Kingston’s flagship arena finished 2017 with lower profits than anticipated.
Year-end figures from the Rogers K-Rock Centre project a net income of about $485,000, which is below the $607,000 budget estimate. The final numbers are based on overall revenues of $2.5 million with operating expenses just above $2 million.
“The overall event revenues are projected to be 16.8 percent lower for 2017 than budgeted, with a projected total of 104 events and projected total attendance of 206,294,” according to documents provided by SMG, the arena’s operator.
The arena hosted a variety of acts such as Sir Elton John, Jeff Dunham, Bob Dylan, newcomer Old Dominion, Brad Paisley, Blue Rodeo and Dean Brody, I Love The 90’s Tour, Dallas Smith along with popular family shows WWE Live and the Harlem Globetrotters.
But SMG officials acknowledge the 6,700-seat venue failed to attract as many performances as predicted.
“This is a result of significantly fewer touring concert events available for 2017 for mid-sized venues and the rescheduling of multi-performance shows.”
Despite the shortfall, SMG is contractually obligated to give the city $700,000 to help cover the venue’s annual $1.2 million mortgage payment. It’s believed city taxpayers will subsidize the difference.
In 2018, SMG anticipates a net profit of nearly $600,000.
The budget projection is based on 102 event bookings – ranging from concerts to trade shows – two events less than what was projected in 2017.
“The event mix changes every budget year and includes events attracting a smaller audience as well as fewer events expected to attract much larger audiences,” said SMG’s report to council Jan. 9.
Arena officials say the ongoing strong performance of the Kingston Frontenacs, themed concession stands such as Molson Brew House and Carnival Alley and new food and beverage menu choices also bode well for the bottom line this year.
However, there is one lingering question mark over the arena this year. What to call it?
The 10 year naming rights deal between the city and Rogers K-Rock is expiring. The city has asked SMG to help negotiate a new naming rights deal, but nothing is signed just yet.
SMG hasn’t disclosed whether the arena is likely to keep its current name, adding that negotiations with interested parties are underway. The exclusive renegotiation period with Rogers Broadcasting Limited expired late summer.
“After 10 years, a name change is on the horizon for Rogers K-Rock Centre,” SMG’s report noted.
Officials added that “alternate naming rights sponsors continue to be identified, evaluated and prospected.”
This year also marks a milestone for the arena, which celebrates its tenth anniversary season in mid-February. Officials say several events will be announced in the coming weeks to mark the occasion, plus a Vintage 10 selection of specialty wines bottled by Sandbanks Winery.
