HomeMy WebLinkAboutFacility Naming Rights and Sponsorship Policy G;APN I3R%.,I'ON
Facility Naming Rights and Sponsorship Policy
Business Unit: Parks, Recreation, Buildings and Facilities
1.0 POLICY STATEMENT
The Cape Breton Regional Municipality (CBRM) is committed to providing high
quality facilities and services to residents. To enrich the lives of residents by
enhancing these services, the Municipality welcomes naming rights and
sponsorship agreements for municipally owned assets from qualified businesses
and organizations whose support aligns with the municipality's mission, values,
and priorities.
2.0 PURPOSE
The purpose of the naming rights policy is to create an authorized environment
and region-wide protocol for naming rights that establishes the principals and
conditions under which the Municipality will pursue and accept these agreements
and that;
a) Safeguards the municipality's image, values, priorities, assets, and interests.
b) Protects the municipality from any risk.
c) Aligns with CBRM projects, programs, and services.
d) Provides municipal employees with guidelines based on industry recognized best
practices.
e) Provides guidelines and procedures which facilitate opportunities for sustainable
revenue generation.
3.0 DEFINITIONS
3.1 Sponsorship
Sponsorship is a mutually beneficial business relationship where a corporation or
organization provides a rights fee in cash or in a value in kind arrangement for the
right to exploit the commercial potential associated with an asset (property)
owned by the Regional Municipality.
Sponsorship is a marketing-based activity and unlike philanthropic programs
(donations)there is a commercial expectation on the part of the buyer(sponsor).
Cape Breton Regional Municipality
Facility Naming Rights and Sponsorship Policy
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3.2 Asset
A sponsorship asset, also referred to as a 'property' has a broad application which
includes but is not limited to real property(buildings/facilities/green space), and
features (i.e. rooms, ice pads, playgrounds) and other relevant properties.
3.3 Advertising
Advertising is the sale or lease of Municipally owned property and space and is
universally accepted as a commodity transaction rather than a partnership. Unlike
sponsorship, there are no associative values and the commercial use and or lease
of Municipal space is based on predetermined industry standard rates of cost per
thousand (CPM).
Advertising does not imply a reciprocal relationship between the advertiser and
the property owner and as such the advertiser is not entitled to additional benefits
beyond the space being purchased.
3.4 Acceptable Commercial Coverage(ACQ)
ACQ is the level of advertising and or sponsorship presence that is acceptable with
any one asset. The ACQ will vary significantly according to an individual asset and
is influenced by various measurement variables such as, but not limited to the user
group demographic and psychographic profile associated with an individual asset.
3.5 Commercial Naming Rights
A type and level of sponsorship whereby a company or organization purchases the
exclusive rights to name a physical structure such as a facility or event with a
commercial name typically for a defined period under specific contractual terms.
In short this is when a sponsor's name is incorporated into the name of the
sponsored property (e.g., THUS Skins Game / Meridian Centre, CIBC Run for the
Cure).
3.6 Title Sponsorship
Title sponsorship is the highest level of sponsorship designation in a property such
as an event or program. The level is typically the largest contributor in a property
and includes rights to name the property.
3.7 Values-Centric Assessment/ Ethical Scan
A values-centric assessment is a Municipally customized tool that will qualify
sponsorship and advertising against pre-set values criteria while an ethical scan
will vet the potential sponsor or advertiser's overall business.
Cape Breton Regional Municipality
Facility Naming Rights and Sponsorship Policy
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The process provides a guideline that fairly and equitably determine; the
acceptable and unacceptable areas of involvement, if a sponsor or advertiser
meets the requirements defined by the Municipality's sponsorship and advertising
policy or is otherwise affected by the restrictions section of the policy.
3.8 Value In-kind Sponsorship
Payment (full or partial) of a sponsorship rights fee in goods or services equal to a
cash amount and provided in lieu of cash. Otherterms: In kind, VIK, Contra barter
3.9 Category Exclusivity
Gives a sponsor the rights to be the only company within its business category
(product or service) associated with a property being sponsored. A property can
have more than area of exclusivity and a business may be required to have more
than one category of exclusivity such as Bell-Aliant-internet; cellular; cable,TV etc.
to cover all their lines of business.
