Covelli Centre Ends 2016 with $386K Net Income
YOUNGSTOWN, Ohio – A successful 2016 for downtown’s Covelli Centre means the city will be able to make a substantial payment toward its debt on the building at the end of this year, a finance department official says.
“The building is paying for itself and that’s the way it’s been for the last six years,” says Kyle Miasek, deputy finance director.
The city-owned Covelli Centre ended 2016 with a net income of $386,117, according to a financial statement released by the city. It had budgeted for a net income of $274,635.
Plus, a 5.5% admission tax generated a return of $271,830 to the city for the calendar year, while in-house food and beverage net profits stood at $49,066, noted Eric Ryan, executive director of the Covelli Centre and president of J.A.C. Management Group, LLC, in a cover letter to city officials dated March 3.
“We are thrilled to announce that this marks the most money given back to the city from arena operations in the Centre’s history,” Ryan said.
This flush of income makes it possible for the city to make a $600,000 payment toward the debt it holds on the building, Miasek said. “We made our first principle payment of $275,000 in September of 2011 and those payments have been growing,” because the building is generating more revenue, he said.
Before 2011, when the city hired Ryan as executive director, the Covelli Centre generated only enough money to pay interest on the loan.
Miasek said that the principle loan balance would stand at about $9.1 million after the city makes its $600,000 payment in September. “We’re very pleased. The numbers are fantastic,” he said. “J.A.C. has been landing shows that are well attended and Eric is selling Youngstown to the major promoters in the country.”
Ryan reported that Covelli hosted 83 events during the year that drew nearly 200,000 patrons to the arena. These consisted of 14 family performances, 41 sporting events, 13 concerts, five spectacle shows and 10 miscellaneous events.
Among the highlights of 2016 were sold-out performances by Elton John, Carrie Underwood, Barry Manilow, Lionel Richie and Keith Urban, Ryan said.
Another 15 community events were held at the Covelli Centre during the year and the Youngstown State University Community Room hosted more than 80 community gatherings, city meetings, private parties, company seminars and sponsor events.
Ryan said that the arena focused on upgrades during the year, including a team shop renovation, new phone systems, a fence along Front Street, an ice plant compressor replacement project and replacing the arena’s video board.
Copyright 2022 The Business Journal, Youngstown, Ohio.