Profits turned out to be short-lived at Kent’s accesso ShoWare Center.
The city-owned arena lost $329,743 through the third quarter of this year after turning a profit of $16,452 through six months for the first time since opening in 2009. The ShoWare Center had expenses of $2.38 million and income of $2.05 million through Sept. 30, according to its income statement.
Despite the loss, the arena is doing much better this year than SMG, operators of the ShoWare Center, projected. SMG forecasted a loss of $691,581 through the first nine months. Arena staff also projected a loss of $427,060 in the third quarter compared to an actual loss of $346,201.
“We had a really good third quarter,” said Arletta Voter, ShoWare Center finance director, at the Oct. 25 meeting of the Public Facilities District Board that helps oversee arena operations. “We were better than budget by $80,859.”
The arena typically loses money in the third quarter because operators struggle to book shows in the summer months with the nice weather and competition from outdoor venues.
In 2017, the arena lost $430,862 through the third quarter and finished the year with a loss of $361,861. The $84.5 million center has lost about $4 million since it opened. The City Council has covered those losses with money from the general fund.
The council will consider adopting the 2019-2020 city budget with about $900,000 worth of improvements at the ShoWare Center over the next two years, including new carpet in the suites and offices, metal detectors to screen people who enter the facility and the addition of Wi-Fi for all patrons. The council’s Operations Committee is scheduled to vote on the city budget Nov. 6 with its recommendation for the full council to consider on Nov. 20.
With more concerts booked this year, the arena’s food and beverage revenue is $122,327 above budget through the third quarter. Events coming up the rest of the year include 10 shows of Disney on Ice, Nov. 1-5; rapper Russ, Nov. 15; Christian rock band Newsboys, Nov. 16; The Wolf’s Hometown Holiday concert (sold out), Dec. 6; and 10 Seattle Thunderbirds junior hockey games.
“We’re beating budget significantly,” said ShoWare Center General Manager Tim Higgins about sitting at nearly $362,000 above budget. “Disney on Ice is tracking much better than expected. Hometown Holiday sold out in two days. …and upcoming hockey games are doing much better. …we are tracking well.”
Ticket sales also are going well for the NCAA men’s basketball game between Seattle University and Washington State University on Nov. 14, Higgins said.
The city’s admission tax (5 percent on each ticket) brought in $291,596 through the third quarter. The tax funds are counted separately from the profit/loss statement. The admission tax money goes to the city’s general fund rather than the arena’s income statement. The city then moves that tax money to its ShoWare Center operating budget to help cover any losses and to help pay for capital improvement projects.
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