The city-owned ShoWare Center lost $74,100 in the first quarter of 2015 but several popular events later this year are already selling well.
SMG, which runs the arena, projected a profit of $44,408 in the first quarter. Instead, ShoWare had expenses of $716,955 and income of $642,855 for the loss of $74,100, according to the March 31 income statement.
Food and beverage sales came in about $40,000 below budget at the $84.5 million arena.
“Food and beverage and other event income came in lower than budget primarily due to two canceled concerts,” said Arletta Voter, ShoWare director of finance, in her report on April 30 to the Public Facilities District (PFD) board, which helps oversee arena operations.
Voter said promoters moved the Gerardo Oritz concert to May 24 from March.
ShoWare also took a $37,000 expense hit in general and administrative costs because of all the bank credit card fees it had to pay on the thousands of ticket sales for Disney on Ice’s Frozen, which will feature 11 shows from Nov. 11-16. More than 30,000 tickets have been sold, about 85 percent of capacity. But revenue from that event won’t show up until the fourth quarter.
The arena made about $22,000 more than budgeted in direct event income because of two Seattle Thunderbirds home playoff games in the Western Hockey League. But that income wasn’t enough to compensate for the lost concert revenue. Staff doesn’t budget for playoff games since it’s unknown ahead of time if the team will make the playoffs.
Repairs and maintenance costs were about $30,000 higher because the arena paid a contract for a year worth of services upfront rather than spreading the cost throughout the year.
“By the end of the year that line item will be at or below budget,” Voter said.
SMG officials projected an operating loss of $463,000 in 2015 at the start of the year. The arena lost $752,324 last year, the highest loss since it opened in 2009. ShoWare’s total revenue losses are $3.2 million in six years.
But other encouraging signs for events later in the year include an anticipated sellout of 5,000 for psychic Theresa Caputo on June 7 and an expected sellout of 6,000 for the Scorpions concert on Oct. 9. More than 4,500 tickets were sold over one weekend for the Scorpions with special guest Queensryche.
SMG also is in contract talks with the Tacoma Stars of the Major Arena Soccer League to play the 2015 season at the ShoWare Center. The Stars would play 10 games at the arena.
Colin Campbell, vice president and assistant general manager of the T-Birds, the anchor tenant of the arena, told the board that attendance has gone up each year since the team moved to Kent from the KeyArena in Seattle. The T-Birds averaged 4,400 fans per game for the 2014-15 season, up from an average of 4,200 last season, he said.
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