CIB expects to lose money during Super Bowl

Back to TopCommentsE-mailPrintBookmark and Share

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.


  • 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.

    • 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.

    • 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!
    • 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?


    • 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......

    Post a comment to this story

    We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
    You are legally responsible for what you post and your anonymity is not guaranteed.
    Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
    No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
    We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.

    Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

    Sponsored by

    facebook - twitter on Facebook & Twitter

    Follow on TwitterFollow IBJ on Facebook:
    Follow on TwitterFollow IBJ's Tweets on these topics:
    Subscribe to IBJ
    1. The Affordable Care Act is not the reason for the slow recovery and lack of high paying jobs for low skill workers. This is a trend that has been going since the early 80's. The recovery is real in the sense that GDP has been growing steadily at a rate of roughly 2.5% since the recession ended in late 2009 (newsflash, the stimulus worked) and the unemployment has been steadily dropping. The reason issue we are facing deals with a skills gap (not enough workers with the right credentials / experience) and wage stagnation due to corporate America being focused solely on maximizing profits for shareholders and not caring about the American middle class. Why should they? Multi-billion dollar mutlinational companies keep offshoring their profits in order to avoid paying taxes (which makes our deficit worse) they convince Americans to fight amongst themselves. If you want to create jobs and reduce the deficit, raise the minimum wage and change corporate tax laws. Of course, if you want to continue to belive that tax cuts for wealthy create jobs (which they don't) and allow corporations and the wealthy to continue to make you cover more and more of the costs of maintaining infrastructure, funding the military and other government services, then keep voting Republican. Hopefully someday you wake up and realize what's been going on since Reagan took office.

    2. Helloooooo, my name is Kate. I am so joyous to share this wonderful testimony about what Dr. Osoijiakhena, a great spell caster, did for me and my family. I wedded a year and 6 months ago, we were very happy during this whole period, i really love my husband so so much. I started noticing changes when he started coming home late at night, he stop paying attention to me, i later found out that he was having an affair with another lady, i dont know what she did to get to him but she really got a hold on him. He started spending weekends with her, and threaten for divorce. I was so heart broken and devastated, i spent many night thinking on how to get my husband back. A friend took it upon herself to to introduce me to one Dr. Osoijiakhena, a great spell caster, who once helped her with a spell that reunited her family and helped her husband secure a very prolific job. Though i had my doubts and never believed, but i decided to give it a try because i was helpless. I contacted Dr. Osoijiakhena, the Spell caster, to help me reunite my family by bringing back my husband from that other woman and break whatever hold she had on him. He only just told me that it's a minor issue, once i provide and do everything he will ask me to do, then i will have my family back again. I did everything he required. And he did it!!!!! My husband returned back to me and pleaded for forgiveness, and i also secured a well paid job in a big company, just as the great spell caster, Dr. Osoijiakhena said. I am so so happy to share my testimony on this wall. I am using this medium to tell every one that has same or similar problem to try the great Dr. Osoijiakhena through his mail: drosoijiakhenaspell@gmail.com......he is so real!!!!! He can also help you with: (1) IF YOU WANT YOUR EX GIRL/BOYFRIEND TO RETURN BACK TO YOU (2) IF YOU WANT YOUR HUSBAND/WIFE BACK (3) IF YOU WANT TO BE PROMOTED IN YOUR OFFICE (4) IF YOU WANT YOUR MAN OR WOMAN TO LOVE YOU (5) IF YOU WANT A CHILD (BARREN) (6) IF YOU WANT TO BE RICH/WEALTHY (7) IF YOU WANT YOUR HUSBAND/WIFE TO BE YOURS FOREVER (8) IF YOU'VE BEEN SCAMMED AND WANT YOUR MONEY BACK (9) IF YOU ARE HAVING DELAY IN GETTING MARRIED (10) IF YOU HAVE A COURT CASE AND WANT TO WIN (11) IF YOU'RE A DRUG ADDICT AND YOU WANT TO REALLY STOP (12) IF YOU CANNOT IMPREGNATE A WOMAN (STERILE) (13) ALL TYPES OF DISEASES I advise you to contact the great Dr. Osoijiakhena, the spiritualist for solutions via his email: drosoijiakhenaspell@gmail.com

    3. Sergeant McNally is buried in Cathcart Cemetery on a hill known as McNally%u2019 Hill. The Cemetery is in a natural bushland setting and is very well maintained.The emergency department at Ararat Hospital is known as the John McNally Emergency Department. Cathcart is approx. 4.6 km from Ararat and is approx. 345 m above sea level.

    4. My spring chicken of a Mom is turning 75 years young. She is a big fan of Frankie and I think she would get a big kick out of the film. I wanted to take her to the Broadway play but am priced out. Thanks for your time and consideration. Oh yea, Wildwood! Joie

    5. I thought this company would go bankrupt in 2013/2014. I predicted that four years ago. I was wrong. It will take another couple of years, but they will get there.