So will the naming rights agreement add up to $600,000 a year for 20 years

We got the shocking news today that Sanford and FP will be the title sponsor. Let’s see if it adds up . . .

Superlative suggested to the city that they have a starting point of $600,000 a year for 20 years. STARTING POINT.

But here is an interesting twist;

Sanford’s strategy, along with First Premier, was to set up an “endowment” that will be used to offset annual operating costs for the facility, helping to ensure that it does not lose money.

“We looked at it as an investment, not a bid,” Krabbenhoft said. “The city’s goal was to try to defray operating costs, so we sat down and figured out how much that was going to be, and we set up an endowment. That fund will create a dividend income every year to go toward paying off annual operating costs.”

In other words, there will not be a ‘set’ amount for a number of years, the title sponsorship is more like a rich uncle throwing you a few bucks each year in case you get in a bind. I wonder how many other companies proposed such a deal? I think we know the answer.

Also, if you saw yesterday’s budget hearing, Tracy Turbak told the Council that they want an additional $180,000 for Legends in 2013 and they are calling it OPERATING EXPENSES! AND THE PLACE HAS NOT EVEN OPENED YET!

22 comments ↓

#1 cr on 08.01.12 at 2:58 pm

So, T. Denny, Kelby, Dana and Mike now have their very own 180 million dollar “personal playground” courtesy of the taxpayers…….

Anyone else really “turned off” by this idea…………!!??!!

#2 l3wis on 08.01.12 at 3:01 pm

I can’t wait to see the deal they cut on this.

#3 Citizen on 08.01.12 at 3:13 pm

We should wait until the details of the deal are announced. This could be a very good thing. There were some comments about an endowment being set up to cover operational costs. If the city did not get the projected amount then this is a bad thing but that is yet to be seen. No matter what you think of Sanford or First Premier they didn’t have to do this so I at least there is a sponsor. The real conversation starts tomorrow after we see details.

#4 Tom H. on 08.01.12 at 3:16 pm

It’s really amazing how much power in SF is concentrated in so few hands.

#5 Detroit Lewis on 08.01.12 at 3:35 pm

I have known this for years. It’s that way in the state to. I remember a few years ago when I went after Thune staffer, Jon Lauck. I had all kinds of GOPbig wheels in the state jumping all over me. I brought up the fact that Jon was a paid blogger for the Thune campaign while working for the state as a college professor. Of course, it has never been ‘proven’ that he was blogging during work hours, but even suggesting it made their heads explode.

#6 l3wis on 08.01.12 at 3:54 pm

Citizen – You are right, FP and Sanford didn’t have to do anything, but were any other companies considered?

#7 l3wis on 08.01.12 at 4:05 pm

I have often said the name of the place should be ‘The Citizen’s Center’ since we are footing about 99.9% of the cost of this facility.

#8 Citizen on 08.01.12 at 4:09 pm

You are correct that it is a big issue if no other companies were considered. All criticism will be fair if there was no competition for the naming rights. I think the numbers released tomorrow will tell a lot of the story.

#9 Bond Perilous on 08.01.12 at 6:37 pm

I’d like to know how the termination clause in this contract will be worded.

#10 rufusx on 08.01.12 at 9:10 pm

Tom H.

It’s even more amazing how few hands the power (and economy) of the nation is concentrated in.

#11 Detroit Lewis on 08.01.12 at 10:01 pm

“I think the numbers released tomorrow will tell a lot of the story.”

You obviously know more then the rest of us. So who do you work for? The city? FP? or Sanford?

#12 Rick Ross on 08.01.12 at 10:34 pm

This has corruption written all over it. “Behind closed doors” still has the same meaning. “Offset” the cost. Blah.

#13 Citizen on 08.01.12 at 10:36 pm

I am honestly just an everyday citizen. The numbers will reveal that there was no competition or that city hall actually had some business acumen! The problem is that if the numbers are low will we ever know if it was because of a leadership failure at city hall that there was no competition or just bad economic timing.

#14 Detroit Lewis on 08.01.12 at 10:39 pm

Oh, we will know. I have already known for months how this debacle was going to play out.

#15 Scott on 08.01.12 at 10:48 pm

City hall had some business acumen??? Bwahahahahaha

#16 Big Guy on 08.02.12 at 7:59 am

I have always had a funny feeling that Sanford and First Premier would get their names up ever since Huether brought up an idea for new event center.

I am torn between not stepping in there at all and going there. Where else will I get my annual fix at outdoor and sportsman shows other that just one at the fairground?

#17 Justin on 08.03.12 at 7:00 pm

A lot of people don’t understand numbers and finance. Why are they the ones that squawk the loudest about financial and economic issues?

#18 l3wis on 08.03.12 at 10:19 pm

Please, Justin, fill us in on the difference between revenue, subsidies and profits.

#19 Justin on 08.04.12 at 1:57 pm

It’s not my job to keep you from appearing a fool.

Maybe you should discuss stuff like this with somebody who does have that education before you make a complete ass out of yourself. Too late this time….

#20 l3wis on 08.04.12 at 10:01 pm

Looks like Justin is going to take his ball home, becuz he doesn’t want to play anymore. Boo-hoo.

#21 Justin on 08.04.12 at 10:41 pm

It’s awfully difficult to give somebody a college education through a blog.

#22 l3wis on 08.04.12 at 11:19 pm

It’s awfully difficult to give somebody a dose of reality through a blog.

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