Despite a slow start to ticket sales, ShoWare Center officials expect the new arena to break even in operating costs by the end of 2009, thanks to upcoming events.
“A lot of it has to do with ticket sales for hockey and the circus coming in that we are confident we will be in the black,” said Tim Higgins, ShoWare general manager, at a Thursday meeting of the Public Facilities District board.
The board oversees operations of the $84.5 million, city-owned events center.
ShoWare officials predict a profit of $1,591 for the first year of operation that ends Dec. 31.
The Seattle Thunderbirds junior hockey team, the anchor tenant of the arena, plays 19 games at ShoWare between now and the end of the year. The Ringling Bros. and Barnum & Bailey Circus performs eight shows Thursday through Monday. Disney on Ice operates here Nov. 11-15.
“With the circus and Disney on Ice, we know what to expect based on ticket-sale trends,” said Steve Tadlock, SMG regional general manager, at the board meeting. “We look at the data to tell us what those shows will generate in revenue before they happen.”
Tadlock, who works out of Fresno for SMG, the operator of the arena, remained confident the ShoWare Center can break even, despite losing $369,000 in its first seven months of operation.
The ShoWare Center had expenses of $1.5 million and receipts of $1.13 million from Jan. 2 through July 31 for a loss of $369,000, according to SMG.
“Summer is the slowest quarter,” Tadlock said. “For May, June, July and August, more events are geared to being outdoors.”
A hockey camp was the only event in July at the arena when the facility had an operating loss of $109,000.
“The two biggest expenses are labor and energy (utilities),” Tadlock said. “We’re learning how to make our staffing efficient and to watch our event staffing.”
SMG has 18 full-time employees at the arena, down from a high of 24 when the facility opened in January. ShoWare officials expect to keep monthly operating expenses at about $185,000.
“SMG has been able to keep the month-to-month operational costs at $185,000 for four straight months,” said Ben Wolters, city economic development director, at the board meeting. “That is the lean-and-mean level and that will fluctuate with utility bills, but at $185,000 is where it will be moving forward.”
Tadlock emphasized that it would be quite an achievement if the ShoWare Center breaks even this year compared to other SMG-operated facilities that are expected to lose money in 2009.
“This building opened in one of the worst economies,” Tadlock said. “It’s expected to operate in the black while many of the arenas we operate are in the red. Fresno, Boise and Bakersfield operate in the red.”
Tadlocks expects ticket sales to go up for Thunderbirds games compared to last season because the games will be spread out to one or two per week rather than as many as three or four per week last season when the home schedule was crammed into a few months. He also expects big walk-up sales for the circus.
“We feel very good about our forecast to operate in the black,” Tadlock said. “We know the tide will turn as the economy turns. There are a lot of reasons for optimism.”
The arena has made a profit in just one of the first seven months. The arena made money ($51,234) in March when the Thunderbirds played nine home games, including a total of three games against rivals Everett and Portland that attracted large crowds.
The T-Birds open play this season with a Sept. 12 exhibition game against Everett.
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