Rose Bowl Operating Company(RBOC)FY 2023 Recommended BudgetPasadena City Council1June 06, 2022 Fiscal 2022 Accomplishments •RBOC was able to improve FY21-22 projected net income by approximately $11.6M from original pandemic projections•Legacy Foundation generated Grant funding of $10M and planned transfer/project funding of an additional $1M (life to date transfers/funding $28.6M)•Secured a 5-year contract with AEG to increase minimum rent by $1M/year ensuring $15M in guaranteed revenues for the RBOC over the next 5 years.•Brookside golf complex continued to be an industry leader in operations and revenue generation with a net complex income of $2.5M •Enterprise events projected to net $1.3M while the stadium hosted 14 displacement events Fiscal 2022 Accomplishments (Continued)•In partnership with Pasadena Health Department welcomed UCLA and Rose Bowl Game fans at full capacity coming out of the COVID-19 pandemic•Staff, Board and City Council continued focus on analysis of opportunity planning on the Rose Bowl Campus •Stadium hosted numerous community events generating over one million dollars for causes in the local community •Supporting the Pasadena community by providing a site for graduations, PUSD home field, Turkey Tussle and Cinco de Mayo, and COVID testing Rose Bowl Operating Company Key changes FY22 Adopted/Forecast and FY23 Projected/Recommended 4 Rose Bowl Operating Company FY 2023 Key Statistics: Displacement, Flea Market and Enterprise Events Market 5Music Festival with amended contract terms allows for up to 10 Major Event days per year; there are 8 performance days scheduled in FY 2023.
Operating Income/Cash Summary
6 •FY23 Available Operating Beg. Cash Est. $12.3M•RBOC Operating Net Income $9.5M>(Before Financing/Reserves)•Debt Service Net ($12.3M)•RBOC Net Operations ($2.8M)>Before Reserves•Reserves ($3.1M)•RBOC Net Income after Non-Op. ($5.9M)•FY23 Available Operating Ending Cash Est. $6.4M FY23 Operating Income/Cash Statements Summary
7 Operating Revenue History By SourceRose Bowl Operating Company
8 Expenditure History By Cost CategoryRose Bowl Operating Company
Rose Bowl Operating Company Budget History By Division or Major Budget Areain thousands 9 Rose Bowl Operating Company Budget History By Division or Major Budget Area(Continued)in thousands 10 Rose Bowl Operating Company Key Issues•Identify incremental revenue opportunities•Focus on long term financial structure for the RBOC•Music Festival success•Stabilize and grow golf course property revenue Strategies•Focus on big picture thinking around appropriate revenue generating activities and uses of Rose Bowl campus•Work closely with the City in forecasting revenue, expenses and funding necessary for bond debt service and capital improvements•Recognize the importance of music festivals and provide support to help them succeed and achieve revenue share above guarantee •Refine efforts related to increasing net golf course as well as food & beverage revenue. Identify more outdoor opportunities on golf course including the Family Golf initiative 11 FY 2023 Key Issues and Strategies
Rose Bowl Operating Company Key Issues (continued)•Continued focus on event operations, including security and outside management•Continue to grow Enterprise events revenues•Prepare for World Cup and Olympics opportunities•Make significant progress in Legacy $40 Million Centennial Campaign Strategies (continued)•Work and communicate closely with public safety officials, event promoters and stakeholders •Maximize revenue on available dates based on increase displacement event load•Collaborate with Los Angeles leaders and put forth an effort based on stadium’s history and brand to provide Pasadena a global platform•Identify donors and prospective naming opportunities, while providing appropriate resources12 FY 2023 Key Issues and Strategies
Additional Operating Budget Slides
13 Operating Income/Cash Summary
14 •FY23 Available Operating Beg. Cash Est. $12.3M•RBOC Operating Net Income $9.5M>(Before Financing/Reserves)•Debt Service Net ($12.3M)•RBOC Net Operations ($2.8M)>Before Reserves•Reserves ($3.1M)•RBOC Net Income after Non-Op. ($5.9M)•FY23 Available Operating Ending Cash Est. $6.4M FY23 Operating Income/Cash Statements Summary
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15 FY 2023 Operating Income DetailsIn thousands
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16 FY 2023 Financing, Contribution and Net Income In thousands
