HomeMy WebLinkAboutItem #60 - Discussion ItemCITY OF MIAMI,�FLQAIOA
IN�t � C1i� MVV iO ANOUM
K,1 11• .5
��
Cesar bdio
February 4, 1991
- TO:
City Manager
DATE: Flll e
_
Heat Paid Activities at
SUBJECT: the Miami Arena
=
Miller-J. Dawkins
FROM:
Commissioner,
REFERENCES:
—
ENCLOSURES:
-
For four (4) years now I have asked you, John Blaidsell, Gene
Marks, George Knox, Chairman
of the Board to give me a financial
picture of events at the Arena by the Heat; events established by
-
legislation and, if the City received any returns for the tax•
dollars that went into the construction of the Arena.
Please schedule for the March
14th meeting, a two (2) hour block
of time for any board member,
any member of the Heath any member
of the Leisure Management
Corporation, and especially the
Director., of the Arena and
(the Commissioner who is -..Chairman
`
f
resp nsib.le .to the Board).
,
�'`
I.expect this to; be done where everybody is to get two minutes to
appear and in the event we do not get any ;answers; by copy of
this, -,I am requesting;
the City Attorney, to tell me what
,letter
legal steps I can use to get what I requested.
s
1
CC. Mr,. William. ,Perry, III
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Page No. i
z
12J2dJ91
•
3
MIAMI ARENA
SCHEDULE
OF
EVENTS
s'
HEAT
Date
Paid
soap
Total
Turns
bate Gross Seat
Charge
_ -
taatttattetttt
tat9
ales
seta*
=seek
tatttsasst sttttkealt�
-
EVENT'sas-) HEAT
—.
CLEVELAND
WOW
13196
319
19615
8511
0.11
9897.11
_
Subsubtotal
13196
319
1351S
8511
1,11
9891.11
CLIPPERS
-
11 OAB
14161
$24
14676
14426
_0.11
11613.25
* Subsubtotal
14151
624
14676
14426
1.11
11613.25
.<
HOUSTON
_I..
11i11J88
U562
356
14918
12514
1.18
11921.51
.
Subsubtotal
..
14562
356
14911
11514
1.11
11921.51
' BOSTON
11J15�88
14541
351
14892
14147
1.11
11915.75
—
.
• SubsubtoEal
,
11541
351
1A892
U011
1.11
11915.75
>`
1
4
• 60LDEN ST
r�i�f .
iiJ1BJ88.
13818
379
14191
11265
1.11
1l363.5t
S6subtotal
13118
379
167
11265
1.11
11363:51
i
* IAIERS
4
11 23 88
14174
419
15263
14788
0,11
11155 51:
Y
Subsubtotal
�*
1a811
119
15283
14I88
1:11
11155.61aa
,
,� 11f
" SAN ANTONIO.,-�
13848
371
14219
11516
1.11
11386.11
$ y r
.y
�
tet��. e
-,...
"
y ' t t� �� -
' "
j 2 a4 � � F `
i C
f• f�b7Ml.
-,.
13846
371
11219'
i1516
X(
1,11
.4 :
11386.11
:s ''. t n a rt•
a PORTLAND
'14123
371
1449$ .
11912,
1,li'
1159i
•
a `;
44
3l123
971
1093
11912
1:11
1159245
; AIA
}r
i1791
339
15i69
12815
1,11
#illl bl
e
r;� ..
`k ' ifh
r x,
11731
339
15169
y
V
-.
..:,b���`"„M��sir�.i31:� 1 ..,.. ✓e . .e.t v
3 .. _� .
.,
,�
.-
..
. ,.. .
..,+ FPS t`,`e ER ����r� .. _-
Page No. 3
12�26�91
'
MIAMI
ARENA
SCHEDULE
OR EVENTS
HEAT
=
Date Paid
Comp
Total
Turns
Gate Gross
Seat Charge
'
assataasataaa! rise
sate
saaaa
saves
tasvasafaa
aaeaaaasiea
,
. ;.
1
1
1
1
1.11
1.11
•'
* HEAT VS. CHICAGO
=
11�19J89 14796
382
15118
11B12
1.11
11191.11
' Subsubtotal '
-
14196
382
15118
11812
0.11
11191.11
HEAT VS. DENVER
11126J89 14528
342
14921
11642
1.11
11933.51
' Subsubtotal '
14578
342
14921
11642
1.11
11933.61
' HEAT VS. GOLDEN STATE
11131/89 13961
361
14321
11833
1.11
11471.11
-
' Subsubtotal '
i
13961
361
14321
11833
1.11
11471.00
HEAT VS. SEATTLE
}
12/12189 13768
341
14118
11981
1.10
11326.11
' Subsubtotal '
13768
341
14118
11981
1.11
11326.11
j
f
* HEAT VS. SACRANENTO
12115J89 14562
366
14928
11224
1.10
10921.51
' Subsubtotal '
'
14562
366
14928
11224
1.11
10921.51
1
'r HEAT VS. CLEVELAND
12J16�89 14756
364
15121
11937
0.10
11161.11
. Subsubtotal '
14156
364
15121
11937
1.10
11167.11
(
' HEAT VS. CHARLOTTE
I2JU`J89 14189
424
15213
12196
1,11.
11191.154
'
' Subsubtotal73,
a
14789
424
15213
12196
1.11
11191.75
s
.:
"'HEAT HEAT VS., ATLANTA
k �
' ,
12/19J19� 14806.
315
15241
12638.
1.11
11149,51<
*'
f
Subsubtotal '
14866
316
15241
12631
0.10
11149.61
*
,
'., NEAT; VS.. PHIIADELPHIA
12J22J89 14988,
351=
15239
13275.
1.11
11166a11
subsuecoc�l
, .
x
14818
151
15239
13225
1.11
11166,11
4
t
An
K�Y}k'ti%V�•'ia�j
��u �
�Y,�i..
�C li�'i ;1�. '� 4
Axt _
;'
�4ix
a, ilia- �t*�,., n3,...
••"a:, s •';.. ! _.
V #
y_
i
■
■
t
e,
NO Ne. it
E
Page No. 12
j
.
MIAMI
ARENA
SCHEDULE
OF EVENTS
HEAT
Date
Paid
Comp
total
Turns
Gate Gross
Seat Charge
eeeataeatetese
see=
same
emtmm
note
eteesesamm
ateeeestete
11118/91
12511
1
12511
11671
1.11
9375.01
* Subsubtotal "
12511
1
12$11
11671
1.11
9376.11
' WOLVES .
►
11/11/91
12511
1
12511
12789
1.11
9375.11
' Subsubtotal '
-
12511
1
12511
12189
1.11
9375.11
* NAGIC
-
11/15191
12511
1
12511
11716
1.11
9315.11
' Subsubtotal '
12511
1
12611
11116
1.11
9375.11
' KNICKS
11118/91
12511
1
12511
12676
1.11
9375.01
' Subsubtotal '
12511
1
12511
12676
1.11
9376.11
.. "�
. BULLS
.. r.°
'
11/21191
12511
1
12611
11115
1.11
9376.11
• Subsubtotal '
11511
1
12511
11115
6.11
9375.11
' NETS
11126191
12516
1
12511
11715
1.11
9375.10
' Subsubtotal
11511
1
12511
11715
1.11
9315.11
.-
* SUNS
11 /31 /91
12616
1
12511
11734
1.11
9315:11
1
' Subsubtotal '
;.
12511
1
12511
11734
1.11
9375.11
y
.R Subtotal "
1496116
21454
1616861
1339854
1.11
1122314.61
3
Total
1496416
11151
1516061
1339854
1.11
1122311.61
3 : y„
y
-C
x
4,
L..
ilk lA
24
c"
i
Page No. i
-
'..
12f26f91
•
MIAMI
ARENA
R.
