On February 13, 2019 the Mayor and City Commission approved Issuance of RFQ 2019-122-WG for Corporate Sponsorships and Naming Rights Consulting Services.  The City received a total of four (4) proposals from the following firms as a result of the RFQ:  The Superlative Group, Inc.; Siinc LLC d/b/a Siinc Agency; Global Spectrum L.P. d/b/a Spectra Partnerships (“Global Spectrum”); and Fill In Gaps Solutions, LLC (Fig Solutions).

An Evaluation Committee appointed by the City Manager convened on June 24, 2019, to consider proposals received.  The Committee’s evaluation process resulted in the following order of ranking:

Group I Corporate Sponsorship

1st Ranked: Spectra Partnerships;

2^nd Ranked: The Superlative Group, Inc.;

3^rd Ranked: Siinc Agency; and

4^th Ranked: Fig Solutions, LLC

Group II Naming Rights

1st Ranked: Spectra Partnerships;

2^nd Ranked: The Superlative Group, Inc.;

3^rd Ranked: Siinc Agency; and

4^th Ranked: Fig Solutions, LLC

At the July 31, 2019 City Commission meeting, having considered both the qualitative and quantitative factors, the City Manager recommended that the Mayor and City Commission authorize the Administration to enter into negotiations with Spectra, the top ranked proposer. The City Manager also recommended that, if the Administration was unsuccessful in negotiating an agreement with Spectra, the City Commission authorize the Administration to enter into negotiations with The Superlative Group, the second ranked proposer. Following discussions held during the July City Commission meeting, the Mayor and City Commission, adopted Resolution 2019-30916, authorizing the Administration to simultaneously negotiate with both firms. Further, the City Commission directed the Administration to consider both components of the award, naming rights and sponsorships, as distinct, with the possibility of awarding a separate firm for each component, upon qualifications and negotiations.

As directed by the City Commission, staff fully analyzed the qualifications of both companies, comparing both sponsorship and naming rights deals over the last 5 years, reached out to references for both and compared pricing proposals.  During the review process, references and previous sales numbers for both firms were comparable, and both firms were deemed competent for the job.

On February 20, 2020 the Mayor and City Commission adopted Resolution No. 2020-31158, authorizing the Administration to finalize an Agreement with Global Spectrum LP, as the final recommended proposer for consulting services pursuant to Request for Qualifications No. 2019-122-WG, Corporate Sponsorships and Naming Rights Consulting Services (the “Project”) provided that the final Agreement be subject to the prior approval of the Mayor and City Commission.   

Pursuant to the City Commission's direction, the Administration has successfully negotiated an Agreement with Global Spectrum LP, which is attached hereto and includes the following material terms. 

1. Scope:

Global Spectrum LP will manage all sponsorships and naming rights for the City. The services pertaining to sponsorships are particularly important on a day-to-day basis. The City has historically had a full-time position that sold, fulfilled and managed all sponsorship, advertising and other revenue generating opportunities for the city, including sponsorships for events, advertising in the City magazine, etc.  Through this position, the City has yielded over $1 Million in alternative revenue each year.  However, during the budget cycle, the decision was made to eliminate this position and to outsource the positions responsibilities, which include managing all sponsorships and the expanded opportunities regarding naming rights for certain buildings as approved by the City Commission.  Global Spectrum LP will now handle all of these partnerships. 

It is important to note that Global Spectrum LP will retain an individual that will handle the management and fulfillment of all sponsorships and naming rights. This individual, rather than handle the City’s account as one its portfolio of several accounts, will be solely dedicated to the City’s needs in this area, thus ensuring the maximum amount of revenue to the city. 

2. Term: 

The Agreement stipulates a five year term with three one-year optional renewals. However, as requested by the City Commission, in the event that Global Spectrum LP fails to negotiate a naming rights deal for the Miami Beach Convention Center, that is approved by the City Commission, within twenty-four months from the effective date of the Agreement, the Agreement may be terminated. However, the City may not terminate the Agreement if Global Spectrum proposes a naming rights that includes commercially reasonable terms but approval of the Agreement is unreasonable withheld. 

3. Commission Structure: 

The commission to which Global Spectrum LP would be entitled is as follows:

*A commercial rights agreement is an agreement between the City and a sponsor or other purchaser of Commercial Rights.  All commercial rights at and with respect to the properties and all other City-owned events, parks, facilities, venues, beaches and other properties and other municipal marketing efforts of the City, including, without limitation, advertising signage, sponsorship, premium seating, pouring and other vendor rights, interactive media and branding rights, as well as other similar revenue generating opportunities related to the same as may be mutually agreed upon by Global Spectrum LP and the City. For example, if Global Spectrum secures $900,000 of revenue in a contract year, it would be owed a Commission of $226,000 calculated as follows:

-  $100,000 (50% of first $200,000 Revenue in)

- $126,000 (18% of $700,000 Revenue, i.e. $900,000 - $200,000 = $700,000 X 18%).

**The only pre-existing commercial rights agreement that is included in the scope of the Agreement as of the Effective Date is the agreement with Coca-Cola. The reason for this is that Global Spectrum LP will take over the management of this sponsorship agreement.  Global Spectrum LP has agreed that it will manage this existing agreement for a small commission of five percent of the commissions received by the City. The Coca-Cola agreement terminates in December 2021. 

***Upsell Revenue is Revenue generated during the Term of an pre-existing Agreement that is over and above what a sponsor is contractually committed to pay under that Agreement. By way of example only, if the Coca-Cola Agreement provides for the sponsor spending $100,000 in a particular year and Consultant sells that sponsor an additional $50,000 in sponsorship benefits, the $50,000 in additional Revenue shall be considered Upsell Revenue.

**** “Annual Revenue” means the total amount of revenue received by the City in a particular year under a naming rights agreement. If the City Commission were to approve a naming rights agreement, Global Spectrum LP would receive commissions based on the tiers noted in the table above. These rates are consistent with the industry. 

Based on the aforementioned analysis and justification, I recommend that the Mayor and City Commission hereby approve the Professional Services Agreement with Global Spectrum LP, pursuant to Request for Qualifications (RFQ) No. 2019-122-WG, for Corporate Sponsorships and Naming Rights Consulting Services, incorporated herein by reference and attached hereto as Exhibit "A".