The Sioux Empire Fair is considering how to handle grandstand acts for next year, and perhaps into the future, in the face of increasing costs.
President and CEO Scott Wick told Minnehaha County commissioners this week that they only offered musical shows this past year that were free with general admission.
He said it cut down expenses, but also hurt the profit margin.
“It was just too risky to get some of those bigger acts,” he said, noting that some of the entertainers are asking up to $250,000.
Wick said in the past they have also purchased insurance in case of a weather event that cancels the show with tickets being refunded, but that those costs are also going up.
“[The bigger entertainers] used to be more affordable,” Wick said.
The fair’s board of directors will be meeting on Nov. 18, he said in an interview with Sioux Falls Live after the meeting, where they will look at the grandstand situation again.
“All options are on the table,” he said.
Contributed / Sioux Empire Fair
He already has two acts booked for next year that will again be free with admission, and they are working on others. The names of the acts couldn’t be announced yet, he said.
The good news is that the fair still posted a healthy profit this past year at $194,156. That was down about $78,000 from a year ago when it was $272,272.
To break it down, the fair expenses were down 16 percent, due mostly to not having to pay for the bigger acts. Wick told the County Commission in a presentation that it receives most of its revenue from gate admission, the carnival and camping, which totaled $903,780 this past summer.
The fair also makes money from concessions, vendors, sponsors, rodeo entry fees and pit passes at the grandstand where people pay to get closer to the entertainers.
As for expenses, the biggest cost again this past year was for entertainment and related expenses at $552,962, with other higher costs being payroll, marketing and payouts for the competitive events.
The entertainment costs, he said, were down about $117,000 from a year ago.
Wick said its a competitive business operating the fair, but they still are seeing a profit.
Commissioners Cole Heisey asked about attendance, and Wick said they don’t release the numbers as they don’t translate into how much visitors actually spend.
“We haven’t done that for probably the last eight to 10 years,” he said with profitability the main concern.
When asked about the facilities, Wick said the biggest issue is what to do with the fair’s huge Expo building that is in need of renovation or possible replacement. A task force that was formed more than a year ago looked into the issue and no decisions have been made.
Next year’s fair will run from July 31 to Aug. 8.
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source www.siouxfallslive.com ’