SCHEDULE
OF
EVENTS
.r
NON —TICKETED
EVENTS
Date Paid Copp
Total
Turns
We Gross
Seat Charge
'
esaarsaateaaas area z:ze
acts
ezase
eczaaeesea
aeaaza:ezee
,
EVENT =____) NONTKT
SOCK HOP
_
'._
iifllf88
1
1
1
1811
1.11
1.11
C(rc�utc
' Subsubtotal '
1
i
1
loll
1.11
1.11
" F.I.U. COMMENCEMENT
_
15f11f89
1
1
1
11511
l.11
1.11
,
' Subsubtotal '
1
1
i
11511
1.11
1.11
' LIVIRS04PRODUCTIONS
15f2�f89
1
1
1
1
/.11
1.11
-
'
Subsubtotal
1
1
1
1
1.11
1.11
' CHAMBER LUNCH
/6115/89
1
1
1
2111
1.01
1.11
* Subsubtotal
1
1
1
2111
1.01
1.11
" LIONS CLUB
=
16 f 21 f 19
!
1
1
36S98
1.11
ml
' Subsubtotal "
1
1
1
36596
l.11
1.11
* HEAT DRAFT
16/21 f 89
1
1
1
3116
1.11
1.01
A
t`
• Subsubtotal!
1.11
1.11
* ELAN VITAL
1
259111.11
* Subsubtotal '
!
1
1
25901
1.01
1.11
' AQdUST'.IIQNSZil
89
' b
' Subsubtotal
ApJUST ' HEAT DRAFT
!1 81 89
j �
!
�
!
1
1,11
• Subsubtotal '
f,
t
IIIANI 8EAAIQ,1
•.
_ I
s„
spy'
K
"(��jA.j■�
,N�;
;'::
i_
4
o �..
Page No. 3
� -
q
i2126141
�
MIAMI ARENA
SCHEDULE OF
EVENTS
—
OTHER EVENTS
_
Date
Paid
Coup
Total
Turns
Gate Gross
Seat Charge,
_ 9
essasrseaasta
essa
saga
sews
arias
saaasssass
area:mane
11/16/89
7067
691
8558
1134
91361.25
5911.25
a
' Subsubtotal '
7861
691
8558
1134
91361.26
$911.25
ICE WADES
a , '
11/22/89
16831
7259
24191
22788
163237.11
12623.25
' Subsubtotal '
_
16831
7259
24191
22788
163237.11
12623.25
CCN. SOCCER
'
11/31/89
945.
62
loll
945
26135.11
718.75
Subsubtotal '
-
945
62
1117
945
26135.11
718.75
_
• ADJUST ' W.W.F.
SURVIVOR ADV.
11/23/89
1
1
0
1
1.11
0.11
* Subsubtotal
* ADJUST " SESANE
11131189
1
Subsubtotal
1
1
1
1.11
1.11
. J
• : ADJUST ' U.N.F.
'
11131189
_
• Subsubtotal '
,s
• ADJUST • CCTV SOCCER
11/31189
1
1 .
1:
1
1.11
: 1•li
Subsubtotal '
1
1
1
1
1 AI
1.11
ADJUST ' ICE CAPADES
11/30189
/; .
1 ;
1
1
1.11
' 131
sti
..Subsubtotal
12113189
3164 ;
$19
3683
3618
41561..11
2313.11 } '
• Subsubtotal "
.`
3164
519
3683
3518
41561.11
2313.11
F�
146111.
8151
1$4481"
148915
165171 ,15.:
119115.15
..
" -
• Subsubtotal
�; ����
,t'
'.ri_ 3 r •G._ rL
4.Y'.nhi'r��
. _
_
_
i =
M __
ti
Page No. 2
: •
i1]26 j91
,.
� ,
MIAMI
ARENA
SCHEDULE
EVENTS
CONCERTS
Date
Paid
comp
Total
Turns bate Gross Seat Charge
•
sttxtttzeszsz!
zztz
tzzz
zxxtt
ezzaz exzaztztzz tttzzezzztt
24522
389
24911
23769 1195816.51
18391.51
—
' ION JOVI
12119189
15741
618
16349
16138
241218.51
11815.15
' Subsubtotal '
15741
618
16349
16138
291218.51
11815.15
• J
' POISON
13 j15 j84
8242
$12
8744
8$11
152411.11
6181.61
• Subsubtotal '
8242
512
8744
8571
152411.11
6181.61
• SANDIPATTI
14 jI1j89
6148
484
6532
6191
71724.11
4536.11
* Subsubtotal '
6148
484
6532
6191
11124.11
636.11
tINOIREItA
6566
324
6891
6693
114915.16
4924.51
14 j11 j89
Y�
' Subsubtotal '
6566
324
6891
6693
114915.11
.4924.50
BOBBY BROWN
861
14696
13331
234855.11
11361.25
14121189
13615
c'•
• Subsubtotal
i `
13815
881
14696
13331
234855,.11
11361.25
`
#
" RATT
"
6681
341
1234
111 6
115357.25
$165.26
..
14128109
•
• Subsubtotal '
6887
347
7234
1116
115351.25
$165.25
9178
226
1111!
9111
181893J1
7333.51
�
• �;
*Subsubtotal '
11114
9721
181893.11
1333.51
9118
226
..;
'f ,•
100 STEWART
1lJ31]89 ``
14148
$16
15314
14291
288561.11
r
11198,51
,
,._ ,
Subsubtotal'
' 4
14191
$15
15311
14291
28856i.H
1119131
AQ30ST • POISON
1
1
1
1
1.11
I}II
' Subsubtotal •$
•� � NNE ¢_
/J �
w -
44
IT°(
F
tE;"p'Za'!
D
I'
�-
1'
j-•'.
}.
�d
--
- - -
:;
- -- ,�. r.
�;
�;
000
Pill No.
mjAM1 ARENA
SCHEDULE OF EVENTS
CONCERTS
♦ Paldcollp t Total urhs I Ott Seat Charge
Date
soaks sammuck2twas
angst
..... not* *x2ft!
363 7783 7624 136911.11
ADJUST GRATEFUL DEAD
Z;
Subsubtotal'
ORE4 DICE. CLAY ._
ej 12114/89• 13182 219 13691 13694 279751.61
,:4 Subsubtotal
134s2 219. 13691 13594 279751-51 11111-51
ADJUST DEBBIE GIBSON
12131189
Subsubtotal
4-1
I' 7i
MOTLEY CRUE
15383 15165 282393 75 11295-76
Subsubtots
% 16161322 16383 16165 282393 76 11296 75
TEARS FOk.F1ARS
6116 6248 fill6.51 4111.76
$469 975
b,
Subsubtotal
jqt 6111
t
—4
12 7416 338'. 7562, 504.W
V
Subsubtotal
338 7744 7552 131111.11 5654.61
'.j
4
NEV KIDS:
15741 517 16264 16
1189.25.
16
if 16151 311103-25
15111 617 16264
13332 246661.51 9
13641 919.25
M
13332 21501.61
3219..
r
:-joJpST OJIMS X
1.' 44—.43
#
A,
00 All
VI W
Y
4 qm4t.
