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Univ. of Utah’s basketball arena operating at deficit that could top $1M

Univ. of Utah’s Jon M. Huntsman Center, which hosts Utah basketball, gymnastics and volleyball, is “operating at a significant deficit,” according to Courtney Tanner of the SALT LAKE TRIBUNE. The arena was reported in the red this past fiscal year, with a $765,859 loss. That has since been paid off, but this fiscal year, it is “projected to grow to a new deficit” of over $1M. Utah is “subsidizing the losses by transferring funds from other operations.” Utah CFO Gary McArthur said that the school “won’t be able to reverse it immediately.” But he “pointed to the now-finalized private equity partnership” Utah formed with Otro Capital to “revitalize revenue for Utah Athletics.” Under that deal, the spinoff company Crimson Brand Partners is expected to “take over commercial sports events on campus, including ticketing, concessions, licensing and branding, as well as stadium and arena operations.” Part of that includes a planned renovation of the 57-year-old Huntsman Center. According to an initial study, the idea is to “shrink its capacity and add more premium suites with higher-priced ticket sales.” The plan also “calls for more food offerings for fans, who currently have relatively few options.” McArthur added that “any renovation plans won’t be ready to present for approval this year to the Utah Board of Higher Education” (SALT LAKE TRIBUNE, 11/11).