Wanted: moneymakers

The center expects 15 concerts to provide about $600,000 in profit.
By DAVID SKOLNICK
CITY HALL REPORTER
YOUNGSTOWN -- A Lil Jon rap concert that attracted only 804 fans to the Chevrolet Centre made more money for the facility than better-attended concerts by 3 Doors Down, Tony Bennett and Clay Aiken combined.
Chevrolet Centre management released financial information on the events held at the city-owned facility in October and November.
Information on December events will be available early next month.
Global Entertainment Corp., the Arizona company managing the facility, also released projected financial figures for the 10 months after November 2005.
In all, Global expects to book 114 events during that 12-month time frame.
Of those events, 32 are Youngstown SteelHounds minor league hockey games and 10 others are part of an April hockey tournament that is expected to attract 200 people per event.
Global expects to sell 288,261 tickets for the 114 events, an average of 2,529 per event to a facility that can hold up to 7,300 for some events.
The event held seven concerts by six artists in October and November.
What did well
The biggest financial success by far was the two-concert performance Nov. 13 by the Trans-Siberian Orchestra. The two shows attracted 10,936 people to the center.
The concerts produced $412,353 in revenue with $378,138 in ticket sales, about $35 a ticket. Expenses for the concerts were $362,466, leaving the center with a net profit of $49,887.
The major portion of concert expenses is the fee charged by the act. Other large expenses are operating costs of the facility and the profit given to the event's promoter.
Roger Swanson, the center's interim executive director, has said he was disappointed by concession revenue from the TSO shows. Concession revenue for the two concerts was $6,818.84, about 62 cents per person.
The biggest financial disappointment at the center in October and November was the Nov. 27 Clay Aiken concert.
The center's revenue was $140,903.87 with $126,490 in ticket sales, about $45 a ticket for a show with a crowd of 2,757.
But expenses were $143,421.72, meaning the Aiken concert lost $2,517.85.
Swanson also was disappointed with the two concerts that opened the center: 3 Doors Down with a net profit of $3,764, and Tony Bennett with a net profit of $2,556. Attendance at those shows was 4,042 and 3,230, respectively.
The Nov. 23 Lil Jon rap/hip-hop show sold only 804 tickets, by far the smallest crowd of any concert at the facility in October and November.
But because expenses were $22,329.82, a minimal amount in comparison to other acts at the center, the $33,269.77 in revenue turned the event into a profitable venture. Global lists the Lil Jon concert's net profit at $10,939.95.
Type of acts sought
Center management is looking for major acts to attract large crowds to the facility, Swanson said. Because of the newness of Youngstown as an entertainment venue, it's been a struggle, he said.
The focus is on popular artists, particularly those who appeal to people between the ages of 12 and 25, he said.
Global's financial forecast for the center shows the company expects to have three music concerts in April; two each in February, March, May, June and August; and one each in July and September.
The forecast is for the 15 concerts to sell a combined 62,500 tickets with $1.8 million in gross ticket sales. After expenses, the net profit for the 15 events is estimated at $594,500.
Of those concerts, Global predicts a concert in February would be the strongest with $180,000 in gross ticket sales.
However, with February less than two weeks away, center officials haven't announced any concerts for the month.
Also, the $180,000 gross ticket sale figure is less than the average of the two TSO shows on Nov. 13.
Swanson said last week the facility was looking for a "big blockbuster, knock-'em dead" show. He also said the facility wanted a "big wow" act.
There is nothing in the center's projections that indicated it will book a "big wow" act through September.
The December 2005 figures aren't ready. But the center forecast states the 10 Disney on Ice shows that month attracted 30,000 people with gross ticket sales of $495,000. There also was $94,000 in other income including the facility, rental and ticketing fees.
The center's net income for the Disney shows is $49,000, or $4,900 for each event, the forecast states.
What's projected
Global's updated financial projects for October 2005 to this September projects a $645,221 net operating income for those 12 months. That is more than $100,000 less than what the city has to pay in debt service for that time frame.
The center projection also includes two one-time revenue sources that add $300,000 to the facility's income.
A financial projection released last summer had the center's projected profit for 2006 at $1,153,802, or about half of the updated estimated figure.
Swanson said sales and marking problems along with grossly overstated SteelHounds attendance figures forced Global to make a major change to the projected profit figure.
Global's management fee to run the center during the 12-month period is $156,000, and the company receives 30 percent of any profit made after the facility's debt service is paid.
Global's business includes arena and venue management and marketing.
skolnick@vindy.com