Black River Coliseum struggles to stay profitable

POPLAR BLUFF, Mo. -- Poplar Bluff paid less than $28,000 in artist fees to host new country music artist Miranda Lambert in 2010 on her first headlining tour.

Lambert's fee had climbed to $350,000 by the time she performed in Cape Girardeau in 2015.

This is one example of the challenges the Black River Coliseum faces in trying to book events, advisory board members say.

The coliseum's financial picture has seen scrutiny from city officials in recent months. A special city council meeting has been scheduled for Wednesday. An agenda stated the council will meet with the Black River Coliseum advisory board for a planning session to discuss finances.

Advisory board members say there is no easy "fix" for making the coliseum more profitable.

Booking a big name can be a risk and no guarantee the public will attend, said board chairman Jeff Shawan, who has been on the board for nearly 10 years.

"An event can appear to be a wonderful prospect," he said. "I love it that we bring significant entertainment events to Poplar Bluff. But in all honesty, caution has to be the word in the ones we choose."

Lambert's artist fee today would be equal to nearly 40 percent of this year's budgeted expenses. It's a show that would require premium ticket prices.

The lowest-priced ticket at Cape Girardeau was almost $40, and the Show Me Center has 7,500 seats to Black River's 3,500.

The issue is not booking events, but being able to sell tickets, said board member Mitch Davis, who has served on the board about a year.

In 2010, the city lost big on a performance by Kenny Rogers. Tickets didn't sell, and the show suffered a $30,000 loss, Shawan said.

Another example was a cancelled Charlie Daniels Band concert in 2008, Shawan said. Daniels is a music legend and popular locally, he said, but ticket sales never took off.

For a major event, the city has to write a check for 50 percent of the artist's fee up front, said coliseum director Bobby Godwin. Security, ticket takers, sound and lights and other costs easily can reach $50,000.

"It's a little bit of a gamble anytime you bring in an act," said Godwin, who became director in 2011. "My motto is: Ticket sales solve all problems. But the trick is getting that act in here that's attractive to the local public."

The same year Lambert took the stage at the coliseum, Poplar Bluff also hosted Willie Nelson, Kenny Rogers, country singer Gary Allan, Christian artist Jeremy Camp, two circuses and the PBR rodeo. Ticket sales that year generated nearly $422,000, but overall losses still were about $223,000.

In 2013, events included professional wrestling, PBR and three concerts -- Nelly, Audio Adrenaline and Springfest -- that brought several other acts. Ticket sales generated less than $230,000, but overall losses fell to about $145,000.

A less risky way to bring events is to do an arena rental, such as with the Styx show set for this month, Shawan said. The band's promoters pay a flat fee to use the facility and assume the risk of making money on ticket sales.

Scheduling of such events can be difficult to predict, Shawan said. Negotiations with Styx began well after the rest of the band's tour was set, starting on a Tuesday and ending Friday. The band promoter selected a Thursday night date, putting Poplar Bluff between two official tour cities.

Poplar Bluff received a similar last-minute offer two years ago to host Little Big Town but was outbid by a venue in Evansville, Indiana.

Groups in these situations often offer a reduced rate, Shawan said.

Shawan and others on the advisory board, as well as in the community, have said it is impossible to calculate the benefit received by the city each time the coliseum hosts an event.

In 2014, Hucks ran out of gasoline when the coliseum hosted a rodeo for Three Rivers College, Shawan said.

"It would be sophomoric to pretend the economic benefit doesn't exist," he said. "Does anybody believe that we would have a brand-new Hampton Inn in Poplar Bluff if there was no Black River Coliseum?"

There are several times a year every hotel is booked, he said.

The coliseum has been described as the largest civic center in a town this size in the United States. Its unique size can be a challenge, said board member Amber Richardson. It isn't big enough to be a true arena show, yet too large to host small events. The facility has to find acts that fit the niche it created, she said.

Board member Eric Schalk said the coliseum also has to be cautious not to overbook. There are only so many entertainment dollars in the local community, he said, and a show every weekend won't sell.

The board said they have made changes in recent years in an effort to make the facility more profitable.

A standard fee was created for not-for-profit groups that wish to hold an event at the coliseum.

Efforts also have been made by Godwin to control expenses, the said. Expenses dropped from more than $1 million in 2010 to about $800,000 in 2013, according to financial statements.

Employee and event costs made up about 70 percent of expenses in both years.

The facility operates with four full-time staff. That will drop to three in the summer after a retirement. Temporary staff are used as needed.

Smaller facilities, like those in West Plains, Missouri, and Jonesboro, Arkansas, have 10 to 15 staff members, coliseum employees have said.

"I think Bobby and the rest of the staff do an amazing job," said Richardson, who was concerned a reduction in staff would cause problems with maintenance and the ability to coordinate new events.

Revenues also have fallen, from about $647,000 in 2010 to just under $418,000 in 2013.

Concession sales, arena rentals and event ticket sales made up about 90 percent of revenue both years.

The coliseum also receives more than $200,000 annually, from city's tourism tax fund.