Finance Department
Memorandum
DATE:
August 20, 2014
FROM:
Tom Duensing, CPA, Director, Finance and Technology
SUBJECT:
IceArizona Manager Co LP - FY14-15 Budget Package
Summary
On May 30, 2014, the City received the proposed Fiscal Year 2014-15 (FY14-15) budget
from the IceArizona Management Co. LP, (IceArizona). In accordance with Section 8.14
(Annual Budget) of the Professional Management Services and Arena Lease Agreement
(Agreement), the City did not approve the proposed Annual Budget due to reasons
outlined in a June 12, 2014 letter (Attachment 1) and requested that IceArizona work
with City staff and submit a revised budget.
A revised budget was submitted by IceArizona on July 24, 2014. This information, along
with information provided by IceArizona staff, was used to develop newly forecasted
revenues which could then be compared with the current FY14-15 City Arena budget
figures. Based on this comparison, no adjustment to the City budget will be made at this
time. Further, the City accepts the submitted budget from IceArizona for the fiscal year
ending June 30, 2015. It is our goal to work with IceArizona to ensure future budget
processes are smooth and timely going forward.
It is important to know that the revised revenue estimates do not include revised revenues
due to the proposed naming rights agreement with the Gila River Indian Community
announced by IceArizona on August 13, 2014. Initial estimates provided by IceArizona
would increase the total naming rights revenues.
Highlights of the IceArizona and City budgets, relative to the agreement, are summarized
below.



The total FY14-15 revised budget deficit is $8,798,122 versus the adopted budget
deficit $8,646,089 as detailed in Attachment 2
The methodology of the revised FY14-15 revenues from IceArizona is detailed in
Attachment 3
Attachment 4 is the revised FY14-15 budget submitted by IceArizona and used to
prepare the revised FY14-15 revenue estimates
1
Detailed Information
On July 15 and July 24, 2014, City staff met with Stephanie Johnson, Controller for the
Arizona Coyotes to discuss the proposed FY14-15 budget submitted by IceArizona on
May 30, 2014. As a result of these meetings, each of the items outlined in the June 12,
2014 letter were addressed as follows.



The management fee of $15 million is now included in the budget submitted to
the City as requested. This fee is a requirement of the Agreement with the City,
and based on the submitted budget, a like amount is budgeted as Distribution to
Holdings. IceArizona’s Working Capital Funding from the Team is budgeted at
$5,769,196.
The Capital Improvement Contribution of $500,000 is now included on the
budget sheet submitted by IceArizona. This is not presented as a budgetary line
item as it is reimbursed capital improvements per Section 11 Capital
Improvements of the Agreement based on approval from the City. The budget
also included a detailed breakdown of capital improvement requests that total
$500,000 that will need to be further reviewed and approved by the City before
moving forward with the improvements.
As stated in the June 12, 2014 letter, the City developed a budget template that
captured the necessary elements of a budget that meets the standards set forth in
the Agreement. This template provides the information needed for the City to
accurately forecast the City’s budgetary revenues and expenses received from
and paid per the Agreement. This template detailed the projected revenues the
City receives from ticket surcharges and parking revenue from hockey and nonhockey events, naming rights, and other revenues to ensure the City accurately
projects the excess or deficiency of the Arena Agreement for FY14-15. The
FY14-15 budget estimates for this template were a result of a collaboration of the
City’s historical revenue and expenditure information as well as input from
IceArizona.
Attachment 2 compares the City’s adopted FY14-15 Budget for the Arena Agreement and
FY14-15 Budget Template, again with input from IceArizona. The results are as follows.



The total FY14-15 City adopted Arena Agreement Revenue Budget is
$6,853,911 compared with revised estimated revenues of $6,701,878. This
includes base rent for the arena, ticket surcharges and parking revenues for
hockey and non-hockey events, naming rights, unrestricted General Fund sales
taxes at the Arena and reimbursed public safety expenditures. The expenditures
include the $15 million arena event management fee and the potential $500,000
capital improvement expenditures.
