Auckland City Council's entertainment arm has lost $2.5 million after three major shows flopped.
The Edge invested millions in bringing the musical My Fair Lady, and two other international plays to the city.
The loss is partly offset by the $1 million profit made by the hit musical Priscilla Queen of the Desert last year.
Auckland City mayor John Banks is defending the loss, saying the council cannot make the right decision every time, and there is no point closing the entertainment arm when it has the opportunity to recoup the loss.
Mr Banks was highly critical of the Auckland Regional Council when it lost $1.9 million over a David Beckham soccer match.
