SHOW ME CENTER STRUGGLING BUT CONSIDERED ASSET

The Show Me Center has struggled to break even financially in recent years, but it remains profitable to the Cape Girardeau area for the tourism dollars it generates.

"It is a huge asset for our area," said John Mehner, Cape Girardeau Chamber of Commerce president.

The center has drawn more than 2.6 million spectators to everything from concerts to Southeast Missouri State University basketball games since it opened in 1987. The center's events annually attract about 300,000 to 400,000 people.

Those events have generated millions of dollars for the local economy, Mehner said.

But that benefit isn't shown on the Show Me Center's balance sheet.

The center had positive fund balances the first few years of operation, but in recent years, the center has found the going tougher financially.

"Now, we're at a point where we're watching nickels and dimes to break even,"Show Me Center Director David Ross said.

The center lost money in fiscal 1995, finishing about $15,000 in the hole for the year that ended June 30.

While expenses exceeded revenue, the center was able to dip into reserve funds to make up the difference.

Ross said the university would subsidize the Show Me Center if reserves ever run out.

The university already has a sizable investment in the center.

The Show Me Center receives the equivalent of $215,000 annually from the university in the form of 7.5 custodial and maintenance employees.

In return, the university gets 40 days free use of the center for basketball games, commencement exercises and other events.

Above that level, the university is charged rent like everybody else, Ross said.

The center has an administrative staff of seven. But the administrative staff salaries are paid from revenue generated by the center.

The center operates as an auxiliary service of the university and is expected to bring in enough revenue to be self-supporting.

Ross said the 7,200-seat arena has done well to come as close as it has to breaking even, as civic arenas nationwide have difficulty generating profits.

It costs nearly $950,000 a year to operate the Show Me Center.

"In the early years, repair and maintenance costs were not so high," Ross said, but as the arena has aged, more money has been spent on upkeep.

A new roof was recently installed. The original roof was defective. There was a settlement with the manufacturer of the roofing material, but it still didn't cover the entire cost of replacing the roof, Ross said.

The first six months of the 1996 fiscal year were dismal financially for the Show Me Center.

"Our first half of the year has been a disaster," Ross said.

Three concerts were canceled and the Kenny Rogers show on Sept. 30 wasn't well attended.

"You just don't know what is going to hit and what is not going to hit," Ross said.

In December, a snowstorm cut into last-minute ticket sales for "The Nutcracker" ballet, making the event less profitable, he said.

"We are keeping a close eye on every expense because we did not produce the revenue this fall.

"The only way we can make up for it is to minimize expenses as best we can," Ross said.

Ross said most of the money in ticket sales goes to the promoters and performers. The center gets only about 10 percent of every dollar in ticket sales.

The center handles about 500 events annually, which includes gatherings held in its meeting rooms.

The center often has several meetings going on simultaneously.

"We are actually running more events, but we are doing less entertainment," Ross said.

Many singers and bands are too expensive for an arena the size of the Show Me Center. To bring Rod Stewart to Cape Girardeau, the center would have to guarantee the rock 'n' roll singer at least $300,000, Ross said.

The center staff has focused instead on cultivating stable events, such as this weekend's Sports Show.

The exhibits of everything from campers to ski boats annually attract about 10,000 people.