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VINDY EXCLUSIVE || Covelli Centre has worst third quarter since '08
YOUNGSTOWN
The Covelli Centre had its worst third quarter since 2008 – with an operating loss of $135,802.
But the loss didn’t come as a surprise as the center was budgeted to lose $121,777 for the period between July and September.
“It was a real slow quarter,” said Eric Ryan, the center’s executive director. “We knew it was not going to be a good summer. But at the end of the day, the quarter doesn’t make a difference. It’s all about it being a good year, and we’re going to have one.”
The facility is expected to have a yearly operating surplus of more than $300,000, and it could exceed $350,000, Ryan said.
The third quarter is traditionally the worst for indoor arenas such as the Covelli Centre.
In the 13 third quarters in the facility’s history, it’s had operating surpluses in only three of them – and two were under $5,000.
However, this past third quarter was the center’s worst since it lost $141,775 in 2008.
There were nine events at the center between July and September with a July 13 concert by country band Sugarland being the biggest show with about 5,000 in attendance, Ryan said.
“We only had one big marquee show, and you need two of them for a decent [third] quarter,” he said.
For the first nine months of the year, the city-owned facility had a $208,584 operating surplus. It was budgeted to have an operating surplus of $115,787 for the first nine months.
“At the end of the day, we’re sitting more than $90,000 better than we projected,” Ryan said.
During this last quarter of the year, the center has had concerts from Keith Urban and Bob Dylan. Other events scheduled to end the year include Sesame Street Live and Disney on Ice: Frozen.
The center is budgeted to make a $189,000 operating surplus during the final three months of the year.
“I don’t think we’ll be there, but we’ll have a good, profitable fourth quarter and end the year with good numbers,” Ryan said.
Ryan expects an operating surplus for the final quarter to be about $100,000 to $150,000.
That would put the facility’s operating surplus for the year at about $310,000 to $360,000.
In 2017, the center finished with only a $2,247 operating surplus.
Between 2012 and 2016, it had operating surpluses between $256,098 and $485,234.
This would be the 10th-straight year the facility had an annual operating surplus after losing money during its first three years, including $541,298 in 2006, its first full year.
Also, the city made $56,114 during the third quarter from its 5.5 percent admission tax on tickets sold for events at the center.
For the first nine months of this year, the admission tax generated $175,861 for the city.
The city borrowed $11.9 million in 2005 to pay its portion of building the $45 million center. The city still owes $8.36 million in principal after making an $800,000 payment on it in September.
It paid nothing in principal until 2011 and has increased its annual payment.