The total FY14-15 City adopted deficiency of revenues over expenditures budget
is $8,646,089 compared with a revised estimated deficit of $8,798,122
(highlighted in pink on Attachment 2). This is a difference of $152,033
Attachment 3 is the detailed FY14-15 Budget Template which includes revenue
estimates for ticket surcharges, supplemental surcharges, and parking for Hockey
Events and Non-Hockey events. This provides the detailed data for the
$6,701,878 revised revenue estimate. The Budget Template estimate was a result
of actual FY13-14 activity for Hockey and Non-Hockey events as well as input
from IceArizona.
2

As a result of a lower revenue projection and unchanged expenditure estimates,
the projected deficit is now $152,033 higher than the City’s FY14-15 adopted
budget. However, no adjustments will be made to the City’s budget at this time.
Overall, revenues for hockey are coming in as planned. Parking, non-hockey event
revenue, and naming rights continue to be a concern and staff is currently working with
the IceArizona to address these issues.
The IceArizona FY14-15 Budget (Attachment 4) that was submitted (and subsequently
revised) is only for Arena Manager revenues and expenditures; not the operation of the
hockey team. The submitted budget complies with the requirements of the Agreement.
The City will continue to monitor Agreement revenues and expenditures. Additionally,
the City released a letter dated June 3, 2014 of our intent to audit Arena and Team Owner
operations for FY13-14. We anticipate the audit to be completed this fall.
Attachments
3
ATTACHMENT 1
June 12, 2014
Anthony LeBlanc
President and CEO
lceArizona Manager Co LP
Arizona Coyotes Hockey Club
9400 West Maryland Avenue
Glendale, Arizona 85305
Dear Mr. LeBlanc,
On May 30, 2014, the City received your proposed Fiscal Year 2014-15 Annual Budget. This was within
the May 31 due date.
In accordance with Section 8.14 (Annual Budget) of the Professional Management Services and Arena
Lease Agreement (Agreement), the City does not approve the proposed Annual Budget and hereby
requests that lceArizona Manager Co LP work with City staff and submit a revised budget. The primary
reasons for the disapproval include:
• The Management Fee of $15 million payable from the City to lceArizona Manager is not
identified anywhere in the budget.
• The Capital Improvement Contribution of $500,000 payable from the City to lceArizona Manager
is not identified anywhere as revenue in the budget. Please note, the individual Capital
Improvement items, per Section 11Capital Improvements, must be approved separately.
• A budget for the following items is not separately identified. We request that these items be
included in the Annual Budget, in detail, in order for the City to properly budget and forecast city
revenue from the agreement.
o Total parking revenue and subsequent amounts remitted to the City from both hockey
and non-hockey events
o Ticket surcharge revenue and subsequent amounts remitted to the City from both hockey
and non-hockey events
o Naming rights revenue and subsequent amounts remitted to the City from both hockey
and non-hockey events
o Annual rent, safety, and security amounts remitted to the City for both hockey and nonhockey events
City of Glendale
www.ci.glendale.az.
us
4
To assist you in understanding the City's concerns and how they may be alleviated, the City will be
forwarding a draft budget template that we believe captures the necessary elements of a budget that
meets the standards set forth in the agreement, including consistency with Appendix G of the
agreement. In order to ensure compliance, avoid untimely delays, and clarify expectations, Iwill be
contacting Stephanie Johnson with lceArizona Manager to set up a meeting. Any assistance that you
may offer in scheduling the meeting timely would be appreciated.
If you have any questions, please feel free to contact me at (623) 930-2116 (office) or (480) 734-6953
(cell).
Respectfully,
Tom Duensing, CPA
Financial Services Executive Director
cc:
Avik Dey, General Partner
Stephanie Johnson, Controller
Brenda S. Fischer, ICMA-CM, City Manager
Nicholas J. Wood, Snell & Wilmer L.L.P.
Joyce Kline Wright, Snell & Wilmer L.L.P.
