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Agenda 09/24/2024 Item #11E (Third Extension and Amendment to the Sponsorship Agreement between Collier County and Spirit Promotions for the 2026-2032 U.S. Open Pickleball Championships)9/24/2024 Item # 11.E. ID#: 2024-1058 Executive Summary Recommendation to approve the Third Extension and Amendment to the Sponsorship Agreement between Collier County and Spirit Promotions for the 2026-2032 U.S. Open Pickleball Championships for a total of $1,050,000, approve the expenditure of up to $1,000,000 for capital improvements at ENCP, approve an allocation of up to $40,000 for an infrastructure project study, for a total of $2,090,000, authorize the Chairman to sign the attached Agreement, approve any necessary Budget Amendments, and make a finding that the related expenditure promotes tourism. OBJECTIVE: Recommend approval of the Third Extension and Amendment of the Sponsorship Agreement with Spirit Promotions for the years of 2026 - 2032. CONSIDERATIONS: Collier County entered into the Sponsorship Agreement with Spirit Promotions on February 12, 2019 (Agenda item 16.F.2). The Agreement included the U.S. Open Pickleball Championships for years 2019 to 2021 (Agenda item 16.F.4). On October 22, 2019, the Parties entered into the first Extension and Amendment of the Sponsorship Agreement which extended the sponsorship through the U.S. Open Pickleball Championships in 2024. On January 9, 2024, the Parties entered into a second extension for one year though the 2025 U.S. Open Pickleball Championships (Agenda item 16.F.10). Pickleball is a fast-growing sport in Collier County, and the U.S. Open Pickleball Championships have been the primary factor in that growth. This event promises to continue to bring a record number of participants and fans to Collier County in April for the next five years. The 2024 U.S. Open event was once again the marquee tournament in the Pickleball market. The 2024 tournament attracted 3,250 players from all 50 states and 31 countries. Over 50,000 spectators came out worldwide to watch Pickleball’s best play for the right to be called U.S. Open Pickleball Champions. The events were Live Streamed on CBS Sports Network, Pickleball Channel and Pickleball TV platforms. The total audience reach of the three broadcast platforms was 14.74 million people and a total broadcast value of $515,000. In addition to paying a Sponsorship fee, Collier County will assist Spirit Promotions in hosting the event. This assistance includes: • year-round promotion of the event on the Sports Tourism website, Facebook, and Twitter channels. • providing PR and media assistance to promote the Championships. • assisting with permitting and hotel partnerships. Spirit Promotions has devised a long-term strategy for the event for a sponsorship agreement for seven (7) years. This includes a declining scale of payments to Spirit Promotions as follows: $300,000 in 2026; $250,000 in 2027; $200,000 in 2028; $150,000 in 2029; $100,000 in 2030; and $50,000 in 2031. The agreement provides for the construction of a new championship court with waterproof canopy that would be located immediately adjacent to the current championship court, along with the installation of a new sound system distributed through East Naples Community Park. With an estimate of $2,000,000 for the project by Spirit Promotions, they will commit an amount of up to $1,000,000 toward the cost of capital improvements and the remaining not to exceed $1,000,000 will come from Collier County. Tourist development taxes are proposed to finance this expense. For any capital improvement, the parties are required to follow the provisions of Section 125.0104(5)(a)6., Florida Tourist Development Tax Statute. Therefore, an independent analysis, performed at the expense of the Tourist Development Council (TDC), will be conducted