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BOK Center rakes in millions
Three months brings more than $875,000 in sales tax for the city, county and state.
By BRIAN BARBER World Staff Writer
Published:
4/27/2009 2:22 AM
Last Modified: 4/30/2009 2:39 PM
Tulsa's BOK Center generated $879,566 in sales tax revenue for the city, county and state from January through March, financial reports obtained by the Tulsa World show.
The downtown arena has brought in nearly $2.3 million in sales tax revenue since its grand opening in late August.
The figure for the third-quarter of the fiscal year is based on 34 ticketed events held at the venue over those three months, including concerts by Billy Joel and Elton John, Celine Dion and AC/DC, multidate family shows, Oilers hockey and Talons arena football games, and others.
Events in those three months produced tax revenue from $11.1 million in sales of tickets, merchandise and concessions.
This is the same period for which the BOK Center was recently ranked by Pollstar magazine as the No. 2 arena in the United States and No. 9 in the world in the number of tickets sold, with 149,302.
"We are a new venue that's still in a first-year honeymoon period, but this level of performance has exceeded everyone's expectations," BOK Center General Manager John Bolton said.
Studies before the arena was built estimated it would produce about $1.6 million in sales tax revenue for a full 12-month period, he pointed out.
The total economic impact of the facility through March is calculated to be more than $34.4 million, Bolton said.
Of the 8.517 cent sales tax collected in Tulsa, 4.5 cents go to the state, 1.017 cents go to Tulsa County and 3 cents go to the city.
So
out of the BOK Center's January through March sales tax total, $464,411 was remitted to the state, $105,548 to the county and $309,607 to the city.
The monthly breakdown is $381,913 for January, $255,651 for February and $242,002 for March. The single most lucrative month for the BOK Center remains September, which featured the venue's inaugural performance by the Eagles, as well as Kenny Chesney, American Idols Live and Rascal Flatts.
The biggest money-maker during the third quarter by far was the March 17 concert by Elton John and Billy Joel, which had 17,335 in attendance.
That one show brought in $184,372 in sales tax revenue, due largely to its $175 top ticket price, as well as strong merchandise, food and beverage sales.
By comparison, an eight-performance run of the less-costly family show Walking With Dinosaurs, which had a total of 49,096 in attendance, generated $118,220 in sales tax revenue.
Oilers and Talons games have smaller impacts due to a state law that exempts sales taxes on major and minor league sporting event tickets.
The BOK Center is forecast to realize a $605,514 profit during its first fiscal year, which ends June 30.
That exceeds the original estimate of $285,541, despite $500,000 in additional utility expenses being added into the budget.
Bolton said the profit will be put into a contingency fund for the venue.
The BOK Center through March has brought in $5,843,824 in income through rental and service charges, facility fees attached to tickets, food and beverage sales, and other sources.
It amassed $4,880,609 in operating expenses between July 1 and March 31 for a profit of $963,215. However, the building did not host its first ticketed event until September.
The BOK Center has paid out $162,911 to two dozen charity and school groups that help staff its concession stands.
The local stagehands organization, Theatrical Accounting Services, also has benefitted from the venue's presence, receiving $836,836 for its labor.
Bolton and his staff have already turned their attention to the next fiscal year, which begins July 1, battling the recession by booking a variety of premier acts.
So far, the roster includes Aerosmith with ZZ Top, Taylor Swift, Dave Matthews Band, Def Leppard, American Idols and family shows such as The Wiggles, among many others still to be announced.
"Obviously, we're not going to be able to maintain the activity we've had during our first year, but I see our success continuing," he said.
The BOK Center needs a big-picture view, Bolton said, as in being a catalyst for downtown's resurgence and an entertainment outlet for the region.
Brian Barber 581-8322
brian.barber@tulsaworld.com
By BRIAN BARBER World Staff Writer
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dTHREE
, TULSA (4/27/2009 3:11:46 AM)
The payback has begun.
Report Comment
beaux
, Tulsa (4/27/2009 3:48:54 AM)
First year sales are always strongest. I supported building the BoK Center, and I still think it's a good idea.
But, unfortunately, if they don't continue the trend of booking big acts, the sales tax revenue will tank.
Tulsa is slowly but surely gaining the population neccesary to justify even bigger name acts coming to the city.
Mayb one day, a professional sports team?
Report Comment
marlin
, (4/27/2009 4:57:02 AM)
I'd say Mr. Bolton deserves a raise.
I also think Mayor Taylor needs equal merit for making downtown a safe and clean area again. The efforts of these two combined is what our success with the BOK Arena can be attributed to, along with the best fan base in America.
Report Comment
Daven
, Tulsa (4/27/2009 6:00:48 AM)
Thats great!!
Report Comment
eddieo
, Tulsa (4/27/2009 6:45:32 AM)
Maybe the arena will be the savior of our streets... or at least a good start!
