The boss of Nottingham City Council-owned Motorpoint Arena and National Ice Centre says it has made a "remarkable recovery" following the covid pandemic. "Significant issues" however lie ahead due to soaring inflation and councillors have questioned how the business hopes to survive the cost of living crisis which is squeezing Brits dry.
Martin Ingham, the chief executive of the Nottingham Motorpoint Arena and National Ice Centre, said the venue had made a remarkable recovery considering the circumstances. From March 17, 2020, the city council-owned venture went into "survival mode" amid the coronavirus pandemic.
Here it remained until mid-way through 2021 and its budget deficit, even with support grants taken into account, sits at £5.8 million. In 2021 however, as the country opened up, it began its revival and this year Mr Ingham says the business is hoping to thrive despite a floundering economy.
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The business has bounced-back, recording the busiest ever February and March months and operating more efficiently than ever before in less time. Sell-out shows such as Sam Fender and Stromzy helped the arena become the 47th-busiest of its type in the entire world, superseded only by two others in the UK including the O2 Arena.
Despite not being open for six weeks at the beginning of the year the public skating income topped £600,000, beating all other years as far back as 2014. Challenges do, however, lie ahead.
"There are some significant risks," Mr Ingham told councillors during a meeting at Loxley House on July 19.
"There is a likelihood given the level of inflation that ticket prices are likely to rise. That won't affect those shows where the tickets have already sold.
"But if you see the price of the Bob Dylan tickets we have just put on sale you will see that inflation increase compared to when he came in 2017. But that's always happened, that's just the way of the world and artists are desperately trying to recoup the money they lost."
Mr Ingham also says the building itself "does not like being switched off", meaning after it had sat dormant over the course of the pandemic a number of costly issues were identified when staff attempted to turn everything back on again. Brexit and the pandemic have also led to staffing shortages and inflation, which now sits at 9.1%, is hindering any further progress.
Mr Ingham said: "We've lost a lot of our European workers who have not returned after Covid. The labour market is difficult.
"The costs of playing an ice sport are more expensive than, say, joining a local football club or joining a local cricket club, and so there is a risk ice sports struggle a little more at times where consumer income is being squeezed. Inflation is a massive issue across the piece.
"Not only across goods and services but also in terms of staffing costs. There has been a 20% increase in the national minimum wage in the last four years, which of course included the covid period."
During the meeting councillors, including the Dales ward's Neghat Khan and Bestwood ward councillor Audra Wynter, also raised their concerns over how rising inflation will impact the venue. Councillor Khan said: "With the cost of living crisis and ticket prices going up have you thought of ways of mitigating that?"
Mr Ingham says while the price of pints at Panthers' games have gone up from £6 to £6.50, Motorpoint will be introducing a £5 a pint for non-premium beer. Ticket prices he says have only risen by roughly £1.
"In terms of pricing of the tickets that is controlled by Panthers, prices of event tickets are in the hands of promoters," he says. "At the moment we have not seen a huge surge because I think there is an understanding from artists and agents and managers that the market it is not the right time to put a big price increase in."
And councillor Khan also questioned the staffing issues, including within the casual roles of which there are around 1,500. Mr Ingham says six apprenticeships have been created to help fill the vacant posts. "If the market does not have them readily available we grow our own," he added.
Councillor David Mellen, the leader of the council who represents the Dales ward, added: "The journey over the last couple of years has certainly been a rollercoaster for you so well done to getting to where you are now, because there were some moments there where the future was a bit in doubt."
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