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Agenda 01/08/2019 Item #11B01/08/2019 EXECUTIVE SUMMARY Recommendation to accept a report on next steps in the Naming Rights process for Collier County assets utilizing Superlative Group, Inc., and obtain any further Board of County Commissioners direction necessary. ______________________________________________________________________________ OBJECTIVE: Review progress to date on Naming Rights project through The Superlative Group, Inc. CONSIDERATIONS: On July 10, 2018 (Agenda Item 16F8), the Board of County approved Agreement 18-7294 with The Superlative Group to develop a process to value certain assets owned by Collier County and to approach private sector companies and individuals to consider sponsoring one or more of those assets. Superlative has completed the first phase of their engagement with Collier County. During the first phase, Superlative has developed an Asset Inventory which includes valuation data, categories for sponsorship, and opportunities for non-alcoholic beverage pouring rights at some of those County assets. The first asset to be proposed for sponsorship is the new Amateur Sports Complex in Eastern Collier County. Additional assets that have been considered and valued include Collier Area Transit and a selection of Collier Regional and Community parks. Consideration will be made to keep signage in compliance with the Collier County Code and out of the right of way to avoid any issues with marketing or commercial signage in the right-of-way. Superlative has identified in their research that the range of sponsorship fees from these named assets is between $25,000 and $275,000 per year over a time frame of between 10 and 25 years. Superlative’s research has also indicated other Counties and Municipalities that have sold naming rights and the price and range of those sponsorship arrangements as follows: Samples of Naming Rights sold by The Superlative Group in Florida. 1. Boombah Sports Complex - $750,000 over 10 years 2. Newton Family Aquatic Center - $2.5 million in perpetuity 3. Bonita Springs High School and Lee Health. Lee Health Stadium for $292,000 total over 5 years. 4. Estero High and FAST AC. FAST AC Field at Jeff Sommer Stadium for $32,688 total over 3 years. 5. Dunbar High School and North Law Firm. North Law Firm Stadium for $114,480 per year over 5 years. 6. Miami - Dade County and Coca Cola. Naming Rights sold for $7,000,000 over ten years for the naming of Miami Beach. The next step in the work that Superlative is contracted to perform for Collier County is to begin the sales process of identifying potential sponsorship funding sources and delivering the sales presentations to each of them. This process will include close communications with County staff and periodic reports to the Tourist Development Council and County Commission. The final approval of any Naming Rights Agreement shall be brought to the Board of County Commissioners. 11.B Packet Pg. 202 01/08/2019 The PowerPoint presentation attached outlines the Naming Rights process to date and the plan for the sales phase. FISCAL IMPACT: The contract with Superlative indicates a fee structure for their work to include: A monthly fee of $7,500 payable for 20 months will compensate The Superlative Group for Phase 2 for developing a strategic sales campaign for naming rights with companies or individuals for a total of $150,000 over those 20 months. A 17.5% commission per asset from the sale of Naming Rights or Sponsorships will compensate the Superlative Group for the same 20-month period based on the gross revenue to the County from each naming rights contract with each company or individual. GROWTH MANAGEMENT IMPACT: There is no impact to the Growth Management Plan with this Executive Summary LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote for approval. - CMG RECOMMENDATION: To accept a report on next steps in the Naming Rights process for Collier County assets utilizing Superlative Group, Inc and obtain any further Board of County Commissioners direction necessary. Prepared by: Jack Wert, Tourism Director ATTACHMENT(S) 1. Superlative - Collier County Board Presentation DRAFT 1.0 (PPTX) 11.B Packet Pg. 203 01/08/2019 COLLIER COUNTY Board of County Commissioners Item Number: 11.B Doc ID: 7580 Item Summary: Recommendation to accept a report on next steps in the Naming Rights process for Collier County assets utilizing Superlative Group, Inc., and obtain any further Board of County Commissioners direction necessary. (Jack Wert, Tourism Director) Meeting Date: 01/08/2019 Prepared by: Title: Tourist Development Tax Coordinator – Tourism Name: Kelly Green 12/14/2018 9:25 AM Submitted by: Title: Division Director – Tourism Name: Jack Wert 12/14/2018 9:25 AM Approved By: Review: Tourism Kelly Green Deputy Director Review Skipped 12/14/2018 9:30 AM Tourism Jack Wert Director Review Completed 12/14/2018 9:55 AM County Attorney's Office Colleen Greene Level 2 Attorney Review Completed 12/20/2018 10:07 AM County Manager's Office Sean Callahan Executive Director- Corp Business Ops Completed 12/21/2018 8:52 AM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 12/21/2018 10:09 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 12/21/2018 10:32 AM County Attorney's Office Emily Pepin CAO Preview Completed 12/21/2018 11:23 AM Budget and Management Office Ed Finn Additional Reviewer Completed 12/26/2018 1:04 PM County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 12/27/2018 9:16 AM Board of County Commissioners MaryJo Brock Meeting Pending 01/08/2019 9:00 AM 11.B Packet Pg. 204 Collier County NAMING RIGHTS & SPONSORSHIP VA LUATION SERVICES 1 11.B.1 Packet Pg. 205 Attachment: Superlative - Collier County Board Presentation DRAFT 1.0 (7580 : Collier County Naming Superlative Group Introduction Founded in 1994 Expertise: Municipal Marketing Naming Rights valuation and sales Commercial sponsorship management Single-source pouring rights The Superlative Group has sold more than $2 billion in Naming Rights and Sponsorships since 1994 2 11.B.1 Packet Pg. 206 Attachment: Superlative - Collier County Board Presentation DRAFT 1.0 (7580 : Collier County Naming The Superlative Process Impressions-based methodology Use of available participant and attendee counts to calculate impressions Factor applied to account for “weighted impressions” Industry standard ranges from 10-75% depending on type of media Outdoor media Cost Per Thousand (CPM) values based on local media rates For Collier County: $6.13 -$16.81 Benchmarking of sponsorship opportunities (attendance, demographics, media rates) Market research and comparative analysis with similar programs throughout North America 3 11.B.1 Packet Pg. 207 Attachment: Superlative - Collier County Board Presentation DRAFT 1.0 (7580 : Collier County Naming Project Overview Overview The Project Te am conducted an Asset Inventory and Valuation for Naming Rights and Corporate Sponsorships for Collier County’s facilities and parks •Asset Valuation •Category Sponsorships •Exclusive Non-Al coholic Beverage Pouring Rights 4 11.B.1 Packet Pg. 208 Attachment: Superlative - Collier County Board Presentation DRAFT 1.0 (7580 : Collier County Naming Asset Valuation Analysis 5 Asset Valuation Amateur Sports Complex Main Stadium Fieldhouse Esports Stage Collier Area Transit System Regional Parks –North Collier and Sugden Community Parks –Eagle Lakes, East Naples and Golden Gate Annual Fee Range: $25,000 -$275,000 Minimum Term: 10-25 years depending on asset 11.B.1 Packet Pg. 209 Attachment: Superlative - Collier County Board Presentation DRAFT 1.0 (7580 : Collier County Naming Category Sponsorships 6 District-Wide Opportunities that correlate a brand with that of Collier County outside of traditional advertising and Naming Rights Naming Rights Opportunities can be sold A l a Carte or blended in to category partnerships Entitlements may include: Web recognition Signage Recognition in Marketing Materials Activation Opportunities Digital Advertising Inventory Naming Rights Ta rget Categories: Single-Source Pouring/Vending Rights Automotive Te chnology/Communications Financial Services Health Care Energy Sporting Goods/Equipment Landscaping Lighting 11.B.1 Packet Pg. 210 Attachment: Superlative - Collier County Board Presentation DRAFT 1.0 (7580 : Collier County Naming Select Naming Rights Benchmarks 7 CITY FACILITY PRICE DURATION OTHER BENEFITS / COMMENTS Watertown, SD Prairie Lakes Health Center $2.2 million 25 years 100,000 square ft.athletic and community facility Cranberry Township, PA Dick’s Sporting Goods Sportsplex $2 million 10 years 13 outdoor athletic fields Plainfield Township, MI Art Van Sports Complex $2 million N/A One-time donation to rename 79-acre baseball/softball facility Amherst, OH Mercy Health & Recreation Center $2 million N/A Fitness center and indoor aquatics Rockford,IL Mercyhealth Sportscore 2 $2 million 10 years 180-acre sports complex Rockford, IL UW Health Sports Factory $1.9 million 10 years 100,000 square ft. indoor athletic facility Woodbury, MN HealthEast Sports Center $1.8 million 14 years Indoor athletic facility with 150+ acre sports complex Cary, NC WakeMed Soccer Park $1 million 3 years 150-acre athletic complex including a 7,000 seat soccer- specific stadium To peka,KS Midwest Health Aquatic Center $1 million 10 years Outdoor aquatic center and pools Bakersfield, CA State Farm Sports Village $1 million 2 years 170-acre sports complex with 30 total fields Medford, OR U.S. Cellular Community Park $650,000 6 years 132-acre athletic complex with 12 fields 11.B.1 Packet Pg. 211 Attachment: Superlative - Collier County Board Presentation DRAFT 1.0 (7580 : Collier County Naming Sales Approach Goal To maximize Collier County’s share of potential sponsorship revenue over 10-25 years Strategies Exhaust contact database of TSG’s regional, national and international corporate contacts, which is continually updated Match the marketing needs of corporations with the logical and most valuable assets Final Sponsorship packages can be customized to fit Collier County and Corporate sponsor needs Collaborate closely with the client on recommendations and / or existing relationships Promote revenue-generating campaigns with a description of the client’s assets and initiatives 8 11.B.1 Packet Pg. 212 Attachment: Superlative - Collier County Board Presentation DRAFT 1.0 (7580 : Collier County Naming Sales Approach Create presentation material providing specific information for corporate partners including: Market / demographic data Measured media value Va lue justification for unmeasured media Sponsorship benefits and options Options for renewal Financial investment TSG also leads the following tasks: Negotiation and Completion of Agreements; Presentation of Corporate Partnerships to the Media; Management of Contract Fulfillment; Management and Audit of Ongoing Rights/Royalties; Activation and Audit (Term of Agreement). 9 11.B.1 Packet Pg. 213 Attachment: Superlative - Collier County Board Presentation DRAFT 1.0 (7580 : Collier County Naming The Superlative Group, Inc. 921 Huron Road Cleveland, OH 44115 (216) 592-9400 10 11.B.1 Packet Pg. 214 Attachment: Superlative - Collier County Board Presentation DRAFT 1.0 (7580 : Collier County Naming