Naming rights disagreement not resolved
The Atlanta Journal-Constitution
Published on: 04/02/08
The Braves and Gwinnett County sidestepped a disagreement over stadium naming rights to finalize a contract that will put the team's top minor-league affiliate in a new Buford Drive ballpark next year.
The Braves had sought — and Gwinnett had resisted — contract language that would have specifically allowed the team to block the county from selling naming rights to competitors of as many as 14 major Turner Field sponsors.
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Instead, the contract signed this week says the parties "shall consult with each other and work in good faith" on the sale of naming rights.
The contract gives the Braves the right to review and approve a naming rights deal — provided such approval is not "unreasonably withheld."
In earlier contract drafts, the Braves sought to stipulate that it would be reasonable to withhold approval of competitors of exclusive team sponsors such as Coca-Cola and Delta Air Lines. But that stipulation was left out of the final contract.
"At the end of the day, we are going to ... work together to try to identify a naming-rights partner ... and look at things on a case-by-case basis and analyze the circumstances relating to any particular deal," said attorney Lee Tucker, who negotiated the contract with the Braves for the Gwinnett Convention & Visitors Bureau.
"We elected not to make a blanket statement one way or another," Tucker said.
Said Braves executive vice president of business operations Mike Plant: "Everybody got comfortable. ... We were not going to preclude them from going out and pursuing a whole bunch of [potential partners]."
Plant said he still believes there is "a very small group" of companies for which it would be reasonable to withhold approval. He would not name them and said he doesn't expect a problem, "given that there is a lot of opportunity out there" for deals that don't infringe on top sponsors.
The contract calls for the Braves to receive $350,000 from a GCVB-negotiated naming-rights deal and for Gwinnett to receive the rest. The county needs to get top dollar to help pay debt on the ballpark.
The contract between the Braves and the GCVB — the agency empowered by the county to oversee the stadium project — cleared the way for Gwinnett to close Tuesday on $33 million in construction bonds. In the contract, Gwinnett County guarantees the obligations made by the GCVB.
The contract, completed near midnight Monday and obtained Tuesday under the state's Open Records Act, runs 71 pages, including exhibits. Key provisions include:
• Rent: The Braves will pay annual rent of $250,000, plus a fee of $1 per ticket sold. The Braves guarantee Gwinnett at least $400,000 annually in ticket fees. The rent, but not the ticket fee, will be adjusted after each five-year period based on the Consumer Price Index.
• Revenue: Aside from the naming rights deal and a 50-50 split of parking proceeds with the county, the Braves retain all revenue from games and other team events in the stadium. That includes ticket and suite sales, advertising signage and concessions.
• Maintenance: The Braves are responsible for routine maintenance, such as cleaning, mowing and replacing light bulbs. The GCVB is responsible for capital maintenance and repairs — big-ticket items that range from structural components to repainting, from seats to scoreboard.
To pay for capital maintenance and repairs, the GCVB is to keep a capital maintenance fund, which by Dec. 31, 2013, must contain a minimum of $500,000. The contract says that amount is not a limit on Gwinnett's responsibility and that if capital needs arise before Dec. 31, 2013, GCVB also must pay for those.
• Escape clause: The agreement runs for 30 years, through the 2038 season, but the Braves have an out after 15 years if the stadium deteriorates significantly. The Braves can walk away in 2023 or later if, after engaging in nonbinding commercial mediation, the team and the GCVB are unable to agree on capital repairs that are "material to the operation of the stadium."
To try to head off such potential trouble, the contract calls for the GCVB and the Braves to annually prepare an ongoing three-year capital maintenance plan.



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