Here’s another little “goody” from the deal:
“Naming Rights Revenue. (a) In addition to the annual rent paid by the Operator for the Office Space and the annual management fee paid by the Operator, the Operator shall share with the City fifty percent (50%) of the annual net revenue from naming rights for the
Ballpark to the extent they exceed three hundred and twenty-five thousand dollars ($325,000). “Net revenue” for purposes of this provision shall be defined, on an annual basis, as the difference of (i) the gross annual amount paid by a third party to the Operator for naming rights to the Ballpark and (ii) the actual cost or fair market value, as the case may be, of the sponsorship elements that the Operator is contractually obligated to deliver to such third party naming rights partner, including but not limited to signage, tickets, hospitality (e.g. party decks, group nights, and suite nights), promotions, media (e.g. radio, newspaper, internet and other advertising), usage of the Ballpark, and mascot, player and other appearances.”
Interesting – the city gets NOTHING if naming rights is less than $325K per year. If it exceeds that it gets split.
That’s cozy isn’t it?
From the NSS report chapter 8, pg 99
"Comparable ballpark naming rights agreements ranged from 10 to 20 years in lengthand with annual values ranging from $170,000 to $300,000 per year. Overall, the average comparable ballpark naming rights agreement was for an average of 13 years with an annual value of $252,857. Several of the most recent naming rights deals at comparable venues have an annual value of $300,000."
So NSS said it won’t go anywhere near $325K yet the city agreed that after it went over $325K it would be split?
I think we can say they’ll be no revenue generated from that eh?
Still a good deal Chuck?
The pro side doesn't see the implications here. This is another portion of NSS that has been completely trashed as a fabrication.
This should now call into question EVERYTHING contained within the NSS study.
The Survey results
The economic impact
The benefits to the city
The attendance figures
Reject the deal
Lets see what Ripken can offer us
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