BOK Center earns $10 million in sales tax
BY BRIAN BARBER World Staff Writer
Monday, September 24, 2012
9/24/12 at 7:01 AM
Read more coverage of Tulsa’s BOK Center
Tulsa's BOK Center quietly hit a big milestone this month, having generated $10 million in sales tax revenue since opening four years ago.
Balloons didn't fall from the sky and bells didn't go off, but the venue's management company, SMG Tulsa, says the figure shows a different financial dynamic to the building.
"Going into this project, I don't think the sales-tax creation was really talked about that much," BOK Center General Manager John Bolton said, adding at least half of the revenue comes from patrons who live outside Tulsa County.
"The BOK Center has certainly been a fantastic addition to the coffers of the city, county and state."
Financial reports show that since the arena opened in September 2008 until August, it netted $115,774,543 in tickets, concessions and merchandise sales and remitted $9,974,540 in sales taxes.
The $25,460 remaining before the $10 million mark was brought in, and surpassed, this month, BOK Center Finance Director Tom Simpson said.
That doesn't take into account all of the indirect tax revenue brought in by arena attendees who have drinks and eat out before or after a show, or stay overnight at a hotel, Bolton said.
The BOK Center also continues to realize a large operating profit at the end of each fiscal year, reports show.
Its profits since opening total $5,234,030. The excess goes into a fund for the venue to pay for any major maintenance expenses or capital needs.
In its fourth fiscal year, which wrapped July 31, the arena posted $1,419,679 in net income, compared to the budgeted profit margin of $205,882.
The BOK Center brought in $7,433,282 in income from events such as George Strait, LMFAO, Roger Waters and Taylor Swift, to offset $6,013,603 in expenses such as utilities and payroll.
The arena has consistently been in the black - between $1.2 million and $1.6 million - each fiscal year since its doors were first opened.
"We couldn't be happier with the performance," Bolton said.
"It's due to the hard work of our staff members and our customers who keep coming back for more. Our honeymoon has never really ended."
At the start of the fourth fiscal year, the BOK Center was faced with some financial challenges, including the Tulsa Talons arena football team folding and the fact that the venue would not be hosting a major basketball tournament during the year.
But by finding operational efficiencies and continuing to book a variety of acts to keep the calendar full, the arena has stayed on top, Bolton said.
Now in its fifth fiscal year, the BOK Center will host the Bassmaster Classic in February and the Conference USA Basketball Tournament in March - both of which are expected to be big moneymakers.
It also will host big-name acts such as Carrie Underwood, Red Hot Chili Peppers, Bob Dylan, Eric Church and The Who, among others, and family events like the multi-date Batman Live.
SMG Tulsa is already looking at what to do in September 2013, when the BOK Center will have its fifth birthday.
"It's going to be something big," Bolton promised. "It'll have to be after the kind of run we've had."
BOK Center Financial Performance (by fiscal year)
Sales taxes remitted
2009..................................$2,825,424
2010 ...................................$2,764,909
2011 .................................... $2,027,798
2012....................................$1,904,286
2013 (through Aug.) ........... $425,123
Total ............................. $9,974,540
Net Income
2009...................................$1,220,938
2010 ..................................... $1,653,153
2011 .................................... $1,589,704
2012......................................$1,419,679
Total .............................$5,234,030
Original Print Headline: The big payoff
Brian Barber 918-581-8322
brian.barber@tulsaworld.com
Associated Images:
The BOK Center. JAMES GIBBARD / Tulsa World
Fans (from left) Vivian Matthews, 18; Hanna Wolf, 18; Kelsey Smith, 17; and Taylor Obrien, 18; scream as LMFAO members DJ Redfoo and his nephew, Sky Blu, rock the house at the BOK Center on June 13. The BOK Center this month surpassed $10 million in sales-tax revenue. CORY YOUNG / Tulsa World file
George Strait performs at the BOK Center in Tulsa in February. JAMES GIBBARD / Tulsa World file
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