City Share of 2013 Concessions Tops 2012 Total
YOUNGSTOWN, Ohio -- The city received $210,622 from food and beverage sales at the Covelli Centre so far this year, more than its total take for 2012.
JAC Management Group, which oversees the arenas under a management contract with the city, owner of the building, last year entered into an agreement to take over food and concessions operations at the arena. Warren-based Covelli Enterprises, the current naming rights sponsor, assists JAC in an advisory capacity.
The Covelli Centre reported a gross profit on concessions sales of $264,164 for the first half of the year. Net income was $89,301 for the period, money that now goes the city rather than the previous concessions operator.
Under the previoius agreement, the city would have received a 30% commission on concessions sales – or $121,131 -- with Centerplate, the former concessionaire, from what remained after expenses, said Eric Ryan, executive director of the Covelli Centre and president of JAC Management Group. “Now JAC keeps 3% for a management fee and pays all of the expenses, and the rest of the money is the city’s,” he said.
The city has received $210,622 under the current agreement, more than the $196,416 it made for all of 2012.
Food and beverage income from concessions sales, catering/suite sales and ancillary sales totaled $706,933 for the first six months of 2013, according to the report issued Friday by the city. Total cost of goods related to concessions was $$442,769, and total expenses, including net salaries and benefits, contracted services, general and administrative costs and repairs and maintenance, was $174,863, leaving the $89,301 net income figure.
Ryan says he expects to finalize a new naming rights agreement with Covelli over the next few weeks. A one-year extension of its existing naming rights deal expired in May.
Copyright 2013 The Business Journal, Youngstown, Ohio.
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