The Pepsi Center

[Dvoakley]

Now how many people really believe the Pepsi Center made $519K last year? Impossible. The only way would have been to lay off all the employees and let the ice melt. I just can't believe the Snooze and the Bee for that matter. They accept what they're told and don't do any fact checking. They just go ahead and print in bold headlines that the Center made all this money suddenly without a shred of doubt and the article becomes pablum for the voters brains.

[leftWNYbecauseofBS]

Now how many people really believe the Pepsi Center made $519K last year? Impossible. The only way would have been to lay off all the employees and let the ice melt. I just can't believe the Snooze and the Bee for that matter. They accept what they're told and don't do any fact checking. They just go ahead and print in bold headlines that the Center made all this money suddenly without a shred of doubt and the article becomes pablum for the voters brains.

I was there last year. Not sure about the numbers but consider this.

The Sabres use the center, so there is money there.

UB uses the center, so there is money there.


On top of that, there is a gym, equipment shop and concessions. I think all of that space is rented. So that is no cost for labor with a potential rev share.

On top of that, the rink is open 12 months out of the year. There are 4 rinks. With all of the programs in Amherst it is safe to say on average each rink is rented for 20 hours a week. I would guess that the rink would go for $300 an hour.

20x4x$300 = $24000 a week.

With averages lets say the center is at full level for 30 weeks out of the year.

$24000x30=$720k

Add in the funds from rent and others and subtract staff and $519K sound realistic if the place is run well.

The questions is...is it run well?

[etc]

I don't know where this quote is from, but it seems appropriate

"Lies, damned lies and Statistics!!!!"

If you transfer the costs of 12 workers, you show a savings.

[wnybillsfan]

There is close to two million dollars in debt on the Pepsi Center that has to be paid annually over the length of the bond for the construction. That has to be factored into the analysis.

[JustRetired]

I don't know where this quote is from, but it seems appropriate

"Lies, damned lies and Statistics!!!!"

If you transfer the costs of 12 workers, you show a savings.

Didn't someone say in another thread that those 12 were transfered there (on payroll) by Kindel to make the center look bad. So transfering them out to correct that..........

I don't now, just saying.

[WNYresident]

I don't know where this quote is from, but it seems appropriate

"Lies, damned lies and Statistics!!!!"

If you transfer the costs of 12 workers, you show a savings.

That could easy add up to $500,000 plus legacy costs once they are in the system. Like hotel california... once you check in you never leave... One difference... the tax payer pays the room cost not the person staying in the hotel

[WNYresident]

There is close to two million dollars in debt on the Pepsi Center that has to be paid annually over the length of the bond for the construction. That has to be factored into the analysis.

What is the life of the current bonds? How much interest yearly does 2 mil cost? I'm curious how long they borrow the money for and what it acutally ends up costing...

[WNYresident]

Didn't someone say in another thread that those 12 were transfered there (on payroll) by Kindel to make the center look bad. So transfering them out to correct that..........

I don't now, just saying.

That couldn't work or happen. If the center can operate without the 12 that were transfered there why were they put there in the first place? How many people would be working current if 12 people were transfered somewhere else.

In either case I can't believe someone would just dump 12 people there just to make something look bad.

[Dvoakley]

You don't know Amherst politics. Kindel bitched and moaned- along with Shelly- until they got their way. Now they have to somehow prove they were right. Call it smoke and mirrors, hook or crook, creative bookkeeping or anything you want - you just don't go from a deficit to $500k surplus in two years. If we had the management that's tracking the P&L figures at the Pepsi Center, if we had them at the Town hall, the Amherst deficit would disappear. I believe the $300.00 per hour rental is a bit of an overreach.

[Super Sleuth]

Just a year ago, February 1, 2006 it was reported in the Amherst Bee that the Pepsi Center was operating at a loss of $932,000. Now a $500,000 profit, has a miracle happened? There has been a $1.5 million turnaround! Does anyone believe that any of the expenses have decreased? What about those $2 million debt payments? Anyone looking at that?


Pepsi Center Finances improve, but facility still in the red for the year
by VICTORIA R. SPAGNOLI Associate Editor


The Pepsi Center is doing better financially than ever before now that it’s under town management, but the facility is still operating at a loss.

After its first year under the oversight of general manager Eric Guzdek, the facility is only $932,000 in the red compared to an operating loss of $1.52 million at the end of 2004, when it was under the management of Sportservice, a subsidiary of Delaware North Cos.

Guzdek presented the 2005 year-end financials to the Town Board during its afternoon work session Monday.

At the end of 2004, the Pepsi Center had an operating loss of $18,470 under Delaware North, not including property tax, depreciation and debt payment on the building. When those are factored in, the loss was actually $1.52 million.

The town took over management of the facility in 2005. Early on, Guzdek had estimated the Pepsi Center would end the year in an operating loss of about $750,000.

However, the facility ended the year with a loss of about $932,000 — including the property tax, depreciation and debt payment on the building.

“We are doing better, but there is no profit,” Guzdek said. Without those three items included, Guzdek said the facility would have been $562,852 to the good.

“It still is a loss,” said Council Member Shelly Schratz, “but if we had kept Sportservice, the loss would have been greater than today.”

One big expense pointed out by Guzdek was the facility’s utility costs. In 2005, for gas, electric and water, the Pepsi Center paid $580,641. That is not passed on to tenants, he said. The town is subsidizing the utilities.

That is a concern to some board members, who vowed to take a serious look at rents, including utilities in upcoming lease agreements.

And while many board members were pleased with the overall improvement, some were still worried. Supervisor Satish Mohan said he’s happy the center is turning around, but “I’m sure it can be done better.”

“Why can’t we act like a business,” he said. “A business with a $17 million investment should be making money.”

Guzdek said the town subsidizes much of the facility’s use by five “preferred” organizations. These groups pay less than the “nonpreferred” rate of $180 per hour but take up about 80 percent of the ice time.

He said the subsidy makes it equal to what the town does for other recreation teams, such as little league and soccer.

[amherstfirst]

Can't anyone get a copy of the income statement and post it here so we can see it with our own eyes??? I doubt the numbers are right. From a loss of $500,000 to a profit over $500,000 is a million dollar swing with no explanation as to how this occured? That wouldn't fly in the real world so why does it in the Amherst Board room?????

[Dvoakley]

Wonder who - or how - Shelly got to the news to print such a favorable editorial re the Pepsi Center. They did it with no fact checking. It really gets me that they just accept what they are told. Jeez!

[TheRightView]

Wonder who - or how - Shelly got to the news to print such a favorable editorial re the Pepsi Center. They did it with no fact checking. It really gets me that they just accept what they are told. Jeez!

What do expect from such star reports like Dolan and McCarthy, anyone who works with them has to rise to a level equal with them.

[dfsmad]

Can't anyone get a copy of the income statement and post it here so we can see it with our own eyes??? I doubt the numbers are right. From a loss of $500,000 to a profit over $500,000 is a million dollar swing with no explanation as to how this occured? That wouldn't fly in the real world so why does it in the Amherst Board room?????

If I read the article correctly--I don't think they said they made 500,000 dollars profit. I think the article said there was a loss of $932,000 compared to an operating loss of $1.52 million at the end of 2004, when it was under the management of Sportservice, a subsidiary of Delaware North Cos. They improved the bottom line loss by 600,000 dollars in comparison---not made a profit of 500,000--they still have a loss and are not saying they don't, best I can tell. Although that is a great accomplishment, they still have room for improvement based on the original costs and their current leasing agreements.