Heat, rain sliced into Summerfest 2018 income

The Big Gig collided with big weather in 2018 and net operating income went down, according to a budget released Wednesday.

With three days of excessive heat and two days of rain, Summerfest produced net operating income of $15.6 million, about $656,000 lower than budgeted.

Summerfest recorded attendance of 766,192, with 14% of attendees using free or discounted admission. It was the lowest attended Summerfest since at least 1993.

The Milwaukee World Festival Inc. board of directors approved a budget for next year that included $17.6 million in net operating income for Summerfest.

According to the 2019 budget, price increases will boost revenue from beverage and ticket sales. Organizers also expect a return to historic trends for ticket sales.

The organization is in the midst of funding the overhaul of the American Family Insurance Amphitheater. The renovation will be done in two phases. The roof will be raised and backstage areas rebuilt in time for next year's event. New concourses, restrooms, seats and additional hospitality areas are due to be in place by 2020.

The project will cost up to $50 million. Funding sources include $20 million from sponsorship contributions and capital campaigns, $20 million in new bond financing and $10 million in reserve funds.

In addition, as part of the financing, Milwaukee World Festival is paying off a $15.7 million bond debt from 2010.

Bob Babisch, Summerfest's vice president of entertainment, reported that up to 40 ground act performers have been booked for next year's festival and "five or six" main stage acts have already been confirmed. Three amphitheater concerts have already been announced — Jason Aldean, Ozzy Osbourne and Bon Iver — with more acts to be revealed in January.

The board also approved the merger of the Summerfest Foundation into Milwaukee World Festival Inc.

The foundation was originally established as part of a new market tax credit transaction in 2011 to support the second phase of the Henry Maier Festival Park south end reconstruction project.

The obligations were satisfied in July and "the structural necessity of the Foundation has ended," according to a statement.

As a 501(c)3 not-for-profit organization, the Milwaukee World Festival said it will continue its "longstanding history of community support."