I
t Y` ` '�+�,t+ ' �?. •, `1 •i fit' ��
•
.. z t !� rat: .• ;
MIAMI ARENA
`•s� ` I�t ; SCHEDULE OF EVENTS
CONCERTS
al
Date Paid
tong Total Turns Sate Gross Seat charge 1
t �+ S a•j 1?t ^_! ess:as:saasesa "am mass a:a:c see:r stfensa:as aasscassata
' : ' s t t, •`•.; +; t ADJUST ' GRATEFUL DEAD
12128191
Subsubtotal '
..\ � -! It •.. �.) � ! .. f + •, • -
F. JANET JACISON _
r ,,. ;r i 13JI1J91 15182 221 15313 16261 291869,51 1131L51 a
i; �t'` t ` _ _ .� Subsubtotal_'
i t S• ' 15182 221 15313 16257 297869.51 11311,51
PAVAROTTI
�.? 13J14J91 1619 5561 13219 11526 481341.11 $736.15 '
' Subsubtotal '
1649 • $561_. _ _13219 —11526 _ 181341.31 $736.75 ,
j ".•'„ I r ' ELLY JOEI
' /3 JIB J91 16754 57 15811 15712 3581113 51 11815.51 1
13J19191 16169 73 16142 16431 365569.75 12151.15 _
•� ' ` ;: ;'' 13112191 16157 15 16132 16198 365296.76 12142.75 t
13J13j91_ 6615911 _15913.-_ 361611.25 11888.25 }�
16141 66 16211 16191 367217.75 12116.75 i
�• ^, }
03117191 16132 91 16226 16319 367113.11 12199:It t
1 e• `'°_ • Subsubtotal • ... _ .. - ' _ , • ,.
96111 431 96135 96161 2184191.11 72113.11
�� {, ,fJz 3 a{� • NNITESNAKE�'_
%i 13124191 �11686 -: 282 11868 11636 228823.51 8689.b1 ''
,. ,5' 1 L" '' • Subsubtotal ' ?'
11586 282 11868 11636 228823.51 8689.51
21,
"ADJUST *:TEARS FOR FEARS
_.fill
Subsubtotal
3 N y M o�t•,.,ADJUST " B088T OROUN t ;
,F �• ���,�,�� � �ti t:y. F�, r'I 13j31J91 1 1 1 1 1.11 1.11 j+' ���-•,1 � :t' ,� ,: -
� � P
`' �; �.', ��, f � � t':� ,. • -Subsubtotal ' _._..�,.._._-�----_ _----- _ _ . __ _ _ _.. .. r �: �.
} ` 'lr ��s+ ''' *w 1fENNt:i DDll1 Kt► '
11361 281 11651 12138 22)9)251 1136),11
SU4eubtetal-
1 t •• 1
•T°• ! _~ 11361....> , .201. _ _ 1165I.. __32138 227972,51 1136).il
A,iOx'ZJ t 1 jit Jfa F7
� _ , y t ����t J' �a„ ,, �,�. •s -. p�r.�y(� '�� ak�� s ,r 7>y-5_ �3,
° t °� R�:�MNA7PF18 �1 !bS t t} v -
+. r� a, lilt} *� # a� ;r
11T#4 . 166 ,. ,16112. .__.3110TS . f. 33l561�61 1411i.14 t �{
x
47
f y i i 4 ry"lu5b_
El
MIAMI ARENA
SCHEDULE OF EVENTS
CONCERTS
ti
Date Paid coop total Turns Got, Gross slat charge
ass" w*** mass
Began *Xmus acrumstaus staftsubusax
Subsubtotal
DAVID BOWIE
12661 71
13169 336367.61 9487.61
A
Subsubtotal.
12651 471 13121 13169 330387.61 9481.5
1
ADJUST TEARS FOR FEARS
14/31191
Subsubtatal
ADJUST Ow
BBY BR K
s.
14131/91
1 r
Subsubtotal.
71
MILLI VARILLI
$11 81987891 741. 1 168T 1/
7687
Subsubtotal •a
sit 8198 7691 163741.11 7687.11 "i
9. k
APLAVSO,5Z-
4666 9474 6561 98998.11 4814.11 .
90998.11
4814 4661 9414 8561
V
n DEFEW RODE
2218 258721.11 12321.11,:
V1 16131191 12321 228 12548,
Subsubtotal
_IZL_ U24U 12321
f ILI ADJUST MID BOWIE
If 4 - u
! -.� i w' i fit' 'yt j {� i•
'fit t ,k� , : r,, �;+•; c;; #�.'
y s i t 't �• ,
MIAMI ARENA
` - SCHEDULE OF - EVENTS
`s CONCERTS -
L i '.f• � .•I i' ; 1 ;C
;• ; Date Paid Coop Total Turns bate Gross Seat Charge >
: at:a
jf
{� • i C t �:: ^ `+ ettaatetKttta: etas
filet tales sttttteet! aft:aasettt
HEART
a! ,,, 16�18191 r
_ 371 9721 9511 184642.15 9349.11
9319
Subsubtotal'
4 . r 9319 371 9721 9541 184642.15 9349.11
' i * N.C.HANNER
' +,;'. 16129/91- • . ,_ - 11281 _ -• _• 111 _ _12154 _ . • 11765 219961.11 11281.11 y,
i. .. _ :t t�; --• Subsubtotal
11181 111 12151 11765 219961.11 11281.11
aY' ' ADJUST '. APIAUSO 92 8.11 1.11
16131191 1 1
' Subsubtotal '
1 1 1.01
Z1
• Z•,.^ � �� •• ' AOJUST'. OEPEtNE NODE 1.11 1.11 •
!
16131191
Subsubtotal
AD
JUST ' DAVID 80gIE y '
s a �" 16131191 1 1 1 1.11 1.11 ,
Subsubtotal ' r
'}t 1 1 1 1 1.11 1.11 i y
JANET JACKSON r- '
11112191 11131 288 11319 11116 225691.51 11131.11 �+ .
r
t
' "� • Subsubtotal '
11131 288 11319 11116 225697.61 11131.11 '
Ilk
•� ! 11123191 16151 121 16216 15158 361111f11 16l52.11
Ty
t ' !- ' •� 16152 221 - 16216 15158 361171.11 16162.11
,:
111281l1. . L- l81;, 33; .._-1l21! _111I9...191511.11 9112.11 y';
9112 332 10211 1111! 1l2511.11 9612.11 T
} -
;� ; 11121j91 7329 141 8113 1111 13$586,51 1929.11 ,•: err
�, ;I
NI 8113 7841 136516.61 1329,11 f� ;
T, uplat 101
1Rk
- s t ,�':
Y ".
'i%.1� .''• � k M.. � lit
f .fir
ki
•ss,�,'rrV�at1'I AF'y:•`ib „» �� A4 � Y 5y�u, ,
qt.
MIAMI ARENA
j
• f
��� •' • !. ='"• ° �
SCT3EilULE OF EVENTS
/
t`
CONCERTS
ADate
"
►,'. '
,•-"Paid
coop Total
turns bate Gross. Seat
tharge
�_;-:
eras ssss sssss
sass: a:less:ese is::ssseaes
•t
•,r. -r w Y R
ssessssesessas
Subsubtotal!
•`(
1�. �*' ' _<<' ,r
��
a ,�' ,
�'
t.,fr
3
t t ,�?
_.
• ADJUST * A. E. NANAEA1.10
- _ c }
• Subsubtotal '
ADJUST ' SALT i PEPPA
a
17/31/91 b 1
1
1.11
1.10
Subsubtotal
Y .
4
. 1 :. 'I
`• , '
• KISS
18/13/91 7194 371 1564
1529
134887-51
1191.11
;
i,=(
i
Subsubtotal'
7564
1529
1191.11
'
1194 371
ADJUSTPUBLIC EAENY__-_
1
1
1.11
1.11
Subsubtotal.'
°1
!
'ADJUST" `ENIC tIAPTON
Subsubtotal
n
�
, .,� �; .,•
�.:
• 'BILLY IDOL-
12133.11
`.;�� -
i9j29j91 12133 288 12121
12322
139626.15
s
Tt�s!•�
*_
}
1
'�#
«Subsubtotal ,�� _.� _�_ __..�_._ _..._
�12133� _ 288 12421 12322
-_..._. _
239626.15
.
