Pepsi Center
Increased skating action ups revenue
by JESSICA L. FINCH Associate Editor

With only 10 months in 2006 calculated, Eric Guzdek, general manager of the Pepsi Center, said revenue is already ahead of 2005.

As of the beginning of November, the Pepsi Center total revenue was $166,000 ahead of last year, Guzdek said.

"The last two months, November and December, are our highest usage months so we are pretty far ahead," he told the board at a recent work session.

In October 2005 the revenue was $188,000 and this past October,

the total was $213,892. General skate and ice sales combined for a year-to-year increase of $34,631 in October.

Guzdek is estimating that the Pepsi Center will finish the year $150,000 ahead of the projected revenue. Surpluses would specifically stay with the Pepsi Center but would help to offset the facility's bond costs. The center cost approximately $18 million.

Due to the success of usage at the center - skate time, vendors and other revenue sources, the total cost of the facility per household is $8 per year.

"We work hard at the Pepsi Center to generate additional revenue, which is why we try to stay in contact with USA Hockey and we bid on national tournaments and take part in USA Hockey-sponsored training sessions and trade shows," said Guzdek of changes taking place at the center in the past few years. "I believe this is why we have been successful obtaining two USA Hockey national tournaments in the next two years."

He estimates that those tournaments will provide $3 million in economic impact to the area.

"The additional tournaments we are able to bring in not only generate revenue for the facility but provide an economic impact to the business community," he said. "The success of the Pepsi Center translates to success in our business community - hotels, food, shopping, gas, recreation."

While Guzdek foresees success, this past year brought some hardships to the center. Utility costs

increased $123,000, and due to closures during the October storm, the center lost an estimated $26,000. And when a compressor failed, the center had to spend $20,000.

The center also endured increased utility costs during the hot summer to keep the three rinks frozen.

With all expenses and revenue calculated, Guzdek is happy with where the Pepsi Center stands nearing the end of the year.

"The recent success of the Pepsi Center is also due to the support of the local hockey and figure skating associations that call the Pepsi Center their home. Further, the employees have played a major role in the transformation as well," he said. "Together, with the support of all of the user groups, the Pepsi Center is on the road to fiscal stability."