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CIB loss from Super Bowl in line with projections

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Preliminary financial figures show the Indianapolis board that manages local sports and convention facilties is expected to keep its financial loss from Super Bowl expenses below $1 million.

As IBJ reported prior to the game in February, the Capital Improvement Board of Marion County anticipated an $810,000 shortfall by incurring $8 million in expenses on revenue of $7.2 million.

On Monday, CIB leaders reported the first piece of a total financial picture that won’t be known until later this month. But what they’ve determined so far is that the CIB has sustained a nearly $350,000 operating loss on items it was unable to bill to the National Football League. They include insurance costs and legal fees to prepare contracts.

But two large outstanding factors that will alter the figure are the amount the CIB will reimburse the city for providing police security compared with how much extra it accumulated in hotel and food and beverage taxes.

The CIB budgeted to reimburse the city $4 million for security and estimated taking in about $3 million in increased tax collections from late January and early February due to the Super Bowl. Late Monday afternoon, the city billed the CIB just over $3.9 million for police protection, slightly less than what it had anticipated.

“What we really have today is a partial piece of the picture,” CIB President Ann Lathrop said. “It could be close to the $800,000, but it could be less.”

Lathrop said the CIB never expected to profit from the Super Bowl and noted that any loss it incurred would be well worth the exposure Indianapolis received from the game and the boost to local businesses the event created.

Visitors spent nearly $200 million at local establishments during the festivities leading up to the game.

“It’s not just the numbers,” she said, “it’s the [city’s] brand.”

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 to 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, the CIB has said.

Hotels and restaurants, however, didn’t tax National Football League employees. They were exempt from paying taxes, according to an Indiana Department of Revenue directive.

The NFL used its tax-exempt status as a 501(c)(6) to avoid paying the taxes, in addition to fuel, auto rental and admissions taxes.

CIB also didn’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 pocketed that chunk of revenue.
 
CIB’s overall 2012 operating budget is $113.4 million, including a reserve of $10.8 million.
 

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  • Non-Profit?!?
    How does the NFL qualify as a 501c organization?!?
  • Conventions
    ICVA reported at the CIB board meeting that in Jan-March it had booked new conventions generating 161K hotel room nights (groups that have picked to meet in Indy in future years) compared to 129K in 1Q of 2011 (+25%) and had produced 998K in "lead" room nights (rooms related to conventions that have requested Indy to bid on) compared to 390K in 1Q 2011 (+156%). Surprised media stories haven't noted this.
  • Searching for Return on Investment
    $750 million tax funding for a football stadium.

    $27 million dollars was raised privately for the Indianapolis Superbowl.

    The city and state spent untold millions on top of this for this event.

    It cost only $3.5 million for a 30 second TV time during the Superbowl.

  • You're being short sighted guys..
    The real benefit of the Superbowl is this: Indy has proven beyond a shadow of a doubt that it can not only host the largest of large events, Indy can do it better than almost anyone.

    Very few will dispute this now. Before hosting the Superbowl, a lot of people disputed it.

    This will bring in more large events and conventions. Indy will reap the benefits of this Superbowl for decades.

    Hosting the Superbwol amounted to a massive 10 day international advertisement for the city that cost a few hundred thousand dollars... How many millions does a 30 second advertisement during the Superbowl cost? Millions?

    We made out like freaking bandits!
  • 90 Day Deadline Approaching
    It's been 65 days since the Super Bowl.

    The positive buzz is starting to diminish and claims of closing big deals on new convention business and attraction of new corporate jobs has yet to appear.

    25 more days left.
    • $75 Million City Budget Shortfall
      Ridiculous that the CIB, Indiana Sports Corp, Indianapolis Downtown Inc, ICVA, Superbowl Organizing Committee, and city of Indianapolis took losses on this event.

      The Superbowl was promoted as a community reward for building Jim Irsay a rent free $750 million football stadium with claims that the one event would put hundreds of millions into the bank accounts of the city.

      In fact, private funding was supposed to cover the entire cost of this party, leaving the above mentioned organizations flush with profits.

      Jim Irsay Needs To Write A Check For All The Losses.

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    1. Cramer agrees...says don't buy it and sell it if you own it! Their "pay to play" cost is this issue. As long as they charge customers, they never will attain the critical mass needed to be a successful on company...Jim Cramer quote.

    2. My responses to some of the comments would include the following: 1. Our offer which included the forgiveness of debt (this is an immediate forgiveness and is not "spread over many years")represents debt that due to a reduction of interest rates in the economy arguably represents consideration together with the cash component of our offer that exceeds the $2.1 million apparently offered by another party. 2. The previous $2.1 million cash offer that was turned down by the CRC would have netted the CRC substantially less than $2.1 million. As a result even in hindsight the CRC was wise in turning down that offer. 3. With regard to "concerned Carmelite's" discussion of the previous financing Pedcor gave up $16.5 million in City debt in addition to the conveyance of the garage (appraised at $13 million)in exchange for the $22.5 million cash and debt obligations. The local media never discussed the $16.5 million in debt that we gave up which would show that we gave $29.5 million in value for the $23.5 million. 4.Pedcor would have been much happier if Brian was still operating his Deli and only made this offer as we believe that we can redevelop the building into something that will be better for the City and City Center where both Pedcor the citizens of Carmel have a large investment. Bruce Cordingley, President, Pedcor

    3. I've been looking for news on Corner Bakery, too, but there doesn't seem to be any info out there. I prefer them over Panera and Paradise so can't wait to see where they'll be!

    4. WGN actually is two channels: 1. WGN Chicago, seen only in Chicago (and parts of Canada) - this station is one of the flagship CW affiliates. 2. WGN America - a nationwide cable channel that doesn't carry any CW programming, and doesn't have local affiliates. (In addition, as WGN is owned by Tribune, just like WTTV, WTTK, and WXIN, I can't imagine they would do anything to help WISH.) In Indianapolis, CW programming is already seen on WTTV 4 and WTTK 29, and when CBS takes over those stations' main channels, the CW will move to a sub channel, such as 4.2 or 4.3 and 29.2 or 29.3. TBS is only a cable channel these days and does not affiliate with local stations. WISH could move the MyNetwork affiliation from WNDY 23 to WISH 8, but I am beginning to think they may prefer to put together their own lineup of syndicated programming instead. While much of it would be "reruns" from broadcast or cable, that's pretty much what the MyNetwork does these days anyway. So since WISH has the choice, they may want to customize their lineup by choosing programs that they feel will garner better ratings in this market.

    5. The Pedcor debt is from the CRC paying ~$23M for the Pedcor's parking garage at City Center that is apprased at $13M. Why did we pay over the top money for a private businesses parking? What did we get out of it? Pedcor got free parking for their apartment and business tenants. Pedcor now gets another building for free that taxpayers have ~$3M tied up in. This is NOT a win win for taxpayers. It is just a win for Pedcor who contributes heavily to the Friends of Jim Brainard. The campaign reports are on the Hamilton County website. http://www2.hamiltoncounty.in.gov/publicdocs/Campaign%20Finance%20Images/defaultfiles.asp?ARG1=Campaign Finance Images&ARG2=/Brainard, Jim

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