&LW\of Glendale
ZZZFLJOHQGDOHD]XV
5
ATTACHMENT 2
Comparison of FY14-15 Budget to FY15 Budget Template
FY14-15 Budget
FY14-15 Budget
Template
FY14-15 Budget
to Template
Variance
Revenue - Arena Agreement
Hockey:
Ticket Surcharge ($3.00 each)
Sup. Ticket Surcharge ($1.50) (1)
Parking
Sub-Total Hockey Events
$
1,553,490 $
820,000
2,373,490
1,635,000 $
817,500
768,060
3,220,560
Non-Hockey Events:
Ticket Surcharge ($5.00 each) (2)
Sup. Surcharge ($1.50 each)
Parking (3)
Sub-Total Non-Hockey Events
1,725,000
1,423,125
3,148,125
1,100,000
330,000
640,500
2,070,500
(625,000)
330,000
(782,625)
(1,077,625)
Base Rent
Naming Rights (4)
Safety & Security Reimb.
General Fund Sales Tax
Total Revenues -Arena Agreement
500,000
108,000
283,470
440,826
6,853,911
500,000
60,000
409,992
440,826
6,701,878
(48,000)
126,522
(152,033)
(500,000)
(15,000,000)
(15,500,000)
(500,000)
(15,000,000)
(15,500,000)
Expenditures - Arena Agreement
Arena Events Capital Maintenance
Arena Events Management Fee
Total Expenditures - Arena Agreement
Excess (Deficiency) - Arena Agreement
$
(8,646,089) $
(8,798,122) $
81,510
817,500
(51,940)
847,070
(152,033)
NOTES:
(1) The City did not budget for supplemental ticket surcharges to be conservative.
(2)The FY14-15 Budget was based on original Renaissance Sports & Entertainment, (RS&E) estimates (23
events with 15,000 attendees per event).
(3)The FY14-15 Budget was based on original RS&E estimates (23 events with 5,500 cars per event).
(4) The FY14-15 Budget was based on actual amounts received through January 2014 (the initial year of
the agreement).
6
ATTACHMENT 3
IceArizona Manager Co, LP
dba Jobing.com Arena
FY14-15 Budget Template
Category
Annual rent
Hockey Event Parking Paid to City
Non-Hockey Event Parking Paid to City
Naming Rights Paid to City
City Ticket Surcharge Hockey Event
City Ticket Surcharge Non-Hockey Event
City supplemental surcharge income
Subtotal Management Agreement
Summary Amounts Paid to City of Glendale
Amount
Calculation per Agreement
Notes
$
500,000 $500,000 per year
Goes up to $650,000/year in FY18-19
768,060 gross less $20,000/event
Gross est. is $14.65 average per vehicle on Arena Property
640,500 gross received X 75%
Gross est. is $17.50 average per vehicle on Arena Property
60,000 Contract Amount X 20%
1,635,000 $3.00/ticket
1,100,000 $5.00/ticket
1,147,500 $1.50/ticket
5,851,060
City annual safety and security fee
City hourly security costs police
City hourly security costs fire
Subtotal Safety & Security
156,948 City police/fire actuals
200,000 reimbursement
53,044 reimbursement
409,992
6,261,052
Total amounts paid to City of Glendale
440,826
General Fund Sales Tax Estimate
Total Revenues - Arena Agreement
$
6,701,878
Example: Hockey Event, Non-Hockey Event, and Naming Rights Revenue Calculations
Hockey Event Revenue
Parking - Hockey
# of
Events
2
18
23
-
Date
43
Hockey Events
Pre-Season *
Regular Season - Premier Games
Regular Season
Post-Season *
Number of
Vehicles
No. Tickets/
Parked/Event
Event
1,200
6,000
2,600
13,000
2,600
13,000
-
Total Hockey Parking Revenue
6,400
32,000
Parking Gross
Less $20,000
Receipts
per event *
$
35,160 $
(8,790)
$ 685,620 $ (360,000)
$ 876,070 $ (460,000)
$
- $
$ 1,596,850
Ticket Surcharge - Hockey
$1.50
Supplemental
Net Revenue $3.00 Surcharge Surcharge per
to City
per Ticket
Ticket
$
26,370 $
36,000
18,000
$ 325,620 $
702,000
351,000
$ 416,070 $
897,000
448,500
$
- $
-
$ (828,790) $
768,060
$
1,635,000
$
817,500
* For Pre-Season & Post-Season events, the city receives 75% in gross parking receipts.
