Lower than anticipated attendance for Blue Jays baseball is down and higher costs of marketing luxury boxes are blamed.
The stadium, which is home to the Jays, the Toronto Argonauts football club and Toronto Raptors basketball team, will have a cash deficit of $2.9 million by the end of the year, according to a Sept. 11 letter to SkyDome directors from president and chief executive Patrick McDougall.
That are likely to likely require SkyDome's owners to inject fresh capital into the stadium, although the shortfall pales beside the red ink of the Blue Jays.
The company will unveil a plan in November to encourage corporate box holders, who pay $100,000 to $250,000 a year, to renew their leases. The 10-year leases for 161 private luxury boxes expire next year.
SkyDome would like to raise a few million dollars by taking on a naming rights deal. It has never adopted a corporate name because Molson Breweries Cos. holds a veto on naming rights.
Both the Jays and the SkyDome are suffering from Toronto's indifference to America's pastime. The Jays are taking a beating from rising players' salaries and the plunging C$.
SkyDome had profit before interest, taxes and depreciation of $11.7 million for the second quarter ended July 31 on revenue of $33.2 million, down from IBITD of $12.5 million on revenue of $33.7 million in the first quarter.
The company is 48%-owned by Labatt owner Interbrew SA of Belgium.
