I finally stumbled across the 2015 financial report which understandably gets very little publicity for the time being. (That will change pretty soon...) Last year at this time, I noted with some optimism that the net worth/assets balance had shown a slower rate of decline: $2.4 million decline in 2014 vs. $11 and $17 million in 2013 and 2012, respectively. While just one data point, it was promising had that been the start of a trend improvement.
The 2015 report, unfortunately, shows a much higher year-over-year decline again of $9.3 million. Without deep diving the reasons why, this trend down will ultimately kill the arena as it's currently operated and supported. When net assets decline to zero, the arena will be technically insolvent or bankrupt. In four years, this figure has declined by almost $40 million, from $59.7 million at the end of 2011 to $20.1 million at the end of 2015. That's an average of $10 million per year against an EOY 2015 balance of $20 million. In other words, we've got about two years until life support kicks in.
I will post more underlying analysis in this thread as I have time to research the numbers. Would encourage others to do the same whether you're in agreement with my conclusions or not. For sure there ain't many in the latter camp.
Jim Host Life Support Arena
The 2015 report, unfortunately, shows a much higher year-over-year decline again of $9.3 million. Without deep diving the reasons why, this trend down will ultimately kill the arena as it's currently operated and supported. When net assets decline to zero, the arena will be technically insolvent or bankrupt. In four years, this figure has declined by almost $40 million, from $59.7 million at the end of 2011 to $20.1 million at the end of 2015. That's an average of $10 million per year against an EOY 2015 balance of $20 million. In other words, we've got about two years until life support kicks in.
I will post more underlying analysis in this thread as I have time to research the numbers. Would encourage others to do the same whether you're in agreement with my conclusions or not. For sure there ain't many in the latter camp.
Jim Host Life Support Arena
