MOOSE JAW - The City of Moose Jaw and WHL-champion Moose Jaw Warriors have signed a new advertising licensing agreement that will see the club pay the city 30-per-cent more revenues than before.
During its July 8 regular meeting, council voted unanimously to approve the agreement for the sale of advertising and sponsorship opportunities at all city venues, with the mayor and city clerk to sign the agreement on behalf of the municipality.
Furthermore, council established a parks and recreation advertising program capital reserve fund to store the advertising revenues for future capital improvements to indoor and outdoor recreation venues listed in the agreement.
The city first entered into an agreement with the WHL Warriors in 2012 for the sale of advertising at the Wally Boschuk, Bert Hunt and Kinsmen arenas based on a 50-per-cent revenue-sharing agreement of gross revenues, with the contract renewed in 2019 for another five years, a council report said.
The latest agreement expired on June 30, while the new five-year contract will run until 2029.
The previous agreement saw the Warriors take full responsibility for administrating the advertising program and providing quarterly sales updates to the city, with the club able to package community arena ads with its advertising sales at the Events Centre, the report continued.
The team provided the city’s share before June 30, while the city deposited that amount into general revenues for the building in which the advertising was sold.
From 2019 to 2023, the city received $28,115 in revenues from the advertising program, with an annual average of $5,623.
The new agreement contains some significant changes, including:
- The Warriors will pay the city 80 per cent of gross revenues instead of 50 per cent
- Besides the three arenas, the Warriors can now sell advertising at 12 outdoor sports fields and the Kinsmen Sportsplex lobby but must work with the city to develop an annual advertising package; the city has the final say on what can and can’t be sold
- No advertising agreement can exceed three years unless the director of parks and recreation approves it to help reduce the city’s liability should it terminate the agreement
- Revenue will now go toward upgrading the venue from which the ad revenue was generated
- A committee will be established in 2025 to provide council with recommendations for capital improvements starting in 2026, while all capital expenses from the capital reserve fund would require council’s approval before beginning
- The city is now responsible for delivering all capital improvements funded through the fund
- Either party may terminate the agreement by providing 60 days written notice
The report also listed some “benefits” of the agreement, including:
- The Warriors can package community arena advertising with their ad sales at the Events Centre
- The club can “leverage” its message of “Community team for the community” to help promote season-ticket and game-ticket sales while encouraging more residents to attend the Events Centre regularly
- Businesses can reinvest in the community, knowing their investments are contributing to projects that will enhance recreation venues
- The city will have a funding source for rec venue capital upgrades, with revenue derived mostly from venue users
- The creation of opportunities for cross-promotion of the partnership and each party’s brands
This new agreement won’t affect this year’s operating budget but will affect the parks and recreation’s 2025 operating budget because the expected $8,500 in agreement revenue will go toward the reserve fund, the report said.
“With the expanded locations and increased revenue-share percentage to the city, it is expected that annual revenues to the city will increase significantly,” the document added.
The next regular council meeting is Monday, July 22.