12139.11
•' ,t
tL'i. ?}t �S 1.�•
off
l .
ft-11 t rsz '_T ' 'ADJUST' PUBLIC MAT;
t> t� 1 1 1 1 t.il 1.11 �'. t;,
�i ft �•�� , : !, �9 j31 j91, j, ,z
t tii, 1.11
z r
jt{' a� • �,Y, a.,� • ADJUST ' DAVIO 1011IE
1 1.. 1. 1 1.11 1.11 y: r'• ?':
` a , All Subsubtotal ; ,t, �t • Subsubtotal ,
9x 11 1, k 11 j23 j91 1931 491 912i RO 115291.51 1931.11 r b
ku
-KL
al
,y—
`i
CA
:>tiFA• 4:• 1i
MIAMI ARENA —
a. `• ,':, ' i SCHEDULE OF -EVENTS ;
h {`{ CONCERTS
' Dete Paid Comp Total Turns bate Gross Seat thar9e
•; '•s•` '�� I^ gtgSSggaamam am mass mgssa gate: mamgassgga aggggaagfaa .
I +• :':� •.• 8931 491 9421 9215 185291.51 8931.11
y ! FLEETWOOD NAt
rj } '; +r� 1iJ24J91 11984 Sol 11671 11526 247141.11 11984.11 y'
Subsubtotal'
t- 11984 $87 11571 11628 247141.11 11984-10
N t HANNER _
I" 11 JIl �91 12925 1199 14124 13112 178158.51 12925111
Subsubtotal '-
12915 1199 14124 13172 278158.51 12925.11
JUDAS PRIEST
12/11191 $491 $49_ __614/ .-_-S799 118441.25 $191.11 `.
* Subsubtotal ' t
$491 $49 $199 118441.25 $491.11
,m;�,
' J I GUERRA Y 4.41
11J13J91 9793 822 11615 11512 268192.11 9193.11 ;
t . Subsubtotal
,!. ( 9793 822 11616 11512 268192.11 9793.11
FRANK SINATRA'
11123191 11135 1616 12141 11315 $11361.11 11135 11 y
t �. r..'` �x '�:.�i 1'•j. ` Subsubtotal'
11135 1616...._ _11141__ :._ 12315 ._ 511361.11 11135.11
ADJUSTN C HANNER
a Subsubtotal'
Ir
ADJUST ' JUUS PRIEST
+ �� •{y i t Subsubtotal' +f
+ r r i 1 8.11
'.Subtotal �R e
>z.� 3Mi a !f ' ^^ I/95,82 _^ _ 1696.8196551_. __.168361 11153853.11 . , 611531.51 13"
' 1 M
t� �,t., ', .: Y ,rl •tt Total •*�
t rt" "'''� f`• 449582 16968 196551 761361 16151859.i1 611631.51 13 #
1, k
a
W f i ill P. q ; • i� •' u ' ' itil _
i
ARTHun ANDEIRSEN & CO.
CEIRTIrtElD PUBLIC ACCOUNTANTS
MIAMI, FLORIDA
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To Decoma Miami Associates, Ltd. and
the Miami Sports and Exhibition Authority:
We have audited the accompanying statements of assets and liabilities of the
operations of the Miami Arenao owned by the Miami Sports and Exhibition
Authority ('MSEA") and operated by Decoma Miami Associates, Ltd. ("Decoma")
as of September 30, 1989 and 1988, and the related statements of revenues and
expenses and cash flows for the year ended September 30, 1989, and the period
from inception (July 8, 1988) to September 30, 1988., . These., financial
statements are the responsibility of Decoma's management. Our responsibility
is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
:obtain reasonable assurance about whether the financial statements are free of
material: misstatement.. An audit. includes examining, on a test basis, evidence
supporting the,'amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of the operations of the Miami
Arena as of September 30, 1989 and 1988, and its revenues and expenses and
cash flows for the year ended September 30, 1989, and the period from
inception (July 8, 1988) to September 30, 1988, in conformity with generally
accepted accounting principles.
- - - - - ---------
y.
..........
44
A
1'
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ARTUtTR ANDERs£N
$c Co.
3�
}—
1
2
'I
As discussed in Note 12 to the financial
statements, the County Property
{
Appraiser has proposed that, for the 1989
tax year, ad valorem taxes of
approximately $1.3 million be levied on the
Miami Arena and certain tangible
t
personal property contained therein. The City of Miami, MSEA and Decoma have
filed petitions for exemption from the taxes.
Such taxes, if upheld, would be
—
included in the Arena's results of operations for the fiscal year ending
September 30, 1990 and thereafter.
As discussed in Note 13 to the financial statements,
Metropolitan Dade County
and the City of Miami have set. up a
joint committee to address a
i
recommendation made by the County Administration to the Board of County
2
Commissioners on March 6, 1990 that would
limit the amount of convention
development tax revenues to. be allocated
to MSEA. The Board of County
Commissioners has deferred any action on
the recommendation pending the
{
results of the joint committee process.
;
i
2
l�.
Miami, Florida,.
December 8, 1989 (except for Note 13,
as:to-which the date is March 6, 1990).
i
if hA�"
MIAMI ARENA OPERATIONS
STATEMENTS OF REVENUES AND EXPENSES
FOR THE YEAR ENDED SEPTEMBER 30, 1989, AND
THE PERIOD FROM INCEPTION (JULY 8 1988) TO SEPTEMBER 30 1988
1989 1988*
MIAMI ARENA OPERATIONS
STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED SEPTEMBER 301-19891AND
THE PERIOD FROM INCEPTION (JULY 8, 1988) TO SEPTEMBER 30, 1988
(Continued)
1989 1988
CASH FLOWS USED IN I.NVESTING ACTIVITIES:
Organizational and ?re -opening cost expenditures $_-(3,056) $(170,393)
Net cash used in investing activities
--_(3,056)
_(170,393)
CASH FLOWS FROM FINANCING ACTIVITIES:
_
30,000
Proceeds.of bank..note payable
300,000
Proceeds of advance from MSEA
(4,721)
(487)
Principal payments on notes payable
Net cash provided by (used in) _
financing activities
---(4,721)
--3291513
NET INCREASE (DECREASE) IN CASH
(244,734)
881,780
CASH, AT BEGINNING OF PERIOD
- 881,780
-- -
CASH,`AT END OF PERIOD
$ 637,046
$_881,780
SUPPLEMENTAL DISCLOSURES`OF CASH FLOW INFORMATION:
. .
'Cash paid during. the year-
$ 12,072
1,977
Interest,,$.`
The accompanying notes to financial
statements
are an integral part of these statements.
j
aFY
i`rtA_lx-
MIAMI ARENA OPERATIONS
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30, 1989, AND
THE PERIOD FROM INCEPTION (JULY 8, 1988) TO SEPTEMBER 30, 1988
i
(1) ORGANIZATION AND ACTIVITIES:
I
The Miami Arena (the "Arena") is owned by the Miami Sports and Exhibition
Authority ("MSEA"), an independent and autonomous agency of the City of
Miami. Operations of the Arena commenced on July 8, 1988. Under the terms of
the Miami Arena Contract (the "MAC") between MSEA and Decoma Miami Associates,
Ltd. ("Decoma"), a Florida limited partnership, Decoma was engaged to operate
the Arena. Under the terms of a separate agreement between Decoma and Leisure
Management Miami, Inc. ("LMMI"), LMMI was engaged to manage the operations of
the Arena, including rental of space, advertising, promotion, marketing,
events management, box office, public relations and all custodial and support
services.
(2) SUMMARY .OF SIGNIFICANT ACCOUNTING POLICIES:
Basis of Financial Statement Presentation -
The accompanying financial statements include only 'the operating accounts of
the Arena. They do not include the building, furniture and equipment and
depreciation of such assets that are owned by MSEA.