Report Comment
HH66
, 912 Project (4/27/2009 6:55:28 AM)
It is like the casinos. Maybe worse. Every dollar is takes in, is a dollar that may have been spent at a restaurant, movie theater, or some other local venue. Most of the money will leave town in the pockets of the big name entertainers. New dollars for Tulsa only comes from those from out of town who to events, some spending their money in Tulsa at the expense of the restaurants in their fair towns and cities.
It is the same game as the Federal government is playing. There are only so many discretionary dollars available to spend. If the government takes it away by virtue of taxes, they will not be spent to support the businesses you need to make you happy. In fact when the Federal government takes money, it more often will go to states like California who recklessly spend more than they can afford.
Report Comment
Eagle 4
, Tulsa (4/27/2009 7:15:30 AM)
Nary a compliment to the taxpayers who voted for and approved this building, only kudos to the coincidental mayor and the mahout of our huge, working elephant.
And the profit is to go to a "contingency fund for the venue." As usual, even profit does nothing for the taxpayer, who ironically accounts for the sales tax generated also. Give and give and give...
Guess what? As soon as the honeymoon is over, the "venue" will be screaming for more taxpayer dollars to keep it afloat...and free of the Pellini stains down the sides. I really don't care to complain but history just keeps repeating itself in Tulsa - our leaders' only "successes" are finding ways to empty our pocketbooks.
Report Comment
Dr. Strangelove
, Tulsa (4/27/2009 7:26:43 AM)
HH66- try getting a restaurant reservation within 5 miles of downtown when Fleetwood Mac rolls in this Sunday.
Report Comment
HH66
, 912 Project (4/27/2009 7:34:13 AM)
Doc, I didn't say money wouldn't be spent. I was explaining that each dollar spent at this venue is taking away a dollar from another. It's called competition. Every entertainment business in Tulsa is being taxed to pay for its competitor. And much of this Oklahoma money is going to be on a plane leaving town with the entertainers, instead of being plowed back into the local community.
Report Comment
Paula
, Midtown (4/27/2009 7:51:23 AM)
OK let's put some real facts behind this article. Less than 1/2 of the $2.3 million goes to the city and county that put up the money. The math comes up to approximately $1.6 million per year in city/county tax revenues. The time it will take to pay back the $200 million cost plus interest is over 180 years.
The money just won't add up no matter how you try to spin it. And this doesn't even take into account the police overtime the city is having to pay for. So let's stop trying to sell something that's already sold and using a method that doesn't even add up. Makes me wonder what the real reason for these articles are. Is there going to be a V2025 part deux?
Now don't get yer you-know-whats in a wad. I voted for it, but not for financial reasons. I voted for it for quality of life reasons and I'm glad we have it.
Report Comment
Daven
, Tulsa (4/27/2009 8:02:57 AM)
HH66, so you would rather Tulsans go out of town and spend local money in OKC or Dallas to see these shows? People come to our city to see these acts. Some stay the night, eat, shop, etc. Spending out of town money in Tulsa.
As more and more big names come to town and development in downtown continues, even more money will come. So tell me where the downside is to that.
Report Comment
Tulsa Life
, (4/27/2009 8:10:38 AM)
Paula lets put some real facts behind it...aside for sales tax. The revenues that the BOk Center that is being put into these downtown businesses will make a huge impact. Especially since a lot of this money comes from outside of Tulsa.
Not to mention, what Daven expressed with more money staying in Tulsa from the BOk center.
I think there will be financial and quality of life impacts. Also quality of life reasons impact financial ones at the end of the day.
righton you need a woman (or man)...because you are always upset about something..
Report Comment
BottleCap
, BA (4/27/2009 8:11:09 AM)
beaux....we have professional sports in Tulsa. Drillers baseball is professional and so is Oilers hockey. They may be minor league, but that is professional. I think you mean major league sports. Tulsa just isn't a sports town. It won't support a major league team long term.
Lets just hope the sales for the bok arena continue so we (the citizens) can petition our government to end our funding of it early. I'd love to see the arena be self sufficient.
Report Comment
Shooter
, Tulsa (4/27/2009 8:11:09 AM)
This is a very postive thing for Tulsa and the whole Tulsa area. The BOK Center is thriving even during a recession. Just image how well it will do when the economy is doing better. People in the Tulsa area dont have to travel to OKC or Dallas to see a big name act, plus it keeps the money in the community. I have been to several shows and have enjoyed them all. It is an amazing building, inside and out.
Report Comment
chase
, rogers county (4/27/2009 8:19:18 AM)
Daven,the down side is the convention center was built for the same reason,it had crowds for a couple of years,and like the new arena it to will go good for 3 years and go by the way side like the convention center,the people going out of town for concerts are very small,and people coming from out of town is also small.so enjoy while you can,until the next Mayor will have other priorities for the city.
