Memo
To: Members
of Council
From:
Date:
Subject: Wakeham & Associates
Sponsorship Marketing
At its meeting on
·
Examples to clarify the Wakeham & Associates
proposed commission fee structure
·
A list of Town of
·
An understanding of how the Wakeham & Associates
proposed sponsorship marketing activities would affect the Town Boards and
Foundations in their efforts to raise sponsorship funding
·
An understanding of how Town staff will maintain
positive relationships and ensure fulfillment of sponsorship obligations
following the signing of sponsorship agreements.
Wakeham
& Associates commission fee structure
The
following provides additional information on the proposed Wakeham &
Associates Commission charges for sponsorships achieved under a non-exclusive
agreement on behalf of the Town of
-
15%
commission on cash and in-kind sponsorships
o
Wakeham’s commission for securing sponsorships valued at up to
$999,999 without a referral from the Town would be 15%.
o
EG.
If WAM secures an official sponsor at a fee of $6,000 for
-
12.5%
on referrals from the Town of
o
If
the Town of
o
EG.
If Wakeham & Associates secures an official sponsor at a fee of $6,000 for
o
If
the Town gets an inquiry and decides NOT to forward it to Wakeham, and secures
a sponsorship on their own, Wakeham will not be entitled to any commission on
that agreement.
-
Progressive
commission rates apply to properties that sell for $1 million or more.
o
A
progressive commission rate will apply to any single sponsorship agreement
valued at $1 million or more.
o
EG. The naming rights for the Angus Glen
Community Centre are valued at just over $1.1 million. If Wakeham secures an agreement to name this
venue at this price, the commission payable would be as follows:
o
On
the first $500,000 – 10% $50,000
o
On
the amount of $500,000 to $1 million – 12.5% $62,500
o
On
the amount of $1 million to $1.1 million
– 15% $15,000
Total commission payable: $127,500
o
The resulting commission paid to Wakeham in this example is
11.59%.
NOTE: This commission would be payable over the ten
year term of the agreement, as each instalment of the fee is received by the
Town. As commissions are paid ONLY as they are received by the Town, there is
no risk to the Town of paying commissions on funds that may not be received for
whatever reason (IE. sponsor bankruptcy).
-
Progressive commission rate adjustment on properties that
sell for $1 million or more when referred by the Town of
o
If
the Town of
o
On
the first $500,000 – 10% $50,000
o
On
the amount of $500,000 to $1 million – 12.5% $62,500
o
On
the amount of $1 million to $1.1 million
– 12.5% $12,500
Total commission payable: $125,000
o
The resulting commission paid to Wakeham in this example is
11.36%.
Buildings
not available for naming sponsorships
Venues providing significant value for naming
sponsors are major public destination venues and/or those that are actively promoted
in advertising or marketing materials.
In their Assessment of Sponsorship Marketing
Opportunities, Wakeham & Associates identified and provided assessed naming
sponsorship values of the following Town of
·
Armadale Community Centre
·
Angus Glen Community Centre
·
Centennial Community Centre
·
·
Markham Theatre
·
·
·
Milliken Mills Community Centre
·
Milliken Mills Library
·
·
Thornhill Community Centre
·
·
Unionville Library
·
Unionville Bandstand
The assessed values ranged from $293,285 to
$1,525,081.11. The East Markham
Community Centre and other new public venues could also be considered for
naming sponsorships.
The Markham Civic Centre and the
It should be noted that Wakeham & Associates will
not pursue naming sponsorships for all identified venues, but will, as part of
their engagement, work with the Town to determine which would be of priority
interest to pursue. The identification
of venues for priority focus will be reviewed/approved
by the Communications Committee before any sponsorship marketing activity is
conducted.
Wakeham
& Associates relationship with Town Boards & Foundations
Town
staff will inform and seek approval from the Board(s) of the
If a
Town’s Board or Foundation is engaged in discussions with a potential corporate
donor, Wakeham & Associates would only approach the marketing department of
that corporation with prior approval from the Board or Foundation and Town
staff.
Staffing
to manage sponsor relationships
The
Director, Communications & Community Relations and the Manager, Community
Relations will be responsible for ensuring that all conditions of any
sponsorship are fulfilled appropriately and that positive, on-going relations
are maintained throughout the term of the sponsorships.