Revenue Recognition
Revenue.. is yearned principally through the rental of the Arena. facilities.
Rental .'revenue. is, recognized when the related event is staged.: Rental charges
vary.., from flat rates to a fixed percentage of net box office i receiptson
ticketed events.-- In certain cases, the Arena is also reimbursed for specified
costs, which consist primarily of labor costs. These reimbursed costs totaled
*1 309',889>:and.$481,092, respectively, for the year ended September 30, 1989,
and the period from inception to September 30. 1988. Rental revenues are
shown -,,net. of event related reimbursed costs in the accompanying statement of
revenues and,:expenses.
(3) TICKETSALES;
The Arenaoperatesa box office from which tickets are sold for Arena events.
Additionally, tickets are sold at Ticketmaster outlets. Cash from ticket
sales, net of any Ticketmaster surcharges, is deposited in the Arena's box
`office bank account. At the.conclusion of an Arena event, the cash in the box
office bank account is distributed to the promoter of the event in accordance
with the terms of the contract with the promoter. At September 309 1989 and
1988, approximately $650*000 and $600,000, respectively, of cash collected i
ti
from ticket sales is included in "cash" and the related liability is reflected
as "deposits on advance ticket sales" in the accompanying statement of assets
and liabilities. No revenue relating to box office advance ticket sales
(other than commissions earned on ticket sales) is reflected in revenues in
the accompanying financial statements.
+ (4) ACCOUNTS RECEIVABLE:
i
As of September 30,,1989 and 1988, "accounts receivable" consisted of amounts
due from third parties for the use of the Arena, the Arena's commission on
concession and novelty sales, and amounts due under the terms of certain
license agreements between LMMI and third parties.
(5) ORGA141ZATIONAL AND PRE -OPENING COSTS:
Certain costs associated with the organization and pre -opening of the Arena
have been capitalized in the accompanying financial statements. Such costs
are.being amortized over 5 years.
-3-
(8) :VOTES PAYAPLEt
Notes payable consist of the following as of September 30!
1989 1988
Note payable,to bank, bearing interest
at 12%, payable in monthly installments
of $667 through August 1993, secured by $ 24,792 $ 29,513
computer equipment
Insurance note payable, bearing interest
at 10.25%, payable in monthly installments
of..,$20,999 including interest through $115,483 $140,702
April 6, 1989 and May 7, 1990
L+MNI management intends to pay the full amount due to the bank during fiscal
_ - _ __.__L1 .. fn h--V 4 G CI as if ied as a current
�. 4
During fiscal 1989 the Arena requested and received a $150*000 advance as a
partial funding of the current year operating loss. The balance of the
was funded from the Maintenance Account
operating loss for the current year
subsequent to September 30, 1989, and is reflected as a receivable on the
accompanying statement of assets and liabilities.
Seat Use Fee -
lift accordance with the terms of the MAC, a $.75 fee is collected as part of
the purchase price of all tickets sold for events at the Arena. This fee is
remitted quarterly to Decoma and MSEA based on percentages detailed in the
MAC. - The rent due in accordance with the contract with the Miami Heat (see
Note 10) will first be applied to pay the seat use fee. As of September 30, _
1989 and 19881, the fees collected in the last quarter of the fiscal year are
reflected as a payable in the accompanying statement of assets and
liabilities. Subsequent to September 30, 1988 and 1989, the amounts were paid
to Decoma and MSEA.
Ground Lease- s
Under the terms of the MAC, the Arena is required to pay MSEA $300,000 per }
year to fund MSEA's annual payment to the City of Miami for the lease of the
Arena land site. Ground lease expense of $300,000 and $69,726 for: the, year
ended September 30, 1989, and the period from inception to September 30,.1988,_
respectively,' is included in the accompanying statement of revenues and
expenses.
As of September 30, 1989, $225,000 of the f iscal 1989 amount was unpaid'- and
included < in accounts payable and accrued expenses in the accompanying
financial'- statements. : This amount was paid when the remainder of the
operating loss'`funding was received from the Maintenance Account subsequent to
September-° 30, 1989.' -,
Management Fee
Under the- terms of the MAC. Decoma' is to be paid a management fee consisting
of two portions as follows:
Fixed o eratiag payment - $275,000 per year (payable monthly) increased by the
p _ greater of the Consumer'` Price Index' or 5% � each
i year. The first year of :adjustment is to -be the
year ended September 30,'1990.`
Cals_u�aed variable - 12% of the amount by which the operating revenues of
— exceed $1,500,000 in any year.
operating payment the Arena
s p
r.
T
t N9 F d
ih
3 -
- 5 -
As operating revenues were less than $1,500,000 for the period from inception
to September 30, 1988, only a pro rata share of the fixed portion of the
management fee was required to be paid.
For the year ended September 30, 1989, the calculated variable operating
payment is $146,809, This amount will not be accrued as an expense of the
Arena until it is due and payable. Under the proposed amendment to the MAC,
i the calculated variable operating payment shall be paid to Decoma- only if
there is operating income in excess of operating expenses and certain payments
are first made to the Maintenance Account and Replacement Fund. Any amounts
of unpaid calculated variable operating payments shall be deferred to a
maximum of $1,000,000. Any amounts over $1,000,000 which are deferred and
unpaid will be lost. The excess operating income, as defined, will first be
used to pay.any current year calculated variable operating payments, then will
next be applied to pay any deferred amounts.
(10) MIAMI HEAT CONTRACT;
LMMI has entered into a 10 year contract with the Miami Heat Limited
Partnership (the "Heat"), a Florida limited partnership, for use .of the Arena
for its. National Basketball Association games.- The Arena receives a rental
fee of the greater of $13,372 per home game or $575,000 per season for -'the
first five years and the greater of $13,954 per home game_ or $600,000 per
season thereafter. The rent collected will first.be applied to pay the 'seat
use fee, which will be paid directly to MSEA and Decoma as described in
Note 9. In addition, the Arena receives a $50,000 quarterly fee for the
skyboxes, which are remarketed by the Heat, and a $61,750 quarterly fee for
the advertising rights within the Arena, which were transferred to the Heat.
These fees escalate at 5% per annum for the life of the contract. The Arena
is also entitled to collect from the Heat a pro rata share of certain excess
expenses related to the Heat games as additional rent. The amount of pro rata
excess expense for the year ended September 30, 1989 was approximately
$609000. This amount has not been included in the accompanying financial
statements as revenue or accounts receivable since it is the subject of
ongoing negotiations with the Miami Heat. There were no pro rata excess
expenses for the year ended September 30, 1988.
(11) PENDING AMENDMENT TO THE MAC:
A proposed amendment to the MAC was submitted by Decoma to MSEA on June 14,
1989. The agreement has not been finalized; however, the accompanying
financial statements and footnotes reflect the terms of the amendment.
i
(12) CONTINGENT MATTERS:
The Dade County Property Appraiser has proposed that ad valorem taxes of
approximately $1.3 million be levied on the Miami Arena and certain of its
tangible personal property for the 1989 tax year. The City of Miami, MSEA and
j Decoma filed petitions for exemption from the taxes, as well as contesting the
assessed value of the property. The basis of the petitions is that the Arena
.. 6
is exempt from ad valorem taxes because it is owned by a municipality and one
of its instrumentalities (the City and MSEA) and is used for governmental,
municipal or public purposes. The petitions have not yet been scheduled for a
hearing, and the outcome of this matter cannot be determined at this time.
Certain operating expenses are being disputed by the Arena and have been
recorded in accounts payable and accrued expenses at less than the amount
billed to the Arena based on the current status of negotiations. Management
and legal counsel believe that the amounts ultimately paid will not exceed the
amount of expense recorded.
Several personal injury claims have been brought or threatened against IMMI.
