Posted on: Thursday, August 5, 2004
Islanders plan to stay, despite losing $1 million
By Kyle Sakamoto
Advertiser Staff Writer
The Hawaiian Islanders lost more than $1 million this past season, but owner Kimberly W. Dey has a message for those who feel the arenafootball2 franchise is in danger of folding.
"What is amazing to me is people (in the media) have the audacity to still ask me that question," Dey said. "The most upsetting part is people asking me how come it's still struggling. That, to me, is the most upsetting part."
Chris Dey, the Islanders executive director and general manager who is married to Kimberly, said the losses were substantial, but were only half what they were in the inaugural season of 2002.
Dey said he hopes to cut the losses to the "mid-six figures" next season, and break even by 2006.
He added the team will cut expenses by $100,000 by moving out of its downtown offices and relocating to Kailua, which also will save $20,000 in parking costs. The team hopes to reduce expenses by $500,000 for next season.
Dey previously has said the goal of the team isn't to turn a profit, but to instill pride in the community.
"Making money on the team was never the objective when Kimberly and I sat down and planned this," he said. "We would like to see this succeed for the community. I truly believe if people can point to the Islanders' success, people will try new things."
Dey added if the Islanders can succeed, other pro sports franchises, businesses and even cultural events could be lured here.
He said the team took on added expenses this season because of a league-wide increase in workers' compensation benefits for players and having to rent three practice facilities.
Dey said all 25 af2 teams had to pay more than $100,000 to cover workers' compensation benefits this season, double the amount from last season.
The Islanders also spent $50,000 ($20,000 over what they budgeted) to rent Blaisdell Arena, Aloha Stadium and the Saint Louis School field for practices, according to Dey
Blaisdell Arena, the team's home field, wasn't available for practices in June. Aloha Stadium charged the highest fee and the team had to rent portable lighting machines at Saint Louis.
On the plus side, he said the team's corporate sponsorships and attendance for the eight home games were up from last year.
Dey said corporate sponsorship increased 50 percent from 2003, but the team still fell $125,000 short of its goal.
He said an average crowd of 3,600 (10-percent increase) attended each home game and 1,500 (20-percent increase) season tickets were sold. He added 85 percent were paid attendance.
Dey said he had hoped for two sellouts and an average crowd of 4,500, but the Islanders' 8-8 record might have kept numbers down.
Overall, revenue increased 60 percent, he said.
"All of our numbers continue to turn upward so it's not a situation where we're hitting the panic button," Kimberly W. Dey said.
Chris Dey is already looking forward to big things next season.
"All of the good work that we've done will pay dividends next year," he said. "I think our crowds will continue to get bigger and we'll get those sellouts. In think our corporate sponsorship participation will get bigger because we do good work."
Reach Kyle Sakamoto at ksakamoto@honoluluadvertiser.com or 525-8041.