to determine the positive impact of the infrastructure project on tourist-related businesses in the County. The cost of the study shall not exceed $40,000 without additional TDC and BCC approval. ADVISORY COMMITTEE RECOMMENDATION: This item was presented to the Tourist Development Council at its meeting on August 20, 2024 and was approved unanimously. FISCAL IMPACT: Funding for the impact study of up to $40,000 will be allocated in the annual Tourist Division budget for Sports Marketing from the TDC Promotional Fund (1101) for FY 2025. The funding for the sponsorship funds declining from $300,000 in FY 25 will be included in the annual Tourism Division budget for sports marketing within TDC Promotional Fund (1101) in the fiscal years as outlined in the contract (total expenditure is $1,050,000). A Page 1827 of 4908 budget amendment will be required to allocate up to $1,000,000 for the capital infrastructure improvements at ENCP within TDC Capital Fund (1108). The allocation for the infrastructure will be based on the results of the study and timeline of the project and is estimated to start in FY 2026. The total fiscal impact is $2,090,000. GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this action. LEGAL CONSIDERATIONS: The Agreement requests Board authorization for tourist development tax expenditures of up to $1 million for a "public facility," defined as a major capital improvement, which requires a super majority vote of the Board pursuant to Section 125.0104(5)(1)6, Fla. Stat. The proposed capital improvement is a waterproof canopy which cost will be shared with Spirit Promotions as a not to exceed amount of $1 million per party. This item is approved as to form and legality and requires a super majority vote for approval. - CMG RECOMMENDATIONS: Recommendation to approve the Third Extension and Amendment to the Sponsorship Agreement between Collier County and Spirit Promotions for the 2026-2032 U.S. Open Pickleball Championships for a total of $1,050,000, approve the expenditure of up to $1,000,000 for capital improvements at ENCP, approve an allocation of up to $40,000 for an infrastructure project study, for a total of $2,090,000, authorize the Chairman to sign the attached Agreement, approve any necessary budget amendments, and make a finding that the related expenditure promotes tourism. PREPARED BY: John Melleky, Arts and Culture Manager, Tourism, Sandra Rios, PR and Communications Manager, Tourism ATTACHMENTS: 1. THIRD EXTENSION AND AMENDMENT Signed MD 2. Original contract and first ex 3. FINAL Second Extension and Amendment - Spirit Promotions 4. Spirit Promo Pickelball 2020 thru 2024 5. US Pickle Ball Open _ 2024 Presentation Page 1828 of 4908 Page 1829 of 4908 Page 1830 of 4908 Page 1831 of 4908 Page 1832 of 4908 Page 1833 of 4908 Page 1834 of 4908 Page 1835 of 4908 Page 1836 of 4908 Page 1837 of 4908 Page 1838 of 4908 Page 1839 of 4908 Page 1840 of 4908 Page 1841 of 4908 SECOND EXTENSION AND AMENDMENT OF SPONSORSHIP AGREEMENT BETWEEN COLLIER COUNTY AND SPIRIT PROMOTIONS THIS SECOND EXTENSION and AMENDMENT is made and entered into this 9th day of January, 2024, by and between Collier County, a political subdivision of the State of Florida County"), and Spirit Promotions, LLC, a Foreign Limited Liability Company ("Spirit Promotions")authorized to do business in Florida. RECITALS: WHEREAS, the Parties entered into a Sponsorship Agreement dated February 12, 2019, a copy of which is attached to this Agreement, wherein Spirit Promotions agreed to promote, market and present the 2019 through 2021 U.S. Open Pickleball Championships, to take place at Collier County's East Naples Community Park in April of each year; and WHEREAS, the Parties entered into an Extension and Amendment of the Agreement on October 22, 2019, which extended the Agreement through the 2024 U.S. Open Pickleball Championships; and WHEREAS, the Parties wish to extend the Agreement for an additional year. WITNESSETH: NOW, THEREFORE, in consideration of the promises and covenants contained herein, and other good and valuable consideration exchanged amongst the parties, the parties agree as follows: 1. All of the above RECITALS are true and correct and are hereby expressly incorporated herein by reference as if set forth fully below. 