Management believes that all such claims are without merit and are adequately
covered by their insurance.
(13) FUNDING OF OPERATING DEFICITS:
i
On March 6, 1990, the County Administration made a recommendation to the Board
of County Commissioners of Dade County to limit the amount of convention
development tax revenues to be allocated to MSEA. Metropolitan Dade County
and the City of Miami have set up a joint committee to address this
recommendation. Should the convention development revenues be restricted in
1990, management of the Arena believes that the funds remaining in the r
Maintenance Account are adequate to fund any operating deficit for the fiscal
year ending September 30, 1990.
rr•.
-12
J
r�.
4
r a,�
MIAMI ARENA OPERATIONS
FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 1990 AND 1989
TOGETHER WITH AUDITORS' REPORT
i
ARTHUR ANDERSEN & CO.
CERTIFIED PUHLIc ACCOUNTANTS
MIAMI, FLORIDA
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To Decoma Miami Associates, Ltd. and
the Miami Sports and Exhibition Authority:
We have audited the accompanying statements of assets and liabilities of the
operations of the Miami Arena, owned by the Miami Sports and Exhibition
Authority ("MSEA") and 'operated by Decoma Miami Associates, Ltd. ("Decoma")
as of September 30, 1990 and 1989, and the related statements of revenues and
expenses and cash flows for the years then ended. These financial statements
and the schedule referred to below are the responsibility of Decoma's
management. Our responsibility is to express an opinion on these financial
statements and schedule based on our audits.
f
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit `to
`obtain reasonable assurance about whether the financial statements are free. of
material misstatement. An audit includes examining, on a test basis, evidence
;supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant`
estimates made by management, as well as evaluating the overall financial
'statement presentation. We believe that our audits provide a reasonable basis
for our 'opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of the operations of the Miami
Arena as of September 30,-1990 and 1989, and the results of its operations and
its cash flows for the years then ended in conformity with generally accepted
accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
ek
financial statements taken as a whole. The information presented on Schedule
I is presented for purposes of additional analysis and is not a required part
of the basic financial statements. This information has been subjected to the
-
auditing procedures applied in our audits of the basic financial statements
and, in our opinion, is fairly, stated in all material respects in relation to
;
the basic financial statements taken as a whole.
y+
y
1
4
Miami, Florida,
f �Y
December 10, 1990.
-1—
w
SETS
CURRENT ASSETS:
Cash. including interest —bearing deposits
of $971.660 and $610.000, respectively
Accounts receivable
Receivable related to funding of
operations -{Note 9)
Receivables from related parties
Prepaids and other
Total current assets
MIAMI
ARENA OPERATIONS
STATEMENTS
OF
-ASSETS
AND
LIABILITIES
SEPTEMBER
30. 1990
AND`1989
$1,003;142
651,450
60,004
273,160
1,987.756
1989
$ 637,046
330,449
335,927
215,949
404,249
1,923,620
LIABILITIES
CURRENT LIABILITIES:
Accounts payable and accrued expenses
Deposits on advance ticket sales
Insurance notes payable
Sales tax payable
Seat use charge payable
Current portion of deferred revenue
Note payable to bank
Deposits on future events
Total current liabilities
$ 773,705
591,,975
150„440
52,465
86,790
44,571
5.000
1,704,946
f 633.311
650,670
115,483
57,772
79.628
44,571
244,792
24,500
1,630,727
11
DEFERRED REVENUE 83,810 128,381
OTHER ASSETS:
Organizational and pre -opening costs,
ADVANCE FROM MSEA 300,000 300,000
net of accumulated amortization of
$71.876 and $39.931, respectively
98.875
133,488
Deposits
2,125
2,000
COMMITMENTS AND CONTINGENCIES
101.000
135.488
(Notes 9, 11, 12 and 13))
$2.088.756
$2,059,108
$2.088,756 $2,059,108
w 2 The accompanying
notes to financial:statements
are an integral part of these statements.
' ._ ..
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II���IIIII�������II
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��
� �e rf �+iwi'x4`.: xe� '".',�5e:•h. ..
��' ,'�r�i�a6�`�F�r.'•-� '�s.,-'"',"`,� '
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11
MIAMI ARENA OPERATIONS
STATEMENTS OF REVENUES AND EXPENSES
FOR THE YEARS ENDED SEPTEMBER 30, 1990 AND 1989.
1990 1989
REVENUES:
Arena rental, net $1,276,366 $ 885,726
Commissions from sale of concessions
and merchandise 1,373,222 948,394
Box office, net 546,451 251,826
Suite rental 213,106 202,975
Advertising rights 264,266 251,703
Other .(Note 12) 212,931 182,786
3,886,342 2,723,410
OPERATING.EXPENSES:
General and administrative'
Utilities
Repairs and maintenance
Ground.lease
Fixed operating payment
Variable; operating payment
NBA staffing (Note 12),
. Insurance
Telephone
Promotion and advertising
Amortization
Net income
i
i
i
t
1,493,747
1,292,538 `
520,309
520,828
280,619
250,968 '
300,000
300,000
288,750
275,000
359,669
—
270,087
2099000 .
226,284
230J1511
35,914
361207
103,089
929820
34,613
31,945'
3,913,081
3,239,421
------ — -- ---,-
�x
The accompanying notes to financial statements
are an integral part of these statements.
Xn
2�C�r.
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t m
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N
MIAMI ARENA OPERATIONS
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED SEPTEMBER 30, 1990 AND 1989
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
Adjustments to reconcile net income to net
cash provided by (used in) operating
activities -
Amortization
34,613
31,975
5
Recognition of deferred revenue
(44,571)
(58,373)
Changes in assets and liabilities:
Decrease (increase) in -
Accounts receivable
(321,001)`
154,165
Receivable related to funding of operations
335,927
'(36,262)
Receivables from related parties
155,945
(21,233)
y'
Prepaids. and other
379,494
(19345)
Deposits
(125)
-
-Increase (decrease) in-
Accounts payable and accrued expenses
140,394
(44,540)
!.
Deposits on advance ticket sales
(58,695)
(5,307)
49,195
(65,822)
Sales tax payable
Seat use charge payable
7,162
(43,091)
,.Deposits on,future events
(19,500)
24,500
----------
---------
}
Total adjustments
604,336
----------
(10,831)
---------
Net cash provided by (used in)
operating activities
604,336
------ - -- ----------
(10,831)
*'
t+
(Continued)
,j
iaF -
f
MIAMI ARENA OPERATIONS
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED SEPTEMBER 30, 1990 AND
1989
(Continued)
1990
1989
CASH FLOWS USED IN INVESTING ACTIVITIES:
Organizational and pre -opening cost expenditures $
-
$ (3,056)
Net cash used in investing activities
----------
-
(3,056)
---------
CASH FLOWS USED IN FINANCING ACTIVITIES:
Principal payments on insurance notes payable
(213,448)
(226,126)
'Principal payments on note payable to bank
(24,792)
(4,721)
_
Net cash used in financing activities
(238,240)
(230,847)
----------
NET INCREASE (DECREASE):IN CASH
.366,096
---------
(244,734)-
CASH, AT BEGINNING OF PERIOD
637,046
881,780
— CASH, AT END OF PERIOD $1,003,142
$ 637,046"
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid, during the year-.
Interest $
9,897
$ 12,073.,
Noncash financing transactions -
In fiscal 1990 and 1989, the Arena financed its
insurancewith notes payable totaling $248,405
and $200,907, respectively. The noncash assets
recorded in these transactions are'included�:-
in prepaids and other, net of insurance expense,
-in the accompanying statements of assets and
liabilities,
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The accompanying notes to financial statements
are an integral part of these statements.
