As construction crews put the finishing touches on XL Center’s state-subsidized, $35 million facelift, downtown Hartford’s premier entertainment venue is still recovering from a rough fiscal 2014.
The facility, which is home to UConn men’s and women’s basketball and the Hartford Wolf Pack, recorded a $3.8 million net operating loss in the 12 months ending June 30, according to the Capital Region Development Authority’s recently released 2014 annual report.
The building was negatively impacted by several factors, the report said, including a management transition that led to one-time expenses and a diminished marketing window early in the year. Philadelphia’s Global Spectrum took over XL Center’s management from AEG Management CT in July 2013, and was tasked with bringing more events and patrons to the facility. Global, however, has spent much of its management rein so far overseeing XL Center’s $35 million makeover, which started in July and will wrap-up this fall. The renovations aim to extend the life of the 40-year-old facility for another decade by making mechanical and other fan-friendly improvements including the addition of a new fan bar, and a refurbished concourse, locker rooms, and restrooms.
XL Center also hosted fewer and lower attended UConn basketball games last year, despite both the men’s and women’s teams winning national championships. Other factors that impacted the facility’s operating margin include: a reduction in naming rights due to UConn’s change in athletic conferences, the number of games played in the building, and the change in UConn’s opponents.
Fiscal 2014 was the first year UConn played in the newly formed American Athletic Conference (AAC), which doesn’t include many of the long-time rivals — Syracuse, Georgetown, Pittsburgh — that drew sold-out crowds at XL Center.
CRDA’s annual report characterized fiscal 2014 as a “difficult year” for the facility, but the hope is things will get better.
CRDA said it has signed a new five-year lease with UConn men’s and women’s basketball and hockey. As part of the agreement, XL Center will market and sell UConn events as a supplement to the school’s general sales efforts, in a bid to fill more seats and boost revenues. The AAC will also be hosting its men’s basketball conference tournament at XL Center next March, which should draw good crowds.
Meantime, the recent repeal of the state admissions tax will lower XL Center’s costs, which should help the building’s financial performance as well, CRDA said.
– Greg Bordonaro