Non-Hockey Event Revenue
Parking - Non-Hockey
# of
Events
1
1
1
1
1
6
5
4
2
5
2
3
32
Date
8/9/2014
8/30/2014
8/31/2014
9/25/2014
11/12/2014
Non-Hockey Events
Justin Timberlake 20/20 Experience
Marc Anthony Cambio de Piel 2014
Ed Sheeran Multiply ("x") Tour
Katy Perry Prismatic World Tour
Judas Priest
Total Gross
Receipts
$
45,500
$
31,500
$
31,500
$
45,500
$
26,250
Less 25% of
Revenues
Per Event
$
(11,375)
$
(7,875)
$
(7,875)
$
(11,375)
$
(6,563)
Ticket Surcharge - Non-Hockey
$1.50
Supplemental
Net Revenue $5.00 Surcharge Surcharge per
to City
per Ticket
Ticket
$
34,125 $
70,000
21,000
$
23,625 $
40,000
12,000
$
23,625 $
40,000
12,000
$
34,125 $
70,000
21,000
$
19,688 $
25,000
7,500
14,000
8,000
4,000
6,000
2,800
2,500
$
$
$
$
$
$
$
273,000
157,500
84,000
45,500
43,750
17,500
52,500
$
$
$
$
$
$
$
$
$
$
$
$
$
$
204,750
118,125
63,000
34,125
32,813
13,125
39,375
$
$
$
$
$
$
420,000
200,000
80,000
60,000
70,000
25,000
86,300
$
854,000
$ (213,500) $
640,500
$
1,100,000
Number of
Vehicles
Parked/Event
2,600
1,800
1,800
2,600
1,500
No. of
Estimated
Tickets
14,000
8,000
8,000
14,000
5,000
2,600
1,800
1,200
1,300
500
500
1,000
Premier Events
Other Events (Lower Bowl sales only)
Theater Events
Sports Events (i.e. PBR, Nitro Circus)
AIA High School Basketball
Family Shows (i.e. Harlem Globetrotters)
Other Events
Total Non-Hockey Parking Revenue
19,200
Naming Rights
Naming Rights
Gross Naming Rights Revenue Received
20% Due to City
$
$
Naming Rights - City Stage
$
300,000
60,000
-
7
(68,250)
(39,375)
(21,000)
(11,375)
(10,938)
(4,375)
(13,125)
126,000
60,000
24,000
18,000
21,000
7,500
$
330,000
ATTACHMENT 4
IceArizona Manager Co, LP
dba Jobing.com Arena
Annual Budget
For the Fiscal Year Ending June 30, 2015
REVENUE
Rental and Co-pro. Revenue
Other Revenue
Reimbursed Labor
Reimbursed Expenses
Management Fee
1,549,042
2,467,684
1,937,000
1,071,800
15,000,000
Total Revenue
22,025,525
EXPENSES
Event Labor
Event Expenses
Total Event Expenses
2,941,996
2,598,945
5,540,942
Non-Event Expenses
Guest Services
Security
Parking
Housekeeping
Facilities/Engineering
Operations/Conversions
Arena Hockey Operations
Marketing and Booking
Box Office
Productions
Executive Management
Total Non-Event Expenses
103,200
725,737
252,557
414,125
2,308,418
451,478
141,477
105,539
117,189
437,901
965,293
6,022,913
Overhead Allocation
Finance & Administration Allocation
IT Allocation
Executive Allocation
Legal Allocation
Total Overhead Allocation
390,074
344,793
411,070
84,929
1,230,866
Total Expenses
12,794,721
Distribution to Holdings
Working Capital Funding from Team
(15,000,000)
5,769,196
NET OPERATING PROFIT / (LOSS)
0
Renewal & Replacement - Funded by COG
$
8
500,000
IceArizona Manager Co, LP
dba Jobing.com Arena
Event Income Budget
FY 2014/2015
REVENUE
4000 Arena Rent
4140 Individual Suite Rentals
8900 Ticket and Rental Taxes
864,235
767,500
(82,694)
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
1,549,042
Total Rental and Co‐Pro. Ticket Revenue
Other Revenue
726,800
100,100
6,750
1,406,000
214,033
14,000
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
2,467,684
4300 Concessions Royalty
4310 Merchandise Royalty
4260 Event Sponsorships
4710 TM Convenience charge %
4755 Parking Fee Income
4760 Facility Fee
Total Concessions and Other Revenue
Reimbursed Labor
4800 Reimbursed In‐House Labor
4810 Reimbursed In‐House Labor ‐ Coyotes Games
Reimbursed Labor
432,000
1,505,000
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
1,937,000
Reimbursed Expenses
126,500
475,700
392,000
800
38,200
2,000
36,600
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
1,071,800
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
7,025,525
========================
4905 Catering
4910 Stagehands
4915 Advertising
4935 Group Sales Expense
4950 Equipment Rental
