St. John's Sports & Entertainment

St. John's Sports & Entertainment(SJSE) tabled its financial results for the period ended December 31, 2008 in council chambers on April 13. This is for the 7 month period of June - December 2008.

The result is "earnings from operations " of $661,193. Note the word "profit" is not used.

This is good news. However a perspective is required.

The above result includes a city subsidy or "operating grant" of $1,200,000! Therefore without the subsidy SJSE would be reporting a loss of approximately $500,000. A half-million dollars.

Because of this "surplus" SJSE debt is reduced to $7,327,434 but once again, this is a meaningless figure as it is the citizens of St. John's who are funding this debt. By this I mean, if the 2008 subsidy had only been $500,000, SJSE's debt would not have reduced at all. The debt only reduced because the city's subsidy was so high.

If it wasn't for the city's subsidy, SJSE would have a debt that would now be approaching $16,000,000 ( 16 million).

It is heartening that SJSE has made a concerted effort to attract non-hockey events into Mile One Centre and we can only hope this trend continues. Concert promotions have aided the bottom line as did action to reduce operating costs (including staff).

It appears SJSE does need a hockey franchise within Mile One Centre before a city subsidy is no longer required - or reduced.

I do congratulate the staff and board of SJSE for achieving the above financial position and improving their operating efficiency. However there is still a way to go and other costs, such as capital expenditures for the stadium and maintenance of the building may change the financial picture rather quickly.