Norton
01-20-2004, 01:33 PM
Kingston 2000 Development Ltd. – Project Feasibility Review
Review by Arthur Anderson for the City of Kingston
Submitted: October 5, 2000
Convention/Auditorium Development (Page 7 of Report):
OHL Attendance: The [Kingston 2000] report assumes the Kingston Frontenacs will average 4050 fans per game, an assumption that we believe to be unsupportable over the medium to long term. Only Ottawa, Kitchener and Sarnia averaged over 4000 fans per game during the most recently completed OHL season, and only Kitchener has consistently attracted this many fans since 1993/94. Kingston, on the other hand, attracted 89,032 fans during the 1999/2000 season (2619 per game), and has averaged some 2650 fans per game since 1994/95.
While there is no question that a new building will automatically serve to increase attendance, there is significant risk that the Team (and hence the building) will not be able to sustain this level of attendance over the medium to longer term.
Facility Usage: Our opinion, therefore, is that a more appropriate and sustainable number of events is likely in the range of 65 to 70 events in total, comprised of:
- 37 to 38 OHL games [sic]
- four to six other sporting events;
- six to eight concerts and family shows;
- six to eight trade and consumer shows; and
- up to twelve other / community events
When adjusting the financial pro-forma prepared in support of the Convention Auditorium, our opinion is that the facility … will likely earn net cash flow of some $300,000 annually, depending on paid attendance for the Frontenacs (we have assumed herein that the team would attract 3250 fans per game, comprised of 2950 paid and 300 comps).
Review by Arthur Anderson for the City of Kingston
Submitted: October 5, 2000
Convention/Auditorium Development (Page 7 of Report):
OHL Attendance: The [Kingston 2000] report assumes the Kingston Frontenacs will average 4050 fans per game, an assumption that we believe to be unsupportable over the medium to long term. Only Ottawa, Kitchener and Sarnia averaged over 4000 fans per game during the most recently completed OHL season, and only Kitchener has consistently attracted this many fans since 1993/94. Kingston, on the other hand, attracted 89,032 fans during the 1999/2000 season (2619 per game), and has averaged some 2650 fans per game since 1994/95.
While there is no question that a new building will automatically serve to increase attendance, there is significant risk that the Team (and hence the building) will not be able to sustain this level of attendance over the medium to longer term.
Facility Usage: Our opinion, therefore, is that a more appropriate and sustainable number of events is likely in the range of 65 to 70 events in total, comprised of:
- 37 to 38 OHL games [sic]
- four to six other sporting events;
- six to eight concerts and family shows;
- six to eight trade and consumer shows; and
- up to twelve other / community events
When adjusting the financial pro-forma prepared in support of the Convention Auditorium, our opinion is that the facility … will likely earn net cash flow of some $300,000 annually, depending on paid attendance for the Frontenacs (we have assumed herein that the team would attract 3250 fans per game, comprised of 2950 paid and 300 comps).