2. The Term of the Sponsorship Agreement is hereby extended for an additional one- year term. Accordingly, at its sole cost and expense, except as amended below Spirit Promotions will promote, market and present the 2025 U.S.Open Pickleball Championships on the same terms and conditions as those currently set forth in the Sponsorship Agreement, as amended. There is no right to renew by either party. 3. The annual Sponsorship Fee for 2025 will be Three Hundred Forty-Five Thousand Dollars ($345,000.00). 4. Except as set forth above, all other terms and conditions of the Sponsorship Agreement, as amended, continue in full force and effect. IN WITNESS WHEREOF, Collier County and Spirit Promotions have respectively, by an authorized person or agent, hereunder set their hands and seals on the date and year first above written. Words Underlined are added; Words 8404—Through are deleted. Page 1 of 2 GAO Page 1842 of 4908 1"•*'',4, 4 ASP 4!:',•...... 9.4,''''F ATTEsq?' * , *•.,,c.;. 2,, BOARD OF COUNTY COMMISSIONERS CR Y StAlr.X.1 N A Fl,Olitk COLLIE .1, NTY, .LORIDA XiLkIllifri ' r :4 tiBY: ' r„' , 4400111Iire; By: Attest et•P•,P7airmarr': •.;e 1 C I ,$10 Chris I Jail, Chaim,n i,,,_ signattite,eftllY,••:•' ,,, Approved as to form an. egality: SPIRIT PROMOTIONS, J,I,C WI By:1(-`,, LC leen M. Greene Michael Dee, Manager Managing County Attorney Words lirlderlined are added; Words Strook-Through are deleted. Page 2 of 2 Page 1843 of 4908 EXTENSIO){ AND Alltt:NDl\IENT OF SPONSORSHIP A(; IIEEM EN'I' IIETWEEN COI,I-IER COTIN'I'}' A:{D SPIRI'I' PROMoTIoNS lt{lS EX ll-.NSlON and AMENDMIjN'l'A(iRt'.l1MENT is madc and enteretl into thisd}n dal' olOctObtr. 2019. by'and bctucen (bllier Countl', a political subdivision of thc Statc oI Fkrrida ("County"'). and Spirit Promotions. LL('. a l;orcign Limired Liabilitl'Compan1, l"Spirit Promolions") authorized to do business in Irlorida. IIECIT..\LS: WHIIR[-.AS. the parties entcrcd into a Sponsorship Agreemcnl datcd Februarl' 12. 2019. a copl ol'rvhich is attached to this Agrccmcnt. rvhcrein Spirit Promotions agrecd to promote. market and present the 2019 through 2021 LJ.S. Open Pickleball Charnpionships. lo take place ar Collier (lounty's lJasl Naples Communitl' Park in April ol'each 1'ear: and WlltjRI:AS. both parties u'ish to extend and anrcnd the Sponsorship Agrecmcnt on the lenns and conditions set lbrth below: and WH['.RI'.AS. u'ith the recommendation of thc -l'ourist l)evelopmenl Council. thc Collic'r (iountl' Board ol' Countl'' Contntissiorrcrs has revierved and approvcd this cxtsnsion and amcndment ol'the Sgrnsorship Agreenrcnt and spccil'icalll linds that doing so promotcs tourism. NOW. TIIEREFORE. in considcration ol'the promises and covcnants contained herein. and other good and valuablc consideration exchanged amongst the partics. thc parties agree as follou's: l. All of thc above RECII'ALS are true and corrcct and are herebl' expressly incorporated herein by refcrcncc as if sct forth l'ull.l' below. 2. l'he Term of thc Sponsorship .,\greement is herebl' extendcd lbr an additional live 1'cars. Accordingll'. at its sole cost and expensc. L-xccpt as amended below Spirit Promolions s'ill promolc. markct and present the 2020 lhrough 1024 tJ.S. Open Pickleball Championships on rhc samc tcrms and conditiuns as those currentl)' scl lbrth in thc Sponsorship Agreement tbr rhc 2019 through 2021 U.S. Open Picklcball Championships. There is no right to rcncs'by,either partl'. 