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Cross Insurance Arena GM reports narrowing losses, seeks ARPA and capital upgrades
Summary
Arena general manager Mike Locanti told the county finance committee the venue reversed a projected $980,000 loss in 2021–22 to finish about $36,000 positive; the trustees' budget for 2023–24 currently projects a $512,000 operating loss while requesting ARPA-funded capital including a marquee, Wi-Fi and a deployable generator solution.
Mike Locanti, general manager of the Cross Insurance Arena, told the Cumberland County Finance Committee on Oct. 12 that the arena is diversifying events, improving ancillary revenues and trimming losses after the pandemic.
Locanti said last year’s projected $980,000 loss was reduced and the arena finished the fiscal year about $36,000 in the black. For the 2023–24 trustees’ budget, he reported projections of about 100 events, operating and ancillary revenues of roughly $1.4 million, other income (advertising, naming rights, suites) of about $650,000, and indirect operating costs of about $2.6 million, leading to a projected net loss of $512,000.
He described capital priorities: an arena marquee to boost visibility and messaging; a completed Wi‑Fi upgrade that now covers production and dressing rooms; and plans for eventual sound-system work. Locanti said suite and luxury-suite revenues were lower in recent actuals but that the first three months of the current year were off to a stronger start.
Committee members questioned large capital requests funded through ARPA and other sources. Manager Jim Gailey and others explained that some ARPA items—such as a generator and an airlock—derive from planning during the pandemic when the arena was evaluated as a possible alternate hospital site. Gailey said a previously estimated full standby-generator option became cost‑prohibitive (he cited an engineering estimate that rose to $22,100,000 and was canceled) and that staff now plan a lower-cost “plug-and-play” solution to allow portable generators to connect quickly to the arena electrical grid. The trustees’ budget includes a $700,000 line for generator work and an $85,000 airlock estimate, though Gailey said the $700,000 figure may decline as staff refine options.
Locanti said a management incentive fee in the trustees’ budget is calculated from financial performance, food-and-beverage metrics and qualitative promoter feedback. Committee members asked how long the arena is expected to run at a loss and were told that a general manager must forecast conservatively while booking events; staff noted the arena’s fiscal year (July–June) will remain unchanged.
No formal committee vote was taken on the Cross Insurance Arena presentation on Oct. 12; members asked staff to provide further details and follow up during upcoming budget deliberations.
