DEPARTMENT OF RECREATION AND PARKS: FACILITY NAMING RIGHTS
The limited General Fund resources available to support the Department’s operations necessitates the examination of every viable option to create new revenue streams.
Award facility and park naming rights to generate new revenue streams.
All Departmental Operations
Estimated Annual Impact:
While the immediate financial impact cannot be estimated, one estimate places a ‘co-naming’ situation value at $50,000 for a five-year period. This would include name recognition and advertising space in Department facilities and parks. Assuming that half of the recreation centers could be ‘marketed’ in this fashion, $1,000,000 could be raised over a five-year period. Obviously the revenue could be bolstered by achieving a higher success rate and the term could be adjusted to stagger the revenue generated.
Estimated Implementation Costs:
Barriers to Implementation:
The ability to name existing facilities is nebulous at best. Community history and ‘ownership’ make changing the names of existing facilities and parks difficult. Government barriers to name changes on facilities that have been dedicated to honor past civil servants or city statesmen is unknown. However, opportunities could exist if a facility is ‘co-named’ or new facilities are built with a sponsor prominently displayed.
Explore the possibilities and any legal conflicts that may occur. Create a targeted marketing campaign for corporations, foundations, and wealthy individuals that may want to participate.
Facility naming rights are a traditional method that many private institutions, such as schools and social agencies, use to raise funds. The project team did not encounter any instances where municipalities have awarded naming rights for recreation facilities or park space. However, the general public acceptance of this fundraising strategy, when coupled with its increased prevalence and increased program and budget potential, makes this a revenue stream that the Department should strongly consider pursuing.