Scotiabank Centre Business Plan 2015/16 - CONTENTS
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Scotiabank Centre Business Plan 2015/16 CONTENTS Message from CEO & the Chair 2 Planning & Budget Context 3 Operations Budget Summaries 4 2015-16 Priorities & Activities 5-11
Scotiabank Centre Business Plan 2015/16
Message from the CEO
& the Chair
As the Atlantic region’s premiere sports and entertainment venue, Scotiabank Centre has a rich history of
successful events. Having hosted the world’s top performers, homegrown talent, best in class athletes and
many performers in between, Scotiabank Centre has been a source for community vibrancy and pride for
over 37 years.
In 2015-16, we will continue to support our long-term vision to position Halifax and Nova Scotia as
Canada’s East Coast event destination. Our priorities are centered on our new naming rights partnership
with Scotiabank and the many enhancements it has afforded us. A focus on fiscal sustainability,
enhancements to the customer experiences and a targeted approach to event attraction will guide our
strategy and position us for future growth.
We will continue to deliver on our commitment to operate in an open and transparent manner to maintain
public and stakeholder confidence. In collaboration with Halifax Regional Municipality (HRM), we will
develop a long-term vision and mandate for Scotiabank Centre to ensure we continue to meet the
expectations of our community and stakeholders for years to come.
While we are ushering in a new era for our facility, our purpose remains unchanged. We will continue to
serve as a gathering place for our community, a place where memories are made and relationships are
forged. A facility that acts as an economic and community driver for our city and positions Halifax on the
world stage. With an outstanding calendar of marquee events this upcoming year, we look forward to
creating new experiences with our community and welcoming the world to our city for years to come.
Yours truly,
Scott Ferguson
President and CEO
Justin McDonough
Chair, TCL Board of Directors
2Scotiabank Centre Business Plan 2015/16
Planning & Budget Context
Scotiabank Centre is the largest multipurpose facility in Atlantic Canada, serving as the region’s premier venue
for major entertainment and sporting events and the nucleus of major event activity in Nova Scotia. It is
owned by HRM and operated by Trade Centre Limited (TCL), a provincial Crown corporation. Our focus is on
ensuring the professional and effective delivery of events that drive community and economic impact.
With a seating capacity of more than 10,000 and the versatility to accommodate a range of events,
Scotiabank Centre offers a variety of event experiences annually. Scotiabank Centre hosts on average
500,000 attendees each year resulting in average direct expenditures of $33 million annually supported by
anchor tenants including the Halifax Mooseheads, the Halifax Rainmen, and the Royal Nova Scotia
International Tattoo.
Scotiabank Centre faces unique challenges from a budget and financial context due to our focus on attracting
events that create the most significant economic and community return to the city. Our emphasis is on
optimizing event mix, sustaining premium product and sponsorship revenue and delivering on customer
expectations while ensuring operational efficiency. Scotiabank Centre will continue to target a sustainable
break-even operating financial position and direct expenditures consistent with prior years. Areas of risk to the
sustainability of these goals are the operation and maintenance of an aged facility as well as uncertainty around
event mix and corresponding event attendance.
As a critical element of TCL’s ability to attract high-calibre events to Halifax, infrastructure renovations and
enhancements continue to be a priority to ensure the facility meets client needs, thereby attracting a mix of
events consistent with customer expectations. The mix of events hosted in any given year has a direct impact
on the profitability of Scotiabank Centre’s operations. Primary revenue drivers for the facility include event,
concession and merchandise revenues as well as sponsorships and premium product leasing and rentals.
To remain competitive, Scotiabank Centre will invest in the business for the long-term and lever its unique
operating model. This means investments in marketing, human resources, facilities repairs, capital
infrastructure, and enhanced and new customer service offerings are critical. These investments will be both
tactical and strategic in nature. They will allow Scotiabank Centre to meet customer expectations, which will
enhance our market share in an increasingly competitive environment and increase our contribution to HRM.
In the fall of 2014, HRM signed a 10-year naming rights contract with Scotiabank, which provides for
substantial capital investment in Scotiabank Centre exceeding $5.7 million over the length of the agreement.
Capital projects, starting in the last quarter of 2014-2015, include washroom expansion and renovations and
replacement of seats.
Forecasted financial results for the current fiscal year (2014-2015) for Scotiabank Centre are an operating
income of $241,100 on revenues of $7.9 million, as compared with budgeted operating income of $241,100 on
revenues of $7.4 million. In 2015-2016, Scotiabank Centre expects to generate revenues of approximately $7.5
million, resulting in operating income of $34,000.
3Scotiabank Centre Business Plan 2015/16
Operations Budget Summaries
(For the year ended March 31)
Budget 2014
2014-15 ($) Forecast 2014-
2014-15 ($) Budget 2015-
2015-16 ($)
Revenues 7,404,405 7,943,800 7,460,700
Expenses
Event operations 2,956,305 3,398,700 3,087,100
Salaries and benefits 2,420,900 2,488,700 2,291,000
Building operations & 1,430,500 1,460,300 1,504,800
maintenance
Administration/ 355,600 355,000 543,800
Marketing
Total expenses 7,163,305 7,702,700 7,426,700
Income for the year 241,100 241,100 34,000
Note 1: Scotiabank Centre is a facility owned by HRM and operated by TCL under a management agreement. All operating
income accrues to HRM, and all capital improvements are funded by HRM.
Note 2: 2014-2015 forecast per Scotiabank Centre’s January 2015 internal financial statements.
