <C>
Net loss            $ (1,518,294)      -43.7%    $ (938,660)      -25.7%      $ (579,634)       61.8%
                    ============        ====     ==========        ====       ==========        ====
</TABLE>

Net loss was $1,518,294 for the three months ended August 31, 2007,  compared to
net loss of $938,660 for the three  months  ended  August 31, 2006.  The current
period loss is primarily attributable to reserves established for settlements in
principal of several  litigation  issues, as well as one-time charges associated
with a change in an executive position.

LIQUIDITY AND CAPITAL RESOURCES

Cash used by operating activities for the three months ended August 31, 2007 was
$315,261  compared to cash provided by operating  activities of $631,636 for the
three  months  ended  August  31,  2006.  This  decrease  in  cash  provided  by
operations,  which relates  primarily to the current period net operating  loss,
and a decrease in accounts payable, as a result of the timing of collections, is
partially  offset by an  increase  in  accounts  receivable,  as a result of the
timing of customer payments.

A significant  source of operating  capital during the three months ended August
31, 2007 was from CHL franchise  transfer fees, and project management fees from
ICC. Since project  management fees and project  transfer 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 $7,719,400 for the three months ended
August 31, 2007  compared to $71,039 for the three months ended August 31, 2006.
The use of funds in 2007 related  primarily to  construction  costs 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 in financing  activities  totaled  $6,549,166 for the three months
ended August 31, 2007.  These are primarily  related to funds  received from the
construction loans with Marshall Financial Group, LLC.

The Company has a line of credit that will mature on November  19,  2007.  As of
August 31, 2007, we have no outstanding balance on this credit facility. We have
a maximum  borrowing  capacity of $1,150,000 as a result of a $600,000 letter of
credit in favor of Sure Tec Insurance Company for a performance bond to the City
of Youngstown, OH. Additionally,  effective August 2, 2007 the Company entered a
loan agreement with Marshall  Financial Group related to the construction of the
Greater  Wenatchee  Regional Events Center.  As part of this agreement,  we have
provided a letter of credit in favor of Marshall Financial Group for $1,250,000.
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, 2007,  the applicable  interest rate was 8.75%.  In order to continue

                                       22
<PAGE>
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 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,  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, 2007 the Company was not in compliance with the minimum  consolidated
tangible net worth covenant, however, the bank has agreed to waive this covenant
violation.

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 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.  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 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
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.

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 the beginning of the fiscal year starting
after  November  15,  2007.  We do not expect  SFAS No. 159 will have a material
effect on our financial statements.

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, 2007 that have materially  affected,  or are reasonably likely to materially
affect, our internal controls over financial reporting.

                                       23
<PAGE>
                           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, 2007 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 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. A settlement in principal has been reached and
the  Company  has  established  a reserve  at August  31,  2007 to  reflect  the
estimated settlement costs.

Global  is a  plaintiff  and a  counter-defendant  in a  lawsuit  involving  its
franchisee  Blue Line Hockey,  LLC ("Blue Line"),  which operates the Youngstown
Steelhounds.  Global's claim is for  approximately  $115,000 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
August 31, 2007 related to this matter.

Global is the claimant and  counter-respondent  in an arbitration against Global
Spectrum, L.P. ("Spectrum"). This arbitration is 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 seeks the  arbitrators'  declaration that Global is 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. A settlement in principal has been reached and the Company
has established a reserve at August 31, 2007 to reflect the estimated settlement
costs.

International  Coliseums  Company ("ICC") is the plaintiff in a lawsuit it filed
against  the  City  of  Youngstown,  Ohio  (the  "City").  The  lawsuit  seeks a
determination  that the City took  certain  actions  which  prohibited  ICC from
performing as contracted  under the  management  agreement  between the parties.
Settlement  discussions  are being  conducted and the Company has  established a
reserve at August 31, 2007 to reflect the estimated settlement costs.

ITEM 6. EXHIBITS

(a) Exhibits. See Exhibit Index attached.

                                       24
<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 15, 2007              By /s/ Richard Kozuback
                                 -----------------------------------------------
                                 Richard Kozuback
                                 President & Chief Executive Officer


October 15, 2007              By /s/ James Yeager
                                 -----------------------------------------------
                                 James Yeager
                                 Senior Vice President & Chief Financial Officer

                                       25
<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 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  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.