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17 Summary of Cash Flow (Operating)In thousands•
REVENUES•Stadium Event Revenues $45.7M•Stadium Non-Event Revenues $1.3M•Stadium Net Event Revenues $16.3M•Golf Revenues $9.5M•Golf Net Income $2.4M •Statistics:_________________________________________________ •Displacement Events 22•Enterprise Events 360•Football 53% of Revenues, 58% of Net Income•Concerts/Soccer 19% of Revenues, 11% of Net Income•Music Fest 12% of Revenues, 12% of Net Income•Enterprise Events 11% of Revenues, 12% of Net Income•Flea Market 4% of Revenues, 7% of Net Income 18 FY23 Operating Revenues and Net Income Summary
Stadium Revenue Details Budget Gross Revenue History - Stadium$ in thousands 19 Stadium Revenue Details Budget Net Event Revenue History - Stadium$ in thousands 20 Stadium Revenue Details Percentage Gross Revenue [Net Income] Projections - Stadium 21 Golf Revenue Details Budget Revenue History – Golf Complex$ in thousands 22 Golf Revenue Details Budget Net Income History – Golf Complex$ in thousands 23 EXPENSES
24 •Stadium Expenses $39.9M>Events (74%) $29.4M>Overhead (26%) $10.5MPersonnel $4.9MServices/Supplies $5.6M•Debt Service Net ($12.3M)•Golf Complex ($7.1M)>Golf Course $ 4.3M>Food & Beverage $ 1.8M>Complex Overhead $ 959K FY23 Operating Expenses
Stadium Expense Details Budget Expenses History – Stadium $ in thousands 25 Stadium Overhead Details Operations Expense History – Stadium Details $ in thousands 26 27
Personnel
Operations Expense History: Salaries – Benefits $ in thousands Stadium Personnel ExpenseFY23 Operations Budget – Stadium Personnel 28 Stadium Personnel Personnel and Benefit Details History $ in thousands 29 30
PersonnelFTEs- Benefits-Merits-Bonuses-Commissions $ in thousands
Stadium Services & Supplies Details
31 Stadium ExpenseOperations Expense History – Services/Supplies Chart 32 Stadium Expense Categories Operations Expense History – Services/Supplies $ in thousands 33 Stadium Expense Categories Operations Expense History – Stadium Services/Supplies Details 34 Stadium Services Details General Operations Expense History – Stadium Services 35 Golf Expense Details Budget Expense History – Golf Complex Chart $ in thousands 36FY23 Golf Course Personnel increased $300K due to market labor rates * Primarily Pasadena Water & Power
Golf Expense Details Budget Expense History – Golf Complex$ in thousands 37* Primarily Pasadena Water & Power
Golf Expense Details Budget Expense History – Golf Complex Overhead$ in thousands 38Personnel FTEs 1.5 - 1 Director of Operations and .5 Allocation of management/finance support.
Rose Bowl Operating Company Debt Service
39 •FY2023 to 2029 3% Annual Growth rate est. 400K/year•FY2030 to 2043 1-3% Annual Growth rate est. 180K to 490K/year •2010 Bond makes up 77% of the total debt service with principal portion pay beginning FY2033>BABs subsidies are calculated based on interest, subsidies will decrease with interest.
Rose Bowl Operating Company Debt Service Schedule & Significant Change per Year 40 Combined Stadium-Golf Details Net Operating Revenues – Expenses Analysis 41 Combined Stadium-Golf Details Net Operating Revenues - Expenses $ in thousands 42 Combined Stadium-Golf Details Changes to Operating Revenues-Expenses 2019-2023 $ in thousands 43 Capital Budget Historyin thousands
44 Capital Budget
Rose Bowl Operating Company Budget History By Division or Major Budget Areain thousands 45 Stadium Revenue Details Event Mix- Attendance – Net Income - Stadium 46 Stadium Revenue Details Net Event Income / Attendance – Stadium (Event Type) in thousands 47 Organization Chart
48 Additional Proforma Slides
49 Rose Bowl Operating Company FY 2023 - 2027 Key Statistics: Displacement, Flea Market and Enterprise Events Market
50. Rose Bowl Operating Company
51 FY 2023-2027 Proforma Income DetailsIn thousands•
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52 FY 2023-2027 Proforma Financing, Contribution, Non-Operating In thousands
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53 FY2023-2027 Summary of Cash Flow (Operating)In thousands•
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54 FY 23-27 Proforma Operating: Stadium Net Event IncomeIn thousands
Stadium Expense Details Proforma Expenses – Stadium 2023-2027 $ in thousands 55 Rose Bowl Operating Company
56 FY 2023-2027 Proforma Income Golf DetailsIn thousands•