The Rose Bowl Operating Company, a non-profit that manages Pasadena's Rose Bowl stadium, made a budget presentation to the city council in a special meeting on Tuesday. The stadium lost millions of dollars when it was forced to close during the pandemic, leaving the city to make payments on the Rose Bowl’s hefty debts.
Some city officials fear the beloved stadium might be more of a financial burden than the city can handle. Pasadena Mayor Victor Gordo went so far as to say there may be major changes to how the stadium is run.
“It may be time to look at the bigger picture. It may be time to take Pasadena to the next level and consider a sport and entertainment and hospitality authority,” said Gordo.
Pasadena’s city budget for 2022 has $12.5 million allocated for Rose Bowl debt repayments with an increase of $400,000 per year in the years that follow.
“In my view, a solution to the long-term obligations associated with the Rose Bowl stadium must be found, otherwise it will become a draw on the general fund, which will squeeze the operating budget,” City Manager Steve Mermell told the city council in a May meeting.
Mermell called the Rose Bowl stadium’s debt the most significant long-term issue affecting Pasedena’s financial future, according to the Pasadena Star News.
“The reality is that the RBOC has a fragile business model, and one or two significant events can cause short and long-term damage, including exposure to the City’s General Fund. Most recently, the unexpected pandemic has caused major damage to the organization that must be immediately addressed,” Pasadena Now reported a city staff report as saying.
It will be difficult to carve out a new identity for the stadium. The Rose Bowl is in the most competitive stadium market in the United States with the new SoFi stadium and recent renovations at the Coliseum.
The 2021 Rose Bowl game relocated from Pasadena to Texas, leaving Southern California without its signature New Year’s college football game for the first time since 1942.