Should the City be allowed to enter into naming contracts
for the stadium at Candlestick Point?
The Background:
The 49ers football team entered into a stadium naming
contract with the City in 2004. The team signed a 4-year
naming contract with Monstercable that expired in 2008.
The City collected $700,000 annually during that contract
period. The 49ers may continue to negotiate a new contract
with a new naming partner through the end of their
stadium lease, as long as the following stipulations are
met: the sponsor is one of 5 pre-approved sponsors named
in the original contract; the City's anticipated revenue
from the sale is at least $3 million; and the sale complies
with the City's advertising policies. The 49ers' lease expires
in 2013 and could be renewed at 5-year intervals
through 2023. After the 49ers vacate the stadium at Candlestick
Point at the conclusion of their lease, City administrative
code requires that the property be known as Candlestick
Park. Proposition C would repeal Proposition H,
passed by voters in 2004, which requires the stadium to be
named Candlestick Park.
The Proposal:
This proposition would allow the Recreation and Park Department
to enter into agreements for the naming of the
City-owned sports stadium located at Candlestick Point.
This proposition would also broaden the pool of prospective
naming partners and could designate at least 50% of
the collected revenue be used to fund recreation and parks
center directors. However, any funds generated for the
City from naming rights contracts would be General Fund
revenues.
Any new contract would be subject to the approval by the
Board of Supervisors.
The Controller states the following:
Should this ordinance be approved, in my opinion, it would
not in and of itself affect the cost of government and could
result in additional revenue for the City.
The proposed ordinance amends the Administrative Code
to allow the Recreation and Park Department to approve
or enter into an agreement for the naming rights of the
City-owned sports stadium located at Candlestick Point.
The San Francisco 49ers currently have exclusive rights to
sell and enter into agreements with five named entities
listed in their 2004 naming agreement with the City. The
proposed ordinance would permit the 49ers to enter into
agreements with any other naming rights sponsor with
prior approval from the Recreation and Park Department
and Board of Supervisors.
The City has not earned naming rights revenue from the
stadium since 2008. The previous naming rights agreement
generated approximately $700,000 annually for the
City. The proposed ordinance could earn revenue for the
City by significantly widening the pool of potential naming
rights sponsors.
The proposed ordinance also specifies that at least fifty
percent of the revenue received by the City from naming
agreements shall be used to fund recreation center directors.
However, any revenues generated from a naming
rights agreement are General Fund revenues and could be
used for any legal purposes of the City, subject to Board of
Supervisors' appropriation approval.
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League of Women Voters of California Education Fund
Fail:
0.0% Yes votes ......
40,973 /
41.32% No votes