Core Entertainment Updates

[SteelTown]

HECFI sounds a new high note
Rotten floorboards aside, it's been a banner year of big shows and big sales

August 23, 2008
Brent Lawson
The Hamilton Spectator

Hamilton's city-run entertainment complex is on target for arguably its best year ever.

Success in attracting an unprecedented parade of sought-after stars and popular shows has boosted fortunes for the Hamilton Entertainment and Convention Facilities Inc. (HECFI), which operates Hamilton Place, Copps Coliseum and the Hamilton Convention Centre.

Hamilton residents could be excused for engaging in some name-dropping these days: The Who. Cirque du Soleil. Annie, Hairspray and other top Broadway shows. All are slated to entertain local audiences in the next several months.

This week, it was music icon Bob Dylan at Copps Coliseum.

In March, a show by legendary rocker Bruce Springsteen became the top-grossing act in the 23-year history of Copps, with nearly $2 million in ticket sales.

The number of performances also shows a healthy increase at Hamilton Place and Copps Coliseum. Convention Centre revenues are up 28 per cent in three years.

Overall, HECFI is projecting a surplus of $100,000 for 2008.

"Two thousand and eight will go down as the best year for HECFI," said Duncan Gillespie, HECFI chief executive officer. "Best, in my estimation, is the combination of financial success and engendering pride on the part of Hamiltonians in these facilities."

This year's success is a continuation of what has become a remarkable turnaround in the fortunes of the entertainment complex. At one point, consideration was given to renaming HECFI and rebranding the corporation because of the buildup of negative connotations.

It also appears earlier changes are now paying dividends. In 2006, HECFI restructured its sales, programming and advertising and marketing departments.

Gillespie said there's more than money at stake in determining the true value of Hamilton Place and Copps Coliseum.

"It makes you a world-class city. It puts you on the map. It makes you proud to live in this city. It attracts people to come and live in this city."

The health and well-being of HECFI is important because residents help subsidize its operations (about $2.5 million a year); the more successful it is, the less assistance is needed from taxpayers. Concerts can also attract thousands of people to the downtown, providing economic spinoffs.

Climbing the financial ladder has been a challenge because even the most successful shows may only translate into modest revenue for the venue, says Marvin Ryder, a lecturer in marketing at McMaster University. He said HECFI will continue to rely on the city's subsidies.

"Duncan Gillespie and the board should be given credit for snagging a number of events. These are good, and they do add value. But no one should get it in their heads that at the end of the year there's going to be a true profit," said Ryder, a member of the HECFI board from 1990-96.

"If people ... think all that success now means we don't have to subsidize them ... no. They make some money out of these, not huge bucks. A concert that brings in $2 million in ticket revenue, (the) actual amount that goes to the venue may only be $25,000."


By the numbers

HECFI financial results: revenue, expenses, including city hall subsidy

2005: $549,000 deficit

2006: $38,000 surplus

2007: $64,000 surplus

2008: $100,000 surplus

(projected)

Performance dates at Hamilton Place (number of performances)

2005: 115

2006: 126

2007: 138

2008: 160 (projected)

Performance dates at Copps Coliseum

2005: 92

2006: 109

2007: 141

2008: 160 (projected)

Convention Centre, total revenue

2005: $2.88 million

2006: $3.25 million

2007: $3.61 million

2008: $3.7 million (projected)

(28 per cent increase from 2005 to 2008)