LVCVA to cover pageant losses

Wednesday, June 26, 1996 | 11:59 a.m.

Las Vegas Events Inc. won a one-year contract extension to promote special events despite losing $1.1 million on the recent Miss Universe pageant.

The Las Vegas Convention & Visitors Authority voted Tuesday to cover the loss by adding it to LVE's request for $2.6 million for the year ending June 30, 1997.

LVE President Tucker DiEdwardo said the shortfall was caused by poor ticket sales and high production costs resulting from a lack of time to prepare for the contest properly.

"We had less than 90 days from the time of acquiring the event to securing the venue," he told LVCVA members. "If we had six to nine months to prepare, we wouldn't have had this problem."

DiEdwardo said production expenses were the "direct result" of space limitations at the only two properties capable of accommodating the event, televised May 17 from the Aladdin Theater for the Performing Arts.

LVE spent $2.7 million to stage the event and realized just $1.6 million in revenue from commissions, ticket, program and merchandise sales and sponsorships.

LVCVA Chairman Paul Christensen, the lone vote against the LVE request for the extra $1.1 million, noted that DiEdwardo had told the authority he'd need less than $700,000 when he first discussed the pageant last December.

"We're upside down about $2 million," he said. That includes the $600,000 rights fee, $200,000 in LVE expenses and the $1.1 million shortfall.

"This destination is so powerful, an event will do better here than it would anyplace else," said LVCVA member Barry Sher. "We've got to avoid kneejerk reactions and be very, very cautious about overpaying for events."

Sher was particularly annoyed that DiEdwardo estimated the gaming revenues from Miss Universe visitors staying at two Las Vegas hotels totaled $3 million.

"We put $3 million in revenue into two places and the LVCVA picks up the shortfall," he complained.

The pageant generated $6.1 million of media exposure -- 75 percent more than projected -- for Las Vegas, according to Rossi Ralenkotter, LVCVA's marketing vice president.

The live two-hour broadcast was seen by 12.7 million CBS television viewers, Ralenkotter said.