A sold-out performance by The Eagles last November may have set the bar a little too high for JQH Arena, which has struggled to book big-name performers in its first year due to limited seating and the tendency of promoters to skip over Springfield.
Although its primary purpose is to host men's and women's home basketball games, Missouri State University's $67 million multipurpose arena debuted last year to concert-goers who swayed to the classic-rock chords of "Hotel California" and "Witchy Woman."
What many people may not have realized, though, is that the Q's big opening splash was a "loss leader" - in the words of one MSU official - that has come to symbolize the venue's shortcomings.
"The Eagles don't normally play 9,000-seat arenas," said Mike Ingram, an MSU alum and Springfield promoter who worked with business partner Les Garland, co-founder of MTV and VH1, to bring the revered band to town. "So, basically, we begged. ... They basically did it as a favor. We can only get so many favors. We're working on some other groups, and they're big-time names. And we're basically just asking for favors."
But at a time when major recording artists are struggling to sell albums and fill seats in much larger venues around the country, there's little appetite for handouts, said Randy Blackwood, MSU's executive director of athletic and entertainment facilities. Most top-tier performers command a fee of at least $1 million and require 90 percent guaranteed ticket sales at facilities with 20,000 seats or more, he said.
"To a degree, it's all bottom-line driven," Blackwood said.
A diverse lineup
In the months leading up to JQH Arena's christening, Blackwood said the university's goal was to book one concert a month to generate additional revenue for the 11,000-seat athletic arena.
But concerts - especially those featuring well-known artists with wide appeal - have been elusive. Instead, the arena has played host to a diverse lineup of special events.
Disney on Ice, stand-up comic Larry the Cable Guy, and the Rock and Worship Road Show all booked the Q in the spring before a three-month summer drought that ended with last month's Professional Bull Riders tour, which Blackwood said brought in near-capacity crowds. This week, a group of motivational speakers including Zig Ziglar, Gen. Colin Powell and Hall of Fame quarterback Terry Bradshaw will descend on the arena for a business seminar.
Events tentatively scheduled for 2010 include a World Wrestling Entertainment match in January, the Harlem Globetrotters in February and a Joyce Meyer Ministries conference in May, Blackwood said, noting that negotiations are ongoing.
While it's not drawing in concerts as officials had hoped, the arena is still exceeding revenue expectations, said MSU President Michael Nietzel.
"People think that if you don't have a rock band in there but instead have a convention, that somehow you're not having revenue for the events," he said. "We had $1.1 million more in revenue than we had in debt service and expenses. (The arena) didn't lose money."
On paper, arena revenues for the eight months ending June 30 totaled $1.59 million, but only $288,000 came from ticket sales and services, according to figures provided by the university.
With tuition and fees bringing in another $82,000, the facility's total operating revenue was about $370,000 November-June. Operating expenses for the same period, however, were slightly more than $469,000 for a loss of almost $100,000.
Only supplemental revenue in the form of Springfield hotelier John Q. Hammons' $1.9 million annual gift, suite rentals and seat assessment fees enabled it to come out on top. Of those revenues, $2.63 million serviced arena debt through June 30. The arena's annual debt service is $4 million, said MSU Chief Financial Officer Nila Hayes.
Hammons donated $30 million to propel the arena project. He gave the university $1 million in construction seed money and has committed another $29 million in annual increments of $1.9 million to help MSU pay down the arena debt.
MSU officials said the arena's first-year challenges were somewhat compounded by the "lousy" economy. Blackwood noted that fewer acts are touring, and he said ticket sales for athletic events as well as live performances at Juanita K. Hammons Hall are down across the board.
"We've had some shows we lost to the economy," Blackwood said, noting that jazz singer Michael Bublé canceled an entire tour that included a Springfield stop. "We had dates."
Even if concert tour traffic greatly improves with the economy, Ingram, who also owns Springfield-based Fireworks Supermarkets of America Inc., was doubtful JQH Arena would ever have much luck landing high-profile musicians of the same caliber as The Eagles.
"Even though it's a beautiful arena, it's too small," Ingram said, suggesting that a 14,000-seat venue would have caught the eye of more promoters. "I'm sorry to say that, but no one besides John Q. stepped up to the plate with money."
'A university first'
Nietzel said he expects the arena's operating revenues to improve this year. As touring picks up again, he said the arena should be able to book more performers who don't require astronomical upfront fees. Blackwood, however, was more reserved.
"The university is not here to be a concert promoter," he said. "The university is here to be a university first. That remains the key focus."
Springfield Symphony Orchestra Music Director Ron Spigelman still has high hopes for the arena. Spigelman served on the Q-1 Committee, which met a couple of times in late 2007 to discuss potential programming for the venue before abruptly disbanding. Spigelman said committee members threw out names like Prince and Jimmy Buffett, and even discussed the possibility of bringing an NBA exhibition game to Springfield.
"I don't think anybody should think that this is a big, white elephant," he said. "I think it is something that will be there for the future of the city when they need it."[[In-content Ad]]
