VIRGINIA BEACH, Va. - The Virginia Beach Sports Center is losing money, a recent audit found.
This week, City Auditor Lyndon Remias presented an audit to the city council about the Sports Center, which opened in 2020.
"We do have some concerns in regards to the financial sustainability of operations," Remias said.
In 2021 and 2022, the Sports Center lost $2.7 million, according to Remias.
A company called Eastern Sports Management operates the venue. The audit said they've used up a reserve fund and have requested borrowing $260,000 more from the city.
"We all want it to succeed, but we need to make sure that if it's going to be successful that everyone, particularly the firm running it, is successful," said Remias.
The audit notes it opened during the pandemic, which has led to challenges like events being canceled due to COVID restrictions as well as difficulties finding maintenance staff.
There have also been leadership changes. The report recommends finding ways to bring in more events in the summer and minimizing discounts offered to sports event sponsors.
"I do believe—I'm confident—they can turn it around," said Remias.
Its opening has been very beneficial to the tourism and hospitality industry. Another busy weekend is expected as the venue hosts multiple events, including the MEAC indoor track and field championships.
"The Sports Center has just been a home run. You couldn't ask for better results from it," said John Zirkle, the president of the Virginia Beach Hotel Association and general manager of the nearby DoubleTree Hotel.
Zirkle believes the industry could help fit in with the audit's recommendations.
"There's ways to do it," he said. "Hotels are generally full Friday and Saturday in the summer because that's when everyone wants to come, but you can do sports tournaments during the week because that's when people have vacation time."
