Item Coversheet

OLD BUSINESS  2.

COMMITTEE MEMORANDUM

TO: Finance and Economic Resiliency Committee Members


FROM:
Jimmy L. Morales, City Manager


DATE: February 28, 2020


SUBJECT:DISCUSSION ON SPONSORSHIP OF THE COLLEGE FOOTBALL CHAMPIONSHIP GAME TO BE HELD IN MIAMI FROM FRIDAY JANUARY 8  - MONDAY JANUARY 11, 2021

HISTORY:

In October 18 2017 City Commission meeting, Resolution 2017-30057 was adopted which stated "a resolution of the Mayor and City Commission of the City of Miami Beach, Florida, supporting the South Florida college football championship game task force ("task force"), in connection with the task force's bid to secure the college football playoff national championship game, to be held in South Florida in January of 2021, 2023, or 2024, by authorizing the following in connection with any awarded college football playoff national championship game: a) the waiver of rental fees for the Miami Beach Convention Center, in an amount not to exceed $857,540.80; b) the waiver of special event permit fees, including application fee, permit fee, vehicle access pass fee, square footage fee, user fee, and police and fire administrative fees, in an amount not to exceed $150,000.00; c) all defined fee waiver amounts are to be determined and returned to the city commission for approval; d) a sponsorship agreement between the task force and the City of Miami Beach in a form acceptable to the city manager and the city attorney; and, e) all sponsorships and waived fees shall be subject to approval and appropriation via the city's fiscal year 2017/2018 budget process. 

 

During the October 16, 2019 City Commission meeting, this item was referred to the Finance and Economic Resiliency Committee for discussion. 

 

Due to there being no committee meetings in November 2019 or December 2019, the item was heard at the January 2020 Finance and Economic Resiliency Committee for discussion.

 

The FERC asked that the item be heard at the February 2020 FERC meeting with the inclusion of all sponsorship deal points from previous years.

 

The administration is not able to include deal points from previous years as the College Championship game is a new concept that only started in 2014 and has not yet been held in Miami.

 

Past College Championship Games:

2014 - Arlington, Texas - 85,788 attendance

2015 - Glendale, Arizona - 75,765 attendance

2016 - Tampa, Florida - 74,512

2017 - Atlanta, Georgia - 77,430 attendance

2018 - Santa Clara, California - 74,814

2019 - New Orleans, Louisiana - 76,885 attendance

 

 

 

ANALYSIS:

The College Football Playoff National Championship is a post-season college football bowl game, used to determine a national champion of the NCAA Division I Football Bowl Subdivision (FBS), which began play in the 2014 college football season. The game serves as the final of the College Football Playoff, a bracket tournament between the top four teams in the country as determined by a selection committee, which was established as a successor to the Bowl Championship Series and its similar BCS National Championship Game.

Unlike the BCS championship, the participating teams in the College Football Playoff National Championship are determined by two semi-final bowls, hosted by two of the consortium's six member bowls yearly, and the top two teams as determined by the selection committee do not automatically advance to the game in lieu of other bowls. This has caused a unique side effect in that no #1 or #3 seed had won the National Championship in its first five years, with LSU becoming the first #1 seed to win the championship in 2019.

The game is played at a neutral site, determined through bids by prospective host cities (similar to the Super Bowl and NCAA Final Four). When announcing it was soliciting bids for the 2016 and 2017 title games, playoff organizers noted that the bids must propose host stadiums with a capacity of at least 65,000 spectators, and cities cannot host both a semi-final game and the title game in the same year.

Miami was awarded with the January 2021 game and as a result is expected to see a very high influx of tourists as a result, which will be very comparable to Super Bowl LIV in February 2020.

Miami Beach saw an increase in hotel room rate by 84% during Super Bowl 2020 versus the same week in 2019 and expect to see the same sort of increase for the College Football National Championships.

The City of Miami Beach is expected to have the following events during this time (these events are not fully confirmed at this time):

- "Playoff Fan Central" to take place inside the Miami Beach Convention Center and free for all attendees.
- "Playoff Playlist Live" a concert to take place on the beach front from Friday January 8 - Sunday January 10, 2021, similar to the Dave Matthew's Band concert set up.
- A broadcast compound to be located within Lummus Park (ESPN is the main broadcaster and has their largest annual expenditure in the College Championship Game).

The 2021 CFPNCG Committee met with the City of Miami Beach Tourism and Culture department and has requested the following sponsorship package for the 2021 College Football Playoff National Championship Game that will take place in Miami-Dade County in January 2021.