4965 Commission Programs
4980 Credit Card Fees
Total Reimbursed Expenses
Total Revenue
EXPENSES
Event Labor
421,379.44
828,739.92
235,348.00
508,175.81
207,793.34
31,979.24
234,080.71
474,500.00
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
2,941,996
Front of House Labor
Medical, Event Security & Police
Production
Housekeeping
Operations/Conversions and Ice Crew
5080 E. PT Labor ‐ Facilities/Eng.
5090 E. PT Labor ‐ Parking Attendants
5340 Contrd Srvs ‐ Stagehands
Total Event Labor
Event Expenses
5802 Promoter Revenue Sharing
5807 Escrow Fee
5806 Catering
5846 Commission Programs
7800 Credit Card Fees
6500 Advertising & Marketing
8000 Equipment Rental
Misc. Show Expenses
Total Event Expenses
Total Expenses
Net Event Income
9
1,959,810.44
42,735.00
126,500.00
1,300.00
37,900.00
392,000.00
38,200.00
500.00
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
2,598,945
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
5,540,942
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
1,484,583
========================
IceArizona Manager Co, LP
dba Jobing.com Arena
Department Operating Budget
FY 2014/2015
Guest Services ‐ 110
5600 Total Salaries and Benefits
80,790
Other Expenses
2,500
4,410
15,500
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
22,410
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
103,200
========================
8100 Operating Supplies
8300 Uniforms/Laundry
8400 Training
Total Other Expenses
Total Guest Services
Security ‐ 130
5600 Total Salaries and Benefits
5500 Non‐Event PT Wages and Taxes
238,521
240,749
Other Expenses
6100 Office Supplies
7400 Repair and Maintenance
7530 Annual City Police Fee
8100 Operating Supplies
8300 Uniforms/Laundry
8400 Training
4,330
31,200
174,122
16,540
3,775
16,500
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
246,467
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
725,737
========================
Total Other Expenses
Total Security
Parking ‐ 140
5600 Total Salaries and Benefits
106,432
Other Expenses
675
24,000
3,000
70,200
30,000
9,750
4,000
750
3,000
750
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
146,125
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
252,557
========================
6300 Membshp Fees/Dues & Subscriptions
7200 Professional Services
7400 Repair and Maintenance
7410 Landscaping Maintenance
7920 Utilities ‐ Water
8100 Operating Supplies
8110 Gas
8120 Light Tower Fuel
8300 Uniforms/Laundry
8400 Training
Total Other Expenses
Total Parking
Housekeeping ‐ 210
5600 Total Salaries and Benefits
5500 Non‐Event PT Wages and Taxes
134,069
78,400
Other Expenses
7400 Repair & Maintenance
7405 Contracted Maintenance
8100 Operating Supplies
8300 Uniforms/Laundry
11,000
68,956
120,900
800
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
201,656
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
414,125
========================
Total Other Expenses
Total Housekeeping
10
IceArizona Manager Co, LP
dba Jobing.com Arena
Department Operating Budget
FY 2014/2015
Facilities/Engineering ‐ 220
5600 Total Salaries and Benefits
5500 Non‐Event PT Wages and Taxes
375,976
46,190
Other Expenses
6000 Postage/Courier/FedEx
7400 Repairs & Maintenance
7405 Contracted Maintenance
7500 Licenses & Permits
7900 Electricity
7910 Gas
7920 Water
8000 Equipment Rental
8100 Operating Supplies
8110 Generator Gas
8300 Uniforms
327,200
199,162
650
1,083,415
79,625
127,700
5,000
60,500
2,500
500
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
1,886,252
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
2,308,418
========================
Total Other Expenses
Total Facilities/Engineering
Operations/Conversions ‐ 230
5600 Total Salaries and Benefits
5500 Non‐Event PT Wages and Taxes
403,968
8,960
Other Expenses
