Key Takeaways:
- The Covelli Centre, Youngstown Amphitheatre, and Wean Park entertainment complex may end the year with its first operating loss since 2009.
- Despite the potential operating loss, the facilities have still been profitable for the city due to a 5.5% admission tax on tickets sold.
- The admission tax has generated $312,206 in revenue for the city during the first 10 months of the year, making it the fourth-most profitable year in the history of the facilities.
- The city’s debt on building the Covelli Centre has been paid off, and the admission tax is now used to make improvements to the entertainment complex.
- The facilities have experienced a decline in attendance and operating surpluses, despite hosting successful events such as the Y-Live concerts.
Introduction to the Financial Performance
The city-owned Covelli Centre, Youngstown Amphitheatre, and Wean Park entertainment complex are facing a potential operating loss for the first time since 2009. According to Eric Ryan, president of JAC Management Group, which operates the facilities for the city, the operating revenue is expected to be close to break-even, but a strong fourth quarter could help the facilities avoid a loss. Despite the potential operating loss, Ryan is hopeful that the facilities can still end the year on a positive note.
Challenges Faced by the Facilities
The facilities have faced challenges in terms of show performance, with many events not meeting expectations. The third quarter, which typically sees a surge in outdoor concerts, was particularly disappointing, with a $60,366 operating deficit. The amphitheater, which was expected to generate large profits during the third quarter, did not perform as well as expected. Ryan acknowledged that the facilities have not had a great season, but expressed optimism that next year would be better. The decline in attendance has also been a concern, with previous Y-Live shows selling around 20,000 tickets, while the recent shows featuring John Mayer and Tim McGraw sold around 25,000 combined, but still did not meet expectations.
Impact of Admission Tax
Despite the potential operating loss, the facilities have still been profitable for the city due to the 5.5% admission tax on tickets sold. The admission tax has generated $312,206 in revenue for the city during the first 10 months of the year, making it the fourth-most profitable year in the history of the facilities. The city’s debt on building the Covelli Centre has been paid off, and the admission tax is now used to make improvements to the entertainment complex. Ryan noted that the admission tax has been a significant contributor to the city’s revenue, and that the facilities have been able to make improvements to the complex as a result.
Future Plans and Expectations
The facilities are expected to continue hosting successful events, including the Y-Live concerts, which will be held on back-to-back days in the future. The cost of setting up the stage and the expenses of the outdoor concert make it financially sensible to have major shows on consecutive days. Ryan expressed optimism that the facilities would have a better season next year, and that the admission tax would continue to generate significant revenue for the city. The fourth quarter has seen some well-attended events, including two Trans-Siberian Orchestra concerts at the Covelli Centre, which have helped to boost revenue.
Conclusion and Outlook
In conclusion, while the Covelli Centre, Youngstown Amphitheatre, and Wean Park entertainment complex may end the year with an operating loss, the facilities have still been profitable for the city due to the admission tax. The city’s debt on building the Covelli Centre has been paid off, and the admission tax is now used to make improvements to the entertainment complex. Despite the challenges faced by the facilities, Ryan remains optimistic about the future, and expects the facilities to continue hosting successful events and generating revenue for the city. The facilities will continue to work towards improving their financial performance and providing entertainment options for the community.