Item Coversheet

8.C.2.


Shakopee City Council
December 19, 2017


FROM:Jamie Polley, Director of Parks and Recreation
TO:Mayor and Council Members
Subject:
Zamboni Advertising
Policy/Action Requested:
Authorize the appropriate staff to enter into an agreement with Fun2Raise to sell advertising to be placed on the Zambonis of the Shakopee Ice Arena.
Recommendation:
Approve the action requested.
Discussion:

The city currently has an agreement with Fun2Raise to sell advertising throughout the Shakopee Ice Arena. The current agreement consists of a 60%/40% split of all advertising revenues. The 60% that comes to the city is then split with the Shakopee Youth Hockey Association 35%/25% with the city retaining 35%. Advertising on the Zambonis was not included in the original contract with Fun2Raise to allow us the ability to sell the Zamboni advertising ourselves. Selling the Zamboni advertising has deemed harder than anticipated.

 

On December 5, 2017, the City Council requested the ability to discuss an advertising agreement with Fun2Raise for the Zamboni advertising. A separate agreement between only the city and Fun2Raise would be developed that would include a 60%/40% split (the city getting 60%) of the Zamboni advertising revenue. Fun2Raise feels they can sell the advertising on the Zambonis for $5,000-$6,500/year for 3-5 years for one Zamboni or $9,000-$11,000/year for 3-5 years for both Zambonis.

 

The cost to wrap the Zamboni is approximately $3000 and would be the responsibility of the sponsor in addition to the annual advertising cost.

Budget Impact:
Selling advertising to be placed on the Zambonis will provide an additional revenue source for Ice Arena operations.