posting
12-11-2008, 08:54 PM
KRC Shortfall
CKWS-TV December 11, 2008
IT LOOKS LIKE KINGSTON'S SIGNATURE ARENA WILL NEED SOME BAIL-OUT MONEY OF ITS OWN.
A FINANCIAL REPORT GOING TO CITY COUNCIL NEXT WEEK SHOWS THE K-R-C WILL NEED A MUNICIPAL SUBSIDY OF MORE THAN 600-THOUSAND DOLLARS.
LOW ATTENDANCE IS THE MAIN REASON.
THE ARENA'S MANAGER ADMITS THE FIRST YEAR WAS A COSTLY EXPERIENCE -- TO SEE WHAT SELLS, AND WHAT DOESN'T.
BUT HE SAYS CHANGES WILL BE MADE TO MEET THE BUDGET TARGET IN 2009.
THE FIRST YEAR OF THE KRC WILL BE A MEMORABLE ONE FOR THE 75-THOUSAND VISITORS WHO PASSED THROUGH ITS DOORS -- TO SEE A VARIETY OF ACTS LIKE SHERYL CROWE, THE TRAGICALLY HIP, BLUE MAN GROUP AND KENNY ROGERS.
MORE THAN 80 EVENTS IN ALL -- FROM CONCERTS AND FAMILY SHOWS, TO HOCKEY GAMES.
BUT ALL THE HYPE DID NOT TRANSLATE INTO ENOUGH PROFITS... TO PAY DOWN THE ARENA'S MASSIVE DEBT.
...GERRETSEN
I FIND IT VERY ALARMING"
A YEAR-END FINANCIAL REPORT SHOWS THE KRC WILL FALL WELL SHORT OF ITS 922-THOUSAND DOLLAR PROFIT MARGIN IN 2008.... BRINGING IN JUST 315-THOUSAND DOLLARS.
THAT LEAVES A 607-THOUSAND DOLLAR SHORTFALL THAT CITY HALL WILL HAVE TO PAY.
DISAPPOINTING NUMBERS FOR THE MAYOR WHO INSISTS THE CITY DID NOT BUILD A WHITE ELEPHANT.
...ROSEN
"OBVIOUSLY I WOULD'VE LIKED FLAGSHIP NUMBERS FOR THE FIRST YEAR, BUT...
IT'S A MACHINE THAT HAS TO BE FINE TUNED AS YOU GO."
"CITY OFFICIALS SAY THEY CAN EAT THE SHORTFALL WITHOUT HIKING TAXES.
IT'S EXPECTED THAT MONEY WILL COME FROM A CAPITAL RESERVE FUND"
THE COMMISSIONER WHO OVERSEES THE BUDGET SAYS HE DIDN'T EXPECT THE REVENUES TO COME IN SO LOW.... EVEN BASED ON A FORECAST FROM 3 MONTHS AGO.
LEGER
" IS THAT CONCERNING?
SURE, IT'S CONCERNING.
IS IT ALARMING -- IT'S NOT ALARMING."
THE ARENA'S MANAGER IS NOT ALARMED EITHER, THOUGH HE ADMITS 2008 DID NOT LIVE UP TO FINANCIAL EXPECTATIONS.
...NOAKES
"WE'VE LEARNED A LOT OF LESSONS OVER THE LAST 8 MONTHS"
HE SAYS ATTENDANCE AT FRONTENACS GAMES WAS LOWER THAN EXPECTED.
FAMILY SHOWS DIDN'T BRING OUT ENOUGH FAMILIES.
.... ALL THAT ATE INTO CONCESSION SALES AS WELL.
HIGHER UTILITY COSTS, AND A CANCELLED SHOW IN OCTOBER ALSO TOOK A CHUNK OUT OF THE BOTTOM LINE.
NOAKES SAYS 2008 WAS ALL ABOUT FINDING THE RIGHT MIX OF SHOWS AND PEOPLE WILLING TO PAY FOR THEM.
"NOW WE'VE LEARNED TH SHOWS THAT PEOPLE WANT TO SEE IN THIS MARKET.
LOOK AT DYLAN CROWE GREAT BIG SEA.
THEY WENT GANGBUSTERS.
WE'LL TRY AND INCREASE CONCERT ACTIVITY, 2 CONCERTS A MONTH IS ATTAINABLE"
HE SAYS 2009 SHOULD NOT ONLY MEET, BUT EXCEED ITS PROFIT TARGETS.
NO NEED, HE SAYS, TO HIT THE PANIC BUTTON.
...NOAKES
"WE'VE GOT A GREAT LINE UP AND ITS ONLY GOING TO GET BETTER. I'M VERY OPTIMISTIC ABOUT THE YEAR."
BUT HIS OPTIMISTIC OUTLOOK MAY RUN INTO A SKEPTICAL COUNCIL AND AND AN ECONOMIC DOWNTURN.
..GERRETSEN
WHEN YOU'RE FALLING SHORT TWO THIRDS, IT SAYS MAYBE THE BUSINESS PLAN WASN'T THAT ACHIEVEABLE"
2008 MAY HAVE BEEN A LEARNING YEAR FOR THE KRC, BUT 2009 COULD BRING OTHER CHALLENGES ... WHEN THE ENTERTAINMENT DOLLAR COULD A TAKE A BACK SEAT IN THIS UNCERTAIN ECONOMY.
THE ARENA'S REVENUE FORECAST AMOUNTS TO A GAMBLE .... WITH ONE BUILDING COUNTING ON THE OTHER, TO PAY ITS WAY....
