Proposed Cambridge naming rights policy could turn $150K into $10M, firm says

CAMBRIDGE — A revamped sponsorship, advertising and name policy could generate about $10 million for the city, according to Interkom, a consulting firm hired to develop a new policy in that area.

Using a benchmarking exercise over a two-month span, Interkom looked at the current policies being used in Kitchener, Waterloo, Guelph, Oshawa, Aurora and Milton, and found the municipalities that paid for a portion of construction costs of capital projects were able to recoup some of the money invested and set up a steady stream of revenue by selling naming rights.

City council will get the final say on implementing the new policy on Sept. 28, but will also have to repeal the current naming policy of parks, open space, municipal facilities and buildings — which was created in 1989.

Part of the new policy, which council would also have to approve, would be establishing a capital project with a budget of $150,000 for the retention of a consultant to secure naming rights for the Fountain Street Soccer Complex, recreation complex and Preston Auditorium once it is expanded. The funding would be drawn from the economic development reserve.

A staff report to council states the city is in the unique situation of having three large projects come online at around the same time, with finishing dates between 2022 and 2025.

“Staff is of the opinion that all naming opportunities must be leveraged for these projects to be of maximum benefit,” the report states.

“Staff will return to council with a project proposal for the retention of a consultant and funding request in order to secure naming rights for these assets.”

Interkom estimates naming “gifts” could come in at $1.5 million for the soccer complex, $2 million for the Preston auditorium and $6.5 million for the rec centre.

It doesn’t have to stop there, the report continued.

“For the existing or older facilities, based on estimates provided by city staff to Interkom, those that have naming and sponsorship potential, the revenue target could be between $500,000 to 750,000. It will take multiple years to cultivate gifts and multiple approaches.”

The report went on to note the policy “isn’t just about revenue generation; they are a strategic marketing investment that provide benefit not only to the city but to the investing partners.”