by David Chapman
Staff Writer
Almost five years in, the Jacksonville Veteran’s Memorial Arena has begun to accumulate the history and success that its predecessor, the Jacksonville Memorial Coliseum had in its 63-year Jacksonville history.
Historic bands like The Rolling Stones, Bob Dylan, James Brown and Jimi Hendrix were box office draws in the 11,000-seat Coliseum’s initial years in the 1960s, while the Arena has begun to acquire history with acts that wouldn’t book at the Coliseum, like Elton John, Kenny Chesney, Rod Stewart, Tim McGraw and Faith Hill, as well as a bevy of sporting events.
The facility is managed by SMG, which also manages Jacksonville Municipal Stadium, the Baseball Grounds of Jacksonville, Times Union Center for Performing Arts, Prime F. Osborn Convention Center and Jacksonville Equestrian Center. And after almost five years, SMG officials and the Jacksonville Economic Development Commission are pleased with how the Arena has progressed thus far.
The recent expansion of the Everbank Arena Club, a membership-based private lounge and dining area, is one of the facility’s recent improvements. The $450,000 improvement brought an additional 10,000 square feet and art gallery meant to enhance the Arena experience.
Additionally, the Arena is seen as a boost to other tenants of the Sports District.
“I have no complaints at all,” said Peter Bragan Jr., Jacksonville Suns owner and general manager. “The only thing I can think of is parking, but we’ve had instances in the past where we’ve had a game and had a promotion to try to get people to attend before the Arena event. One time, after a Jimmy Buffet concert, we opened up the 3rd base gate and sold food and drinks.”
“With the events we have and the quality of the facility, I think the first five years have absolutely been successful,” said Michael Bouda of the JEDC’s Sports Board. “Compared to the old Coliseum, it’s a completely different and updated atmosphere.”
Success isn’t always about getting the names on the stage, improvement in atmosphere or being a good neighbor – instead it’s by the the numbers behind the scenes.
According to SMG General Manager Bob Downey, the Arena revenue sources come from event rental fees — with rental fees varying on the type of event — parking, and food and beverage sales. In addition, according to information from the Council Auditor’s Office, the Arena also benefits from ticket surcharges.
In contrast, the Arena has its share of expenditures, headlined by utility costs at over $1 million a year. Along with staffing costs and maintenance, expenditures eat away at revenues.
The City’s Comprehensive Annual Financial Report for 2006-07 indicated that for the latest fiscal year, Arena revenues were $5,979,000 and expenditures $7,750,000 for an operating loss of $1,771,000 — but, according to SMG officials that’s including internal service charges and debt depreciation among other charges.
At the SMG level, revenues have exceeded expenditures each year. Prior to 2007, SMG shared certain expenditures between all of its facilities, but in 2007, it was broken down to a facility-by-facility basis. According to SMG officials, last year at the facility level, total revenues (including things such as sponsorships and suites) totaled $8,074,998 with expenditures at $7,319, 884 — for a profit of $744,814.
If SMG projections are accurate, 2008 should be another year of profit anywhere in the range of $500,000–$1 million, depending on project costs.
But offsetting the overall loss and adding to the daily revenues isn’t as easy as simply filling the Arena’s schedule with any event – it takes a careful balance.
“It’s really a double-edged sword,” said Bouda. “You want to have a full schedule but you have to have events people want to see and even more, ones they can afford to see. It’s a tricky economy and you have to weigh in events, but the people over at SMG do a fantastic job at that.”
Pursuing acts is done at both ends of the entertainment business, as both SMG officials and agents continuously pursue each other to try and reach an agreement. According to Downey and per the agreement with the City, SMG isn’t allowed to take financial risk when it comes to pursuing acts. Instead, it pursues promoters willing to take the risk.
If act arrangements can be met, normally a show is put on the schedule three to 18 months in advance, enough to properly advertise.
One of the biggest draws that attract big crowds as well are country music acts.
“Country music today is the rock and roll of the 70s,” said Downey. “Most people in Jacksonville love country music.”
For the rest of 2008, ticket sales for events are not bad, but different, said Downey. Instead of selling most of the tickets during the on-sale period, more people are waiting until closer to the show date to purchase tickets.
Attendance over the first four fiscal years has been steady, said Downey, with just under 500,000 event attendees annually. The 2008 projected number is lower, though, at just under 385,000. Part of it is due to hockey no longer contributing to gate numbers, but it’s also due to the economic factors outside the Arena’s control.
There are encouraging signs, though. Downey looks toward the Arena’s near future for an uptick in activity and sales to build on its success.
“The entertainment business is seeing a slight slow down everywhere, including Jacksonville,” said Downey. “It’s been the most noticeable over the past eight months, but we are also noticing a slight increase in business for the next eight months.
May 30
Paxon High School Graduation 1 p.m.
Stanton High School Graduation 4 p.m.
Ridgeview High School Graduation 8 p.m.
June 2
Wolfson High School Graduation 1 p.m.
Mandarin High School Graduation 5 p.m.
June 3
Lee High School Graduation 1 p.m.
Fletcher High School Graduation 5 p.m.
June 4
Sandalwood High School Graduation 1 p.m.
Ed White HIgh School Graduation 5 p.m.
June 5
First Coast High School Graduation 1 p.m.
Terry Parker High School Graduation 5 p.m.
June 6
Fernandina Beach High School Graduation 7 p.m.
June 12
Duval County Teachers Recruitment Fair 8 a.m.-2 p.m.
June 14
Rowdy Friends Tour
Hank Williams Jr. and Lynyrd Skynyrd 7 p.m.
July 22
Foreigner and Brian Adams
July 27
Brooks & Dunn with Rodney Atkins 7 p.m..m.
September 19
PBR: Professional Bull Riders 8 p.m.
September 20
PBR: Professional Bull Riders 7:50 p.m.
October 18
NBA Preseason: Orlando Magic vs. Miami Heat