PREMIER Center hits $1.1 million net operating income
The financial health of the Denny Sanford PREMIER Center is in great shape after the venue’s first six months of operations.
Factoring in ticket sales, sponsorships, facility rental fees, food and beverage, and other revenue sources, the Denny Sanford PREMIER Center is financially in the black after the first six months with net operating income of $1.1 million.
The high revenue means a huge economic impact for the community as well—more than $962,000 in direct sales taxes has been paid to date from operations at the venue.
“We are absolutely thrilled with these financial results through this first si x-month period. Our first projections nearly four years ago that this new venue would operate in the black were met with great skepticism by many. This financial report gives the skeptics more than a million reasons to become believers,” says Tracy Turbak, Finance Director for the City of Sioux Falls.
The financial results are directly related to the tremendous event activity since the grand opening concert on October 3, 2014. To date, there have been 11 sold-out events, including seven sold-out concerts. Nearly twice as many pop/rock acts have been booked as country music concerts. For the first time in state history, international touring events Cirque du Soleil and Professional Bull Riders (PBR) have come to South Dakota, and they are coming back again.
More than 400,000 people have attended events at the PREMIER Center through the end of March, including concerts, sporting events, and family shows. Original estimates by venue staff pegged total first year attendance at 500,000. There have been 94 individual events that have been held so far in the PREMIER Center, with an average of one event every other day during that time span.
The success of ticket sales at the facility has led to great interest from concert promoters, who see Sioux Falls’ new arena as a desirable location to bring concerts. Just three months after opening, the PREMIER Center was nominated by concert industry professionals for the prestigious Pollstar Awards as one of the Best New Major Concert Venues in the world, competing against only three other facilities in some of the world’s largest media markets including Los Angeles, New York, and Glasgow, Scotland. The award ultimately went to the refurbished Forum in Los Angeles.
6 Month Statistics
$1.1 million net operating income $962,383.40 sales tax payable
408,807 attendance (October 3, 2014-April 2, 2015- not including Grand Opening events) 94 event dates (includes multiple events in one day) 11 sold-out events 8 total pop/rock concerts 5 total country concerts 32 basketball games