Although the game will be played in Miami Gardens, the Host Committee feels that this sponsorship package is warranted as almost all of the surrounding events will take place within Lummus Park / Ocean Drive and other areas of Miami Beach.

The following sponsorship package has been requested:

1. CASH SPONSORSHIP
In the amount of $500,000


2. CITY SERVICES IN KIND SPONSORSHIP

An in kind sponsorship of $400,000 to cover the costs of city services including police, fire, sanitation, parking, etc.


3. RENTAL WAIVERS FOR THE FOLLOWING MIAMI BEACH FACILITIES

Miami Beach Convention Center (Playoff Fan Central)

Rental Fee Waivers in the amount TBD when full plans are given to the MBCC. These waivers to also include waiver of corkage fees, and internet usage fees.

Permit fee waivers for events to take place in Lummus Park (Playoff Playlist Live, ESPN Broadcast Compound, 2021 CFPNCG Host Committee Activation):
The events taking place in Lummus Park will include:
PLAYOFF PLAYLIST LIVE - 3 day concert series
ESPN - broadcast compound
HOST COMMITTEE - activation footprint as well

As part of this request, the Host Committee would be asking for waiver of all permit fees (application, park user, square footage, vehicle beach access, etc.).

They are also requesting a sponsorship from the City to cover the City of Miami Beach’s portion of displacement fee Boucher Brothers. The Host Committee is willing to pay displacement fees for their events, but would like the City of Miami Beach to waive the amount / percentage that the City would normally receive from these displacement fees, as outlined in the existing agreement between Boucher Brothers and the City of Miami Beach.

The Fillmore (2021 CFPNCG Host Committee Private Concert)

Complimentary use of The Fillmore to include rental fee waivers, and corkage fees.


4. REQUIRED PUBLIC SECTOR COMMITMENTS

A. Establishment of a Clean Zone to ensure protection from rogue marketing and competing sponsors.

B. Public Safety / Security

C. Permits and Approvals (comparable to expectations for Super Bowl)


5. COCA COLA SPONSORSHIP EXEMPTION

City of Miami Beach to provide an exception to the existing Coca Cola sponsorship agreement.


6. ASSIGNED EXECUTIVE

City of Miami Beach to assign an executive to work with the 2021 CFPNCG Host Committee on all key planning areas including but not limited to transportation, security, permits, etc.

CONCLUSION:

The administration recommends that the Finance and Economic Resiliency Committee approve the following sponsorship request as the return on investment regarding brand exposure as well as the financial return via increased Resort Tax revenues due to increased hotel room rates and occupancies and Food and Beverage spends, would be in the best economic interest of the City.

 

(1) A waiver of city special event permit fees in the amount not to exceed $175,000 (as specific site plans are not currently known). This amount would not include any Boucher Brothers displacement fees - the Host Committee would need to pay those fees for any events taking place directly on the beach front.

 

(2) A cash sponsorship in the amount of $400,000 in support of College Football Playoff and Host Committee events taking place in the city of miami beach;

 

(3) A city contribution for College Football Playoff and Host Committee event-related public services (police, fire, sanitation) in an amount not to exceed $250,000 - this amount would not include parking spots - those would need to be paid for as per City ordinances.

 

(4) A waiver of MBCC facility rental fees in the amount not to exceed $850,000.00, subject to a Host Committee commitment that this event will be free to the public (residents and non residents).  This waiver would not include corkage or internet fees as those are third party suppliers and would be expected to be paid for by the event.

 

(5) A creation of a "Clean Zone," to provide competing event protection with respect to third-party events requiring a city special event permit for dates TBC, in the area generally bounded by 22nd Street to the north, 5th Street to the south, Jefferson Street (between Dade Blvd and 15th Street) and Washington Avenue (between 15th Street and 5th Street) to the west, and by the Atlantic Ocean to the east;

 

(6) A Coca Cola sponsorship waiver during this time.

 

(7) The City of Miami Beach to be recognized on all Host Committee-produced marketing, digital and social collateral as it pertains to any event included in any of the line items above. The administration will work directly with the Host Committee to finalize what those sponsorship recognition pieces will look like.

 

(8) Two (2) tickets for all City of Miami Beach elected officials to all Host Committee initiatives / events taking place within the geographical limits of Miami Beach and a 25% discount for all Miami Beach residents on initiatives that are not free to the public.

 

(9) The administration does not recommend waiving rental fees or corkage fees for The Fillmore, as it is managed by a third party supplier.

Applicable Area

Citywide
Is this a "Residents Right to Know" item, pursuant to City Code Section 2-14? Does this item utilize G.O. Bond Funds?
No No 
ATTACHMENTS:
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