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4.1 IntroductionThere are a lot of construction projects for

new buildings of any use running all around theworld continuously. The operation of these com-ing facilities is based on earlier experience of theinvestors. From this point of view, the decision-making is rather simple, even if the decision makersare not professionals in the construction business.

Ice rinks are special type of buildings andshould be treated as such. Unfortunately, thereare still plenty of new ice rinks and arenas beingdeveloped without the input of specialists. In theseprojects, there is the potential for major problemsduring the process of construction and operation.In order to have a proper cost and operationstructure for a new ice rink project, the specialfeatures of an ice rink must be known, under-stood and taking care of.

A modern ice rink needs special tools tocontrol the indoor climate, especially the temper-ature and humidity factors. These features are notcomparable to common buildings. If one does nottake these elements into into consideration theymight cause remarkable problems in a very shorttime. This means within 2 to 3 years. Too highhumidity of the indoor climate can easily causeserious corroding problems in steel structures anddecay in wooden structures.

Saving costs in the wrong area will lead toserious damage in a short period of time. Even ina country like Finland, where some hundred icerinks have been built in last thirty years, some

wood framed ice rinks have major decay damageonly 4 years after the completion, due to ignoringthe humidification issue in the mechanical plant.

The continuous increasing demand of thepublic is resulting in a higher requirement forthe quality of the ice rink indoor climate. To havethe temperature just above the ice surface on -4degrees centigrade, but +18 degrees centigradeonly a few meters behind the dasher board on thefirst seating row are common requirements inmany ice rinks and arenas.

Technical solutions that are too simple cancause extremely high operational costs. Advancedtechnology can reduce energy consumption andoperating costs by up to 50 per cent in existingand proposed arena facilities, while also improv-ing the indoor climate for the customers.

Energy costs make it necessary to strive forenergy efficiency. This element plays a key role inthe decision to invest in a new ice rink. The latersuccess with respect to the operational costs ismade in the design phase. A clever design in com-bination, with the right technical features andskilled maintenance personnel will have a consid-erable effect on the level of operating costs.

The idea of this manual is to offer technicaland financial guidelines for a ”small“, modern icerink, which is not the most low-priced and simplefacility. This prototype is a customer-based facilitythat gives operators and investors the opportunityto operate an economically successful facility, whileproviding the customer with high-level service andwide range of activities.

The IIHF prototype ice rink provides apalette of services for on ice and dry floor possi-bilities as mentioned in Chapter 2. Like in majormulti-purpose arenas, it will be rather easy tochange the ice surface quickly into a dry-floorfacility.

4.2 Construction costsThe different structural solutions, materials

and equipment for building services have a greatimpact on the construction costs. The IIHF work-ing group has made the decision to design an IIHFice rink prototype. The result of this decision isthat the technical features are chosen, and alsothe structure, layout and volume of the facility.The technical features are described more detailedin chapters 3.3, 3.4 and 3.5 of this manual.

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4Economic profile of theIIHF ice rink prototypeChapter 4

Public skating and equipment rental are good ways to boost yourincome.

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IIHF prototype ice rinkLemminkäinen Construction Ltd.31.1.2002

Cost groups according to DIN 276 Preliminary cost estimate %

100 Site costs

200 Utilities

300 Construction costs 1,341,097 57.84310 Earth works 123,855320 Foundation (incl. ice pad) 265,825330 External walls 118,220340 Internal walls 138,240350 Ceilings 110,325360 Roofing 193,400370 Fittings 366,232390 Other construction works 25,000

400 Mechanical and electrical works 479,600 20.68410 Sewage, plumbing 79,200420 Heating 35,200430 Ventilation, Dehumidification 118,800440 Electricity, high voltage 110,000450 Telefommunication, data network, etc. 17,600460 Elevators 0470 Refrigeration unit 79,200480 Building automation 30,800490 Other M&E works 8,800

500 Site finishing 100,000 4.31510 Yard works 25,000520 Yard finishing 25,000530 External construction works 40,000540 External M&E works 10,000550 External fittings 0590 Other external works 0