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MIAMI ARENA OPERATIONS
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED SEPTEMBER 30, 1990 AND 1989
(1) ORGANIZATION AND ACTIVITIES:
51
The Miami Arena (the "Arena") is owned by the Miami Sports and Exhibition
A{
Authority ("MSEA"), an independent and autonomous agency of the City of
Miami. Operations of the Arena commenced on July 8, 1988. Under the terms of
the Miami Arena Contract (the "MAC") between MSEA and Decoma Miami Associates,
Ltd. ("Decoma"), a Florida limited partnership, Decoma was engaged to operate
the Arena. Under the terms of a separate agreement between Decoma and Leisure
Management Miami, .Inc. ("LMMI"), LMMI was engaged to manage the operations of
the Arena, including rental of space, advertising, promotion, marketing,
events management, box office, public relations and all custodial and support
services:
(2) SUKWY OF SIGNIFICANT ACCOUNTING POLICIES:
Basis -of Financial Statement Presentation -
The accompanying financial statements include only the operating accounts of
the Arena. They do not include the building, furniture and equipment and
depreciation of such assets, all of which are owned by MSEA.
j
Revenue Recognition-
I
Revenue is earned principally through the rental of the Arena facilities..
Rental revenue_ is recognized when the related event is staged. Rental charges
a
vary. from flat rates to a fixed .percentage of net box office receipts on
ticketed events. In certain cases, the Arena is also reimbursed for specified
costs',. which :consist principally of labor costs. These reimbursed costs
totaled $1,770,937 and $1,309,889, respectively, for the years ended
September, 30,, 1990 and 1989. Rental revenues are shown net of event related
ii
reimbursed costs in the accompanying statements of revenues and expenses.
(3) TICKET SALES;
The Arena operates a box office from which tickets are sold for Arena events.
j
Additionally, tickets are sold at Ticketmaster outlets. Cash from ticket
sales, net of any Ticketmaster surcharges, is deposited in the Arena's box
a
office bank account. At the conclusion of an Arena event, the -cash in the box
office bank account is distributed to the promoter of the event in accordance
with the terms of the contract with the promoter. At September 30, 1990 and
1989, approximately $592,000 and $651,000, respectively, of cash collected
from ticket sales is included in "cash" and the related liability is reflected
>
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as "deposits on advance ticket sales" in the accompanying statements of
assets and liabilities. No revenue relating to box office advance ticket
sales (other than commissions earned on ticket sales) is reflected in revenues
in the accompanying statements of revenues and expenses.
(4) ACCOUNTS RECEIVABLE:
As of September 300 1990 and 1989, "accounts receivable" consisted of amounts
due from third parties for the use of the Arena, the Arena's commission on
concession and novelty sales, and amounts due under the terms of certain
license agreements between LMMI and third parties.
(5) ORGANIZATIONAL AND PRE -OPENING COSTS:—
Certain costs associated with the organization and pre -opening of the Arena
have been capitalized in the accompanying financial statements. Such costs
are being amortized over 5 years.
(6) DEFERRED REVENUE:
In accordance with LMMI's agreements with Ticketmaster and Facility
Merchandising, Inc. ("FMI"), for the sale of tickets and novelties, respec-
tively,'at'the Arena and LMMI's amended agreement with the concessionaire, the
Arena received the following initial payments:
Ticketmaster $100,000
z,
FMI 150,000'
These amounts are included in "deferred revenue" and are being recognized in
income over the lives of the related agreements. For the years ended
'September:30, 1990 and 1989, $44,571 and $58,373, respectively, of deferred
revenue was recognized and is included in "other revenues" in the accompanying.
statements of revenues and expenses.
(7`) LONG-TERM ADVANCE FROM MSEA:
a<
In accordance with the MAC, MSEA advanced $300,000 from the account
established'by MSEAto pay potential operating losses of the Arena and other
j
maintenance costs ("Maintenance Account"). The purpose of the advance `was to
create an initial working capital fund'for -`the operation of the Arena.- The -
arnount'is noninterest bearing and a repayment date is not specified in the MAC.
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44
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(8) NOTES PAYABLE:
Notes payable consist of the following as of September 30:
1990 1989
Note payable to bank, bearing interest
at 12%, payable in monthly installments
of $667 through August 1093, secured by
computer equipment, paid in full during
fiscal 1990
$ - $ 24, 792
Insurance note payable, bearing interest
at 10.25%, payable in monthly installments
of $20,999`, including interest, through
F
May 7, 1990
$ - $115,483:
j
Insurance note payable, bearing interest
at 10.86%,' payable in monthly installments
of $18,474, including interest, through
r
May 7,1991
147,318 -
Insurance note., payable, bearing interest
at 14.75%, payable in monthly, installments
of $470,'including ,interest, through
`April` 1, 1991
3,122
$150,440 $115,483
(9) MIAMI ARENA CONTRACT:
Operating `Income- (Loss)-'
Under the terms of the' MAC, all operating
income is used first to fund
;
operating 'expenses,'`then to 'fund the account
maintained by Decoma for asset
`replacements at ''the Arena ("Replacement Account"),
then to fund certain
required payments to the Maintenance Account, ten to pay ecoma a Curren
year variable operating -payment. Any remaining operating income will then'�'be
carried'`back'beg nning'`with'the earliest "year in which deferred payments are
required and will be applied first to deferred payments due the Replacement
Account, and then to fund any deferred variable operating payments. Any
available operating income after carryback to deferred payments; is. .to be
allocated be Decoma`` and` MSEA. Losses' from operations' are funded to
follows:
(a) First to the extent of funds available in the,.Maintenance
Account Which is held by MSEA;
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(b) Second, to the extent that there are no funds available in the
Maintenance Account, then from funds available in the Replacement
Account which is held by Decoma;
(c) Third, to the extent that there are no funds in the Maintenance
Account or the Replacement Account, MSEA shall be required to
fund 86% and Decoma shall be required to fund 14%.
Under the terms of the MAC, Decoma must fund certain expenses (detailed in the
MAC) which exceed 115% of annual budgeted amounts. For the years ended
September 30, 1990 and 1989, there were no excess expenses, as defined.
During fiscal 1989 the Arena requested and received a $1509000 advance as a
partial funding of the current year operating loss. The balance of the
operating loss for fiscal 1989 was funded from the Maintenance Account
subsequent to September 30, 1989, and is reflected as a receivable on the
accompanying statement of assets and liabilities as of September 30, 1989.
Seat Use Charge -
In accordance with the terms of the MAC (see Note 11), a $.75 to $1.00 seat
use charge (based on ticket price) is collected as part of the purchase price
of all tickets 'sold for events at the Arena, with the exception of Miami Heat
events where a $.75 charge is collected without regard to ticket price'i This
charge is remitted quarterly to Decoma and MSEA based on percentages `detailed
in the MAC. The rent due in accordance with the contract with the'Miami -Heat'
(see Note-:10) will first be applied to pay the seat use charge. As of
September 30, 1990 and 1989, the charges collected in the last quarter of the
fiscal year are reflected as a payable in the accompanying statements of-
{
assets and liabilities.
All additional seat use charges (amounts in excess of $.75 per ticket)', are
held on deposit until the end of the fiscal year and then distributed as seat
use charges only to the extent such amounts are not otherwise applied to
reduce operating losses or in payment of amounts due the Replacement Account
or as variable operating payments. Any amounts not distributedas seat" use
charges- are reflected as additional seat use charge in the accompanying'
'
statement of revenues and expense. For the year ended September 30, '19900
$37645 of additional seat use charge was applied to a portion of the deferred
variable operating payment from fiscal 1989.tj
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Ground Lease -
Under the terms of the MAC, the Arena is required- to pay MSEA $300,000 per
year to fund MSEA's annual payment to the City of Miami for the lease of the
Arena land site. Ground lease expense of $300,000 in fiscal 1990 and 1989, is
includedinthe accompanying statements of revenues and expenses."
