Nationwide Arena Projected To Be Over Budget; '13 Surplus Expected To Cover Deficit
Nationwide Arena is "projected to be over budget in its second fiscal year under public ownership, but arena managers said a carryover from this year’s surplus will cover the deficit," according to Lucas Sullivan of the COLUMBUS DISPATCH. Columbus Arena Management board members "expect the arena to bring in" about $18.6M in revenue in the next fiscal year, "mostly from ticket sales from non-hockey events, while expenses will total" $18.8M. The expected revenue also includes a $4M "public contribution from the Franklin County Convention Facilities Authority." Sullivan notes it is "no secret that the arena loses money." That was the "driving factor behind the deal that city and county officials made with Nationwide and Blue Jackets ownership to buy and subsidize the arena." The arena takes in about $12M "from ticket sales for nonhockey events," with 58 such events "scheduled during the fiscal year from July 1, 2012, to the end of this month." The arena’s "largest expenses are $2 million for wages and benefits and $1.8 million annually for utilities and fuel." An additional $1.1M is "spent on general purchases of supplies throughout the year" (COLUMBUS DISPATCH, 6/11).
IN DENIAL? In Louisville, John Karman III noted city arena authority officials "spent most" of yesterday's monthly meeting "refuting media reports from last week that said event revenue at the KFC Yum! Center dropped in 2012." Louisville Arena Authority officials released figures indicating that revenue at KFC Yum! Center was $10.8M for the year, compared to $9.65M in '11. Louisville Metro Council President Jim King said that the venue had $5.3M in event revenue for the second half of '12, when AEG Facilities "took over as manager and operator" (BIZJOURNALS.com, 6/10).