For this month’s print edition of FrontBurner (which is amazing, btw), I propose that the State Fair be booted from Fair Park. The park’s very valuable 277 acres will never be developed into a year-round amusement and entertainment zone for Dallas unless the obstacle created by the Fair’s three-month set-up, opening, and take-down is removed.
My argument has nothing to do with the financial situation of the State Fair. However, in the course of conversations with civic leaders, I found that the State Fair is universally regarded as a big money maker. This is an impression that its president, Errol McCoy, tries mightily to foster. But the fact is, the State Fair is a money-loser and has been for some time.
Here’s an example of the spin that comes out of the Fair organization. Last May, News reporter Brooks Egerton got teed off at McCoy because he wouldn’t answer questions about its profitability. After Egerton ran his post, McCoy seemingly relented, and the next day Egerton ran this item:
He called to say that the expenses were about $33.7 million, with revenue of about $40 million.
According to the organization’s 2008 IRS filing, McCoy miscalculated revenue by $3.7 million and underestimated expenses by $3.3 million. McCoy’s numbers would have meant a $6.3 million profit. The Fair actually posted a $686,401 loss.
McCoy’s public statement either showed little grasp of his own finances or was a deliberate attempt to mislead. By the way, 2008’s loss was nothing unusual. The Fair lost $5.5 million in 2007. The Fair has run cumulatively in the red for the last seven years.
As I said, the Fair’s viability as a business organization has nothing to do with my argument. However, I wonder if any member of the State Fair’s 55-member board of directors is aware of McCoy’s misleading impression or even of the true financial state of the Fair. I think most non-profit organizational specialists would note that a 55-member board essentially means no board at all. So who is in charge at the money-losing State Fair of Texas?
16 comments
The history of the Fair Park is priceless, the art deco buildings, the Texas OU games, the science etc buildings, the horse shows. Just because Jerry Jones and Rossy Perot are taking some of that AWAY for their own personal benefit, what happened to our History? Just having something that stays where it’s always been and DON’T TEAR IT DOWN FOR Leppert’s follie. Not everything makes money or has to.
The State Fair’s viability has everything to do with where it is located and the cesspool that surrounds it. Until South Dallas is redeveloped, there will be no longterm opportunity.
I was under the impression that the State Fair was a big money-maker, and that was going to fund that great big Six Flags-type park. If it doesn’t make money, then something funny is going on, because it sure feels like a success when you are stuck in traffic trying to get there.
Are there any suspicious “partnerships” or anything that might explain where the money wanders off to? Or does it actually cost that much to put the event on? When the event loses money, who makes up the difference?
I agree with IJS. Having grew up in the Fair Park area I am very dismayed at its decline. Until something more than lip service is given to redevlopment in this area, not even a year round amusement area will be profitable. I absolutely love the tradition of the Fair. It seems like a waste to not use the park year round.
55 member board of directors? Thats so Dallas.
The State Fair is sacred. It needs new/fresh leadership, and yes, the surrounding area needs re-development.
From D’s January “Leading Off” column:
“State fairs were nice in their day. But agricultural exhibits, baking contests, and steer-raising awards are relics of a bygone era.”
Wick, why do you hate rural Texas?
For years the DMN posted the daily attendance at the Fair, along with the cululative and the comparison to the prior year. That disappeared long ago so that it is not easy to track attendance. In addition the Fair switched from reporting attendance to reporting coupon sales. When prices keep going up, the coupon sales will keep going up, so there is not any real measure of attendance or revenue.
RE: attendance at the Fair
If I remember correctly, it was not too long ago that the state fairs of Texas and Ohio (or was it Iowa?) used to have a running contest to see who had the state fair with the largest attendance in the country. It was for nothing other than bragging rights but competition was fierce. Did this pastime fall out of favor?
No more fair? But where would I stand & greet people? Victory Park? Sorry, too artificial.
The State Fair would look great in Arlington, between Ranger Ball Park and Cowboys Stadium, with Six Flags as the Midway!
So… Does Errol’s compensation reflect the decline in revenue and attendance that the State Fair is experiencing under his leadership? Duh. Of course not. His salary, as reported in the tax forms, is on the upswing, exceeding $550K in the last IRS tax return available online.
I guess I’m a bit perplexed by Wick’s logic.
The people who would turn Fair Park into an amusement park are the same people who run the State Fair of Texas.
Why let the people who are running the fair at a deficit run an amusement park year round?
@tested: If you had followed the link to my editorial, you would have seen that I agree with you entirely:
“But even if it could afford $40-50 million to renovate parts of Fair Park, an organization whose experience is limited to running one state fair once a year is not the one to do it.
There are world-class enterprises—Disney is the best-known example—that know more about contemporary amusement parks. Dallas should open up Fair Park to a world-wide competition and give control of the park to the company that can construct and market a year-round entertainment zone while producing the highest return for taxpayers.”
I recall the 2009 attendance was much lower than usual due to lots and lots of rain. I’m sure that has a lot to do with 2009 profits.
As a long time resident and having served as a economic consultant to amusements parks, water parks and fairs for over 38 years, I can tell you that the State Fair of Texas is one of the best in the nation. Trying to understand IRS tax returns can drive one crazy. Perhaps a more common sense rule would be to look at the product itself. It looks very clean, secure and it is fun to attend. To my knowledge, I don’t think they receive any city, county or state subsidy, so they must be doing ok. Anyway, Oprah likes them – so what else matters?