In 2015, EverBank Financial Corp. will pay about $3.76 million to the Jacksonville Jaguars in the first year of a 10-year, $43 million extension of the company’s naming rights for EverBank Field, according to a draft agreement.
Just as with the current five-year $16.6 million sponsorship agreement approved in 2010, the Jaguars are asking the city to waive its 25 percent share of the deal.
The city waived $4.15 million in the current deal that ends after the 2014 season. The city is being asked to waive $10.75 million in the extension deal.
Mayor Alvin Brown said Friday he is in favor of the waiver. Jaguars President Mark Lamping said the team’s goal is to capture the revenue stream.
City Council President Clay Yarborough said council would closely review the contract and legislation. He said the council looks forward to the proposal and to “get a deal that will be beneficial to everybody.”
The draft agreement under review by the city Office of General Council outlines a payment schedule from EverBank to the Jaguars that starts at $3,755,914 for the 2015 season and ends at $4,900,615 for the 2024 season, reflecting a 3 percent annual increase.
Those annual payments are due to the Jaguars in equal payments twice a year on or before Nov. 30 and Feb. 15. The deal runs from Feb. 28, 2015, through Feb. 28, 2025.
An almost 100-page amended and restated naming rights agreement updates the Aug. 16, 2010, deal among the Jaguars, the city and EverBank.
The current document, as of July 23, comprised 2,251 changes from the 2010 agreement, including 1,079 insertions and 1,114 deletions.
The document is a draft under review by the city General Counsel’s Office, said Chris Hand, Brown’s chief of staff, in an email to Alexis Lambert of the city Office of Public Accountability.
Hand said the mayor’s office will be discussing the draft agreement with the Jaguars and EverBank before it’s filed with City Council as legislation.
The legislation could be introduced for the Aug. 12 council meeting. The city owns the stadium and the sponsorship agreement requires council approval.
Jacksonville-based EverBank and the Jaguars announced the agreement Friday.
“EverBank is the perfect partner for us,” said Jaguars owner Shad Khan at the 3 p.m. Friday event at EverBank Field.
Khan said EverBank is a Jacksonville-based company with a national and international vision, like the Jaguars.
EverBank Chairman and CEO Rob Clements said the bank is “incredibly proud” of the relationship.
The average $4.3 million a year in the new deal is up from an average $3.32 million a year now. The current deal also had escalator clauses. This year’s sponsorship fee is almost $3.65 million.
Lamping pointed out that Khan has invested $30 million in the stadium. That includes the $20 million he put into the $63 million stadium enhancements that were unveiled Saturday night, including the world’s largest video scoreboards. The city paid the other $43 million. The new scoreboards are 60 feet high and 362 feet long.
Lamping said after the news conference that the negotiations took more than a year and that each side had its desires.
Clements said throughout the talks there was an expectation that an agreement would be reached.
The draft agreement covers many areas and possibilities, including signage rights on the new video boards and costs in the event of future stadium renovations – or a new stadium.
The agreement also covers what would happen if the team decides to build a roof enclosure over the stadium.
It also covers a reduction in the naming rights fee if the Jaguars play an “alternative location home game” in another stadium that results in few than eight scheduled regular-season home games at EverBank Field.
The agreement further outlines what would happen if the Jaguars terminate the lease and leave the stadium or are sold, or if EverBank merges with or is sold to another company.
While the details are still in review, a preliminary review of the deal finds that, as part of the agreement:
• EverBank can use two suites at the stadium, along with 40 tickets in the West Club section, 100 seats in the General Bowl sections; 25 tickets in the Terrace Suite; 20 tickets in the Cabana sections; eight tickets in the Field Seats in the northeast or southeast section; two tables with four seats each in the East Club section for the initial period and two tables with four seats each in the West Club section after the initial period; eight tickets in each of the east and west Bar Rail seat sections; and parking passes.
• EverBank will receive the right to buy up to 20 tickets for the Super Bowl, subject to the club having the inventory, if the Jaguars are not playing in it – and 100 tickets to attend the Super Bowl if the Jaguars are participating, all to be bought at face value.
• EverBank will receive $20,000 in discounts on the face value price of tickets to be made available to its employees at a discounted rate.
• EverBank will receive eight appearances by Jaguars and/or coaches.
• EverBank will receive 12 appearances by team mascot Jaxson de Ville and/or ROAR cheerleaders.
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