EMCID responds to $1,200,000 loss on New Caney music festival at Valley Ranch...
The "Rock the Ranch" festival financial information has been release by EMCID and shows a roughly $1.2 million loss on the event.
Total revenue for the event came out to $92,000 with total expenses coming to over $1.3 million dollars, for a net loss of roughly $1.2 million dollars to EMCID. EMCID funds are primarily obtained through local Montgomery County sales tax revenue.
To put the $1.2 million loss in perspective, the total 2017 approved EMCID budget includes $10.2 million in total revenue for the full year. (
emcid.com/images/fin ancial-information/d ocuments/budgets/EMC IDFY2017Budget. )
EMCID has released a statement concerning the expense of the event below:
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From: East Montgomery County Improvement District
"Rock the Ranch Music Festival, a new event hosted by the East Montgomery County Improvement District and produced by 542 Entertainment Inc. this past May, consisted of two days of performances by urban/hip hop artists, rock and country bands, as well as throw-back favorites from the 1990s, mixed in with freestyle motocross shows, a carnival, food and artisan vendors and a BBQ cook-off. The purpose of the event was to drive tourism to the new Valley Ranch Town Center development and surrounding areas. The first ticketed festival for EMCID — its $1.3 million budget, younger demographic target audience, concert/festival producer and event date — was approved by the Board of Directors in a September, 2016 regular meeting that was open to the public.
Those who attended or participated in the festival May 12 and 13 enjoyed the music, motocross shows, food, and up close and personal attention the celebrities provided on stage and in post-performance meet and greets. It was a level of entertainment not before seen in East Montgomery County. Nearby, Valley Ranch retailers and area hotels reported they experienced an increase in shopping and attendance at their establishments.
However, it was disappointing to see attendance at the festival so low, which in turn would mean that direct revenue generated would be low and nowhere close to covering expenses. EMCID realized payments relating to the festival of just over $1.3 million and revenue totaling just under $92,000, for a net loss of about $1.2 million.
EMCID’s Board of Directors and staff feel let down by 542 Entertainment and its performance that resulted in discouraging ticket sales.
It’s a learning experience for us all — one that causes us to pause and carefully evaluate any plans moving forward for another paid event in the future or one of the magnitude of Rock the Ranch.
EMCID currently produces three free annual festivals at its complex: the Back to School Bash (September 12) and the Spring (TBD) and Fall Extravaganzas (October 26). These events started with about 400 in attendance; the festivals have grown to between 3,000 and 5,000 people per event. In 2016, EMCID added another free event, the East Texas Fire & Ice Festival, held at New Caney ISD’s Texan Drive Stadium in the Valley Ranch Town Center. The event features country music bands, a fire performer, ice sculptor, snow sledding, a midway, games, food and artisan vendors, and a fireworks show. Fire & Ice is scheduled for Saturday, October 21.
Since 1998, EMCID has provided through community development initiatives more than $19 million in funding to our local fire departments, law enforcement agencies, the county, local cities, numerous non-profit organizations, festivals and community projects, and to the East Montgomery County Scholarship Foundation. This year alone we will put more than $4.2 million back into the community through these organizations and events.
Community is everything to EMCID’s Board of Directors and staff. We understand you’re disappointed with the result of Rock the Ranch. We are, too. However, we will always continue to look for ways to bring better amenities, better shopping and dining experiences, and a better quality of life for East Montgomery County’s residents. "
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Financial information for the Event:
REVENUE:
Sponsorships: $15,000
Ticket Sales: $46,800
Liquor Sales: $25,450
Merchandise Sales: $4,600
TOTAL: Revenue: $91,800
EXPENSES:
Advertising & Marketing: $115,400
Alcohol: $17,100
Catering: $18,800
Cook Off: $9,100
Emergency Services: $4,300
Entertainment: $695,400
Equipment: $87,150
Event Production: $130,700
Event Staff: $21,150
Insurance: $28,650
Labor: $30,300
Legal: $4,200
Lodging: $38,150
Mass Gatherging Permit: $800
Merchandise: $5,150
Miscellaneous: $4,400
Photos: $1,300
Seating: $2,000
Security: $14,850
Supplies: $7,550
Talent Buying: $35,000
Transportation: $42,700
Travel: $10,950
TOTAL Expenses: $1,330,000
A more in depth review of the revenue and loss figures can be found on the EMC Gazette's web site at:
emcgazette.com/rock- the-ranch-results-co me-in-negative-p784- 173.htm