The SuperSonics are having difficulty selling luxury boxes
in the rebuilt Coliseum, according to the SEATTLE TIMES. Sales
of the suites were to be completed in January and precede the
sale of club seats, "both of which are key components to payment
of the $73.4 million city-financed upgrade." Currently, 40 of 58
suites have been sold, 10 of them "to companies belonging to
Ackerley Communications," owner of the Sonics. Terry McLaughlin,
Deputy Dir of the Seattle Center, said he is counting on the sale
of club seats and revenue from other sources to help pay for the
project, but the suites were "projected to pay for the largest
chunk of the arena's debt service." Despite the Sonics'
successful season, enthusiasm for luxury boxes has been slow as
some "prospective buyers have backed out of their reservations
and others have merged with other buyers to share luxury suites,
which go for an average of $92,000." To stimulate sales, Full
House Sports & Entertainment, the Ackerley subsidiary selling the
suites, has created a "virtual-reality presentation that
simulates the view from every suite," and the city allowed
Ackerley to lease suites for "as brief as three years" -- not the
original seven or nine year commitments (Tom Farrey, SEATTLE
TIMES, 4/11). ACKERLEY ANNOUNCES RECORD 1STQ EARNINGS:
Ackerley Communications, Inc. announced their financial results
for the quarter ended March 31, 1995. These included record 1st
quarter sales, first ever first quarter income before
dispositions, first cash dividend in the company's history and a
successful restructuring of the company's bank debt. Sales for
the 1st quarter were $63.3M, up $9.8M or 18.2% from $53.5M a year
earlier. Ackerley CEO Barry Ackerley: "The first quarter of 1995
was the best in our company's history, and we see nothing ahead
to indicate that the entire year will not be the same"
(Ackerley).