600 Equipment 165,000 7.12610 Equipment (ice resurfacer, dasher board, score board etc.) 165,000

700 Design, project management 233,000 10.05710 Project supervisor 35,000720 Project preliminary costs 10,000730 Architect design and engineering 150,000740 Inspection fees etc. 8,000750 Art works 0760 Financing 0770 General project costs 25,000790 Other costs 5,000

Cost groups 100-700 total € 2,318,697 100.00

General project development costs (8%) € 197,089

Total project costs (netto) € 2,515,786

Some special notes:1) Cost structure finally depends on the operational construction realization (MC, CM, DMC...), calculation for location Munich, Germany2) Cost groups 100 and 200 must be defined separately based on the site characteristics

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INTERNATIONAL ICE HOCKEY FEDERATION

This is a turn-key cost estimate for IIHFprototype ice rink. The IIHF working group wouldlike to underline that this cost calculation is nota cost guarantee in any form. This calculationmerely gives you as an investor, developer or sportsenthusiast, a good indication of the total costwhen you have decided to build a small ice rink.

Between continents and countries the con-struction costs are going to vary, even when weuse the same technical definitions. The cost esti-mate shown in the manual is based on the loca-tion in the city of Munich, Germany.

Please be aware that lower labour costs insome countries in comparison with the cost levelin Germany automatically lead to notable savings.In many cases the lower labour cost level is bal-anced by paying extra on import taxes of technicalequipment or by the increasing number of em-ployees because of the lack of machines.

The model of the cost calculation is basedon the German DIN 276 – form, which is widelybeen used in Central Europe. On the other hand itis rather easy to transform this cost estimate intoanother calculation form.

The costs of the site and the utilities are notincluded in the total summary. These are also theitems of the costs in order to have neutrality in thecost estimate.

4.3 Operational budget

4.3.1 ExpensesThe major utilities required in an ice rink

operation are electricity, gas, and water. Alsomonthly fees related to the external financing (seechapter 5), mortgage payments, should be lookedat on a case-by-case basis.

Maintaining a sheet of ice is a 24-hourcommitment. The owners cannot simply turn offthe electricity to the refrigeration plant when thebuilding is closed. There are proven methods toefficiently operate an ice rink.

It is also important to work with the localutility companies to establish favourable agree-ments for the facility. A common way to reducethe fixed costs is to negotiate partner agree-ments with a local telephone company or a localgarbage disposal company or other similar com-panies.

When making the budget for the opera-tional costs one should take into considerationthe tasks that could be fulfilled by volunteers. Thispossibility would improve cost reduction. The taskscould be:• Maintenance of the facility• Cleaning• Ice resurfacer maintenance

Also mechanical service contracts haveto be included. Specialised work that has to bedone by experts, which could include maintenanceof the refrigeration plant and the ice resurfacer.

List of monthly expenses✔ Financing costs✔ Utilities – electricity ✔ Utilities – gas ✔ Utilities – water, sewer ✔ Insurance - Liability and Property ✔ Real estate taxes ✔ Other taxes licenses and fees ✔ Telephone ✔ Office expenses ✔ Cleaning supplies ✔ Trash removal ✔ Facility maintenance ✔ Personnel costs

Personnel All ice facilities require a competent, well-

trained staff to help the rink succeed. As previ-ously noted, the cost to open an ice facility issubstantial. It is important to have a staff thatunderstands the ice business and can operate thefacility at maximum efficiency and profitability.Due to the fact that a single sheet facility mayoperate for 18 hours a day, 7 days a week, thefacility will need related man-hours to cover theoperation.

In some countries, it is possible to utilizevolunteer staff to cover many of the hours. How-ever one should be aware that volunteer workethics and expertise might be lacking. For a suc-cessful operation, the total number of staff can beadjusted. With larger public sessions or specialevents, a bigger staff will be necessary.

The rink manager is the key to a success-ful operation. The manager must oversee thewhole spectrum of activities and services andshould operate a customer-based operation. The

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other skating coaches, and coordinate all skatingprograms. A hockey director would operate in asimilar manner to manage the hockey operationsat the facility. If necessary, a marketing directormay be hired to promote the facility and themany diverse programs that are offered to thecommunity.

