The city-owned ShoWare Center’s small profit so far this year came up a bit short of projections.
The Kent arena made $39,147 in the first three months with revenues of $830,357 and expenses of $791,210, according to the ShoWare Center’s income statement. SMG, which operates the arena, forecast a profit of $101,993, a difference of $62,846 to the actual income.
“Our shows were down in the first quarter,” said Tim Higgins, ShoWare general manager, in an April 27 report to the city’s Public Facilities District board that helps oversee operations. “Globetrotters ticket sales were down and the Rock and Worship Roadshow sales were down. We base those numbers on historical numbers, what we’ve done in the past, but we were off this year.”
The Harlem Globetrotters have performed at the ShoWare Center pretty much each year since the arena opened in 2009 and typically draw well. Projections for total event income for the first quarter were off by about $40,000.
Despite the slower than anticipated start, Higgins said the revenue predictions look strong for the rest of the year with events that are coming up.
“Looking at the forecast for the end of the year, we are trending very well,” Higgins said. “The second, third and fourth quarter at this point are picking up very well.”
Revenues will get a boost once again this year from the Seattle Thunderbirds junior hockey team, the anchor tenant of the $84.5 million arena. The T-Birds advanced to the Western Hockey League finals, which has meant additional playoff games in April and May.
SMG does not budget playoff games, which are not a guarantee, so when the T-Birds advance each round, more games are played and the crowds are larger at the 6,200-seat facility. The games also boost the food and beverage profits.
Two summer concerts expected to draw well include Maxwell’s Summer Tour on June 20 and the Throwback Sizzling Jam on July 14. Disney On Ice returns Nov. 1-6 and typically sells out each show.
In comparing the first quarter of this year with 2016, SMG had projected a profit of $20,886 for the first three months of 2016. Instead, the arena made $57,897 with revenues of $784,550 and expenses of $726,653.
The arena finished 2016 with a loss of $139,683, its lowest deficit since the center opened. The ShoWare Center has never had a profitable year but has greatly reduced losses that hit as high as $752,000 in 2014.
City officials also quote a study that estimates the arena brings in more than $25 million annually to local businesses, including numerous restaurants where arena patrons go before and after events.
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