Arenas February Revenue Falters

March 21, 2003
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GRAND RAPIDS — Arena revenue for last month fell far below expectation. In doing so, February marked the second straight month that income was lower than anticipated.

Despite consecutive fiscal disappointments, net revenue for Van Andel Arena remains above the annual projection and somewhat near last year’s performance, which gave the building the second-largest margin since it opened in 1996.

But net income for February was only $3,183, and quite possibly the lowest monthly take in the arena’s short history. Net income was forecasted to be $120,000 for the year’s shortest month. So why the tiny margin?

Two concerts were expected in February, but none were held, and utility costs were about 15 percent higher last month, due to price increases and very cold weather, than in February of last year.

In February 2002, net income was $413,541. The arena hosted five concerts that month.

At the end of last month, net income for the fiscal year stood at $764,352 — about $77,000 over this year’s projection, but nearly $145,000 behind last year’s pace.

In January, the arena showed a profit of $103,097. Still, that figure was $100,000 below the month’s projection.

However, SMG Director of Finance Chris Machuta said the last four months of the fiscal year look strong as a bevy of concerts are scheduled at the arena over that period.

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