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Regina Exhibition Association Limited (REAL) is having financial difficulties and could sink by September if it can’t take on more debt.
A report from city administration says by September, REAL is expected to have a negative cash flow of $6.9 million and its approved line of credit will be maxed out.
REAL president and CEO Tim Reid told the Greg Morgan Morning Show on Tuesday the non-profit is asking city council for a $3.4-million cash injection.
“We have, essentially, a line of credit that we have available to us,” he said. “Anytime we take on new debt, we have to ask permission from council.”
Reid reiterated the line of credit was already in place and REAL is just asking city council for permission to draw money from what was already there.
He said REAL is trying to navigate its slower-than-expected post-COVID recovery.
“We do see it getting back to normal. It’s just taking more time that we thought,” Reid added.
According to the agenda for Wednesday’s executive committee meeting, administration recommends that city council initiates the process to negotiate changes to REAL’s current financing and “credit facilities.”
It also called for any changes to not exceed the overall debt guarantee of $21 million.
Reid said for the non-profit to dig itself out of the financial hole it’s in, a major event — like the Tim Hortons Brier, the Memorial Cup or the Grey Cup — and a summer stadium show need to be hosted in Regina each year.
Unfortunately, REAL continues to be impacted by low attendance numbers and has been having difficulty attracting events to the Queen City, the report said.
“This year, we’re struggling because the tourism industry bids years out,” Reid said.
He confirmed REAL still hasn’t secured a stadium show for this summer.
“We had two actually: One that was a great country artist that ended up going to a show to our west and one that was a great ’90s rock bank that ended up shortening their tour,” he explained.
According to Reid, there aren’t a lot of shows touring North America this year and the competition is fierce.
If the additional financing isn’t approved by city council, REAL may not be able to pay its bills through the end of the year.
As for what’s happening with regard to Experience Regina, Reid said REAL’s board of directors is in the process of completing a full review of the botched rebrand, which ultimately led to the agency reverting back to its former name and branding because of all the backlash that ensued.
