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!