10 March 5, 2012 Arkansas Business

Attracting the entertainment industry to North Little Rock’s Verizon Arena is bumpy work, especially during a reces-sion. That difficulty has been echoed in the financial performance of the arena.

In 2008, when the economic down-turn began, the arena posted a small loss, about $28,000, on revenue of $6.3 million. 2009 was a bit better, with higher revenue of $6.6 million and $21,000 on the bottom line.

Things turned sour again in 2010, however. Revenue decreased to $5.9 mil-lion and the arena suffered a loss of $277,000.

The arena’s 2011 financial report

won’t be released until late April, but General Manager Michael Marion warned Arkansas Business that it will not be pretty.

“We expect to show a pretty big loss for last year,” he said. “We’ve got a reserve fund, about $1.4 million, that we have for a rainy day. Let’s just say we definitely got our umbrellas out last year.”

The difficulty comes from an unpre-dictable industry, Marion said.

“We have no control over our inven-tory,” he said. “In the last half of the year, there weren’t that many artists touring. Last year started out strong with Jason Aldean, James Taylor and Bob Seger, but then it slowed down. We normally have a slowdown in summer, but the fall didn’t pick up like we expected it to. We’ve had up years and down years. Last year was a down year.”

He said difficulties were felt not just in Arkansas, but all over.

“Last year we talked to some of

our building friends in Houston and Birmingham, markets like us, some markets bigger than us — everyone was struggling,” he said. “There was an industrywide slowdown last year.”

He said many artists and musicians, when they see times are tough, will cut down their touring time — 30 days in a year instead of 60, for example. The Verizon Arena often falls off the list.

“We’re not in that first 30,” Marion said.

Marion is much more optimistic about 2012, noting that the level of activ-ity has already increased. Last week, the arena hosted Jimmy Buffett for a sold-out, 15,000-ticket show. Marion said he’s excited about other shows this year like Tom Petty, Miranda Lambert and the

Red Hot Chili Peppers.

Economic ImpactCity and county leaders agree that,

even in rough years, the arena is an important part of local economies.

North Little Rock Mayor Pat Hays said his city benefits directly from taxes and sale of electricity.

“Indirectly, it’s a gold mine, as far as I’m concerned,” he said. “It’s a gold mine because of people introduced to North Little Rock for the first time because of attendance at the arena.”

New people spend money in the region, Hays said.

“When you throw in Dickey-Stephens Park, and continue to the emerging

Economy and industry hurt venue’s finances, but bounceback possible

Slow Years Slam Arena

By Luke Jonesljones@abpg.com

Spotlight: tourism & hospitality

tom petty & the heartbreakers [shutterstock]

Verizon Arena Events Planned for 2012

Show Name Show DateJeff Dunham March 9

Zac Brown Band March 10

Maze, featuring Frankie beverly March 17

Miranda Lambert, with Chris Young and jerrod Niemann april 13

Tom Petty & the Heartbreakers, with Regina Spektor april 21

Disney on Ice Presents: Mickey & Minnie’s Magical adventure May 2-6

Red Hot Chili Peppers Oct. 25