By John Dobberstein, Editor
Venu Holding Corp., the Colorado Springs firm developing the Sunset Amphitheater in Broken Arrow, says it expects to become operationally profitable by the end of this year after reporting its first development profit last month.
Construction continues for the 12,500-seat amphitheater in southeast Broken Arrow ahead of an anticipated opening this fall. Venu, which is going with an “open house” arrangement for booking shows but is still working with industry giant Live Nation, has yet to announce ticket prices or performances for the Broken Arrow site. Naming rights have also not been sold yet.
To be located just north of the Broken Arrow Events Park, the $103 million project includes about $28 million contributed by the city for infrastructure, with the bonds being paid off by commercial tax revenue in a special TIF district in the project area.
After it became clear the amphitheater would not open by the original deadline of Dec. 31, Venu and the city agreed to a revised development plan that sets a deadline for later this year, or the company would face financial penalties.
Last November, Venu announced a multi-event incentive agreement with Live Nation for allowing Live Nation the firm to book and promote live-music concerts, comedy events and other “mutually approved” entertainment events in Broken Arrow on a non-exclusive basis, while an in-house booking firm at Venu would handle other bookings.
Live Nation would receive escalating incentive payments based on the number of tickets sold at events the company presents during each contract year. Live Nation could also get a bonus payment if certain defined revenue targets are achieved, Venus said.
Aggressive plans continue
Venu’s financial picture appears to be improving overall from 2024, but some aspects of its financials caught the attention of analysts such as Quipus Capital, which recently said Venu remains a “highly risky, operationally unprofitable and heavily leveraged venue operator with a complex capital structure.”
Venu said last year it planned to reach 40 locations by 2030. It announced a new proposed location in the Houston metro area and broke ground on an El Paso location. But in north Texas, the Dallas Business Journal recently reported — citing city documents — the opening of Venu’s $300 million, 20,000-seat amphitheater in McKinney had been pushed back to 2027.
“The company is growing very rapidly via investments, but finances that via dilution (maybe the least risky but still undesirable financing mechanism), debt of all sorts and kinds, and complex sales of interests (leases or non-controlling participations),” the company wrote. “Without new financing, the company cannot keep building. If it stops building, its operations cannot cover its own expenses and are unprofitable.”
The Sentinel reported last August that Venu received subpoenas from the Oklahoma Department of Securities, that applied to the corporation and two of its subsidiaries — Sunset at Broken Arrow LLC and Sunset at Mustang Creek LLC.
The legal requests require production of documents related to any offering of securities in the state of Oklahoma. ODS did not assert any securities violations, and Venu said it was fully cooperating with the agency. No update on the probe has been issued.
There were several other major news announcements at Venu in recent weeks, including a shakeup of its leadership team to “strengthen operational efficiency and enterprise oversight” as the company attempts to scale.
Vic Sutter, executive vice president of operations, was appointed COO and tasked to lead operational alignment across VENU’s portfolio. The company’s president, Will Hodgson, drops the COO title and will focus on “implementing expanded enterprise-level leadership and long-term strategic oversight” at Venu, the company said.
“As we prepare to scale our brands, open new venues, and announce new locations across the nation, I’m hell bent on building with efficiency and intention. I am excited to see Will and Vic thrive in these new roles and deliver consistent, well-rounded strategies that deliver results for our fans, artists, and stakeholders,” Venu chairman and CEO J.W. said.
Hodgson began his career in investment banking before spending 25 years in the entertainment industry, including 13 years at Live Nation as Head of House of Blues Entertainment, where he set strategy for 20 venues, 17 restaurants and 7 high-end cocktail lounges.
Sutter brings 2 decades of luxury hospitality experience, including 10 years at Live Nation, where he oversaw a national portfolio of brands including Brooklyn Bowl and House of Blues, Venu said.
Venu also floated a $75 million public stock offering recently to fund a portion of the development costs of McKinney and El Paso amphitheaters and the Broken Arrow amphitheater, and to close on the company’s purchase of property in Centennial, Colo., to develop an indoor music hall and restaurant.
Ticket revenue increases
Venu’s stock price took a beating last year. After reaching a high of $18.17 in August, VENU closed at $5.49 Friday, although some observers question whether the market is undervaluing the company’s stock.
In releasing its 4th quarter and annual results, Roth said ticketing revenue is becoming a larger percentage of the company’s overall revenue. Restaurant revenue increased 8.6% in Q4 with the grand opening in November of Roth’s Sea & Steak at Venu’s Colorado Springs entertainment complex.
The company reported total assets of $354 million, a 100% annual growth rate, with a 62% increase in Luxe FireSuite and Aikman Club sales, which exceeded $126 million for the year. This includes sales of Luxe FireSuites through traditional cash sales, fractional financing, and triple-net lease interests in FireSuites.
Total revenues were expected to be$4.4 million to $4.8 million for the last quarter of 2025, compared to $4.3 million for the same period in 2024. Venu reported total cash and cash equivalents of $41.1 million to $42.3 million as of Dec. 31 vs. $38 million in 2024.
Venu’s debt is in the range of $58 million to $59 million through Dec. 31, compared to $25.6 million in December 2024 — an increase of 127% to 130%.Net revenue for Q4 was $443,100, up from $203,300 the same time the previous year.
The development profit came from the sale-leaseback of the parking property from its Colorado Springs’ campus completed in November.
Over 2025, Venu reported total revenue of $17.8 million to $18.7 million (compared to $17.8 million in 2024), and Luxe FireSuite and Aikman Club sales of $125.3 million to $126.8 million last year vs. $77.7 million for 2024.
The company generated net revenue of $3 million to $3.4 million for 2025 vs. $1.7 million for 2024. For the 2025 concert season through December 31 there were 28 shows held at Ford Amphitheater in Colorado Springs generating gross receipts of $14.8 million to $15.6 million, vs. 20 shows in 2024 that generated gross receipts of $15.2 million.
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