LTC 001-2022 Convention Center Naming Rights001-2022
MIAMI BEACH
OFFICE OF THE CITY MANAGER
NO. LTC# LETTER TO COMMISSION
TO: Honorable Mayor Dan Gel fp;er an Members of the City Commission
FROM: Alina T. Hudak, City Mana
DATE: January 3, 2022
SUBJECT: Convention Center Naming Rights
The purpose of this Letter to Commission is to provide you with an update on the naming rights
of the Convention Center . The Administration, in collaboration with our Commission-approved
sponsorship agency Spectra Partnerships, has vetted and explored multiple sponsorship options,
and I am pleased to inform you that we are currently in negotiations with Norwegian Cruise Line
(NCL) on an agreement for naming rights of the Convention Center, with the final agreement
subject to the prior approval of the Mayor and City Commission.
The proposed 10-year naming rights agreement with NCL, including the financial and other
terms of t he agreement, would be reviewed by the City Commission pursuant to the City's
Naming Ordinance, as set forth in Section 82-503 of the City Code . The process will include a
referral to the Neighborhood and Quality of Life Committee for discussion and recommendation,
followed by a public hearing at a City Commission meeting , with the final approval requiring a
517 th vote of the City Commission. At this time, the proposed agreement would include naming
rights, advertising and marketing opportunities, and sponsorship rights related to the venue.
The basic term of this agreement is for ten (10) years, anticipated to begin March 1, 2022
through until February 28, 2032, with the proposed name of the building to be the "Norwegian
Cruise Line Center at Miami Beach".
COMPENSATION TO THE CITY
• As consideration for the naming rights benefits, the City of Miami Beach shall receive the
following compensation:
o Base fee per year for each year of the agreement, as outlined below:
2022 : $1.0 million
2023: $1 .1 million
2024 : $1.1 million
2025: $1.1 million
2026 : $1 .1 million
2027 : $1.2 million
2028: $1.2 million
2029 : $1.3 million
2030: $1.3 million
2031 (ending January 31, 2032): $1 .35 million
• The administration, in agreement with NCL senior management have identified four (4)
focus areas where these funds could be dedicated, to ensure our residents and visitors
can experience the maximum benefits, including, but not limited to:
o Parks & Recreation / Health and Wellness
o Arts & Culture
o Public Safety
o Sustainability
All final signage development and replacement costs would be the responsibility of NCL with
City approval.
Comparable Convention Center Naming Rights Partnerships
The proposed annual value of the City of Miami Beach and NCL partnership at $1.175M / year
would make the Convention Center one of the top Naming Rights Agreements by annual
investment value in the country.
Convention centers as a whole, have been a recent segment of the naming rights marketplace,
in comparison to professional sports venues like stadiums, ballparks, and arenas, as convention
centers receive fewer media impressions (highly specific programming and very limited
television / broadcast exposure), and therefore have a lower market rate.
Major markets like New York (Javits Center), Chicago (McCormick Place), Las Vegas (Las
Vegas Convention Center), San Diego (San Diego Convention Center) and Los Angeles (Los
Angeles Convention Center) have pursued sponsorship opportunities, but do not have naming
rights agreements in place. The top Naming Rights agreements to date include the below:
Standalone Convention Center Naming Rights Deals
Average Annual Investment
Venue Name City Term Value
TCF Center Detroit 22 years $1,500,000
SAFE Credit Union Sacramento 25 years $920,000
Center
Renasant Bank Memphis 10 years $680,000
Convention Center
Huntington Cleveland 20 years $500,000
Convention Center
Duke Energy Cincinnati 30 years $375,000
Convention Center
For more information, please contact Melissa Berthier -Director, Marketing & Communications
at MelissaBerthier@miamibeachfl.gov or 786.442. 7109.
ATH /RAP/ MB/ MK