Mosaic Place expects a deficit this year of nearly $600,000

Spectra Venue Management Services, which oversees operations at Mosaic Place, provided city council with a one-month summary of income and expenses that has nearly as many red numbers as in the black.

The statement for January was part of a more extensive financial report that city administration presented at the May 11 regular council meeting about the municipality’s first-quarter results. The only comment finance director Brian Acker made about Mosaic Place was Spectra was “having some challenges in terms of producing statements.”

The Moose Jaw Express has reviewed the statement and has attempted to present a clear financial picture. Operating at a loss

Spectra expects to operate Mosaic Place this year at a deficit of $582,738 based on expenses over revenues. The management organization expects to hold 133 events this year in the building; 18 were held in January, including seven WHL Moose Jaw Warriors games and five Moose Jaw AAA Warriors games. It budgeted $353,500 in gross ticket revenue from those events, but only brought in $34,076. Budgeted gross revenue had been set at $367,029, but actual gross revenue was $74,986. Spectra had budgeted to pay $336,665 in promoter fees for its events but actually paid out $40,258.

Total ancillary income — including concessions, suites, and catering — was $17,338, compared to a budgeted projection of $15,028.

Overall event operating income was $49,984 compared to a budgeted projection of $45,039.

Indirect expenses — such as general and administration, finance, marketing, operations, and overhead — were $189,210, compared to a budgeted projection of $220,566. This means Spectra saved $31,356 in expenses in these areas.

The overall gross building operating income was a deficit of $139,225, compared to a projected deficit of $175,527. Spectra received $117,060 in other income, compared to a budgeted figure of $134,898. Some categories in this area, based on actual versus budgeted, include:

• Sponsorship: $25,076 / $33,414;

• Naming rights: $23,542 / $24,791;

• Suite leases: $12,292 / $11,625;

• Rink programs: $17,521 / $29,671;

• Curling leagues: $28,903 / $25,952.

A deficit of $40,629 had been budgeted for adjusted operating losses, but the actual figure was a deficit of $22,165. Meanwhile, Spectra received $11,000 as part of its monthly operating fee; it expects to receive $152,000 for the year.

So for January, Spectra had budgeted to operate at a deficit of $51,629, but actually operated at a deficit of $33,165.