The
Wisconsin Center District saw its total operating revenues increase 5.4% to $17 million in 2023, even as its ability to host events was impacted by its expansion project, according to the district’s audit financial statements.
The total marks a post-pandemic high, but remains below the $18.7 million in operating revenue from 2019.
The district includes the Baird Center, Miller High Life Theatre and UW-Milwaukee Panther Arena. In May, the district
completed the
$456 million expansion of the Baird Center, dramatically increasing the amount of event and
exhibit space in downtown Milwaukee.
Rental and labor service revenues were down 2.3% for the year to just under $5.7 million. The district’s filings note that event driven revenue was down as some of its sellable inventory was taken offline in the fourth quarter to complete building renovations related to the expansion of the convention center.
Offsetting the decrease in rental and service revenue was an increase in advertising revenue, “driven in part by the district entering into a naming rights agreement with R.W. Baird,” according to the financial statements.
Advertising revenue for the year reached $1,035,631, up from $631,267 in 2022.
In March of last year, the district reached a naming rights agreement with Baird that renamed the downtown convention center as the Baird Center. The agreement included a transition period between March 10, 2023 and April 30, 2024 with the actual agreement commencing on May 1, 2024.
Exact terms of the naming rights agreement have not been disclosed.
A district spokesperson clarified that the roughly $400,000 increase in advertising revenue was not solely the result of the naming right deal.
The district also saw an increase in its future lease receivables, which covers leases of buildings, advertising space and naming rights. At the end of 2022, the future receivables covering 2024 and beyond was $27.6 million. At the end of 2023, the future receivables for the same period were $41.3 million.
In addition to the Baird partnership, the increase in advertising revenue and the increase in future receivable was driven by new partnerships, renewed partnerships with UWM and Molson Coors, escalators in existing partnerships and development of new operating streams, according to a district spokesperson.
The district’s nonoperating revenues were also boosted by increased tax revenue in 2023 with net tax revenue up 13.2% to $46 million.
Revenue from the basic room tax – a 3% tax on hotel rooms in Milwaukee County – was up 12.1% to $10.6 million. Revenues from the additional room tax – a 7% tax on hotel rooms in the city of Milwaukee – increased 15.8% to $18.1 million. The food and beverage tax – a 0.5% tax on certain food and beverage sales in Milwaukee County – increased 11.9% to $15.1 million. Finally, local rental car tax revenue – a 3% tax – increased 8.7% to $3.4 million.
While revenues increased, the district also saw its total operating expenses rise 11.9% to $51.2 million. In its financial statements, the district noted wages and administrative salaries were up as it scaled up staffing ahead of the Baird Center expansion opening in 2024.
Allocated wages, those tied to specific events, increased 11.8% to $5 million. Within unallocated expenses, administrative salaries and wages increased 13.6% to just under $5.1 million. Employee benefit expense, all of which is counted under unallocated wages, increased 80% to $2.9 million.
Advertising and promotion expense also increased 44.9% to $10.3 million. The increase was driven primarily by higher payments to Visit Milwaukee, which is dictated by tax collections. The payment for 2022 was almost $6.8 million and the 2023 payment was nearly $9.8 million.
