By Deb Thalasitis and Mary Beth Hrin
All around Prescott there are yard signs, petitioners, hand fans, radio spots from council candidate Chad DeVries, even texts with a link to the 1888 Buckle Club website where you can sign the petition to “Save the Rodeo.” So we want to know: Who exactly is trying to take away our rodeo? After all, The World’s Oldest Rodeo in Prescott is part of our storied heritage.
Quick answer: NO ONE is taking away the rodeo. Prescott Frontier Days (PFD) has a valid lease1 with the City of Prescott—which runs through 2041 with an automatic 5-year extension—to manage the rodeo at the existing site until 2046.
To get to the bottom of this gratuitous marketing ploy, let’s start with the 1888 Buckle Club itself. Manager Greg Mengarelli, states on the entity’s website2: “We are a booster club that supports Prescott Frontier Days through financial contributions and intellectual capital.” He goes on to say this club was formed in early 2021. That date disturbingly coincides with the time frame Mengarelli—while still Prescott Mayor—also became the Business Development Manager of PFD, raising allegations of gross conflicts of interest.3
So here we have Mr. Mengarelli as both Manager of the 1888 Buckle Club and the Business Development Manager of the Prescott Frontier Days wanting to save the rodeo he is paid to run. So how’s the rodeo doing financially? In 2021, the last IRS 990 filing from PFD, shows revenues of $1,283,402 and expenditures of $1,478,402—for a loss of $137,440. Only a $195,000 contribution from the 1888 Buckle Club kept PFD solvent.4 More recent financial information is unavailable because PFD requested a filing extension from the IRS for tax year 2022. The 1888 Buckle Club, which received 501(c)(3) status in April of 2022, requested an IRS filing extension as well.
How can PFD lose money when it pays only $1/year to Prescott taxpayers to lease1 the rodeo grounds? PFD also keeps all the money from gate proceeds, sponsorships, food and alcohol sales, parking, parade entry fees, dance tickets, plus a cut on all the other events held at the rodeo grounds throughout the year. The reported revenues also include a $40,000 contribution from the City of Prescott for advertising. Moreover, PFD does not reimburse the taxpayers for the city services it uses during rodeo week such as Parks & Recreation, Public Works, Police, and Fire.5
Given PFD’s latest financial filing, the 1888 Buckle Club certainly has its hands full “Saving the Rodeo.” Their solution for more money, it seems, is to get into the events business year-round. Thus PFD’s Vision and Masterplan (rodeo expansion) was devised. During a March 28, 2023 City Council study session7, PFD presented a proposal (in the 30% design stage) to include needed renovations of the existing facilities on the rodeo grounds. Their expansion plan also incorporates the addition of a new two-story facility for the 1888 Buckle Club, a multi-use pavilion, an indoor arena, and a new expanded outdoor arena. The financial goal is to allow PFD to host other types of events like trade shows, conferences, meetings, weddings, conventions, concerts, and festivals.
Financing for this $40-50 million rodeo expansion is to come from two sources: A $15.3 million dollar appropriation directly from the State Legislature during the 2023 budget process, and private donations.6 The Arizona Center for Law in the Public Interest recently filed a lawsuit claiming this state appropriation is a violation of the Arizona Constitution’s Appropriations and Gift clause. State Treasurer Kimberly Yee stopped payment to PFD until this matter is resolved in court. To date, no private donors have been identified.
Furthermore, a mere 7 years into their current 25-year lease, PFD is already looking to renew their current lease for at least another 99 years with (two) 20-year extensions. The city has a fiduciary obligation to negotiate the best deal possible for taxpayers and the current lease is anything but that. If the City renegotiates the lease, it should require PFD to furnish their current year and at least three prior years of financial information, including IRS filings, year-end financial statements, annual professional audits, PFD employment contracts with employees, a business plan and a feasibility study for the rodeo expansion. Any landlord has the right to know the financial viability of their tenant. After all, 99 years plus two 20-year extensions is a long, long time.
As far as we can tell, this whole “Save the Rodeo” is nothing more than Mengarelli’s ruse to pressure Prescott City Council to approve PFD’s partially drafted and unfinanced Vision and Master Plan. Who is the real beneficiary here? As the payor of last resort, sounds like another smoking deal for Prescott taxpayers.
This article first appeared in Prescott Enews.
1 https://yavapaicountyaz-web.tylerhost.net/web/document/DOC428S19554?search=DOCSEARCH464S1
2 https://1888buckle.club/2023/06/01/welcome/
3 https://www.dcourier.com/news/2021/jun/19/point-mayor-mengarellis-new-rodeo-job-mengarelli-r/
4 Page 2, Line 12 Total Revenue $1,478,402 includes $195,000 from Buckle Club as itemized on Page 9. Total Expenses Page 2, Line 18. Subtract $195,000 from Total Revenue, expenses exceed revenue by $137,440. https://irs-efile-renderer.instrumentl.com/render?object_id=202243199349309449
5 Per the 2016 lease agreement PFD is responsible for “payment of all periodic utility use charges.” Paragraph 7.
6 LD-1 State Representatives Quang Nguyen and Selena Bliss, with the help of a lobbyist, brokered this deal in “closed door” meetings. Prescott Mayor Phil Goode and the Prescott City Council were never involved in these discussions.
7 The City Council does not make decisions on any items presented at a study session.