Covelli Centre turns small profit during third quarter

By DAVID SKOLNICK

skolnick@vindy.com

YOUNGSTOWN

For only the second time since it opened a decade ago, the city-owned Covelli Centre finished its July-to-September quarter with an operating surplus.

It was a modest $3,658 surplus – better than the original projection of a $6,215 deficit – but Eric Ryan, the center’s executive director, said in July that he expected the year’s third quarter to “be much better.”

The quarter included 6,000-seat sold-out concerts by Def Leppard and James Taylor among only six events at the facility.

The expectation for a better third quarter was, Ryan said, because Darius Rucker’s concert was anticipated to be in September, but the show was on Oct. 10.

“It was a very slow quarter as it usually is for indoor arenas, but it was only the second time we had a surplus in the third quarter so we’re pleased with the results,” Ryan said Tuesday. “Any time we can be in the positive in the third quarter, which is notoriously our roughest stretch, is a bonus.”

The third quarter of 2014 had a $83,111 operating loss despite a sold-out Rod Stewart concert in August of that year.

As of Sept. 30, the center’s operating surplus was $179,211 for the year. It was initially projected to be $87,435 after nine months.

The center had projected a $240,000 annual surplus for 2015.

Ryan said the center will definitely exceed that projection.

He said, however, it’s unlikely the center will reach the fourth-quarter projected operating surplus of $152,565.

“It is a big quarter, but I’m not sure we’ll make it” to the projected amount, Ryan said. “We’re optimistic we’ll finish the year strong and be close to the fourth quarter budgeted number.”

The city’s 5.5 percent admission tax on tickets sold for events at the center between July and September was $52,909. For the first nine months of the year that tax has generated $168,057 for the city.

Because of a change made in mid-2012 to have Ryan’s company, JAC Management Group, handle the center’s food-and-beverage sales, the city received $61,603 in additional revenue for the first six months of the year. That figure is reported twice a year.

The additional food-and-beverage amount, the operating surplus and admission tax equal $408,871 for the year as of Sept. 30.

That money is used to offset the $11.9 million Youngstown borrowed in 2005 to pay its portion of constructing the $45 million facility. The city has paid more than $5 million in interest and still owes $10.26 million in principal on that loan.

The city paid $400,000 this year toward principal and $122,590 in interest. It needs to make $113,719 in operating surplus, admission tax and additional food-and-beverage revenue in the last three months of the year to break even.