By Matt Jarram, Local Democracy Reporter
The chief executive of the council-owned National Ice Centre and Motorpoint Arena has described how the venue is bouncing back from the pandemic after show cancellations hit finances.
Last week, the Local Democracy Reporting Service revealed Labour-run Nottingham City Council had propped up the venue with more than £7m of loans.
Chief executive Martin Ingham was questioned by councillors in a meeting at Loxley House on Tuesday, July 19, after he gave a presentation on the future plans for the company.
The arena and centre has a balance sheet deficit of £5.8m up to March 2022 and is dealing with “a massive backlog of maintenance”.
It has also struggled to recruit some staff.
The financial pressure relates to the pandemic, including show and event cancellations.
But the company says it has bounced back with sell-out shows by Sam Fender, Stormzy, and Craig David and crowds at 29 Nottingham Panthers matches.
Between August and March this year it brought in 350,000 arena customers, with the ‘busiest ever’ February, March, April, and May for arena events.
The report states that net loss from the Covid pandemic was £5.1m, after the company accepted government grant funding of £1.5m.
The company’s balance sheet deficit is therefore £5.8m up to March 2022, compared to £6m the year before.
Mr Ingham said the venue had to strip down to the “bare bones” and went into “hibernation” to keep the costs down during the pandemic.
He said plans going forward include “finding” 500 extra Nottingham Panther fans to bring up attendance figures but added season ticket sales were buoyant.
He said introducing £5 pints at Panthers games and ‘meal deals’ could help with ‘the cost of living crisis’ and ensure customers, including families continue to attend.
The company says one risk is the “significant backlog of maintenance, repairs and capital projects”.
However, 42 capital and major maintenance projects are under way, including flooring, CCTV and an emergency generator overhaul.
The cost for this has not been published.
Risks to the venue include “event tickets likely to rise” and that ice sports are “relatively expensive”, therefore consumer income could be squeezed. Inflation is also noted as a risk.
Opportunities include a new “premium seating offer” at the arena and a chance to capitalise on the arena’s 25th anniversary.
Concerns were raised by councillors on ticket price rises after it was revealed a ticket to see Bob Dylan on his up-and-coming tour is higher than the last time he came to Nottingham’s Motorpoint Arena.
Mr Ingham said: “The price of event tickets is in the hands of the promoters. We are not seeing a huge surge. We have seen small increases. The market is aware of the costs and managing them the best they can.”
Cllr David Mellen (Lab), leader of the council, asked if there was ‘encouragement’ by the venue to direct customers to the new Broadmarsh car park, which opened last year.
Mr Ingham said they “actively push people to Broadmarsh” but that most choose to park at the Stoney Street car park as it is nearer to the venue.
A statement of accounts on Companies House for the year ending March 2021 says the council has confirmed its willingness to financially support the company for a minimum of 12 months and provided “a loan facility of £7.4m” with repayment over a 15-year period which will commence in 2023.
The provision of a further £1.5m has also been confirmed should it be needed.
Nottingham City Council is reviewing the status of all the companies it owns after the demise of Robin Hood Energy cost taxpayers an anticipated £38m.
Some sections of the meeting about the Ice Centre and Motorpoint Arena on Tuesday, July 19, were held behind closed doors.
The public part of the meeting did not contain any suggestion that the council was considering selling the company on.