4.0 SCOPE
4.1 This policy applies to:
a) All Cape Breton Regional Municipality business units, departments, and divisions.
b) All municipally owned and managed assets including but not limited to the built
and natural infrastructure, facilities, and features (i.e. rooms, ice pads) and other
relevant properties
c) Commercial naming rights within Municipally owned facilities unless allocated such
as to sport organization and/or nonprofit Society etc.
d) Paid advertising on Cape Breton Regional Municipality property
e) Food Service and beverage pouring rights
4.2 The policy does not apply to:
a) Private-public partnerships (133s)
b) Philanthropic contributions,gifts, or donations
c) Cape Breton Regional Municipality's Civic Naming Guidelines
d) Cape Breton Regional Municipality's Heritage Program
e) Naming of streets or memorialization of community spaces
5.0 PRINCIPALS AND CONDITIONS
Cape Breton Regional Municipality
Facility Naming Rights and Sponsorship Policy
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a) Sponsorship and advertising presence within a municipal asset must reflect the
target audience and user group demographic and psychographic profile associated
with the asset.
b) Sponsorship and advertising within a municipal asset must be mindful and respectful
of the community associated with the asset so as not to disrupt or interfere with the
experience of the asset.As such,the Region will determine and manage an acceptable
level of commercial presence (ACQ) within each Municipal asset.
c) Sponsorships are associative in nature and therefore alignment to pre-determined
municipal values is necessary.
d) As a collaborative arrangement, in return for cash or value in kind consideration, a
sponsor shall receive benefits commensurate with the assessed fair marketing value
of an asset being sponsored.
e) The granting of naming rights is intended to support and promote investment in CBRM
owned assets.
f) Neither CBRM, nor a third party operating a CBRM asset, may relinquish, through a
naming rights agreement, any aspect of its right to manage and control an CBRM
owned asset.
g) The granting of naming rights shall not include an express or implied obligation, on
the part of CBRM, its agencies, associations, boards, working groups, or commissions,
to purchase the naming entity's products and services or to endorse either the naming
entity itself, or the naming entity's products or services.
h) Naming rights agreements must not conflict with the terms and conditions of any
existing agreement entered between CBRM and a third party.
i) The granting of naming rights shall not result in additional costs for CBRM, excluding
costs incurred during the solicitation and authorization process, or costs incurred to
fulfill conditions for naming imposed by the naming entity and agreed to pursuant to
the naming rights agreement.
j) Signage and acknowledgement shall comply with CBRM's Corporate Identity
Standards and applicable federal, provincial, and municipal law.
k) CBRM will endeavor,to the extent reasonably practicable,to balance its responsibility
to maintain transparent processes and provide full disclosure to the public, with its
responsibility to maintain confidentiality regarding third party interests.
1) Prospective naming entities shall bear all costs associated with the preparation and
submission of a naming rights proposal, and the Cape Breton Regional Municipality
will, in no case, be responsible or liable for those costs.
Cape Breton Regional Municipality
Facility Naming Rights and Sponsorship Policy
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m) Neither the submission of a naming rights proposal nor the acceptance of the proposal
shall be construed as a contract.
6.0 NAMING RIGHTS PROPOSAL
6.1 A proposal to name an asset shall be brought forward by the relevant CBRM
Department
6.2 The proposal to name a CBRM asset shall include:
a) list of naming opportunities;
b) market valuation of the proposed naming opportunity;
c) proposed naming rights fee;
d) proposed term of naming agreement;
e) proposed rights and benefits;
f) intended use of funds (e.g. capital, endowment, capital reserve plans);
g) draft signage and acknowledgement plan; and
h) draft naming rights agreement.
6.3 Guidelines for naming rights and sponsorship agreements:
a) CBRM will consider all naming rights and sponsorship proposals but retains the
discretion not to accept sponsorship from any entity at its sole discretion.
b) The municipality will not endorse the products, services or ideas of any sponsor or
advertiser.
c) As the sale of naming rights is a revenue generation activity it is intended to only
supplement municipal funding for the purpose of enhancing municipal
programs and services. Sponsorship or advertising cannot displace or be seen to
displace CBRM funding, nor be perceived solely as a budget advantage.
d) To expedite the sale of naming rights, a formal competitive process is not
required. However, in the event of a competitive situation between two or more
companies with rights fees being equal, the CBRM will defer to the company
which aligns best to the values and priorities of the Municipality.
e) Sponsorship and advertising must comply with the CBRM visual identity
guidelines or any municipal by-laws and policies in all relevant situations.