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As of September 30, 1989, $225,000 of the fiscal 1989 amount was unpaid and
included in accounts payable and accrued expenses in the accompanying
statements of assets and liabilities. This amount was paid when the remainder
of the operating loss funding was received from the Maintenance Account
subsequent to September 30, 1989. The fiscal 1990 ground lease amount was
$g�`:
fully paid during the year.
Operating Payment -
Under the terms of the MAC, Decoma is to be paid a management charge
consisting of two portions as follows:
Fixed operating payment - $275,000 per year (payable monthly) increased by the
greater of the Consumer Price Index or 5% each
year. The first year of such adjustment was for the
year ended September 30, 1990.
Calculated variable - 12% of the amount by which the operating revenues of
'operating payment the Arena (including interest income) exceed
$1,500,000 in any year.
-
Under the proposed amendment to the MAC (see Note 11), the calculated variable
operating payment shall be paid to Decoma only if there is operating,income'-in
excess of operating expenses and certain payments are first made to 'the
Maintenance Account and Replacement Account. ° Any amounts of unpaid -calculated
variable operating payments shall be deferred to a maximum of $1,000,000.."Any
amounts over $1,000,000 which are deferred and unpaid- will be lost.. The
excess operating income, as defined, will first be used to pay any current
.year calculated variable operating payments. Any remaining operating income"
will then be carried back beginning with the earliest year in which deferred
payments are required 'and will, be applied first to deferred payments due the
Replacement Account, and then to fund any deferred variable operating
payments.,-
. -For theyearended September 30, 1989, the calculated variable operating
'payment'was $151,868. This amount was not accrued as an expense of the`Arena
in: fiscal 1989 because there was no excess operating income to cover such
payment. For the year ended September 30, 1990, the calculated variable
operating payment was $359,669 and has been accrued as variable management
`
charge expense in the accompanying statement of revenues and expenses. See
LSchedule I for calculation of 'the current year variable operating' payment and
an. analysis of the deferred variable operating payment.
Replacement Account-
.
In -accordance with the MAC amendment, $124,000 was paid into the ..Replacement
Account during the year ended September 30, 1990. In addition, Ahe. MAC, -as
amended, requires a .$50,000 annual contribution to the ReplacementAccount
beginning with fiscal year ending September 30, 1991: This amount is payae to
from the first available' operating income and seat use charges in excess :pf
'
$ 75: per ticket. Any unfunded amount 'up to an aggregate ''of $200,004:w3$
i
deferred and carried forward to the next year. In any given year the annual
Replacement Account payment must be satisfied prior to the payment of any
calculated variable operating payment.
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Maintenance Account-
tinder the terms of the MAC, MSEA established the Maintenance Account with
excess proceeds received from the MSEA Floating/Fixed Rate. Special Obligation
Bonds Series 1985, issued in connection with the development of the Arena.
The purpose of the Maintenance Account is to provide for potential operating
losses of the Arena and other costs associated with the maintenance of. the
Arena. As of September 30, 1990 and 1989, the Maintenance Account had
balances of approximately $1,355,000 (net of $38,389 due to the Arena from the
Maintenance Account as of September 30, 1990) and $1,245,000 (net of $335,927
receivable related to funding of operations as of September 30, 1989),
respectively.
(10) MIAMI HEAT CONTRACT:
LMMI has entered into a 10 year contract (the "License Agreement") with the
Miami Heat Limited Partnership (the "Heat"), a Florida limited partnership,
for use of the Arena for its National Basketball Association games. The Arena
-
receives ..a rental charge of the greater of $13,372 per home game or $575,000
-
per season for the first five years and the greater of $13,954 per home game
<`
or $600,000 per season thereafter. The rent collected will first be applied.
to pay the seat use charge, which will be paid directly to MSEA and Decoma as
described in Note 9. In addition, the Arena receives a $50,000 quarterly
charge for the skyboxes, which are remarketed by the Heat, and a $61,750
quarterly charge for the advertising rights within the Arena, which were
transferred to the Heat. These charges escalate at 5% per annum for the life
w
of the contract. The Arena is also entitled to collect from the Heat, a
F
pro-rata share of certain excess selected expenses and certain staffing
expenses related to the Heat games as additional rent.
(11) PENDING AMENDMENT TO THE MAC:
A proposed amendment to the MAC was submitted by Decoma to MSEA on
November 13, 1990. The agreement has not been finalized; however, the.
accompanying financial statements and footnotes reflect the terms of the
amendment. Management of the Arena expects that the amendment will be
finalized by December 31, 1990.
t
(12) CONTINGENT MATTERS:
The Dade County Property Appraiser previously proposed that ad valorem taxes,
of approximately $1.3 million be levied on the Miami Arena and certain of its
tangible personal property for the 1989 tax year. The City of Miami, MSEA and
Decoma filed petitions for exemption from -the taxes, as well as contesting the
assessed value of the property. The basis of the petitions is that the Arena
is exempt from ad valorem taxes because it is owned by a municipality and one
of its instrumentalities (the City and MSEA) and is used for governmental,
municipal or public purposes. During fiscal 1990, the Arena received its.
final tax assessment from the County which indicated that the Arena was exempt
from ad valorem taxes for the 1989 tax year. The Dade County Property
w.
Appraiser has notified the Arena that it will be exempt from ad valorem taxes
in all future years as well.
'
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The Miami Heat and LMMI are currently involved in litigation seeking
declaratory relief and interpretation on certain portions of the License
Agreement. As a result of this dispute, the Heat has refused to pay for
certain staffing costs and excess selected expenses billed to them. The
pending MAC Amendment stipulates that any outstanding accounts receivable not
collected by the date of the audit report must be removed from the books until
such time as those accounts are collected. Accordingly, the financial
statements reflect an increase in NBA staffing expense for the year ended
September 30, 1990 of approximately $51,000 and a reduction in other revenue
for the year ended September 30, 1990 of approximately $59,000 as a result of
adjustments made to comply with the terms of the MAC.
Several personal injury claims have been brought or threatened against LMMI.
Management believes that all such claims are without merit and are adequately
covered by their insurance.
(13) CONVENTION DEVELOPMENT TAX REVENUES:
The Dade County Board of County Commissioners has adopted a plan for the
funding of a Performing Arts Center as well as the funding of MSEA which will
reduce the amount of convention development tax revenues allocated to MSEA for
its operation and for maintenance and deficit obligations of the Miami Arena.
Decoma has objected to the adopted proposal and believes it conflicts with its
rights under the MAC.
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SCHEDULE I
MIAMI ARENA OPERATIONS
SCHEDULE OF CALCULATION OF VARIABLE OPERATING PAYMENT
AND ANALYSIS OF DEFERRED VARIABLE OPERATING PAYMENT
FOR THE YEARS ENDED SEPTEMBER 30, 1990 AND 1989
Total revenue
Interest income
Less -Breakpoint per MAC
Current year variable
operating payment
1990
1989
$ 3,886,342
$ 2,723,410
122,991
42,157
4,009,333
2,765,567
(1,500,000)
(1,500,000)
2,509,333
1,265,567
x 12%
x 12%.
$ 301,120
$ 151,868
ANALYSIS OF DEFERRED VARIABLE OPERATING PAYMENT
Balance of deferred variable operating
payment`, beginning of the year
Current year variable operating payment
Payment of current year variable operating
payment
Carryback of available current year operating
income to prior deferred variable operating
payment
Carryback of available additional seat use charge
Balance of deferred variable operating
payment, end of year
1990
1989
;i
$ 151,868
$ —
K
y <<:
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301,120
151,868
x
(301,120)*
(20,904)*
y }2
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(37,645)*
$ 93, 319
$ 151, 86$