Rose Bowl Operating Company FY 2018 Recommended Budget Joint Finance Committee / Council Meeting June 5, 2017

Mission Statement The mission of the Rose Bowl Operating Company (RBOC) is to improve the quality of life in Pasadena by providing top quality entertainment and by generating revenue through the operation of a world-class stadium and a professional quality golf course complex.  

Rose Bowl Operating Company FY 2018 Revenues and Expenses In thousands Summary of Revenue & Expenditure by Fund FY 2018 Recommended Stadium Revenue $41,814 Expenses Operating Expenses 28,135 Debt Service 12,995 Stadium Net Total $683 Golf Course $2,550 590 Golf Course Net Total $1,960 Net Income Before Reserves for Future CIP (FY2019+) $2,643 Reserves for Future CIP Funding (FY2019+) Stadium – Capital Improvements Funding $2,024 Golf Course – Capital Improvements Funding 556 Subtotal Reserves for Future CIP Funding (FY2019+) $2,580 Total Net Income (After Designated for Future CIP) $63

Rose Bowl Operating Company FY 2018 Sources and Expenses In thousands FY 2018 Recommended FY 2018 Funding Sources Revenue Stadium $41,814 Gold Course 2,550 Total Operating Revenue $44,364 FY 2018 Expenses Expenses $28,135 Golf Course 590 Total Operating Expenses $28,725 Debt Service & Bond Reserve Requirement 12,995 Reserves for Future CIP Funding (FY2019+) 2,580 Total Expenses / Appropriations $44,301 Current year Capital (from prior year reserve $1,856 Total Appropriation $46,157

Rose Bowl Operating Company Budget History By Division or Major Budget Area in thousands FY 2016 Actuals FY 2017 Adopted FY 2017 Revised FY 2018 Recommended Stadium   Revenue $43,458 $39,036 $42,708 $41,814 Expenses Operating Expenses $29,069 $20,634 $25,194 $28,135 Debt Services 12,768 12,816 12,767 12,995 Stadium Net-Total $1,621 $5,586 $4,748 $683 Golf Course $2,695 $2,676 $2,592 $2,550 574 561 572 590 Golf Course Net-Total $2,121 $2,114 $2,019 $1,960 TotalNet Income Before Reserves for Future CIP (FY 2019+) $3,742 $7,700 $6,767 $2,643 Reserves for Future CIP Funding (FY2019+) Stadium – Capital Improvements Funding $2,026 $5,326 $2,024 Golf Course – Capital Improvements Funding 589 586 571 556 Subtotal Reserves for Future CIP Funding (FY2019+) $2,614 $5,912 $5,897 $2,580 Total Net Income (After Designated for future CIP) $1,128 $1,788 $870 $63

Rose Bowl Operating Company FY 2018 Revenues and Expenses In thousands FY 2017 Revised FY 2018 Recommended RBOC Net Income Stadium ($578) ($1,341) Golf 1,448 1,404 Combined $870 $63 RBOC Net Income decrease in FY 2018 ($807) Significant Changes (year to year) Legacy Connection contribution increase $400 Net Event Income decrease ($640) Bond Debt service expense increase ($228) General & Admin expense increase (2% CPI) ($200) Personnel and Salaries expense increase (2% CPI and 2 new FTEs) ($172)

Rose Bowl Operating Company FY 2018 Revenues and Expenses In thousands FY 2017 Revised FY 2018 Recommended Major Displacement Events 16 15 Net Event Income (By Tenant) Tournament of Roses $4,215 $3,959 UCLA 4,953 4,768 Flea Market 1,125 1,129 Arroyo Seco Weekend 2,104 2,581 Major Tenant Sub-total $12,397 $12,437 Other Major Events: 2,483 1,904 Other Minor Events: 816 853 July 4th -America-fest* 74 (64) Net Income Total: $15,770 $15,130 -4% Net Event Income decrease in FY18 (from FY17) ($640) *changes due to mid-week event

Rose Bowl Operating Company FY 2018 Key Issues and Strategies Key Issues Strategies Execution of Arroyo Seco Weekend Events (June 2018) Maintain & grow Premium Seating revenue Attain substantial completion of “Renovation Project” Continue to grow minor events revenues. Begin planning with AEG and City in Summer 2017 and keep stakeholders informed on a regular basis Target marketing, leverage new events and contract extensions Have architect sign-off on work completed and financial close-out Target annual clients and push to $1M net minor events revenues.

Rose Bowl Operating Company FY 2018 Key Issues and Strategies Strategies (continued) Key Issues (continued) Work and communicate closely with public safety officials, event promoters and stakeholders Strive to have long-term agreements for key events, sponsorship and premium seating agreements Identify a conceptual vision and funding plan for both the golf course & clubhouse. Communicate potential future plans particularly related with Brookside Golf Course facilities. Continued focus on event operations, including security and outside management Prepare for new stadium competition Development of conceptual plan for Brookside Golf Course and Clubhouse Work Collaboratively with the Arroyo Advisory Group.