Report Comment
tulsandn
, Boswell / Tulsa (4/27/2009 8:23:24 AM)
Tulsa is minor league and will always be minor league, why even kid ourselves about professional sports ???
Tear down this building before it's too late and the debt soars out-of-control and our city infrastructure declines then fails and finally falls back into the hands of those Indians who are surrounding us in every direction(those are casinos, they are cleverly disguised outposts "forts" hiding WMDs)....
Stop building and plannig before it's all too late !!!! Anarchy is just around the corner !!!!
Report Comment
tulsandn
, Boswell / Tulsa (4/27/2009 8:25:17 AM)
Those "aren't" casinos......
I mistyped....
Report Comment
Dr. Strangelove
, Tulsa (4/27/2009 9:09:11 AM)
righton, you honestly have no clue. Have you been to a show there yet? Or moreover, even gone downtown, or to Cherry St. or Brookside lately?
I love all the talk about the BOk taking away from other businesses. Folks, the money that is being spent there is discretionary income, most of which was being shot straight down I-44 or I-35 before the BOk was built. The negativity on the boards is astounding.
Report Comment
Ignatz
, Broken Bow (4/27/2009 9:15:52 AM)
Richie, 2% return on anything of this type is a heck of a good investment.What is the profitable return on buses, subways, public hospitals, homeless shelters, the fire and police depts, our judicial system? I imagine most folks with 401k's would have been very pleased with such a return last year. Suceess of this venue obviously reflects how starved Tulsa area was for top-notch entertainment.
Report Comment
LeftieTulsan
, Tulsa (4/27/2009 9:17:13 AM)
Wow, it used to be that the arena wouldn't make enough to keep the lights on. Now, it's being compared to snake oil salesmen up there.
"All these fast talkers with their horse pills come into town and swindle ole 'pa outta his gold chips."
It really is astonishing that there aren't more houses in Tulsa with barbed-wire fences, moats, drawbridges, and closed-circuit cameras. Some of you people really think that everyone is out to get you. This is one of those times I am truly ashamed to cohabit the same city as some of you absolute freak shows.
Report Comment
Tulsa Life
, (4/27/2009 9:25:54 AM)
Richie Havens if you believe that the sales tax from the BOk Center is the only return on the investment then you are sadly mistaken...
Report Comment
Mike S
, Tulsa (4/27/2009 9:41:28 AM)
Richie - you're overlooking other revenue streams, like arena naming rights, clubhouse boxes, and concession rentals.
And you're overlooking other city-wide revenue factors, such as people coming from outside Tulsa city limits. They spend money on food and hotels.
If anyone thinks only Tulsans are spending money at the BOk, you need read some of the other articles in TW and UrbanTulsa which have interviewed people from far and wide who brought their wallets to Tulsa for BOk Center events.
Report Comment
DowntownNow
, (4/27/2009 9:43:04 AM)
Tulsa Life...perhaps you can provide more direct examples of the other benefits from the BOKCenter besides return on investment? Where is the promised surrounding development? Where is the increased revenue for businesses and restaurants during times events are not going on? Where are the new hotels the arena was supposed to justify? And dont tell me the new Atlas, that business model is predicated on the business core, not the arena.
Fact is, this arena is located in a poor location, had no property to develop around it, has yet to have a sell out capacity crowd, costs more to operate that it is taking in once you account for the initial investment, there is easy to access parking, etc etc.
Had it been located say in the east end or where the ballpark is going, there was plenty of room for surrouding development to take place, plenty of entertainment and restaurant businesses to compliment it that doesnt rely on just the event nights, easy access from several highway access points, greater area for large lot parking (or structured)...
Sorry Tulsa Life, the benefits here are not outweighing the cost. There have been no quality of life improvements for the greater Tulsa area out of this arena. Any potential profits are going into a fund for BOK operations and maintenance, not into City coffers to make improvements for insfrastructure.
Report Comment
DowntownNow
, (4/27/2009 9:47:40 AM)
Also the Tulsa World needs to be a little more subjective in its compliments to Mayor Taylor, it was LaFortune that implemented Vision2025 and began the BOKCenter...not Taylor. She just happened to be Mayor when it was time to cut the ribbon...and thats been about all the participation she's had in it.
Oh, lets not forget that due to planning and logistical errors in factoring the location, that we now miss out on weekday events such as seminars and symposiums, since we can not accommodate daytime events without the fiasco of what happened during the first and only daytime event when it opened.
Report Comment
Buttercup
, (4/27/2009 9:49:08 AM)
HH66, you are ridiculous. Good lord people... give some credit where credit is due! This is obviously money that WE WOULDN'T BE SEEING OTHERWISE!!!! Geez.... get a grip people. Must you find negativity in everything? I am so happy I don't have to be around you naysayers day in and day out.
I say the City deserves a pat on the back for this.
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