UNO’s Baxter Arena: First Year Results Hemorrhages Crimson Ink

Sunday’s Omaha World-Herald shone light on the first year financial results, and the results were the opposite of what supporters expected going in.

The university-owned arena recently ended its first fiscal year $1.5 million in the red, forcing campus officials to infuse $1.4 million in university funds into the operation to help cover construction bond payments. The disappointing results aren’t just a first-year blip. It’s expected that $1.5 million in university dollars will need to be tapped to balance this year’s books, with $1 million kicked in by UNO and $500,000 committed by NU central administration in Lincoln. Sounds bad? It’s actually worse.

The athletic department had been counting on roughly a half million dollars in arena profits to help fund its own operations, dollars that did not materialize. That shortfall and myriad other budget issues left athletics with a $1.8 million budget deficit of its own. Not a surprise to me, mind you. I thought the numbers didn’t add up before one spade of dirt was turned over, and turns out, my suspicions were correct. But that doesn’t help things one bit.  The money has been spent; the building is built.  There’s no turning back.

UNO can’t undo this mistake.

The Monday Morning Quarterback can say that UNO hockey should have stayed downtown at the CenturyLink Center with basketball remaining at the Ralston Arena. Baxter Arena has been a lose-lose proposition for everyone: the other arenas have fewer events, and UNO’s athletic budget is exposing the reality that the expenses of owning a building 365 days a year are much higher than renting a building for the 20-25 days a year they actually need it.