City hall’s advertising and sponsorship program has generated more than $500,000 in revenue since launching in 2019, with most of that money supporting operating and programming costs at recreation venues.
In April 2019, the City of Moose Jaw adopted an advertising and sponsorship policy to create a consistent approach to soliciting advertising and sponsorship opportunities at recreation venues and creating agreements, a city council report explained.
City council then officially adopted that policy during its regular meeting that June.
The municipality has an agreement with EMJ Marketing to source advertising and sponsorship opportunities for city-operated recreation venues, parks and programs. The current contract, signed in 2021, is set to expire on Saturday, Aug. 31.
As part of the agreement, EMJ Marketing receives a 20-per-cent commission on all sales.
The agreement with the marketing firm is a non-exclusive licence, which means the city can also pursue ad and sponsorship opportunities at locations that the city’s marking proposal identifies, the report said.
The city also has an agreement with the WHL Moose Jaw Warriors for advertising at Pla-Mor Palace and Kinsmen Arena, with the club giving back 50 per cent of all revenues. However, a new agreement will see the hockey organization contribute 80 per cent of ad and sponsorship revenues.
The parks and recreation’s other source of ad revenue is from naming-rights sponsorship at four sports venues, including $500,000 over 10 years for Yara Centre; $100,000 over 10 years for Kinsmen West Park; $100,000 over 25 years for Kinsmen Regal Heights Park; and $100,000 over 25 years for the Kinsmen Sports Complex.
Last year “was a record year for advertising and sponsorship” revenues, Scott Osmachenko, recreation services manager, said during the recent city council executive meeting. Furthermore, this year “will probably be another strong year” for revenue generation.
The city received $504,001 in net revenue between 2019 and 2023, with last year generating $183,364, a 71-per-cent increase over the year before, he continued. Meanwhile, year-to-date, the city has received $107,723 in net revenue, which is almost equal to the revenues received midway through last year.
Therefore, the total revenue the city netted between 2019 and early July 2024 has been $611,724.
Osmachenko’s report showed that, since 2019, the city has received $71,491 in net revenue from EMJ Marketing’s advertising sales, while the firm has taken $16,873 in commission.
Furthermore, the city has received $40,233 in net revenue from the Warriors’ advertising sales efforts, while the team has taken the same amount.
Also, from the four main sports venues, the city has netted $245,000 in ad sales revenue.
City hall directs most net revenue toward the operating and programming costs at the recreation venues from which the money came, which helps reduce the annual subsidies that the municipality provides for those locations, the report said.
For example, revenue from Kinsmen West Park supports the city’s capital budget to offset the costs of the playground expansion, installation of a new spray park and construction of a new sport court in 2020 and 2021.
Furthermore, revenue from Kinsmen Regal Heights Park offset upgrades to the Blackwell baseball diamond in 2022 and the construction of a new spray park in 2023.
Also, revenue from the Kinsmen Sportsplex supports upgrades to Elks Field and Eddy Moore Park and their respective buildings.
“We would welcome any sized business to contribute to our facilities,” Osmachenko added.
The next regular council meeting is Monday, July 22.