f) Sponsorship and advertising within municipal buildings and facilities must
conform to all applicable federal and provincial statutes, and meet standards set
out by the Canadian Advertising Standards Council as amended from time to time.
g) The sponsorship or advertising must not unduly detract from the character,
integrity, aesthetic quality, or safety of a CBRM asset or unreasonably interfere
with its enjoyment or use.
h) The sponsorship must not confer a personal benefit, directly or indirectly, to any
Cape Breton Regional Municipality
Facility Naming Rights and Sponsorship Policy
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employee or elected official. All political advertising must indicate if it is paid by a
party or candidate, to avoid any impression that the CBRM is supporting any party
or candidate.
i) CBRM shall retain ownership and control over all Municipal -owned and managed
assets.
j) Benefits provided to the sponsor by CBRM are limited to those stated in the
naming rights or sponsorship agreement.
k) The category exclusivity rights clause provides exclusivity rights to the asset being
sponsored and does imply exclusivity privileges with the CBRM itself.
1) The municipality will not solicit or accept sponsorship from companies or
organizations whose business contradict any by law or policy of the CBRM.
m) CBRM will not solicit or accept agreements from companies or organizations that
compromise the reputation of the Municipality's public image. These include but
are not limited to:
a. those whose business is derived from the sale or production of tobacco or
cannabis; pornography or sexual services;
b. who promote or sell alcohol or other potentially addictive substances at
venues geared primarily to children and youth;
c. whose business is derived from armaments and weapons manufacturing
or other unsafe products or sale of such weapons, excluding recreational
firearms;
d. those who are not in good standing with CBRM (i.e. currently in violation
of a by law or under litigation); and
e. those who discriminate by way of race, religion or gender.
7.0 ROLES AND RESPONSIBILITIES
7.1 Municipal Council will:
a) Grant or refuse proposals to name CBRM assets, based on this policy; and
b) Approve and revise this policy as necessary.
7.2 CBRM departments and business units:
a) Determine the process by which naming, and sponsorship agreements shall be
solicited;
b) Solicit, negotiate, prepare and administer naming rights and sponsorship
agreements, including contract management;
c) Seek third party professional advice regarding market valuation, as appropriate;
d) Evaluate and assess proposals and opportunities;
e) Provide communications guideline continuity;
f) Manage agreements for municipally owned facilities;
g) Provide annual policy review as required;
h) Consult with CBRM Legal, Finance and Communications departments, as
appropriate.
Cape Breton Regional Municipality
Facility Naming Rights and Sponsorship Policy
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8.0 DELEGATION OF AUTHORITY
8.1 The Cape Breton Regional Municipality staff authorized to enter into naming rights
and sponsorship agreements within the following pre-authorized limits provided
they satisfy all provisions of the policy are:
a) Council —approve all facility naming rights agreements and sponsorship above
$50,000
b) CAO -sponsorship agreements up to $50,000 per year
c) Director Parks and Recreation—sponsorship agreements up to $35,000 per year
d) Manager of Recreational Facilities/ Parks and Recreation or designated salesperson
up to $10,000 per year
9.0 USE OF FUNDS
9.1 Funds received by CBRM through the sale of naming rights agreements are to be
credited to a specific account for the facility and smaller sponsorship agreements
will be part of general revenues and allocated though budgeting process, unless
stated otherwise in the agreement.
10.0 DOCUMENTATION
10.1 All sponsorships must be documented and arranged in a fixed term. A legally
binding agreement must be entered into for each sponsorship arrangement
consistent with the size, complexity, and scope of the sponsorship and in
accordance with the CBRM protocol of procedures and delegations associated with
agreements.
10.2 Agreements over$ 5,000 per year will require a contract. In these cases, the CBRM
shall consult with the legal services to ensure appropriate terms and conditions are
being identified.
11.0 EVALUATION
11.1 Naming rights and sponsorship opportunities will be evaluated to determine fit and
alignment to CBRM's image,values, and brand and to assess that all provisions in the
policy are satisfied. Consideration will be also given to timeliness or readiness to make
a deal, value of the naming rights proposal, and term of the agreement.
12.0 POLICY REVIEW
12.1 This policy shall be reviewed on an annual basis through the first two years.
Approved by Council:October 24, 2023
Cape Breton Regional Municipality
Facility Naming Rights and Sponsorship Policy