Editor’s note: I will dip into the news archives occasionally to let you know about significant events or decisions from our past, and how they may have shaped our present. Kingston’s flagship arena opened on this day 10 years ago, Feb. 22, 2008, the same month when I originally wrote this story.
The LVEC has a name, but some companies won’t be saying it out loud.
Local radio station K-Rock will give the city up to $3.3 million in cash and in-kind services over the next ten years to buy the naming rights to the downtown Kingston sports and entertainment centre.
“We think it’s a good business deal,” says John Wright, owner of the ‘killer classics’ rock station he launched in 2001.
So do councillors. They were unanimous in approving the financial terms that exceed revenue targets in the arena’s business plan. K-Rock will spend $1.7 million in cash for the actual naming rights ($150,000 a year with a 3 percent annual escalation), plus another $1.6 million for ‘in kind’ products or services such as free advertising.
In return for the money, K-Rock will put its logo on the outside marquee, plus interior signs on the dangling score clock, centre ice surface and concourse areas. K-Rock also gets a corporate suite that includes seating for 12 with a private bar and television screens, 12 days a year to use the entire facility rent-free, 24 complimentary tickets to all shows (excluding the Frontenacs games), at least 40 feet display space, plus name recognition on all printed material and wayfinding signs.
“In essence, we have a good deal,” says Coun. Dorothy Hector. “We have a building and it’s going to have a name.”
But the suspense over what the name would be hung over the council chamber into the early morning hours of Feb. 6, 2008.
Councillors, in a pre-determined policy, weren’t told of the company involved while they debated the financial terms in front of them. Not knowing the name behind the numbers caused angst among some of them.
Coun. Steve Garrison argued for more clarity. “We need to know the name to ask questions that are pertinent to the sector.”
Negotiations with K-ROCK began in late November after talks with national firms collapsed.
There was no shortage of drama over the naming rights package in the hours leading up to the crucial debate.
Sensing a radio station was in line to get its name in bright lights, other local competitors, including CHUM Kingston and Corus Kingston, fired off emails to councillors urging them to consult with all media outlets to consider the financial repercussions. They argued that allowing a competitor to have the building’s name and preferred entertainment promotion status may have a long-term impact on their operations, and they may shy away from promoting events that come to town.
That prompted Coun. Rob Hutchison to quiz city-hired negotiators about the fairness issue.
“I do think the media outlets have a point. They would be at a disadvantage,” he remarked.
In another memo to council, the still-unidentified firm warned it would withdraw its offer if the name was disclosed before the contract was approved.
Arena manager Arcturus/SMG and Wakeham and Associates Marketing, the two firms charged with securing a naming rights deal, said such deals are bound to cause acrimony.
“Competitors are never happy,” Daniel Sherret of Wakeham told council. “The only way these deals are done is that exclusivity is part of the deal.”
The negotiators assured councillors that it will ultimately be up to concert promoters, like Live Nation, to decide who gets to sponsor concerts, theatre and ice shows based on target audiences and other factors. But under a controversial clause, K-Rock will still be the “preferred supplier” to all event promoters, and Arcturus will “use best efforts to influence renters of the centre to work with the (K-Rock) sponsor.”
Coun. Garrison could offer little words of comfort to competitors. “We have no choice. We need the money. Whether it’s your favourite radio station or not doesn’t matter anymore.”
But it will to Corus and CHUM, which have ordered their on-air announcers not to mention the K-Rock name on the city’s signature arena.
“We won’t be calling it ‘the K-Rock anything,’” advised Greg Hinton, general manager of CHUM Kingston.
Wright says it’s a big investment for his radio station, and he may have to divert marketing dollars away from other areas to finance the naming rights until 2018. “It’s the biggest thing to happen in this city in 40 years.”
The city is now soliciting public input on what suffix to add to the K-Rock arena title, such as ‘Centre’, ‘Place’ or ‘Dome’ before it gives final approval to the name. That’s expected to happen Feb. 19, just three days before the $46.5 million facility opens.
