Argus Leader reporter Jonathan Ellis wrote a blog about the announcement as well. It will be interesting to watch the naming rights develop over the next year for city's event center. He is right when he speculates that anyone writing a check for naming rights for 20 plus years will probably want to know who is actually going to be in the Event Center besides concerts, tradeshows and conventions. We know the Skyforce won't be playing there.
Superlative completed a Naming Rights & Marketing Analysis Study in June 2011. Now that the voters have passed the event center plan, what are the city's plans to move forward with a contract with Superlative? Will the mayor's administration have monthly or quarterly reports to the city council as the event center construction and the marketing plans moving forward?
Here is what Superlative said is possible in revenue expectations for the Event Center:
- Sponsorship Naming Rights: Valued at $350,00 to $500,000 per year, these rights, based on a 20 year agreement with a 3% fee escalator is estimated to bring in a range of $9.4 million to $13.4 million.
- 5 Premium Sponsorship Packages: These packages are for things like interior signage locations, banking & ATM naming rights, Concourse naming rights, Atrium naming rights, Emergency Exit Naming Rights. These packages would be priced in a range of $50,000 to $175,000 per year. These premium packages is estimated to bring in $6.8 million to $16.8 million over a 20 year agreement.
- 15-18 Suite Sales: Suites would be sold in a range of $25,000 to $37,000 per year. Using a 20 year agreement with a 3% fee escalator, the revenue is projected at $10.7 million if 15 suites were sold for $25,000 each and up to $18.1 million if 18 suites were sold at $37,000 each.
- Additional Sponsorships with local businesses: The idea is to get local businesses to buy sponsorships for things like a Trash Receptacle Program, Concession Partner Program, Food Cart Program, Children's Play Area Program, Business Center Program, First Aid Center Program, etc. No money was estimated for these sponsorships in the report.
There is a lot of money at stake regarding the naming rights and sponsorship process. This marketing process needs to be transparent to the public. The public needs to know the progress on the marketing results of the city's hired consultant and how much revenue is actually going to be realized annually from the naming and sponsorship rights.
When will those mayor event center update sessions start up again?
The Mayor is scheduled to give an EC update to the Council at Monday's Informational meeting (4:00). *see siouxfalls.org
ReplyDeleteIt should be interesting "theatre" to see his "spin" on the SkyForce. By the tone of last week's Informational, I would anticipate that he is going to face some tough questions from at least a few of the Councilors!!
Also, Darrin Smith/Naming Rights is on the Public Service Committee's agenda for Monday. The committee meeting follows the 4:00 Informational and both meetings will be on SIRE (BUT, of course, you miss alot of the "drama" by not being in the room!!)
ReplyDeletePay attention to parking.
ReplyDeleteAndy. Is parking going to be addressed at this meeting? I am curious as to how much parking prices will be going up at the complex and if it will impact the price of a ticket for say...the Pheasants baseball games?
ReplyDeletePolly Amalo
Parking? What parking? There will not be enough parking out there once the EC is built. And people don't like to walk, especially in the winter, nor do we South Dakotans like ramps. I cannot wait to hear who the big money people are going to be! Just can't get over the Skyforce leaving the Arena. Just what is going to be going on in that building anyway other than high school sport tournaments and they can't even guarantee those every year because as we all know, in this State they like to hold these tournaments in small towns instead of Sioux Falls. I see only red for that facility and taxpayer subsidy.
ReplyDeleteYesterdays informational meeting was telling in several regards. First, we found out how much the Skyforce made per home game. Barely enough to pay the light bill. I suspect the Stampede and Storm are not a whole lot better off. When asked by the only councilor with the guts to ask, How we going to fill those 28 open dates left by the Skyforce, the good mayor gave us his trademark. Smoke and mirrors. He actually said we should be doing backflips at the prospect of filling those 28 open dates. He then went on to tell the council that corporate companies, did no say who, are anxious to fill the suite and loge seating. I wonder how honest he is in that regard. WHO is standing in line to purchase very expensive prime seating knowing we have no real prime time tenant? You gonna pay that kind of money to have suite or loge seating for the Home and Garden show? Not me. Not the Kirby family. Not Krabs Krabbenhoft,. Not Dunham. Not Lloyd. Not anyone. He also allude to fact we could be in the running for the 2015 Pheasants Forever convention. NO CHANCE IN HELL. When will he stop spreading that rumor?
ReplyDeletePolly Amalo