IBJNews

CIB loss from Super Bowl in line with projections

Back to TopCommentsE-mailPrintBookmark and Share

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.
 

ADVERTISEMENT

  • 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.

    Post a comment to this story

    COMMENTS POLICY
    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
    ADVERTISEMENT

    facebook - twitter on Facebook & Twitter

    Follow on TwitterFollow IBJ on Facebook:
    Follow on TwitterFollow IBJ's Tweets on these topics:
     
    Subscribe to IBJ
    1. Good Day I am Mr (Victoria Wright) from United state of America, i stayed in NEW YORK, and i have a broke up business, until i found this company email who help me to gain a loan for business,, and now i want to used this short medium to congratulate the below company for the fast and safe money they loan to me without any form of collateral, i loan 500,000USD from the company to save my business and lots more, i saw their mail on the internet, everyone always give testimony for what they did, so i quickly contacted them and they all did everything for me without stress and my money was sent to my account just 3 days later, i was surprise and i feel so glad, now i have a standard business control agent who help me, now i will advice those who need urgent loan to contact him at the bellow email:zenithfirm12@gmail.com

    2. NOTICE:This is to inform the general public that Vampires are real. My name is James Franklyn.,am an agent of vampire,am here to introduce our new world trend to you,a world of vampire where life get easier,we have made so many persons vampires and have turned them rich,you will be assured long life and prosperity,you shall be made to be very sensitive to mental alertness,stronger and also very fast,you will not be restricted to walking at night only even at the very middle of broad day light you will be made to walk.In case you are wildly oppressed by some unscrupulous persons we can still help you fight them.Your protection is assured immediately you join.Just contact the bellow email if you are interested we are here to attend to you anytime you want us. Contact the bellow email for more details. Email:vampirescreed@hotmail.com Sincerely: James Franklyn.

    3. Bravo! Someone else that is willing to speak the truth! Bravo!_____NBCSN is available in almost 2 MILLION more homes than just a few years ago, but Indycar STILL gets less total viewers than it did just a few years ago when NBC took over Versus. Attendance and ratings cratered with the end of season races (just when the title battle got "interesting" HAH!__________And now...new race in Basilia, where Miles celebrated the "rich history" of Indycar racing there. Rich history? What, 7 events in the 100 years of AOW? Yep, some history. Well, at least its an oval. It's not??? Are you kidding me??? Gosh darn road racin furriners.

    4. PURITY RAY LOAN OFFER........ Have you been denied by your banks,or are you in need of of an urgent loan to pay of your bills we are capable of giving loans @ cheaper rate to interested individuals, student, companies and members of the public in need of finance to settle bills, we do offer considerable loans which you can count on. For more information on our various types of loan,then you will have to contact PURITY RAY LOAN FIRM, to help you achieve your desire LOAN APPLICATION FORM TO BE FILLED BORROWERS INFORMATION * Full name:………………………. * SEX * ……………………………. * Country………………………….. * State:……………………………. * Land:…………………………….. * Occupation:…………………….. * phone number:…………………. * Telephone: ………………………….. * Age:………………………………. * Amount needed as loan:……… * Loan Duration:………………….. * Propose of Loan:……………….. * Annual revenue:………………… * Monthly Income:……………….. * Guarantee:………………………. * Payment: monthly or annually Email.....purityrayloanfirm@gmail.com Thank you and God bless Mr Purity Ray PURITY RAY LOAN FIRM we tend to serve you better

    5. Problem: most of the people responding to this article don't know about this service AT ALL! Why? Lack of awareness. This isn't IndyGo. This is CIRTA: might as well be the mattress company because they are asleep at the wheel - something like 3 directors over the last year? Playing with federal grant money is great! This "region" wants commuter rail service, has spent MILLIONS on Transportation studies yet can't even support a commuter bus line? This is largely for suburban riders to get to downtown - not for "service people to work in our hotels and restaurants" ! Get your head out of your backside!! These are professionals, students etc. that don't want to fight traffic, save some money on parking, gas, stress.... if CIRTA would put their federal money into widely promoting the sevive to Greenwood, Fishers & Carmel instead of finding directors and studies - this would be a successful service. Our family uses(d) it daily for the last several years - but the recent uncertainty & now unreliability due to cuts from Carmel has been a problem. Now, costs us an additional $350/month for gas & parking ( $4200/year) plus vehicle wear, service, environmental impact ... YES - this REGION needs this this type of service in order to keep growing and getting the people it needs to fill skilled positions in downtown Indianapolis. Think outside of your own car !!!

    ADVERTISEMENT