By JOHN MOORHOUSE Wednesday, November 18, 2009 Penticton Herald:
A $300,000 deficit in revenues from Penticton Vees games has added to a $1.2-million shortfall for the South Okanagan Events Centre over the first nine months of this year. Jack Kler, the city‘s director of corporate services, told Penticton council Monday night that the three facilities operated by Global Spectrum -- the SOEC, Memorial Arena and the Penticton Trade and Convention Centre -- showed a combined deficit of $1,559,000 as of Sept. 30. This is already more than the budgeted $1.5-million shortfall for all of 2009. The city previously subsidized the convention centre and Memorial Arena by $750,000 a year.
Coun. Mike Pearce said the city is subsidizing the Vees operation considerably. The city signed a three-year contract with the hockey club owners in 2008, which sees the city (through Global Spectrum) pay the Vees a lump sum of $650,000 for their annual operating expenses. The city then gains all ticket, concession and advertising revenues at the SOEC. The Vees also get 50 per cent of gross ticket revenues during the playoffs, with a $5,000 bonus for each playoff round they win. If the team wins the B.C. Hockey League‘s Fred Page Cup, the club receives a $10,000 bonus. However, Kler said game revenues so far have fallen short of projections. “When we first entered into the contract there was an expectation of a certain level of attendance and all of the income associated with that,” he said. “Those projections haven‘t panned out the way we expected.” The Vees‘ average home attendance over the first 12 games of the 2009-10 season is 1,560 Ð third highest in the league. Neil Jamieson, who represents the Vees on the BCHL board of governors, said Tuesday fan support has been solid. “From our perspective we have done everything we can to raise the bar to provide a top calibre Junior A hockey for the fans in Penticton,” he said.
“Global Spectrum has been working hard to understand our market in Penticton and has made some adjustments that will hopefully allow more families to enjoy our team." These include a lowering of ticket prices to $12 for adults and concession stand prices, along with other measures. Jamieson said the SOEC is a great recruiting tool for the team. “There is always growing pains -- especially in the substantial step-up in venues from the great old Memorial Arena,” he said. “We have four players that most likely will be drafted into the NHL in the June 2010 NHL draft - unheard of for a Junior A team.”
Mayor Dan Ashton said the Vees‘ contribution to the community as a whole shouldn‘t be overlooked. “The Penticton Vees are an integral part of the new Events Centre,” he said. “It‘s a new atmosphere, a new venue for the Vees and substantially bigger.” The mayor pointed to the large crowd at last Friday night‘s game against Westside, although he acknowledged that mid-week games remain a tough sell. Meanwhile, Ashton said council is trying to keep a close eye on overall operating expenses at the SOEC. “It is a brand new venture for the City of Penticton and we are working diligently to ensure that it is run the way it should be run and the benefits be received back to the people of Penticton,” he said. Pearce, who chairs the city‘s SOEC review committee, said some serious discussions will be held with Global Spectrum over the Events Centre‘s operating deficit during next few months. “We have to stop the leakage of dollars out of there, any more than what it is,” he said. “We‘re looking at the food operations to see if it‘s possible to get more money out of that.” Pearce noted October revenues were bolstered by the sold-out Brooks & Dunn concert, and the operation is expected to break even for the month.
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