Naming Rights Procedure

Purpose statement

This procedure outlines the criteria for solicitation, evaluation, approval and monitoring process for naming right proposals for Town of Oakville (town) facilities.

Scope

This procedure applies to any individual, corporation or external organization that proposes to name a new or existing municipal facility, room or component in recognition for financial or other support.

Procedure

Criteria for naming rights

  1. All naming rights arrangements must not compromise, influence or alter the corporate goals and priorities of the town, or diminish the town’s public image or commitment to inclusiveness.
  2. Naming rights arrangements must enhance the delivery or general public awareness of town services or activities and complement the public relations and visual identity of the town.
  3. Naming rights arrangements must comply with all federal and provincial statutes, municipal by-laws, and corporate policies and procedures.
  4. Managing naming rights arrangements should not require disproportionate administrative resources.
  5. Display of naming rights must not take precedence over the display of the town’s corporate identity on its facilities and must not incur added risks to safety.
  6. Timeframe for naming rights will be established.

Restrictions for naming rights

  1. The town will not solicit or accept sponsorships, naming rights or advertising sales from companies whose reputation could prove detrimental to the town’s public image.
  2. The town will not allow sponsorships, naming rights or advertising, either directly or through third party arrangements that:
  • Promote consumption of alcohol, marijuana and addictive substances, at events or venues geared primarily to children
  • Promote the sale of tobacco
  • Promote pornography
  • Promote the support of or involvement in the production, distribution, and sale of weapons and other life-threatening products
  • Present demeaning or derogatory portrayals of individuals or groups or contain any message that is likely to cause deep or widespread offence

Council may at its discretion overrule the established criteria.

Naming rights solicitation

  1. The town will consider interest from potential sponsors for naming rights for specific town assets.
  2. Where appropriate, the town may issue a Request for Proposal (RFP) for a fundraising feasibility study for naming rights of a specific town facility in accordance with the town’s purchasing by-law.
  3. The town will provide potential individuals, organizations or corporations seeking naming rights with details regarding the value of the contribution, including official recognition such as signage and other specifications.
  4. Naming rights must not negatively affect the reputation and integrity of town properties. The town will undertake and keep a record of due diligence research and examination of the background and financial condition, business operations and contractual obligations of the potential sponsor.

Naming rights evaluation

  1. All naming rights arrangements will be evaluated against established criteria. The town may solicit the expertise of an outside firm to assess the costs and benefits of the proposal.
  2. In evaluating naming right opportunities, commissioners and/or department directors will consider the following factors:
    1. Whether the department has sufficient resources (staff and financial) to   maximize the benefit of the naming right arrangement without compromising the effective delivery of municipal services and goals of the town;
    2. Whether the naming rights opportunity enhances the town’s image;
    3. Whether the opportunity considers and reflects existing naming rights arrangements; and
    4. Whether the sponsor is in good standing with the town.

Naming rights agreements

  1. All naming rights arrangements must be confirmed by a written agreement outlining the benefits, roles and responsibilities, fees, payment schedule, duration and other agreed terms of the naming rights arrangement. Departments must maintain records of these agreements, including receipts.
  2. All naming rights arrangements should be evaluated by relevant departments on an annual basis to determine continued benefit.
  3. The town reserves the right to terminate an existing naming rights arrangement should conditions arise that make it no longer in the best interests of the town.

Naming rights approval

Where appropriate,

  1. Department directors, or designates, have the authority to enter into naming rights arrangements within their own departments up to an annual value of $25,000.
  2. Commissioners, or designates, have the authority to approve all proposals to seek naming rights of a new or existing municipal facility, room or component up to an annual value of $50,000.
  3. The CAO, or his/her designate, must approve naming rights agreements over the value of $50,000. Council endorsement may be required in specific instances as determined by the CAO.
  4. Naming rights arrangements that are potentially controversial will be reviewed and approved by the Executive Management Team prior to entering into an arrangement.
  5. Naming rights of buildings require Council approval.

Responsibilities

  1. Departments are responsible for soliciting, negotiating and administering naming rights agreements on behalf of the town subject to the policy and procedures approved by Council.
  2. The Financial Operations department will ensure invoicing and collection in accordance with town policies.
  3. The Legal department shall assist departments in the establishment of sponsorship agreements.
  4. The Strategy, Policy and Communications department shall assist departments in determining the appropriate display of naming rights and the town’s corporate identity.

Definitions

Town facility: refers to any building, structure or area of land owned by or under the direction and control of the town, including among other things: leisure centres, sports and fitness facilities, arenas, parks, park amenities, branch libraries, exhibition facilities and bridges.

Naming rights: a type of sponsorship in which a sponsor purchases the exclusive right to name an asset. The naming right is sold or exchanged for cash or other revenue support. This arrangement may be documented in an agreement signed by the interested parties for a specific period of time.

Procedure details

Procedure Number: A-GEN-001-003
Parent Policy: A-GEN-001
Section: Administration
Sub-Section: General
Author: Strategy, Policy and Communications Department
Authority: CAO
Effective Date: 2008 May 05
Review by Date: 2023