3. l'he annual Sponsorship Fec for each of thesc l'ive years u'ill be Three llundrcd l;orty- F i ve'l'housand Dol lars ( 5345.000.00). 4. The payment schedule provisions of Paragraph 3 ol'the Sponsorship Agreement arc hcrcby amended as follows: The First Payment each r-ear shall be 545.000 and shall be paid to Spirit Promorions u'ithin 45 day's of the County's receipt ol'a Spirit Promotions invoicc rvith uritrcn notice b1'' Spirit Promotions that it has commenced registration for each year's tJ.S. Words Underlined are added: Words ti,rruc-li$rosgh are deleted. Page I ofJ d WI'I'NISSETH: Page 1844 of 4908 I'icklcball (lhanrpionships. Such notice s'ill providc documentation cvidencing that thc cvent has officially opcned. s'hich documcntation maf include proof'of nrr'dia placemcnt for thc er,cnt such as social media promolion. e-ne$'slettcrs. digital advcrrising. u'ebsite updatcs. and Pickleball related websiles such as the Academy' and Pickleball Channcl uc'hsite banncr ads. All markcting. promolion and advertising must includc thc (lVR logo as provided b1'Collier ('ountl to Spirit Promotions. il 'l'he Second Pa1'ment cach vc'ar shall be 5185.000 and shall be paid to Spirit Promotions rvithin 45 da1's liom the conclusion ol'cach vear's U.S. Opcn Pickleball Championships and u$rn receipt of a Spirit Promotions invoicc i{t eennee+icn-rtith+his++ent' The Third Pa1'nrent cach r-ear shall be up to $ll5-000 and shall bc paid to Spirit Pronrotions upon receipt ol'a final invoicc from Spirit Promotions lbllorving each )'car's tJ.S. Open Pickleball Championships. u'hich invoice shall include thc Iollorving inlormation: Prtxrl'that the cvent u'as broadcasted and livc strcamcd as agreed to: and Docume'ntation ol' attendance/overnight accommodations, stal's and direct visitors spending b1'cvcnt participants and spectators. Documentation musl be submitted rvithin 30 davs lblloninq complction of the tournament. Thc public announcement ol'the final rcsults ol'the U.S. Opcn Picklcball Championships shall not be relcascd until Spirit Promotions and the CVB statT havc mct and are in full aqrecmcnt rvith the final results of cvent attendancc. number ol'participants. direct visitor spendinrt and thc number of room nights in hotels and other alternatc accommodations as a result ol' the erent. The result olthcsc results u'ill bc reportcd as a ioint statement and rcoort liom hoth Spirit Prornotions and the (lVl,|. l'his linal invoicc shall be submitted to thc County rvithin 60 days lbllou'ing the last da1'of thc [J.S. Open Pickleball Championships that rvas just hcld. All invoices are payable in compliance u'ith l'lorida's Prompt Pa-vment Act. The Count)'ma)' deduct from this final pavment an.r' outstanding fecs oued to Collier Count_r' in connection rvith this event. 5. Paragraph 3B of thc Sponsorship Agreemenl is hcrcby anrended as follorvs: Within 30 da1's from thc Countl"s receipt of Spirit Promotions l'inal invoice for cach cvcnl, the Parties shall mect lo discuss thc next )-ear's event. At this time. the Parties rvill t'urthcr revieu thc information provided b1' Spirit Promotions as part ol'its tinal invoicc. discuss thc post event report results. and consider rvhether therc should bc changes to this Agreenrent or the Sponsorship Fee tbr the next year's event. 'l o be ellbctivc. any changes must be memorialized by an amendmcnl to this Agreement. 'I'he Countl' Manager is authorized to extend this time frame on behalf of thc Counr1,. Words t.nderlined are addcd: Words Sr+se*-Thrc*th are deleted. Pagc 2 of'3 a. b. c lil Page 1845 of 4908 o Pungrrph I I oltfic sporcorship Agrcrncrt is amerrhd b5 irx.r,csing rhc oJrion t',) tcrminsc c(fst lo S3.ls.Om. 7 llxccpring ttrc rhove. all oth*r terrrr rnil condilions of thc Sponsorship Agnrcracnr crmlinuc in full l'orcc ard clloct [!