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Smart Voter
San Francisco County, CA November 3, 2009 Election
Proposition C
Candlestick Park Naming Rights
City of San Francisco

Ordinance - Majority Approval Required

Fail: 0.0% Yes votes ...... 40,973 / 41.32% No votes

See Also: Index of all Propositions

Results as of Nov 10 4:00pm, 100.0% of Precincts Reporting (428/428)
22.0% Voter Turnout (99,649/451,988)
Information shown below: Summary | Fiscal Impact | Official Information | Arguments |

Should the City be allowed to enter into naming contracts for the stadium at Candlestick Point?

Summary Prepared by LWVSF Pro & Con Guide:
The Background: The 49ers football team entered into a stadium naming contract with the City in 2004. The team signed a 4-year naming contract with Monstercable that expired in 2008. The City collected $700,000 annually during that contract period. The 49ers may continue to negotiate a new contract with a new naming partner through the end of their stadium lease, as long as the following stipulations are met: the sponsor is one of 5 pre-approved sponsors named in the original contract; the City's anticipated revenue from the sale is at least $3 million; and the sale complies with the City's advertising policies. The 49ers' lease expires in 2013 and could be renewed at 5-year intervals through 2023. After the 49ers vacate the stadium at Candlestick Point at the conclusion of their lease, City administrative code requires that the property be known as Candlestick Park. Proposition C would repeal Proposition H, passed by voters in 2004, which requires the stadium to be named Candlestick Park. The Proposal: This proposition would allow the Recreation and Park Department to enter into agreements for the naming of the City-owned sports stadium located at Candlestick Point. This proposition would also broaden the pool of prospective naming partners and could designate at least 50% of the collected revenue be used to fund recreation and parks center directors. However, any funds generated for the City from naming rights contracts would be General Fund revenues. Any new contract would be subject to the approval by the Board of Supervisors.

Fiscal Impact:
The Controller states the following: Should this ordinance be approved, in my opinion, it would not in and of itself affect the cost of government and could result in additional revenue for the City. The proposed ordinance amends the Administrative Code to allow the Recreation and Park Department to approve or enter into an agreement for the naming rights of the City-owned sports stadium located at Candlestick Point. The San Francisco 49ers currently have exclusive rights to sell and enter into agreements with five named entities listed in their 2004 naming agreement with the City. The proposed ordinance would permit the 49ers to enter into agreements with any other naming rights sponsor with prior approval from the Recreation and Park Department and Board of Supervisors. The City has not earned naming rights revenue from the stadium since 2008. The previous naming rights agreement generated approximately $700,000 annually for the City. The proposed ordinance could earn revenue for the City by significantly widening the pool of potential naming rights sponsors. The proposed ordinance also specifies that at least fifty percent of the revenue received by the City from naming agreements shall be used to fund recreation center directors. However, any revenues generated from a naming rights agreement are General Fund revenues and could be used for any legal purposes of the City, subject to Board of Supervisors' appropriation approval.

Official Sources of Information

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Arguments For Proposition C Arguments Against Proposition C
1. Revenue from naming rights could provide the General Fund with much needed income.
2. This proposition could help ensure that recreation centers have the necessary staff to remain open.
3. Proposition C could encourage the 49ers to stay in San Francisco.

1. The sale of naming rights feeds the illusion of fixing budgetary woes; it usually just delays the true structural reforms that are needed to sustain a city.
2. Changing stadium names every few years creates confusion and unnecessary expenses.
3. Funding for the Recreation and Park Department should not be at the mercy of an unpredictable funding source.

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Created: December 29, 2009 12:08 PST
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