Losses continue to mount for events centre

Wolf Depner - Penticton Western News Published: July 16, 2009 6:00 PM

This may be the height of summer, but the people in charge of the South Okanagan Events Centre are counting on a winter sport to get them out of a $1 million hole. Global Spectrum recorded a shortfall of $1.089 million through the first five months of the year for the facilities it manages under its contract, said director of corporate services Jack Kler. Facilities under Global Spectrum’s management include the SOEC and its attached community rink, the Penticton Trade and Convention Centre and Memorial Arena. While this latest number continues the deficit trend of the past, city officials urge the public to be patient with the SOEC as a facility and Global Spectrum as its manager. “The results are the results,” said Kler. “This is the very first year of their operations, obviously.” Global Spectrum, he said, has put together an action plan in response to those numbers. One feature of that plan includes substantially reduced prices for Junior A hockey games, said Kler.While he concedes that this strategy may be risky, it will hopefully increase revenues by increasing volume — putting more people into the seats, in other words.Global Spectrum has also begun discussions with other community groups and with seniors to generate more interest and revenue. While Global Spectrum has exceeded city expectations in managing expenses at the new facility, it has fallen short on revenues, said Kler. “Our revenue projections were more optimistic,” he said.

But things, he said, will be picking up in the coming weeks and months, adding that revenues from those events will only be reflected in the balance sheets at a later date. The facility will be booked solid through July and August, with only one day unused. “It is going to be full-tilt for those two months,” he said. Events scheduled for the coming months such as the upcoming Alan Jackson concert are selling well, he said. If everything goes well, Global Spectrum will be able to push its operating losses just under $1 million, the city’s pre-budgeted subsidy.Kler also made it clear that the city has no immediate plans to increase that budget in case current financial trends continue. That discussion is “premature” he said, adding that the city remains “cautiously optimistic” about the long-term financial trends of the facility.