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CIB expects to lose money during Super Bowl

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Scores of businesses in and around Indianapolis are licking their chops in hopes of scoring a windfall from the city’s hosting of the Super Bowl on Feb. 5.

But the city entity that manages Lucas Oil Stadium, where the game will be played, expects to lose money.

The Capital Improvement Board of Marion County is budgeting for total Super Bowl expenses of $8 million and revenue of nearly $7.2 million, leaving a loss of $810,000.

The largest expenditure is the $4 million CIB has agreed to reimburse the city for providing police security for an estimated 150,000 visitors. It also budgeted almost $2 million to pay full-time employees overtime and union members who have been hired temporarily.

The projected $200 million that visitors will spend at establishments in the metropolitan area during the days surrounding the event makes the deficit a little easier for CIB to absorb, said Dan Huge, the organization's chief financial officer.   

“For the overall good of the city and state,” he said, “we know that this is the right thing to do based on the economic impact it will have on the whole area.”

CIB relies heavily on hotel and food and beverage taxes, in addition to admissions and auto rental taxes, to generate annual revenue to operate its facilities.

Besides Lucas Oil Stadium, CIB manages Bankers Life Fieldhouse, Victory Field and the Indiana Convention Center.

CIB anticipates pocketing $3 million from the Super Bowl in additional tax revenue: $2.4 million in hotel taxes, $440,000 in food and beverage taxes, and $100,000 in auto-rental taxes.

An additional $794,000 in collected taxes will be paid the state of Indiana to help pare down debt related to the cost of building the stadium and convention center.

The total tax revenue generated during the days surrounding the Super Bowl equates to what the board typically earns from taxes in an entire month, Huge said.

Hotels and restaurants, however, won’t be taxing National Football League employees. They’re exempt from paying, according to an Indiana Department of Revenue directive.

The NFL is using its tax-exempt status as a 501(c)(6) to avoid paying the taxes, in addition to fuel, auto rental and admissions taxes. The NFL needs to have an account established at a business, hotel or restaurant to take advantage of the perk, the directive said.

CIB also won’t receive food-and-beverage tax money from concessions sold inside Lucas Oil Stadium and the Indiana Convention Center as it normally does. Instead, the National Football League will pocket that chunk of change.
 
The NFL, though, has agreed to reimburse CIB $4.1 million for labor costs associated with game events, helping to shave the projected shortfall to $810,000.

CIB’s overall 2012 operating budget is $113.4 million, including a reserve of $10.8 million.
 

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  • guess what
    And of course, after it's all said and done, they didn't give the public an accounting of the financial loss after the superbowl came and went. Indy was also under the charming delusion that people would choose to move to Indy and actually bring businesses there because of the event, and of course, it never happened. Disgracefully deluded city.
  • Now I'm a South Pole Elf
    All this South Polishness has me making gramatical errors. If I can't beat 'em, I'll join 'em.

    Razzle frazzle ding dong I'm angry! Conspiracy's abound!! Hrumph!
  • Angry Elves
    There are a lot angry elves that read IBJ.com. They must be South Pole elves. I've heard South Pole elves can't spell or form coherent sentences.

    This elf is going downtown, going to drink an overpriced beer, eat an overpriced meal, and enjoy the festivities while my tax dollars being used.
    • Tip Of The Ice Burg
      Fox 59 is reporting that the NFL is actually reimbursing the city only $3.5 million instead of the $4.1 million the CIB is touting. Raising the the CIB's projected loss from $810,000 to $1.4 million.

      Doesn't require much questioning to uncover more event losses and false financial disclosure.

