As of April 30 Global Spectrum’s management of the four city-owned facilities in their care exceeded budgetary targets by $37. According to GS assistant general manager Sally Pierce, the city had contracted Global to operate the subsidized South Okanagan Events Centre, Penticton Trade and Convention Centre, Memorial Arena and OHS Training Centre for the first quarter of 2010 at a loss of $637,105. They spent $637,068. Pierce said that although revenue generation from the facilities was about $188,000 below projections, because Global management adjusted operating expenditures by a similar amount, they were still able to meet their targets.
“It is good news because it shows that we are tracking nicely,” said Pierce. “And as the summer gets going, we generally get more attendance for events and increased revenues.” Earlier this week Global announced they had booked international superstar Rihanna at the SOEC for July 5. Global has also recently secured two big conventions at the PTCC: the Fire Chiefs’ Association of BC and the BC Chamber of Commerce (coming in 2012). “Obviously, I’m more than pleased to see that Global appears to be (heading in the right direction),” said Coun. Mike Pearce, who chairs the city committee charged with overseeing management of the facilities. “This year council and the advisory committee worked with Global Spectrum to reduce their budget expectations between this year and last year by approximately $500,000 ... and it is good that they are on track.”
Pearce said that he is hopeful that the group can keep the subsidy under $1.5 million by reducing operating costs, driving up revenues and negotiating better deals with the PTCC’s caterer and the Penticton Vees hockey team (for the 2011/12 season). “The stats at the (PTCC) are up significantly from last year as far as revenue is concerned. So, that will maybe even drive this deficit further down below where we expected to come,” he said. “And we now have an approval process (that uses) a wider body to select the artists that come here. “There won’t be anything on New Year’s Eve this year like we did last year when we lost money for the Johnny Reid thing. We are being more selective with the artists and that does not mean we will be right about everyone. We are bringing in bigger artists which is bigger risk but which also stands to get us a bigger reward. “There isn’t going to be any magic solution. There is going to be a structural deficit for a few years, as it is with any new business.”
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