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2013 Most Profitable in Covelli Centre's History
YOUNGSTOWN, Ohio -- Coming off the heels of the most successful event ever staged at the Covelli Centre -- Sir Elton John's return appearance Feb. 1 -- operators of city-owned arena report 2013 proved to be the most profitable year its eight-year history.
The arena saw an operational profit of $348,821 for calendar year 2013 and budgeted for a $360,000 gain, according an income statement released Thursday by the city's finance department.
The city-imposed 5.5% admissions tax generated another $197,231 for the calendar year, bringing total revenues from the Covelli Centre to $546,052, noted Eric Ryan, executive director and president of JAC Management Group LLC, which manages the arena.
"We are thrilled to announce that this marks the most money given back to the city from arena operations in the eight-year history of the Centre," Ryan wrote in a cover letter to Mayor John McNally and City Council.
The Covelli Centre also easily earned enough to cover debt service on an $11.9 million loan the city used to help finance construction of the $45 million arena. In 2013, the city paid about $320,000 in principle and $140,000 in interest on the loan for a total of $460,000, according to the city's deputy finance director, Kyle Miasek.
In 2014, the city anticipates paying about $170,000 in interest and between $325,000 and $350,000 on the principle. "Hopefully we'll be able to cover principle and interest next year," Miasek said. "It's off to a good start."
In 2012, the arena posted a $320,787 operating profit and $163,398 in tax revenue, for a total of $484,185 that year.
On Saturday the Covelli Centre hosted its largest event ever -- a sell-out crowd of 7,500 who paid to see Elton John's second performance at the venue. Those results will be factored into 2014's numbers. The international pop star first played the Covelli Centre in May 2010.
In 2013 the arena hosted 104 events that attracted nearly 210,000 patrons, Ryan reported.
These shows consisted of 22 family performances, 52 sporting events, 13 concerts, five spectacle shows and 13 miscellaneous events, he said.
Among the highlights of 2013 were sold-out performances by Rascal Flatts, Kid Rock, Carrie Underwood and Justin Moore, Ryan said. The arena's Youngstown State University Community Room was used 100 times for various functions such as meetings, company seminars, private parties and sponsors gatherings, he added.
Last year also marked the first full year of JAC Management's assumption of food and beverage services at the Covelli Centre. These proceeds netted $279,945 to the arena, realizing an increase in profit by $92,723 since food service administration was moved in-house.
That amount, Ryan said, "is additional revenue to the city that would have otherwise been the profits of the prior food and beverage operator."
"We were able to see the city itself gain $97,000 out of that whole [food service] process," Miasek added. "We're pleased that this expectation has materialized, that we could generate more for the city."
Copyright 2014 The Business Journal, Youngstown, Ohio.
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