Cross Insurance Arena posts stronger-than-expected May, projects conservative $512,000 loss for next fiscal year

Cross Insurance Arena manager Mike Loconti told the Cumberland County Finance Committee on July 13 that the arena outperformed the budget through May and that he is proposing a conservative operating budget for the next fiscal year that projects a $512,000 loss. Loconti said an unexpectedly busy event schedule in the months after pandemic restrictions eased produced the swing.

The arena’s manager said, “We broke records in May,” and explained that the facility hosted three college graduations (almost 20,000 people total that month), a Chicago concert, Megadeth, family shows including Trolls, and Blue Man Group. Loconti said those events produced about $57,000 in event rental revenue in May against a budgeted $86,000 loss for the month, a variance he described as roughly $143,000. He also reported roughly $48,000 in other income (sponsorships and ticketing fees) and lower-than-budgeted direct expenses ($171,000 actual vs. $195,000 budgeted), which together produced a strong monthly result.

Why it matters: The May results narrowed what had been a projected annual loss. Loconti said the 11-month view through May showed a budgeted loss of about $750,000 for the year but an actual positive position of about $191,000 — a variance of roughly $949,000 from the original plan. Despite that performance, Loconti said he set a conservative projection for the coming fiscal year because event volume is uncertain: “I said we’re gonna have 100 events the next fiscal year. That’s not guaranteed,” he told the committee.

Details and supporting facts: Loconti described one show, an urban act promoted as “Hot Summer” (Russ and YG), that produced an unusually high concessions per-capita figure. “I was budgeting maybe $10 per person, and we topped out at about $24 a person,” he said, underlining how a few higher‑spending audiences can materially change revenue. Loconti also summarized capital items outside the operating statement: a digital exterior marquee being coordinated with the city and funded from ARPA revenue loss funds, a new audio system (about $80,000) and a Wi‑Fi upgrade (about $20,000).

Alex Kimball, deputy manager of finance and administration, clarified how arena numbers feed county presentations and confirmed that the arena operating results include the management fee. “That 202,000 is actually already in the net operating income of 191,278,” Kimball said when the committee reviewed the financial sheets.

Loconti said he expects the arena’s event mix and the industry’s touring schedules to remain the largest variable for future performance. He told the committee he deliberately made next year’s budget conservative — both to avoid overstating revenue and to prevent creating a future cliff if bookings do not materialize. “My job…is the bottom line,” he said. He added that he is continuing active efforts to book more shows (he cited goals of 119–124 events as a stretch target) and to diversify the calendar, including smaller-format shows made possible by a new half-house curtain and a planned Comic Con event in spring.

What the committee will do next: Committee members asked several operational and revenue questions about concessions pricing, insurance pass‑throughs, and staffing capacity. No formal vote or budget adoption took place at the July 13 meeting; the presentation was informational ahead of the formal budget process in September.

Ending: Loconti encouraged committee members to contact him with follow-ups and said he will continue to refine bookings and projections as contracts firm up. The committee’s next full review of the fiscal-year budget is expected in the fall when county staff present the 2023 budget materials to the committee.