Presented by: Proposed Sports and Event Complex in Coeur d ...

Comparison of Estimated Financial Operating Results
Operating Operating Net Profit
Facility Revenues Expenses (Loss)
Coeur d'Alene Estimate (High) $1,062,000 ($1,148,000) ($86,000) (1)
Mid-America Center $1,215,000 ($1,308,000) ($93,000)
Swiftel Center $1,162,000 ($1,367,000) ($205,000)
Coeur d'Alene Estimate (Base) $816,000 ($1,055,000) ($239,000) (1)
Cabarrus Event Center $649,000 ($1,160,000) ($511,000)
Five Flags Center $392,000 ($1,091,000) ($699,000)
Average (Excl. Coeur d'Alene) $854,500 ($1,231,500) ($377,000)
(1) Excludes capital repair expenses.
As shown, the estimated operating loss of $239,000 under the Base scenario would rank near the
midpoint among the four comparable facilities, while the High scenario estimated operating loss
of $86,000 would be the smallest deficit among the peer facilities reviewed. The following notes
should be considered to provide context to the revenue and expense figures presented in the
table:
• The Mid-America Center generates the highest revenues among the peer facilities. The
Center is the only facility included in the analysis that has a sports tenant and offers
premium seating. Approximately $200,000 of the Center’s revenue was derived from
premium seating sales in the year analyzed. Removing this premium seating revenue
would result in a significantly higher operating loss.
• The Swiftel Center has the highest operating expenses among the facilities included in
the analysis. While the facility does not have a tenant sports franchise or a premium
seating program, it has attracted strong event levels and generates relatively high annual
revenues. In 2007, the facility’s operations resulted in a negative cash flow of
approximately $205,000. Based on conversations with facility representatives, the
Center’s historical annual operating subsidy has totaled upwards of $300,000 per year.
• The Cabarrus Event Center and the Five Flags Center have struggled to generate
operating revenues due largely to a relatively low number of major spectator events held
at the facilities. The Five Flags Center’s revenues have been negatively impacted by the
opening of the competitive Grand River Center convention facility in Dubuque.
Based on this analysis, the operating losses estimated to be incurred by a new event facility in
Coeur d’Alene are generally in line with those experienced by comparable venues in other
markets. While profitability could be considered a goal of the facility, for planning purposes it
may be appropriate to identify means of covering potential operating losses. While public
investment may be required to fund the construction and ongoing operations of the facility, the
events and activities associated with the facility could generate significant economic benefits for
the community. The following chapter estimates the economic impacts that could result from the
ongoing operations of the proposed facility.
Feasibility Analysis of a New Sports and Event Complex in Coeur d’Alene
Financial Analysis
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