The BMO Harris Bradley Center is carrying nearly $20 million in debt. Credit: Journal Sentinel files

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The BMO Harris Bradley Center reported a net loss of $1.9 million in the fiscal year ending June 30, due in large part to a disastrous Milwaukee Bucks season, a decrease in state grants and a mediocre concert season, newly released figures show.

The facility now has debt totaling nearly $20 million.

The net loss, which includes depreciation of $3.3 million, was a decline of $3.1 million compared with the prior fiscal year. Total operating revenue was $18 million, compared with $20.7 million for fiscal 2013.

Steve Costello, president and CEO of the BMO Harris Bradley Center, said the arena continues to be in a stable fiscal position. And there is hope, he said, that a reinvigorated Bucks franchise and an uptick in concerts will translate into a better year in the current fiscal year.

Costello acknowledged the debt the arena owes to banks and the Bucks in the form of tenant-shared revenue was "significant but manageable."

"We continue to be financially responsible," Costello said.

The BMO Harris Bradley Center, which opened in 1988, has had tough years before. In 2008-'09, the center reported a net loss of $4 million.

He said that while debate over a proposed new arena continues, the BMO Harris Bradley Center's continued operation over the next three or four years is critical, even with what he called "extremely limited resources."

The arena's plant fund, which once was as much as $10 million and is dedicated to future property and equipment replacements, has shrunk to $2.2 million.

"We will need continued support in the years ahead," Costello said.

He said arena staff had been able to freshen up the grounds, fix some mechanical and IT systems, and improve food and beverage services. Since the building opened, about $68 million has been invested in the building for capital repairs, replacements and routine maintenance.

The state has given the arena two separate $5 million grants under two different administrations: Gov. Scott Walker and former Gov. Jim Doyle. The Bradley Center Sports & Entertainment Corp., the formal name for the arena, was created by the Legislature.

Costello also acknowledged that land the BMO Harris Bradley Center controls north of the arena is one of several sites the Bucks are looking at for a new, multipurpose arena.

"We are aware that team ownership is looking at a number of sites," Costello said. "That could include properties the center owns. We look forward to those discussions and we will remain engaged in that."

Costello said there had been some general discussions with Bucks' officials.

"This is a site they have an interest in," he said, referring to the location north of the arena.

Costello declined further comment on the arena land. Much of it is already vacant and could conceivably be the easiest path for the Bucks, which face an NBA-imposed deadline of the fall of 2017 to have a new arena in place.

Talks between Journal Communications, which owns a square block near the BMO Harris Bradley Center, and the Bucks have hit a snag. Sources say it is now unlikely Journal Communications, publisher of the Milwaukee Journal Sentinel, and the Bucks will be able to reach agreement on sale of the property as part of a new arena site.

For months, the Bucks targeted the Journal Communications land, plus the land now occupied by the UW-Milwaukee Panther Arena and possibly the Milwaukee Theatre, as the preferred site. With that site now in doubt, the Bucks have focused on the BMO Harris Bradley Center land, as well as city-owned land at the corner of N. 4th St. and W. Wisconsin Ave., and land at the corner of N. 2nd and W. Michigan streets.

The Bucks had hoped to have a site named by year's end.

Costello said the drop in operating revenue was due to the Bucks' drop in attendance, a decrease in state grant revenue and a slower concert season. The Bucks' attendance last season totaled 552,967, last in the 30-team NBA. Concerts also dropped to seven, compared with an average of 10 to 12.

The drop in revenue was offset, Costello said, by the NCAA men's basketball tournament. The NCAA tournament will return to the arena in 2017.

As of June 30, the Bradley Center Sports & Entertainment Corp. had debt totaling $19.9 million. The debt includes $7 million owned to BMO Harris Bank, down from $7.5 million the previous year, and $9.5 million to the Bucks, down from $10.6 million from the previous year.

Other debt is owed to the Milwaukee Development Corp. and Levy Restaurants, the arena's concessionaire.

Under the terms of the existing lease, the Bucks received shared revenue of $4.7 million for fiscal 2014.

The report notes the building played host to about 1.4 million people attending 150 different events during that fiscal year. In addition to the NCAA tournament, new events included the Ultimate Fighting Championship, and concerts by Blake Shelton, P!NK, Jeff Dunham, Miley Cyrus and Cher.

Correction: An earlier version of the graphic related to this story referred to debt going up. It is more accurate to say losses are up.