If the rink expands to include a concessionstand or a pro shop, both a concession managerand a pro shop manager would be required.

Personnel list✔ Rink Manager✔ Technical Staff (2)✔ Office Secretary✔ Part-time operations staff (2-3)✔ Part time maintenance staff

It is also to be noticed, that an ice rinkwith two ice pads can be operated with thesame amount of staff as the single ice surfacerinks. Other expenses, such as energy, can bereduced in comparison with the doubled usercapacity of the facility.

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rink manager should be the driving force behindthe facility.

The duties of the manager in a single sheetoperation include, but are not limited to, thefollowing areas:

✔ Personnel Administration✔ Human Resource Management✔ Ice Scheduling✔ Ice Contracts✔ Marketing✔ Facility Maintenance✔ Budgeting

It is necessary to have at least two assis-tant rink managers (rink technicians). The as-sistant rink managers typically take care of theevenings and weekends at the facility. It is theirresponsibility to schedule part time staff, maintainthe facility, and serve as the main customerservice person for the public. They are also respon-sible for ice maintenance and resurfacing the ice.

A facility should also have one full time,multitalented secretary. The secretary fills a varietyof roles, including receptionist, registrar, and ac-countant. This person must also have knowledgeof all the programs offered at the rink, to immedi-ately answer questions from the general public.

In addition to this staff, a single sheet facil-ity may have 2 to 3 additional part time opera-tions staff that can drive the ice resurfacer, workevening or weekend shifts, maintain the buildingand keep it clean.

As the ice rink industry evolves andchanges, it is important to keep staff up to dateon the latest advancements in the industry. With aplan for staff training and education, rink oper-ators will have the opportunity to learn moreefficient and cost effective methods to running anice rink. A budget should be created to covertraining course registrations and expenses.

In many areas of the world, the usergroups such as the hockey or figure skating clubswill take responsibility for the programs on the ice.In other parts of the world, depending on the typeof rink operation and the region, there are severalother positions that may be added to the full timestaff. A skating director would handle all Learn toSkate and figure skating programs in the facility.This person would serve, as a teaching profes-sional in the Learn to Skate program, would hire

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� Water 4%

� Sewage 3%

� Electricity (energy cost) 27%

� Staff 50%

� Other costs 8%

� Maintenance 8%

Percentage of expenses

For an ice rink like the IIHF prototype,an average annual level of expenses in 2001 inEurope is between 300,000 € and 400,000 €.

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Percentage of incomes

4.3.2 IncomeIn order to operate successfully, ice rink

facilities must offer activities and programs foreveryone in the community. The more potentialusers the facility has, the greater the chances ofsuccess for the facility. There are many program-ming ideas that help rinks to prosper, but actualincome may vary greatly due to the local commu-nity, area or environment.

Another key to success is to offer program-ming that will allow your customers to stay withyour facility for a lifetime. A lifetime customerwould enter your facility as someone interested inskating, start in learn to skate lessons, decide toconcentrate on hockey or figure skating, competeas youth participants in their chosen sport, thenremain with your facility in adult recreationalhockey or figure skating programs.

Income categories✔ Youth Hockey Programs✔ Adult Hockey Programs✔ Group Skating Lessons✔ Public Skating✔ Schools✔ Contract Ice Rental✔ Figure Skating✔ Camps/Clinics✔ Parties/Special Events✔ Fairs, exhibitions✔ Advertising

It is also important to schedule your iceusage for success. There are several “best practices”to be followed, and suggested time frames arenoted with each programming option.

For an ice rink like IIHF prototype an aver-age annual level of incomes in 2001 in Europeis between 250,000 € and 350,000 €. Namingright, advertisements inside the ice rink and sellingrights can also be a great source of additionalincomes.

� Youth Hockey Programs 29%

� Adult Hockey Programs 25%

� Group Skating Lessons 10%

� Public Skating 13%

� Contract Ice Rental 12%

� Freestyle Figure Skating 6%

� Pick Up Hockey Sessions 2%

� Other Programs 3%

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