Facilities and Venue management Financial Analysis

Facilities and Venue management Midterm Financial Analysis Scenario You have been the general manager of the Memorial Arena for five years. The arena seats 10,000. The venue is publicly owned and publicly managed. You are a city employee who reports to the city manager. Generally, you have enjoyed a good relationship with the city manager, and have received excellent performance reviews. Your venue was built in the mid-1970s in a Midwestern city of 180,000 people whose population has been stagnant in growth due to manufacturing jobs being moved overseas. You have 100 event days per year and draw about 450,000 guests per year to events including minor league hockey, high school and college sports events, concerts, and family shows. Last year’s city council elections brought in three new conservative councilmen. One of them is a big critic of the Memorial Arena’s management. Presented below is the most recent revenue and expense report for the arena: OPERATING REVENUES 500 Rent 200,000 510 Concessions 320,000 515 Catering 280,000 520 Reimbursed expenses * 310,000 530 Advertising 50,000 540 Miscellaneous 5,000 550 Commissions 40,000 TOTAL OPERATING REVENUE $1,205,000 OPERATING EXPENSES Building maintenance 601 Supervision 48,000 602 Labor 85,000 603 Building maintenance 8,000 604 Equipment maintenance 8,000 605 Operations 35,000 606 Office expenses 300 607-A Electric 88,000 607-B Water/sewer/etc. 12,700 607-C Gas 50,000 TOTAL BUILDING MAINTENANCE $335,000 Concessions 611 Supervision 20,000 612 Labor 28,500 614 Equipment maintenance 800 615 Operations 300 616 Office expenses 400 617 Food supplies 150,000 TOTAL CONCESSIONS $200,000 Catering 621 Supervision 20,000 622 Labor 48,800 624 Equipment maintenance 1,000 625 Operations 16,000 626 Office expenses 200 627 Food supplies 84,000 628 Contracted services 0 TOTAL CATERING $170,000 Event operations 631 Supervision 15,000 632 Ushers 34,000 633 Ticket takers 26,000 634 Equipment rentals 4,000 635 Operations 30,000 636 Security 21,000 637 Materials and supplies 42,000 638 Spots and stagehands 66,000 TOTAL EVENT OPERATIONS $238,000 Box office 641 Supervision 7,400 642 Labor 6,000 643 Outlet expenses 10,000 644 Equipment maintenance 40,000 646 Office expenses 20,000 647 Advertising/promotion expenses 28,000 648 Contract fees 600 649 Equipment rental 500 TOTAL BOX OFFICE $112,500 Administrative 661 Supervision 50,000 662 Labor 22,400 663 Insurance 100,000 664 Equipment maintenance 15,000 665 Telephone 28,000 666 Office expenses 40,000 667 Travel 400 668 Legal services 12,000 669 Misc. administrative expenses 8,000 TOTAL ADMINISTRATIVE $275,800 Accounting 671 Supervision 6,000 672 Labor 2,200 673 Payroll services ...