4Scotiabank Centre Business Plan 2015/16
2015-16 Priorities &
Activities
Scotiabank Centre’s strategic focuses are consistent and aligned with TCL’s long-term vision to position
Halifax and Nova Scotia as Canada’s East Coast event destination on the global stage. Key business
activities are rooted in the following strategic priorities: financial sustainability, business growth,
infrastructure, people, community partnerships and governance.
In 2015-16, we will identify opportunities and partnerships that maximize our event attraction efforts and
support business, community and economic development. We will continue to implement our strategic
event attraction strategy while ensuring the successful delivery of major marquee events throughout the
year. This will help to ensure we meet our financial and economic impact targets, which support long-term
financial sustainability and further highlight our role as an economic and community driver.
We will continue to activate on our naming rights partnership with Scotiabank with a focus on
enhancements to the customer experience. This includes implementation of year 2 of our multi-year
capital priorities plan which focuses on replacement of our 37-year-old seats as well as expansion and
renovation of our washroom facilities.
Roll-out of these enhancements will be supported by a communications and promotions plan that will
highlight the community benefits of our naming rights partnership and the impact of the events we host.
We will also begin to define our approach to community relations, allowing us to further demonstrate the
impact of the events we host in the future.
Our people are critical to the successful delivery of events and a positive customer experience. In addition
to ongoing training and succession planning, we will implement our employee engagement program with
a focus on internal communications and recognition. We will also begin to establish our long-term vision
for service excellence and develop a plan and training program to help us achieve it.
In keeping with our commitment to accountability and effective governance, we will continue to operate
in full compliance with the existing operating agreement in place while developing the framework for a
new multi-year operating agreement in collaboration with HRM. We will continue with agreed practices
and work in partnership with HRM to mitigate areas of risk and plan for the future of Scotiabank Centre.
5Scotiabank Centre Business Plan 2015/16
Priority: Financial Sustainability – Optimize core business activities to result in break-even financial
position.
Focus Area 2015-
2015-16Target Activities
Revenue Generation Achieve total revenue of $7.5M • Effectively manage
procurement process and
transition for concession
services contract
• Determine approach and
negotiate major tenant
contracts
• Generate premium product,
sponsorship and
advertising revenue of
$3.5M.
Operating Efficiency Manage event expense ratio to no • Implement technology
more than 42% of revenues improvements that support
efficiency
• Proactively review and
activate on event P&Ls
Economic Impact Generate economic impact in • Host in excess of 120 event
excess of $35 million, consistent days with total attendance
with prior years in excess of 500,000
• Successfully deliver on
marquee major events
6Scotiabank Centre Business Plan 2015/16
Priority: Business Growth – Identify strategic opportunities for business growth to increase revenues and
generate economic and community impact.
Focus Area 2015-
2015-16 Target Activities
Event Attraction Activate targeted approach to • Successfully deliver on
event attraction major marquee events
• Implement year two of five-
year event attraction
strategy with emphasis on
sports and entertainment
events for 2016/17.
Customer Experience Develop focused approach to • Develop multi-year
ensuring customer service customer service excellence
excellence framework and activities
• Develop comprehensive
training plan
Customer Experience Implement wi-fi enhancement • Develop approach and plan
for wi-fi technology
enhancement
7Scotiabank Centre Business Plan 2015/16
Priority: Infrastructure – Manage and enhance infrastructure to deliver a positive customer experience.
Focus Area 2015-
2015-16 Target Activities
Facility Repairs & Upgrades Complete necessary improvements • Implement year two of
under capital maintenance multi-year capital priorities
program and implement approved plan with a focus on seating
naming rights capital priorities replacement and washroom
renovations and expansion
Concession Capital Program Approval of concession services • Identify concession capital
partner capital priorities priorities
• Develop project plan
Long-term Capital Program Develop comprehensive strategy • Determine capital
and long-term capital program requirements plan based on
vision and mandate
8Scotiabank Centre Business Plan 2015/16
Priority: People – Invest to develop a high performance workforce that supports the evolution of Scotiabank
Centre’s business and position in the events industry.
Focus Area 2015-
2015-16 Target Activities
Effective, engaged and accountable Implement employee engagement • Activate on key activities in
culture survey recommendations response to employee
engagement survey with
focus on recognition and
internal communications.
Implement succession and • Continue succession
development plans for critical roles planning and create
development plans for key
roles
9Scotiabank Centre Business Plan 2015/16
Priority: Community Partnerships – Implement a consultative approach to develop key partnerships based on
common objectives to support business, community and economic development.
Focus Area 2015-
2015-16 Target Activities
Naming Rights Program Effective and successful naming • Fully leverage partnership
rights partnership by identifying and
implementing integration
opportunities
• Develop and activate
communications program
to demonstrate the
community benefits of the
naming rights program
Event Promotion Program Effectively position Scotiabank • Implement proactive
Centre as a community driver promotions and publicity
strategy highlighting the
impact of our business
Community Relations Program Preliminary community relations • Roll out and implement
and engagement approach defined formalized community
donations policy and
protocol
• Best practice review
complete and documented
• Preliminary community
relations strategy
developed
10Scotiabank Centre Business Plan 2015/16
Priority: Governance – Ensure operations demonstrate accountability to the communities and shareholder we
serve.
Focus Area 2015-
2015-16 Target Activities
Accountability Compliance with Scotiabank Centre • Delivery of accountability
operating agreement activities as outlined in the
Scotiabank Centre
Multi-year Scotiabank Centre operating agreement
operating agreement • Development of multi-year
Scotiabank Centre
operating agreement
Governance Long-term vision and mandate for • Community and
Scotiabank Centre confirmed and stakeholder consultations
communicated around mandate and long-
term vision
• 5 year strategic plan
framework developed
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