Covelli Centre’s Q2, YTD Performance Beat Expectations
YOUNGSTOWN, Ohio – The Covelli Centre is running a $48,102 operating surplus year-to-date, following a better-than-expected performance during the second quarter of the year.
The city-owned arena posted a loss of $84,267 for the quarter ended June 30, which was a third of the $269,927 loss that had been projected for the quarter.
Year-to-date, the center had been projected to lose $77,428.
City officials are “pretty comfortable” with the property’s financial performance so far this year, Finance Director David Bozanich said. JAC Management Group operates the arena on behalf of the city.
“We should be on budget,” he said. The center typically reports a strong financial performance during the second half of the year, he said.
Total event income for the quarter was $92,726, nearly four and a half times the projected $22,065. Total event income for the first half of 2017 is $532,565.
Adjusted gross income, which is event income and other operating income including luxury box agreements, club seat agreements and advertising, was $383,403, compared with the projected $285,153 for the quarter. Year to date, adjusted gross income is $1.09 million, up from the $1.03 million budgeted.
Indirect expenses for the quarter are $467,670, below the $555,080 budgeted. Year-to-date, they total $1.05 million, compared with the $1.11 million budgeted.
Last week, City Council approved, on a non-emergency basis, allowing the city administration to finalize new agreements with JAC for general management and food service management for the Covelli Centre and the amphitheater being developed as part of the riverfront park project.
The legislation approved by Council takes effect 30 days after the July 26 meeting.
“We have had conversations back and forth,” Bozanich said. “We don’t believe there will be any difficulties finalizing the contracts.”
Copyright 2017 The Business Journal, Youngstown, Ohio.
Published by The Business Journal, Youngstown, Ohio.
CLICK HERE to subscribe to our print edition and sign up to our free daily headlines.