Sleeman Breweries called upon a renewal clause in its original agreement with the city to secure arena naming rights for another decade.
No other bids were sought or received, explains Danna Evans, the city’s general manager of culture and recreation.
The new deal, signed last summer and announced last week, will see the local brewery pay $100,000 a year through June 2030 for the Sleeman Centre – an amount similar to its previous contract with the city, which was signed in 2007.
“Essentially this clause allowed Sleeman to have first opportunity to renegotiate,” said Evans via email. “Last summer, staff from Sleeman Breweries and the city sat down to review looking at benefits to both organizations.”
That initial agreement was for $1 million over a 12-year period, along with one-time funding for facility, promotional and signage improvements. At the time, the contract was reported as being worth $1.2 million.
This time around there is no need for similar improvements.
“There was a sliding scale (not equal payments) to capture naming rights to a total of $1 million,” Evans said of the initial deal. “The renewal agreement will be equal payments over 10 years.
“Overall this is not an increase, but does increase the annual contribution to the City.”
Prior to that 2007 agreement, the arena attached to Old Quebec Street Mall was known as the Guelph Sports and Entertainment Centre.
The renewal clause, Evans added, “speaks to honouring the same terms and conditions, expect for financial terms that would be renegotiated in good faith.”
After reviewing other municipally owned arenas with Ontario Hockey League tenants, city officials felt the $1 million agreement was “fair” given the arena’s size, the local population and the volume of other annual events, Evans continued.
“The City is happy with the support and partnership so it is reasonable to think, with the renewal clause, we would ask Sleeman first,” she said.
“Anecdotally, we have seen pressures to secure local sponsorships for programs and events and acknowledged new pressures to organizations due to COVID-19. These pressures do not provide confidence that another organization would enter into any partnership for naming.”
The new agreement doesn't include a renewal clause for 2030, but does offer Sleeman Breweries the first right of refusal, Evans said.