7400 Repairs & Maintenance
8100 Operating Supplies
8300 Uniforms/Laundry
8500 Hotel & Other
8800 Airfare
8800 Meals and Entertainment
11,000
25,400
1,000
450
450
250
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
38,550
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
451,478
========================
Total Other Expenses
Total Operations/Conversions
Arena Hockey Operations ‐ 240
5600 Total Salaries and Benefits
5500 Non‐Event PT Wages and Taxes
88,231 5,746 Other Expenses
6300 Membership Dues & Fees
7400 Repairs & Maintenance
8000 Equipment Rental
8100 Operating Supplies
8300 Uniforms & Laundry
8410 Business Conferences
8500 Hotel and Other
8510 Airfare
8800 Meals and Entertainment ‐ 50%
250 15,700 700 27,700 1,500 350 600 500 200 ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
47,500
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
141,477
========================
Total Other Expenses
Total Arena Hockey Operations
11
IceArizona Manager Co, LP
dba Jobing.com Arena
Department Operating Budget
FY 2014/2015
Booking and Marketing ‐ 300
5600 Total Salaries and Benefits
65,214
Other Expenses
4,500
2,625
19,750
7,750
5,000
100
600
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
40,325
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
105,539
========================
6200 Printing
6300 Membshp Fees/Dues & Subscriptions
6500 Marketing/Advertising
6540 Website Development
7630 Business Gifts
8410 Business Conferences
8800 Meals & Entertainment
Total Other Expenses
Total Marketing and Event Development
Box Office ‐ 400
5600 Total Salaries and Benefits
5500 Non‐Event PT Wages and Taxes
49,585
49,304
Other Expenses
6100 Office Supplies
7405 Contracted Maintenance
7820 Armored Car Service
8100 Operating Supplies
8300 Uniforms/Laundry
3,000
3,300
11,500
500
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
18,300
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
117,189
========================
Total Other Expenses
Total Box Office
Productions ‐ 500
5600 Total Salaries and Benefits
5500 Non‐Event PT Wages and Taxes
306,010
5,376
Other Expenses
46,450
58,095
19,470
1,000
800
450
250
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
126,515
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
437,901
========================
7400 Repairs and Maintenance
7405 Contracted Maintenance
8100 Operating Supplies
8300 Uniforms/Laundry
8500 Hotel and Other
8510 Airfare
8800 Meals and Entertainment ‐ 50%
Total Other Expenses
Total Productions
12
IceArizona Manager Co, LP
dba Jobing.com Arena
Department Operating Budget
FY 2014/2015
Administration ‐ 650
5600 Total Salaries and Benefits
271,246
Other Expenses
1,100
279,796
238,073
2,600
5,000
2,800
5,050
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
534,419
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
805,665
6300 Membership Fees/Dues
7200 Professional Services
8200 Insurance
8410 Business Conferences
8500 Hotel and Other
8510 Airfare
8800 Meals and Entertainment
Total Other Expenses
Total Admin
Finance ‐ 650‐600
FT Taxes and Benefits
27,412
10,900
44,415
101
13,200
1,000
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
69,616
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
97,028
7200 Professional Services
7230 Payroll Processing
7500 Licenses/Permits/Fees
7710 Bank Fees
8100 Operating Supplies
Total Other Expenses
Total Finance
Overhead Allocation (HR & IT) ‐ 650‐610
6000 Postage
6100 Office Supplies
6200 Printing
6420 Telephone ‐ Cell Phones
7200 Professional Services
7730 Drug & Background Checks
8800 Meals & Entertainment (Staff Recognition)
10,000
21,000
2,500
12,600
5,500
8,000
3,000
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
62,600
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
62,600
