CHAIRMAN OF THE PARKS AND RECREATION COMMITTEE

14. NAMING RIGHTS - W J COWLES STADIUM

Officer responsible                    Author                       
Leisure and Community Services         Alan Patterson               
Manager                                                             
Corporate Plan Output:  Vol II pg 8.4.23                               

The purpose of this report is to respond to Councillors' concerns re the Canterbury Basketball Association's ability to meet their financial commitment to operating the W J Cowles Stadium prior to the Council granting approval for the Association's proposed naming rights arrangement for the stadium. BACKGROUND

Last month a report was submitted to the Council recommending that approval be given to a request from The Canterbury Basketball Association (CBA) for them to sell off the naming rights to the W J Cowles Stadium subject to: 1. That the official name of the stadium remaining (i.e. Cowles Stadium) but the stadium could also be referred to as the .................."(Company Name) Basketball Centre Christchurch". 2. That companies involved in the alcohol and tobacco industries be excluded from eligibility for naming rights. 3. That the next of kin of the person after whom the facility is named be advised of the naming rights association. 4. That the Leisure and Community Services Manager be authorised to conclude final arrangements associated with the naming rights request. Details of the confidential terms of the naming rights request were included in the public excluded section of this report. Prior to the Council meeting some concerns re the ability of the association to operate Cowles Stadium and meet its current debt had been advised to Councillors and as a consequence of this the report was withdrawn so that further information could be obtained. CURRENT POSITION

Meetings have since been held with representatives of the Canterbury Basketball Association and following requests for further information a clearer picture of their financial situation has now been ascertained. In general terms the Canterbury Basketball Association are budgeting for a surplus of approximately $4,500 per month through to September 1996. This surplus is over and above their operating costs and includes provision for agreed monthly payments to their existing creditors pool. 14 Cont'd From now on the Canterbury Basketball Association have also agreed to work with Council officers on their future financial projections and analysis to not only ensure their off season is covered i.e. September through to March, but also the likelihood of the Canterbury Basketball Association returning to debt is avoided. As Councillors are aware the Chairman, Councillor Freeman and Councillor Cox (Councillor Sheriff was also involved) were delegated to review the situation with the Canterbury Basketball Association Executive and report back to the Council. Unfortunately the company involved in the naming rights issue, the need to print match tickets and the timing of a sponsorship evening for the team with their major sponsor "Trustbank" necessitated a decision being made on the Council's approval of naming rights by 16 April last. This date did not of course, fit in with the Council's normal programme of meetings. In view of this and taking into account Councillors' general acceptance that Canterbury's financial position was sustainable interim approval was granted for the naming rights request to proceed. A further meeting is still planned with the CBA executive to reinforce the Council's expectations on the future financial management of Cowles Stadium and Canterbury Basketball generally and to conclude their working relationship with Council officers. Recommendation: 1. That the actions taken by Councillors Freeman, Cox and Sheriff in approving the Canterbury Basketball Association's naming rights request for Cowles Stadium be confirmed. 2. That the Leisure and Community Services Manager be authorised to conclude final arrangements in line with the previous recommendations as outlined in the text of the report. Chairman's

Recommendation: For discussion. CONSIDERED THIS 24TH DAY OF APRIL 1996

MAYOR

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