Ice centre posts £3.9m losses
1,000 WORKERS LAID OFF AS VENUE COUNTS COST OF COVID SHUTDOWN
THE National Ice Centre and Motorpoint Arena lost nearly £4m and made more than 1,000 casual workers redundant after Covid restrictions hit the venue’s finances.
On January 5 the arena released the accounts from the most recent financial year from April 2020 to March 2021, showing the true impact of Covid on the attraction.
Due to an inability to host live entertainment shows at the Arena, creating a lack of revenue to pay for the high costs of the ice facility during its 18-month closure, losses of £3.9m were reported by Nottingham Ice Centre Limited during this period.
In the previous year, the National Ice Centre recorded a loss of £718,744.
The Ice Centre and Arena had closed by April 2020, with most staff furloughed at around the same time and only a core group of 19 staff remaining to plan for reopening after a few months.
As a result, cost-cutting measures including what the report calls “extensive redundancies” were made in late 2020, with more than 100 permanent employees and 1,000 casual staff made redundant.
Despite these measures, the report states that Nottingham City Council, which owns the Arena and National Ice Centre, had to loan the venue £7.4m over this time.
This is to be repaid over the next 15 years, starting in 2023.
A further £1.5m in loans could be provided if needed.
The company replaced the facility’s ice plant in July and August, which the report called “one of the few benefits of the Covid shutdown”.
The newly-installed equipment should have a lifespan of 30 years, and is more cost-effective.
However, the report commented that the financial uncertainty largely postponed any other projects, outweighing the “unique opportunity to carry out disruptive works during a prolonged closure”.
The company also received a £1m Culture Recovery Fund grant, issued by Arts Council England, to help mitigate losses.
And there was optimism about the future of the venue, with the report stating that prospects for the Ice Centre and Arena are “strong”.
“The prospects for the company moving forwards in a functioning business environment are strong,” the report said.
“Ice sports participation is only marginally short of pre-covid levels and improving, whilst forthcoming Arena shows are very high with bookings for several years ahead above normal levels.
“National Merchandise is also remobilising and succeeding in winning additional business from venues and festivals, particularly from 2022 onwards.”
The prospects for the company moving forwards in a functioning business environment are strong Company report