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
965,293
========================
Total Other Expenses
Total Overhead
Total Administration
Total Department
6,022,913
13
IceArizona Manager Co LP
dba Jobing.com Arena
Sources and Uses of Cash
For the Fiscal Year Ending June 30, 2015
Sources of Cash from Operations
Operating Revenue
$ 22,025,525
Less: Non‐cash Revenue Item: Coyotes reimbursed Labor
Add: Cash Contribution from Team
Add: City of Glendale Renewal & Replacement Contribution
(1,505,000)
5,769,196
500,000
Total Sources of Cash from Operations
26,789,721
Uses of Cash in Operations
Event Expenses
Non‐event Expenses
Capital Expenditures
Renewal & Replacement Capital Repairs/Additions
Distribution to Holdings
Less: non‐cash expenses (overhead funded by Team)
5,540,942
7,253,779
‐
500,000
15,000,000
(1,230,866)
Total Uses of Cash in Operations
27,063,855
Net Cash Requirement $ (274,134)
14
ARENA NEWCO, LLC
dba Jobing.com Arena
Potential Additions and Capital Repairs
For the Fiscal Year Ending June 30, 2015
The following additions are currently under review and have been deemed necessary by the Arena Manager and the Team
This list is meant to serve as a preliminary listing of items the Arena Manager is currently aware of which
may require a Captial Repair as defined in the PMSALA. The Arena Manager contemplates
payment of these Capital Repairs from the Renewal and Replacement account persuant to
the provisions of the PMSALA. Additional Capital Repairs the Arena Manager is not currently aware of
may come to the Arena Manager's attention during the course of the fiscal year and will be submitted to the City accordingly.
Capital Additions
Comments
Amount
Plumbing‐Isolation valve
$ 15,000.00
It is necessary to install an isolation valve on the main domestic cold water loop. This will give us the ability to isolate sections of the building to complete a repair. We currently do not have the ability to isolate the building, and in a needed repair situation, it would be required to drain the entire building.
Purchase Deko/ Chryon Computer
(Character Generator)
60,000.00
The CG computer is used to create animations, characters, and graphics overlay on live video, such as lower 3rd graphics, in‐
game statistics, charts, scores, etc. The new system will have both Standard Definition and High Definition capabilities. Examples of “Industry Standard”systems are Chyron HyperX3, Ross Xpressions, and Avid AMG.
(Graphics Computer)
The new computer will replace the current Pinnacle Deko II. The current system is 10‐years old and is no longer supported by the manufacturer. This system is crucial to live event video production. The age of the computer and graphics system are obvious in its limited graphics and interface capabilities.
315,000.00
Food and Beverage Point of Sale System
IT Point of Sale Data Switches
Replace the existing POS system with state of the art POS system. The average life cycle of a POS system is 5 years, our current system is 10 years old. Over the past 12 months the current POS system has crashed 8 times during sold out hockey games or concerts. The lost revenue associated with a “crash” during an event pales in comparison to future loss in revenue based on a poor customer service experience because a customer(s) do not return to the arena. Currently we are unable to accept credit cards at all locations. Credit cards account for 35% of total tenders. The current concessions data switching network in the arena is end of lifecycle. Replacement of this networking equipment is recommended to keep the current and future points of sale functional. Additional network cabling runs are also needed.
Contingency for emergency repairs
60,000.00
$ 50,000.00
Total Renewal & Replacement for FY 2014/2015
$ 500,000.00 15