The City of Sparks is moving forward with a new plan to generate revenue from its parks and recreation facilities through sponsorship and naming rights.
During its regular meeting on Monday, the Sparks City Council unanimously approved a professional services agreement between the City and Sportsman Solutions.
The 12-month contract allows the company to provide naming rights and sponsorship consulting, as well as manage potential sponsorship sales for city-owned parks and recreational facilities.
Emily Pate, the City's Parks and Recreation Administrative Manager, told the Council that Sportsman Solutions will conduct a local market assessment and evaluate city facilities to determine the sponsorship value of each asset.
According to Pate, once a fair market value is determined, the company will develop a sponsorship platform and begin marketing to potential sponsors.
If a sponsor is identified, Sportsman Solutions, with input from City staff, will negotiate and finalize the sponsorship contract on behalf of the City.
The contract includes a tiered commission structure that compensates Sportsman Solutions with up to 20 percent of the value of any sponsorship contract secured during the agreement.
The percentage depends on whether the lead was provided by the City or independently sourced by the company.
Warm leads, defined as contacts or referrals from city council members or staff, and cold leads, initiated independently by Sportsman Solutions, fall under different tiers. The final commission rate also varies based on the length of the sponsorship term.
During negotiations, Sportsman Solutions agreed to reduce its standard industry commission from 30 percent to a range of 15 to 20 percent and did not include a monthly retainer, which Pate said is typically standard in the industry.
She also thanked the City Attorney’s office for reviewing the contract and said staff recommended approval.
Council members expressed support for the agreement, with one councilwoman noting that she and her colleagues had their questions addressed and were satisfied with the final proposal. She added that the City of Sparks may soon begin generating significant revenue from assets such as Golden Eagle and other park facilities.
Another council member praised the tiered commission structure as a forward-looking feature of the contract.
Councilmember Dian VanderWell made the motion to approve the agreement, which passed with a unanimous vote and no further discussion.
This is a developing story. More details will be reported as they become available.