      The NFL shortfall comment is at end of the broadcast.

      http://www.fox59.com/videogallery/67474629/News/IMPD-concerns-about-Super-Bowl-safety
    • My 4th Grader Knows The Difference Between Profit and Loss.
      Apparently Capital Improvement Board financial chief Dan Huge and Superbowl boosters simply can't explain to the Indianapolis Star the difference between CIB/taxpayer "expenses" and "revenue" and throw out a fantasy "$150 million to $300 million in direct spending by visitors" that somehow still doesn't cover the events bills.

      http://www.indystar.com/article/20120117/LOCAL1805/201170323/Super-Bowl-2012-will-drop-Capital-Improvement-Board-loss
    • lick and pick
      And we could have had it all. But instead we got a stadium that is only used once and awhile and it seems no event can make money there, not even the superbowl. Money from us taxpayers could have been spent to improve the quality of life for everyone who lives here. After all dont we take a lot of risk just driving around the city when manholes can blow up anytime anywhere. No the outsiders are licking their chops and picking our bones clean. Great we have newly paved streets to show off but then again they might be covered with snow. Next time and,there will probably wont be a next time, at least show a profit.
    • Yawn
      "The NFL, though, has agreed to reimburse CIB $4.1 million for labor costs associated with game events, helping to shave the projected shortfall to $810,000."

      This is the only surprising thing in this article.
    • $750 Million Staduim is White Elephant?
      Seriously, what are the Mayor, Colts owner Jim Irsay, and leadership of Superbowl committee, CIB, ICVA, Indianapolis Downtown Inc. and Indiana Sports Corp thinking if they can even break even on a event like the Superbowl?

      Promises were made.

      The public deserves answers!
    • If CIB can't make a profit on Super Bowl...Can it EVER make a Profit?
      Amazing. I am not a sports guy. Sure, I will attend a game if someone invites me for the social and/or networking aspect and have a great time. The Super Bowl has to be one of the top "holy grail" events for a city to host. If the CIB...can't make money during such an event...how can it EVER be expected to make money? I am also totally amazed that the NFL could ever remotely be considered a not for profit. THAT is something that could and SHOULD definately change.
    • Stupidity and graft
      Seems like once again the politicians and the greedy sports association will fleece the majority of taxpayers. How stupid it is for the CIB to take a loss (which they will then appeal to the city, e.g. taxpayers, for the money to again bail them out. How stupid it is for the city to agree to all the demands of the NFL to pay for the NFL event. No wonder this city has problems. However I imagine that the politicians who have taken graft money from the NFL will be laughing all the way to the bank. Another embarrassment for Indianapolis. This is why I do not support ANY sporting event in this city.
    • Make me cry!
      ok
    • tax burden
      The real losers of the Super Bowl will be the tax payers of Marion county. Just like the RCA dome thet isn't close to being paid for it will take fifty years to cover the tax burden created by the Super Bowl. The worst part is the one billion dollar white elephant that it is being played in will never be paid off.
    • It doesn't matter
      Whether it's Ballard or if we had a Dem mayor, it would be the same. So don't gripe just because Ballard is in office and your Bart Peterson isn't.
    • NFL is a not-for-profit??
      Give me a break! The most profitable and popular professional sports organization doesn't have to pay taxes?
    • CIB loss
      I'm glad the Super Bowl will be in Indy. It will have a positive subjective effect. However, these big events are almost always costly to taxpayers. Boosters lie with statistics to claim a net gain. They fail to subtract all the normal business that would have been done over the weekend without a special event. Nothing is free. But it would be a pleasant surprise for city/business leaders to be honest about the true cost.
    • Questions For Mark Miles & Mayor Ballard
      Mark Miles is taking credit for spending millions of Federal dollars on housing and Georgia street, saying it is somehow related to the Superbowl, yet he has not told us where $27 million of private funding is being spent.

      How about reimbursing the CIB, ICVA, Indiana Sports Corp, and the city?

      What do you have to say...

      Mark Miles?

      Mayor Ballard?

      http://www.wibc.com/news/story.aspx?ID=1629976


      http://www.wibc.com/news/story.aspx?ID=1629976
    • This is what we get for building a $750 football stadium?
      This loss is just the tip of the ice burg.

      The city has major expenses for paying private entity "Park Indy" under Ballard 50 year lease for closed parking meters, and extra police/fire/EMS, etc..

      These losses don't even count Indiana Sports Corp,Superbowl Committee, and the State.

      I thought Mark Miles said this party was being fully covered by private donations......

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