Covelli Centre shows surplus, thanks to Elton

By DAVID SKOLNICK

skolnick@vindy.com

YOUNGSTOWN

A sold-out Elton John concert along with reductions in salaries and utility expenses resulted in the most successful second quarter, April to June, in the Covelli Centre’s five-plus-year history.

The center had a $65,959 operating surplus between April and June, according to a financial statement of the facility released Wednesday by the city.

The center made about $80,000 on the May 1 John concert, and three Walking With Dinosaurs shows on May 4 and 5 turned a profit of about $50,000.

Center officials had estimated it would lose $18,811 in the second quarter of the year, but that was before they booked the John concert.

“We are pleased with the second-quarter financials,” said Eric Ryan, the center’s executive director. “The tremendous community response to the Elton John concert, WWE wrestling event and the three Walking with Dinosaurs shows was a nice shot in the arm to this normally very challenging quarter. We have continued to cut costs and to run this facility as economically possible.”

This is only the second time the city-owned center had an operating surplus for the April-to-June second quarter since it opened in October 2005. The center had an $11,087 operating surplus last year.

“Eric and his staff deserve the credit for getting Elton John, the biggest name to ever play the center,” said Kyle Miasek, the city’s deputy finance director. “They also deserve credit for keeping costs down. The city administration is very pleased with the activity at the facility and the management team’s ability to attract quality shows to the center.”

The center reduced its employee costs by about $25,000 and its utility bills by about $32,000 in comparison to its budget for April to June. That was done by laying off people when there was no activity at the facility and by turning off the lights, heating and air conditioning when there were no events, Ryan said.

Also, the city received $101,025 during the year’s second quarter from a 5.5 percent admission tax on tickets sold for events at the center, Miasek said. The city made $50,359 from the tax during the first three months of the year.

That money goes directly into the city’s general fund. This April to June was likely the most profitable quarter for the admission tax, which went into effect in early 2008, Miasek said.

The admission tax, along with any operating surplus the center makes, will help offset the $662,830 the city owes this year in interest on $11.9 million it borrowed in 2005 to help fund the center’s construction costs.

The center had a $67,953 operating surplus for the first six months of the year. Its operating profit for January to March was $1,991.

Center officials had budgeted a $10,520 loss for the first six months of the year.

The center is in its traditionally least-profitable quarter of the year, July to September.

The facility, like other indoor arenas, typically has only a handful of events during that three-month stretch because it can’t compete with outdoor summer events, Ryan said.

The center budgeted a $190,000 operating loss for the third quarter, Ryan said. But he said he’s hopeful the deficit won’t be that large.

The center is having three outdoor concerts next month and a country music concert Sept. 18 with Montgomery Gentry.

The center’s budget for the final three months of the year predicts a $230,000 operating surplus.

If those projections are correct, the center would end the year with an operating surplus of more than $100,000.

Center officials had expected a $23,890 operating surplus for 2010.

The only year the center had an operating surplus was in 2009 with $153,950.