Annual Bradley Center report

[Sir Lawrence]

Bradley Center reports net loss of $2.1 million

By Don Walker of the Journal Sentinel

Posted: Dec. 31, 2008 1:06 p.m.

The Bradley Center finished the fiscal year ending June 30, 2008, with a net loss of $2.1 million, about $1.5 million better than the previous fiscal year.

The net loss includes an annual depreciation expense of $2.9 million.

Total operating revenue was $15.1 million, compared with $12.3 million for fiscal 2007. Officials said the increase in revenue was primarily the result of the wildly popular "Walking With Dinosaurs" event, a new $1 per ticket fee and improved food and beverage revenue.

The Bradley Sports and Entertainment Corp., the operator of the Bradley Center, releases its financial results each December.

"The financial report confirms that the Bradley Center is maintaining a stable fiscal position," Ulice Payne Jr., chairman of the Bradley Center board of directors, said in a prepared statement. Payne added the center was well-managed and generally draws more than 1.5 million people a year.

But as he has said before, Payne said the future is uncertain for the arena, first opened in November 1988.

"Even with this steady financial position, however, it is important to note that the Bradley Center's long-term needs continue to significantly outpace its ability to generate revenue," Payne said. "The steps we have taken are good, but they're not a solution to the long-term challenge."

Payne added that his board wanted to work with regional and state leaders and the business community to "preserve the Bradley Center."

Other highlights of the financial report:

• The Milwaukee Bucks, the center's biggest and most valued tenant, received $2.8 million in cash in the fiscal year, plus a commitment of $2.1 million in future years. In addition, the Bradley Center purchased suite tickets from the Bucks for $2.5 million. The Bucks are currently without a lease, but talks have been ongoing.

• The center's plant fund, a rainy-day fund for future property and equipment replacements, now totals $3.5 million, down from $3.6 million in the previous fiscal year.

• The Bradley Center owes M&I Bank $8.1 million.

http://www.jsonline.com/business/36939519.html

[ChicosBailBonds]

I honestly can't remember a year the BC made money.  It might have happened, but I can't remember it.  When I was there, it lost money every year.  Looks like this year was no different.

[TallTitan34]

I honestly can't remember a year the BC made money.  It might have happened, but I can't remember it.  When I was there, it lost money every year.  Looks like this year was no different.

Knowing nothing about the business of sporting venues is this typical or atypical?  I guess I always just assumed the stadiums always covered their costs and the tenants are what took the bullet.

Isn't there an agreement between MU and the BC where MU pays a very low fee to lease it?  Are all BC tenants like this?  Is this where the losses occur?

[ChicosBailBonds]

Knowing nothing about the business of sporting venues is this typical or atypical?  I guess I always just assumed the stadiums always covered their costs and the tenants are what took the bullet.

Isn't there an agreement between MU and the BC where MU pays a very low fee to lease it?  Are all BC tenants like this?  Is this where the losses occur?

Well, the BC is setup in a different way then most arenas and stadiums.  It's not part of the Wisconsin Center District which is tax supported (I believe the MECCA is)

When I was with the Ducks, the Pond turned a profit.  Small, but a profit nonetheless.  Of course a lot of this has to do with how the deals with the city are configured, the debt structure, etc.

[TallTitan34]

Thanks Chicos!  I had a feeling your travels would be able to shed some light on the situation!