Arena Naming Rights

Oh please...regular readers of this BLOG can hardly be surprised that the Windsor Family Credit Union has won the contest to be the owner of the naming rights for the East End arena. Back in June, I wrote:

• "NAMING RIGHTS FOR THE ARENA
  
  Is it true that a major Financial Institution has the inside track on buying the naming rights for the East end arena. I have heard though that the bid price is NOT very high but then again who wants to bid much in this City with this economy?
  
  Mind you, a low bid means that the charities in town and the University fund-raising could suffer as well if people don't have money. How will the University, as an example, ever pay for their stadium, a new medical school (whose costs are much higher) and a more expensive downtown Engineering complex?
  
  My guess is that some people will be quite upset if this Firm wins. It may explain a whole bunch of actions that have taken place in this City recently."

Credit Union members need not get too upset. The WFCU is not really paying out $1.62M upfront---the number looks BIG in the Star headline doesn't it--- but $40,000 a quarter over 10 years. Doing a present value calculation, it probably works out to around a million or less depending on the interest rate chosen. It's like Greyhound paying out money over a number of years for its 50% interest in the funky bus terminal or how the Ontario Government is financing the Medical School. ie NO upfront lumpsum.

WFCU probably got a good deal too. I believe that the arena in London makes $250,000 per year from the sale of rights there. The arena in the Soo gets $135,000 per year. Guelph got $1.1M for 13 years.

There are some questions that need answering as a result of the Star story:

1. Will the naming rights contract be kept confidential from both citizens and credit union members? City policy requires that "Processes must balance the need for information to be freely available and directly accessible to the public with potential requirements for confidentiality in negotiations." WFCU should know that after the brouhahas on confidentiality that their deal would have to go public
2. Does the City get all of the naming rights money or is it shared with the Spits? If the City gets it all, why were the Spits involved in the negotiations?
3. What steps were taken to ensure that the process was "fair" since the Spits are part of the contract and the WFCU is the Spit's official financial institution and with "close connections." [Being "official" cost the WFCU $100,000 for 3 years] The City's policy requires that "2.1 The purpose of the policy is to ensure consistency and fairness in the naming/renaming or dedicating of municipal property, buildings and park elements. "
4. Why aren't RFPs going out for "the remaining naming rights" but instead being handed out by some new Committee? Who is on this Committee?
5. Will the City tell us how many people applied under the "Expression of Interest", what their proposals were and why "none was deemed to be worthy, the mayor responded."
6. One of the requirements of the EOI was "The monetary contribution the entity/corporation is willing to make to purchase the said naming rights." What were they from the other interested parties?
7. Why was the time period for the EOI extended?
8. Wouldn't you like to see the "Purchased naming rights will be subject to the following additional procedures:
   • An asset analysis and value assessment to determine the value of the naming rights
   • A risk/benefit analysis
9. Will we ever find out the arena lease terms?

Oh I forgot, this is Windsor and the Administration of Eddie Francis. I should know the answers to all of these questions already....unless the Councillors stop being such wusses!

I wonder if Marty will again say, after his negotiations with Eddie for the naming rights, the same nice things that he said in April when he was talking to Eddie about moving the Engineering Building downtown as Board Chair. As Gord Henderson reported, things like:

• Komsa said he marvels at the co-operation he's seen among the city, the university and the province
• Komsa heaped praise on Mayor Eddie Francis and Windsor cabinet ministers Sandra Pupatello and Dwight Duncan for their "superb" work on this file.
• Are we ever lucky we have people like the mayor and Dwight and Sandra. On a scale of one to 10, they're a 12.

A good lesson in life: if you are nice, good things happen!

There is no reason why University people should be mad at Marty or WFCU since money was given for the City's arena but not yet for the University stadium. WFCU Coliseum has such a nice ring to it when WFCU wins the naming rights there too.

I bet that Amanda Gelman who raises money for the University will be thrilled. She will probably call up today the Chair of the UniversityBoard of Governors, WFCU's Marty Komsa, and ask him to contribute an equal amount for the University's stadium. How could he possibly say no now! He would not want the University to be mad at him would he. After all, there are thousands of students every year who need accounts and loans etc. If he can give to a commercial venture, then he can donate to an educational one. ["WFCU will direct $30,000 a year over the next three years to the club's [Spits'] player education fund.]

Surely helping out "his" University when it needs funds is something he should feel obliged to do. Heck if he can fundraise for the arena, he can fundraise for the University too. I wonder if he will ask for money for the Unviersity or the arena first? Such a dilemma!

What could be better for WFCU than name recognition at the University's stadium! After all, its location on Huron Church would be cheap advertising of the WFCU's name to thousands of commuters every day.

Amanda, do you have Marty's number? Better call now while he is in the giving mood.