The return of the Wisconsin Herd for its regular season was not enough to push the arena out of the red.
By Miles Maguire
The monthly loss at the Menominee Nation Arena jumped by $87,000 to almost $300,000 in November despite the start of the Wisconsin Herd season.
At the end of last month, the owner of the facility, Fox Valley Pro Basketball Inc., had a negative net worth of $5.6 million, up from $5.3 million at the end of October, according to papers filed in U.S. Bankruptcy Court.
The Herd is the major user of the arena, and the four games the team played there last month helped boost food and beverage sales and sponsorship income, the latest financial statements show.
At the same time direct costs went up as well and more than offset the higher revenue. In October the arena recorded a gross profit of $18,840. But that number swung to a loss of $19,572 in November.
Gross profit reflects the direct costs of running the facility without taking into account fixed costs like depreciation and taxes.
The lawyer who is handling Fox Valley’s bankruptcy was not immediately available for comment.
Another source of income, tax rebates from the city, has dried up for the year. In October Fox Valley recognized $86,000 in income from the city’s tax incremental financing (TIF) obligation. No such income was received in November.
For the first 11 months of the year, the arena had a gross profit of $158,672. But once $4 million in interest expenses and other costs were factored in, the owner of the facility had a net loss of $6.8 million.
The report of the continued losses at the arena comes as Fox Valley awaits word on its request to take more time to put together a plan of reorganization. The plan was originally due last week but may not be filed until the end of February.
Creditors who oppose the request for more time have until the end of next week to file their objections. Some major creditors have already said they are willing to give the arena operator the extra time.