( lt'llllllss WHI';RI';OF. Spirit Prumolinrs and Collicr ('ont-v havc rcspcctirdr, b1 an unhorized person or qrnt. hcret ndcr sct tlrir hsrds and rrals on ttr datc and ttar l'irs ahrrc utincl. 8$f p,r Oo Br tl..'i) (ltEt(;t Clcrti I.l.( Trrri Graham C ount.r Alt(nn€r wordr L'n{dnrd rr rddod: I}ocdc Erdrfft*;l rc ddad Pe6t 3 of 3 I Page 1846 of 4908 2024 US Open Pickleball Championships April 13-20, 2024 Page 1847 of 4908 Objective To understand the impact of the Minto US OPEN Pickleball, Championships in Collier County from April 13 -20, 2024 at East Naples Community Park. 2Page 1848 of 4908 3 There was an estimated attendance of 50,000 at the US Open Pickleball Championships, which is a 22% increase in attendance from 2023. There were noticeable increases year-over- year in the overall share of visitors and share of overnight trips at the 2024 US Open Pickleball Championships compared to the 2023 event. Nearly all Florida registrants came from outside Collier and Lee counties, Miami-Ft. Lauderdale being #1, followed by Tampa St. Petersburg and Orlando, which includes Daytona and The Villages. Key Insights Page 1849 of 4908 4Source: Smith Travel Research; Compared April 13-20, 2024 to April 15-23, 2023 Destination Key Performance Indicators | Event Dates YOY Occupancy ADR RevPAR -.17%+18.68%+18.51% Note: Supply increased by 12.2% YOY, causing Occupancy to decline. Page 1850 of 4908 5 Source: Zartico; Dates:compare April 13-20, 2024 to April 15-23, 2023; Filters: Visitors to region (excludes residents); Overnight Trips Only Visitor Insights All 50 states were represented at the event. The top Visitor Market Areas aligned with the destination’s overall visitor source markets. These included: 1.Miami -Ft. Lauderdale 2.Tampa St. Petersburg 3.Orlando -Daytona Beach -Melbourne 4.Chicago 5.New York, NY Page 1851 of 4908 6 31 Countries Represented ●Canada (193) ●United Kingdom (16) ●India (17) ●Brazil (13) Source: Mike Dee, Pickleball4America US Open Pickleball Championships Visitor Insights Source: Pickleball4America US Open Pickleball Championships Page 1852 of 4908 7 Year-over-Year Insights Source: Pickleball4America US Open Pickleball Championships Page 1853 of 4908 8 Broadcast Insights Source: Pickleball4America US Open Pickleball Championships photo from Pickleball Channel broadcast BROADCAST SUMMARY AND VALUE ●CBS Sports Network $ 154,000 ●Pickleball Channel $ 209,000 ●Pickleball TV $ 152,900 ●TOTAL VALUE $ 515,900 ●14.74 million people reached on all 3 platforms Page 1854 of 4908 9 3 Social Media Page 1855 of 4908 10 ●Minto US OPEN Pickleball is attracting more fans and participants than ever, becoming increasingly popular each year. Our enhanced social media efforts have significantly boosted awareness and expanded our audience. ●This year, we brought our pickleball updates to LinkedIn, reaching even more people. ●We also focused on short-form videos, a leading trend in social media, to expand our reach. Social Media (Organic) | Summary Page 1856 of 4908 Organic Social | Facebook 11 FY24 FY23 FY22 Total Posts: 7 Impressions: 32,622 Engagement: 564 Total Posts: 6 Total Posts: 9 Impressions: 12,788 Engagement: 582 Impressions: 26,010 Engagement: 451 Top Performing YOY Page 1857 of 4908 FY22 FY23 FY24 Organic Social | Instagram 12 Video Views: 1,817 Total Posts: 7 Impressions: 324K Engagement: 450 Total Posts: 6 Total Posts: 1 Impressions: 21K Engagement: 90 Impressions: 977 Engagement: 29 Top Performing YOY Video Views: 0 Video Views: 30,161 Page 1858 of 4908 Organic Social | LinkedIn 13 Total Posts: 3 Impressions: 799 Engagement: 98 Video Views: 82 New platform added in 2024 ! FY24 Page 1859 of 4908 14 Media Coverage Page 1860 of 4908 15 4 Creative Page 1861 of 4908 16 24.75 4.7553,869 2024 MINTO US OPEN Pickleball Championships Program Full Page Ad Page 1862 of 4908 17 24.75 4.7553,869 2024 MINTO US OPEN Pickleball Championships Broadcast LINK Page 1863 of 4908