by Mike Sharkey
Staff Writer
The annual Florida-Georgia game is four days away and who gets the advertising revenue from electronic ribbon board signage inside Alltel Stadium hasn’t been decided.
The Jacksonville Jaguars, per their lease agreement, believe the revenue is the team’s. The City of Jacksonville has indicated in recent weeks that because it owns the stadium, the City has the rights to the signage during non-Jaguars games.
“In our lease, we think it’s very clear that we control the electronic signage 365 days of the year,” said Bill Prescott, senior vice president of stadium operations/chief financial officer for the Jaguars. “The ribbon boards are the crux of the issue.”
Prescott says the issue isn’t that the Jaguars dispute the City’s allegation that the Jaguars aren’t entitled to ribbon board revenue year-round, but that three different leases between the City and the Jaguars, the City and the Gator Bowl Association and the City and the University of Florida and University of Georgia all grant ribbon board advertising to a different entity.
“The City has their own interpretation of 365 days,” said Prescott. “They try to read more into the lease than is there.”
Prescott said the team has only made one concession during the team’s 10-year existence and that was during the Super Bowl. An agreement was reached with then-Chief Administrative Officer Sam Mousa that if the team paid for and installed the ribbon boards, it would share advertising revenue during the Super Bowl and control it the rest of the year through the end of its lease at Alltel.
“If the intent was to carve out dates for the Florida-Georgia game, the Gator Bowl and the ACC Championship, we would have put it in the sentence,” said Prescott.
The City recently signed an extension to keep the Florida-Georgia game in Jacksonville through 2011. Language within the extension grants ribbon board advertising on an equal basis to each school and the City. The Jaguars are not mentioned. At tonight’s City Council meeting, the proposed contract renewal between the City and the Gator Bowl Association will go before Council under the public hearing section of the agenda. The lease stipulates that the GBA has “exclusive” advertising rights for non-NFL football games (meaning the Florida-Georgia game, the Toyota Gator Bowl and the Dr Pepper ACC Championship).
Prescott said the Florida-Georgia game isn’t a contractual issue until the 2007 game. However, recent letters from the City to Jaguars owner Wayne Weaver indicate that the City plans to run its own advertising during Saturday’s game. The Jaguars got together with facilities manager SMG and informed the City the team plans to run its usual advertising on the ribbon boards, minus alcohol and Florida Lottery ads. Prescott said “the City is going to do what the City wants to do” in relation to the ribbon boards and running its own advertising will put the Jaguars in a precarious situation with their advertisers and from a legal perspective.
“We have a contract with our sponsors and they expect their ads to run during Florida-Georgia. If they don’t run, we will have to pay the money back, which is about $100,000 a game according to the City’s consultant (Dean Bonham),” said Prescott. “These sponsors have purchased advertising and they want a relationship with the building.”
Finally, Prescott said the terms of the new GBA lease put the team on the spot, legally.
“The City is telling us we will have to sue them. Clearly the City is saying we will have to sue them if we want compensation for the lost revenue,” said Prescott, adding that should the City run its own advertising on the ribbon boards, it would violate terms of its lease with the Jaguars. “In our lease it says the City can’t enact an ordinance in violation of our lease. If they pass this ordinance (the Florida-Georgia extension), in fact, they will be in breach of our lease.”
General Council Rick Mullaney did not return a call seeking comment.
The following is the exact language of the advertising portions of the three leases.
Jacksonville Jaguars/Ribbon Boards
The parties agree that JJL may replace the Stadium ribbon panels with electronic ribbon boards or similar system as part of the JJL Improvements or at a later time. If done at a later time, such replacement will be at JJL cost and expense. Prior to any construction, JJL shall provide to the City the plans and specifications for such system for the City’s prior approval, which shall not be unreasonably withheld, conditioned or delayed. However, nothing herein shall be deemed a waiver of the City Sign Ordinance. JJL shall be entitled to the revenues from the use of such system and such system shall be deemed part of the Demised Premises for the 365 day year and shall be operable by JJL at all times at its option. Notwithstanding the above, JJL agrees that any operation of the system during Super Bowl XXXIX shall be subject to the obligations of the City to the NFL in respect thereto and JJL shall comply with the requirements of the NFL.
Gator Bowl Association lease
Concessions/Advertising
Paragraph 8 of the Lease is hereby amended to add the following after the completion of the second sentence therein: Notwithstanding the foregoing, if it is judicially determined by a court of competent jurisdiction (including the conclusion of all appeals related thereto), that a third party has any pre-existing rights to any Stadium electronic signage during the Association’s events pursuant to this Lease, then the Association irrevocably waives any and all claims against the City for such judicial determination.
For non-NFL football games as designated by the City, the Association shall serve as the exclusive agent of the City for the licensing of the “Software Signage Rights” (defined below). Subject to the exclusion set forth below, the Association shall the exclusive right to license Stadium advertising for such games that occurs on a software basis on electronic scoreboard or signage, whether now existing or hereinafter installed, and by use of temporary signs and banners that do not obstruct any permanent advertising or naming rights advertising (hereinafter collectively referred to as the “Software Signage Rights”). These Software Signage Rights shall not include the following rights) whether now existing or as may exist in the future), and any revenue generated from the following shall be specifically excluded from this provision: (i) any and all advertising during NFL games conducted pursuant to the Jaguars Lease, ; (ii) any and all advertising and signage included as part of the naming rights agreement for the Stadium; and (iii) any and all permanent advertising in, on and around the Stadium. All revenue derived by the Association from the licensing of the Software Signage Rights shall be spilt between the City and the Association.
Association shall retain other revenues to be derived from the Gator Bowl Classic, including but not limited to, revenues from licensing and broadcasting (television or radio) the Gator Bowl Classic games.
Florida-Georgia lease (the Lessor is the City, the Lessees are the schools)
Except as set forth in this Section, the Lessor shall retain all rights and revenues related to advertising (whether occurring on an electronic or software basis or by use of fixed signs and banners [whether permanent or temporary; however, notwithstanding the foregoing, there is no right for Lessees to cover up any pre-existing fixed signage]). Notwithstanding the foregoing, and in order to effectuate the Lessor’s agreement to provide its good faith cooperation and assistance to Lessees regarding Lessees’ obtaining a Game title sponsorship agreement, the Lessor agrees to make available a reasonable amount of its advertising inventory (as available after complying with Pre-existing Rights) in order to facilitate Lessees’ securing a Game title sponsor agreement. The Lessor agrees that its contribution to Lessees shall include a certain amount of its available electronic advertising inventory. And further not withstanding the foregoing, and after complying with the Preexisting Rights, and after providing electronic advertising inventory to Lessees for the Game title sponsor, the Lessor agrees to provide to Lessees thirty-three percent (33%) each (with Lessor retaining the balance) of available electronic advertising capacity on the two scoreboards located in each end zone. As of the date of this Agreement and based on current Preexisting Rights, it is intended by the parties that each Lessee’s thirty-three percent (33%) share would result in each Lessee having approximately fifteen (15) minutes electronic advertising capacity. For the Lessor’s retained advertising rights, the Lessor will submit to the Lessees the Lessor’s advertisers no later than sixty (60) days before the Game for the Lessees’ approval, which shall not be unreasonably conditioned, withheld or delayed beyond ten (10) business days (the “Lessees’ Advertising Approval.”)