Arena manager says new Portland ticket fee could hurt bookings as county absorbs past losses
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Summary
Cross Insurance Arena general manager Mike Locanti told the finance committee the arena is forecasting a roughly $100,000 loss this year but has improved operations and food revenues; he warned that a proposed 2% Portland entertainment fee could make promoters reluctant to book shows here.
Mike Locanti, general manager of the Cross Insurance Arena, told the Cumberland County Finance Committee on Jan. 27 that the arena has made operational strides and increased per-capita food-and-beverage revenues, but still faces a tight year and external policy risk from a proposed City of Portland entertainment fee.
Locanti said the arena has improved concessions, gone cashless and added grab-and-go offerings after recent investments (he cited about $20,000 in infrastructure for new concessions). He said hockey and improved food sales have raised per-capita spending from about $15 to $17, which could add roughly $200,000 in revenue if sustained. Locanti described a conservative revenue forecast that currently projects about a $100,000 operating loss this fiscal year — an improvement from past multi-hundred-thousand-dollar shortfalls.
County staff described the venue's governance history: the arena was built with a special state law and a trustees board in the late 1970s, and the county moved management fully under county control in 2017 after years of losses. A citizen-approved bond in 2012 financed a rehabilitation project estimated at about $33 million, and the county now handles any end-of-year operating shortfalls.
Committee members asked how a proposed City of Portland entertainment license imposing a 2% ticket fee might affect bookings. Locanti said promoters have called with concerns that additional ticket fees could make the venue less competitive compared with other markets and could dissuade promoters from scheduling events. "We can't have that," he said, describing promoter pushback and the possibility that agents might steer shows elsewhere. Locanti said staff are discussing ways to absorb some costs for specific events to avoid losing bookings, but cautioned that sustained absorption would erode margins and could require county support.
Locanti also outlined staffing and cost structure: the arena employs 13 full-time staff and about 173 part-time event workers who are called in for events. He said promotions, sponsorships and food-and-beverage splits are the primary drivers of arena revenue.
What happens next: arena management will continue to update county staff and commissioners on bookings and the effect of Portland's entertainment fee as implementation discussions proceed. The finance committee will consider arena budget recommendations as part of the county budget process.
