MCC Ice Rink
As a business man and using just the macro numbers published today, the solution to the sports center problem is simple--- Lower costs, raise prices or probably both. If there are “tens of thousands of patrons annually” and “750 local participants that account for one third of the revenue”, ($400,000) rates should necessarily double for everyone. No organization can survive if it loses money on every customer. And no, you can’t make it up in volume. Rental of 168,000 feet at $10 per foot would cost $1.6 million, which coincidentally is exactly what the revenue is. Obviously way too low for a facility with four functional ice rinks. A 100% increase in revenues would bring in another $1.6 million and give the facility a paper profit of $1 million per year till the notes are paid off. Lest someone yell that an increase that size is unfair, will drive patrons away or deny some poor kid the chance to play hockey let them consider the alternative---no hockey for anyone. I have no idea what rates are being charged but again, using the published figures the income is $533 per patron. I assume the facility receives rent or other compensation from the restaurant, ice cream stand and bar. No matter how much visitors to the area spend, the facility must charge enough to pay for itself, maintain the facility and pay off the bonds in the agreed upon time. How the situation could get this bad is beyond me but I suspect that the board did not have the guts to increase rates to cover costs. Is this another fast ferry?
As a business man and using just the macro numbers published today, the solution to the sports center problem is simple--- Lower costs, raise prices or probably both. If there are “tens of thousands of patrons annually” and “750 local participants that account for one third of the revenue”, ($400,000) rates should necessarily double for everyone. No organization can survive if it loses money on every customer. And no, you can’t make it up in volume. Rental of 168,000 feet at $10 per foot would cost $1.6 million, which coincidentally is exactly what the revenue is. Obviously way too low for a facility with four functional ice rinks. A 100% increase in revenues would bring in another $1.6 million and give the facility a paper profit of $1 million per year till the notes are paid off. Lest someone yell that an increase that size is unfair, will drive patrons away or deny some poor kid the chance to play hockey let them consider the alternative---no hockey for anyone. I have no idea what rates are being charged but again, using the published figures the income is $533 per patron. I assume the facility receives rent or other compensation from the restaurant, ice cream stand and bar. No matter how much visitors to the area spend, the facility must charge enough to pay for itself, maintain the facility and pay off the bonds in the agreed upon time. How the situation could get this bad is beyond me but I suspect that the board did not have the guts to increase rates to cover costs. Is this another fast ferry?
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