Savannah’s Enmarket Arena Operator Shares Financial Report for Second Year Amid DOJ Lawsuit
Savannah – Oak View Group (OVG), the operator of Savannah’s Enmarket Arena, has released an independent audited financial report for its second year of operation. This comes amidst a lawsuit filed by the US Department of Justice (DOJ) against Live Nation and Ticketmaster, where OVG has been cited but not notably named as a defendant.
About the Enmarket Arena Audit Report
The newly released report reveals that the $148 million project funded by voter-approved sales-tax revenue is now profitable. This is a striking contrast from the Civic Center that it replaced. However, there was a noticeable drop in revenue amid their first full year in business.
The report highlights that the venue’s event-related revenue diminished from roughly $14.7 million in 2022 to just around $11.6 million in 2023. This dip in revenue happened over a 12-month period with no major events until February 2022, a considerable time after the arena’s opening. Nevertheless, OVG remains optimistic about the arena’s performance. In a statement released recently, an OVG spokesperson stated, “During our first two years, we exceeded all projections that we or anyone else had for the arena.”
Impact on City’s Income
The company’s financial health has a direct impact on the city’s income as per the operating agreement where OVG is required to share a percentage of profits. Hence any fluctuation in the revenue they generate directly impacts the city’s earnings. As per the recent audit, the profit shared with the city plunged from $583,914 in 2022 to $134,443 in 2023. A significant portion of this profit came from parking income which saw a decline to $105,327, a reduction from $305,052 shared in 2022.
Growth and Development
Despite a rocky start to the new venture, the city and OVG are confident about the arena’s prospects, and aren’t deterred by the pending lawsuit. According to the city’s spokesperson, Joshua Peacock, “Live music venues typically experience revenue fluctuations from year to year depending on the types of acts on tour.” Savannah Agenda also reported net arena revenue remained positive in 2023 and that ticket sales for the Savannah Ghost Pirates minor league hockey team were among the top in the league.
The DOJ Lawsuit
The positive announcement from OVG and the city comes amidst a lawsuit filed by the US Department of Justice against Live Nation and Ticketmaster. OVG, though not named as a defendant, was referred to as a colluder in the lawsuit. The charges include colluding and partnering with Live Nation to monopolize the concert ticketing and promotion market.
Despite the allegations, both the city and OVG declined to comment on the lawsuit. As the legal proceedings continue, the future impact on Savannah’s Enmarket Arena remains to be seen. However, the city and OVG remain optimistic about the venue’s prospects and are focusing on strategies to improve outcomes in 2024.
