SJSE Financial Results - May 31, 2008

The financial results for the year ending May 31, 2008 for St. John's Sports & Entertainment Limited (SJSE) were tabled at city council a few weeks back.

I've now had a chance to read this document and make the following comments:-

For the first time in its exisitence, SJSE provided a surplus ($109,994) for their shareholders - the citizens of St. John's!

We must be careful when interpreting this surplus. Note I do not use the word "profit". I find it very difficult to justify the use of this word when the organisation in question receives a $2 million subsidy (or as SJSE like to call it "an operating grant") from their shareholders.

This subsidy was increased by $500,000 for the just completed financial year, meaning that their overall performance was only $30,000 better than their 2007 financial result - a loss of $639,596.

The results include the final year of operations with the Fog Devils.

I know efforts have been made by SJSE to become more efficient and to promote themselves as an "Entertainment Centre", so they must receive some acknowledgement of these endeavours.
The challenge for them is to create an operation where Mile One Centre is utilised for as many days as possible while keeping their costs in check. They have become a little more pro active in seeking out concert promoters (about 17 dates booked for this current financial year) and trying to create other activities for the Centre. More has to be done and citizens require an update by the new year as to the actual running costs of the facility and what size of subsidy is required. The current $2 million subsidy was requested as a one-time payment but was renewed by council at the same level for the 2008/09 year.

Also not to be overlooked is the fact that the Convention Centre is still making a loss. This year it is $63,212. This continues the trend of the facility not covering its costs since its inception. This centre's operations has to be reviewed and, I believe, the current management contract that is in the hands of the same people who operate the Delta Hotel has to end. SJSE should operate the facility themselves. The Centre also need to be refurbished and redesigned to provide a more flexible facility thus enabling more conferences and conventions to be held within it.

The 2008 surplus is a welcome result but SJSE still have a way to go before the citizens of St. John's can feel they know the true costs of running Mile One Centre and the Convention Centre.

By the way...SJSE's deficit is now $7,988,627...that is, nearly $8 million dollars.