TO PUT THE KRC'S 600-THOUSAND DOLLAR SHORTFALL INTO PERSPECTIVE -- THAT'S MORE THAN WHAT COUNCIL CUT FROM THE POLICE BUDGET IN 2009
CKWS-TV December 11, 2008
IT LOOKS LIKE KINGSTON'S SIGNATURE ARENA WILL NEED SOME BAIL-OUT MONEY OF ITS OWN.
A FINANCIAL REPORT GOING TO CITY COUNCIL NEXT WEEK SHOWS THE K-R-C WILL NEED A MUNICIPAL SUBSIDY OF MORE THAN 600-THOUSAND DOLLARS.
LOW ATTENDANCE IS THE MAIN REASON.
THE ARENA'S MANAGER ADMITS THE FIRST YEAR WAS A COSTLY EXPERIENCE -- TO SEE WHAT SELLS, AND WHAT DOESN'T.
BUT HE SAYS CHANGES WILL BE MADE TO MEET THE BUDGET TARGET IN 2009.
THE FIRST YEAR OF THE KRC WILL BE A MEMORABLE ONE FOR THE 75-THOUSAND VISITORS WHO PASSED THROUGH ITS DOORS -- TO SEE A VARIETY OF ACTS LIKE SHERYL CROWE, THE TRAGICALLY HIP, BLUE MAN GROUP AND KENNY ROGERS.
MORE THAN 80 EVENTS IN ALL -- FROM CONCERTS AND FAMILY SHOWS, TO HOCKEY GAMES.
BUT ALL THE HYPE DID NOT TRANSLATE INTO ENOUGH PROFITS... TO PAY DOWN THE ARENA'S MASSIVE DEBT.
...GERRETSEN
I FIND IT VERY ALARMING"
A YEAR-END FINANCIAL REPORT SHOWS THE KRC WILL FALL WELL SHORT OF ITS 922-THOUSAND DOLLAR PROFIT MARGIN IN 2008.... BRINGING IN JUST 315-THOUSAND DOLLARS.
THAT LEAVES A 607-THOUSAND DOLLAR SHORTFALL THAT CITY HALL WILL HAVE TO PAY.
DISAPPOINTING NUMBERS FOR THE MAYOR WHO INSISTS THE CITY DID NOT BUILD A WHITE ELEPHANT.
...ROSEN
"OBVIOUSLY I WOULD'VE LIKED FLAGSHIP NUMBERS FOR THE FIRST YEAR, BUT...
IT'S A MACHINE THAT HAS TO BE FINE TUNED AS YOU GO."
"CITY OFFICIALS SAY THEY CAN EAT THE SHORTFALL WITHOUT HIKING TAXES.
IT'S EXPECTED THAT MONEY WILL COME FROM A CAPITAL RESERVE FUND"
THE COMMISSIONER WHO OVERSEES THE BUDGET SAYS HE DIDN'T EXPECT THE REVENUES TO COME IN SO LOW.... EVEN BASED ON A FORECAST FROM 3 MONTHS AGO.
LEGER
" IS THAT CONCERNING?
SURE, IT'S CONCERNING.
IS IT ALARMING -- IT'S NOT ALARMING."
THE ARENA'S MANAGER IS NOT ALARMED EITHER, THOUGH HE ADMITS 2008 DID NOT LIVE UP TO FINANCIAL EXPECTATIONS.
...NOAKES
"WE'VE LEARNED A LOT OF LESSONS OVER THE LAST 8 MONTHS"
HE SAYS ATTENDANCE AT FRONTENACS GAMES WAS LOWER THAN EXPECTED.
FAMILY SHOWS DIDN'T BRING OUT ENOUGH FAMILIES.
.... ALL THAT ATE INTO CONCESSION SALES AS WELL.
HIGHER UTILITY COSTS, AND A CANCELLED SHOW IN OCTOBER ALSO TOOK A CHUNK OUT OF THE BOTTOM LINE.
NOAKES SAYS 2008 WAS ALL ABOUT FINDING THE RIGHT MIX OF SHOWS AND PEOPLE WILLING TO PAY FOR THEM.
"NOW WE'VE LEARNED TH SHOWS THAT PEOPLE WANT TO SEE IN THIS MARKET.
LOOK AT DYLAN CROWE GREAT BIG SEA.
THEY WENT GANGBUSTERS.
WE'LL TRY AND INCREASE CONCERT ACTIVITY, 2 CONCERTS A MONTH IS ATTAINABLE"
HE SAYS 2009 SHOULD NOT ONLY MEET, BUT EXCEED ITS PROFIT TARGETS.
NO NEED, HE SAYS, TO HIT THE PANIC BUTTON.
...NOAKES
"WE'VE GOT A GREAT LINE UP AND ITS ONLY GOING TO GET BETTER. I'M VERY OPTIMISTIC ABOUT THE YEAR."
BUT HIS OPTIMISTIC OUTLOOK MAY RUN INTO A SKEPTICAL COUNCIL AND AND AN ECONOMIC DOWNTURN.
..GERRETSEN
WHEN YOU'RE FALLING SHORT TWO THIRDS, IT SAYS MAYBE THE BUSINESS PLAN WASN'T THAT ACHIEVEABLE"
2008 MAY HAVE BEEN A LEARNING YEAR FOR THE KRC, BUT 2009 COULD BRING OTHER CHALLENGES ... WHEN THE ENTERTAINMENT DOLLAR COULD A TAKE A BACK SEAT IN THIS UNCERTAIN ECONOMY.
THE ARENA'S REVENUE FORECAST AMOUNTS TO A GAMBLE .... WITH ONE BUILDING COUNTING ON THE OTHER, TO PAY ITS WAY....
TO PUT THE KRC'S 600-THOUSAND DOLLAR SHORTFALL INTO PERSPECTIVE -- THAT'S MORE THAN WHAT COUNCIL CUT FROM THE POLICE BUDGET IN 2009