SIOUX CITY CAN FINALLY START SHOPPING FOR A NEW SPONSOR TO LEASE THE NAMING RIGHTS TO THE CITY’S EVENTS CENTER.
THE CITY AND TYSON FRESH MEATS HAD ENTERED INTO A LICENSE AND NAMING AGREEMENT ON OCTOBER 15 OF 2001 FOR THE NAMING RIGHTS FOR THE EVENTS CENTER.
TYSON FOODS ORIGINALLY COMMITTED TO PAY FOUR MILLION DOLLARS FOR THE NAMING RIGHTS AT THAT TIME. AND PAID $200,000 PER YEAR FOR THE FIRST TWENTY YEARS OF THE BUILDING’S EXISTENCE.
THEY CLAIMED THEY HAD THE NAMING RIGHTS IN PERPITUITY UNDER THE ORIGINAL CONTRACT AS IT WAS WRITTEN AND DID NOT HAVE TO CONTINUE PAYING THE CITY.
RECENTLY TYSON TOLD THE CITY THAT THEY WOULD COMPROMISE AND CONCLUDE THE NAMING RIGHTS FOR THE TYSON EVENTS CENTER.
THE CITY COUNCIL ON MONDAY APPROVED AN AMENDMENT TO THE LICENSE AND NAMING AGREEMENT WITH TYSON FRESH MEATS TO CONCLUDE THE NAMING RIGHTS
FOR THE TYSON EVENTS CENTER EFFECTIVE OCTOBER 1ST.
THAT ALLOWS CITY STAFF TO PURSUE A NEW LICENSE AND NAMING RIGHTS AGREEMENT THAT WOULD INCREASE ANNUAL SPONSORSHIP REVENUE FOR THE
EVENTS CENTER.
AS PART OF THE COMPROMISE, THE CITY SHALL PAY TYSON TWENTY PERCENT OF ALL GROSS REVENUE RECEIVED BY THE CITY UNDER A REPLACEMENT AGREEMENT FOR TEN YEARS FOLLOWING THE REMOVAL OF TYSON’S NAME.
