Friday, March 2, 2012

Rox, Shaw's Center Contract Moves Forward

BrocktonPost
BROCKTON--The Brockton 21st Century Corporation has released the terms of a deal that will continue baseball at Campanelli Stadium.
Executive Director Mary Waldron said in an email that final details of a lease with the new management company, Entertainment Management Complex, still need to be worked out, but the bulk of a one-year contract, that could extend 4, 5 or 10 years, depending on the new company’s success, have been finalized.
“There is still a lot of work that needs to be done, but at least they can start selling tickets,” Waldron said in the email.
The new contract allows Entertainment Management, headed by Rox CEO Chris Carminucci, to join the Futures Collegiate League, a one-year-old enterprise that spotlights top college baseball players who have the real potential to make it to the big leagues.
In past interviews, Carminucci likened the Futures League to the popular and successful Cape Cod League. Brockton is the 9th team to join the Futures League.
The move ends the Rox association with the professional Can-Am League.
Highlights of the new contract include:
*$125,000 rent. First payment due in July. The amount is down from $275,000;
*$100,000 already paid Feb. 29 in back expenses owed the city;
*No less than $30,000 be spent on marketing and advertising stadium activities and Shaw’s Center.
There are also numerous naming rights and profit sharing clauses, but readers can see for themselves.
Here's the latest version of the contract:

1. Prior to entering into licenses, a new Corporation or Limited Liability Corporation will be formed.

2. (New Corporation or L.L.C.) A Massachusetts Corporation located in Brockton, Massachusetts will contribute One Hundred Thousand ($100.000.000) Dollars to the operating account (These funds will be used for new operating expenses from the date commencing on the date of this executed agreement.)

3. (New Corporation or L.L.C.) Shall receive a commitment from the Futures Collegiate Baseball League to enter a team for the 2012 season.

If the above preconditions are satisfied by no later than February 29, 2012, New Corporation or LLC will enter into a license agreement with the Brockton 21st Century Corporation on the following terms and conditions:
A. The Conference Center License, Operations and Management Agreement and the Stadium License, Management and Operation Agreement shall follow the format of the same Agreements between the Brockton 21st Century Corporation and Brockton Professional Baseball, L.L.C., with the following modifications.

i. The initial term of the agreement will be for a period of one (1) year.

If New Corporation or L.L.C. contributes an additional $100,000.00 into its operating account (for a total of $200,000 in capital) the term of the agreement shall extend for an additional four years only with Brockton 21st Corporation and the City of Brockton’s approval. If that approval is granted there will be open negotiations for the allowance of an extension of the lease for years 5-10.
ii. The combined payment under the license agreement shall be One Hundred Twenty-five Thousand ($125,000.00) Dollars, per year.

iii. No Less than Twenty-five Thousand ($25,000.00) Dollars of the licensing payment shall be paid by July 15, 2012 and Twenty-five Thousand ($25,000.00) Dollars will be paid on or before the 15th of each Month through November 15th totaling the Base rent amount of One Hundred and Twenty-five Thousand Dollars ($125,000.00).

iv. The Brockton 21st Century Corporation will pay electricity for the entire Complex for the term of said lease for use commencing after the date of this agreement.

v. Net revenues from naming rights shall be shared equally between the new corporation or L.L. C and the Brockton 21st Century Corporation minus the cost of the production of said sponsorship [definition of “cost of production” would refer to any hard expenses incurred born specifically due to the sale of “naming rights” i.e. signage, P.OS. specific marketing materials, etc..]. The Brockton 21st Century Corporation reserves the right to sell naming rights without further compensation to New Corporation or L.L.C. Any sale of naming rights by New Corporation/L.L.C. is subject to the approval of the Brockton 21st Century Corporation. Any solicitation of Naming Rights to prospective buyers will be communicated with the Brockton 21st Century Corporation and New Corporation/L.L.C.

vi. The Brockton 21st Century Corporation will receive 20% of Net Profit from all Special Events Promoted and executed by New Corporation/LLC or with events where the New Corporation/LLC is in a partnership with a promoter or entity. In addition, the Brockton 21st Century Corporation will Receive 35% of Net Profit from all Special Events where an outside promoter has rented the facility for the purpose of hosting a special event. The New Corporation/LLC will have 30 days to furnish the Brockton 21st Century Corporation with a P&L of the event and a check for their percentage of said event. Until the sum of the TBD Calculation of (old water & sewer bills, Constellation energy debt, and the shortage on Rent and parking for The Shaw’s Center and The Brockton Rox) has been paid, at which time the Brockton 21st Century Corporation will be paid 7% of Net Profit on all Special Events through the remainder of the Lease. The Brockton 21st Century Corporation will be paid 10% of the Net Profit on all special events where an outside promoter has rented the facility for the purpose of hosting a special event. The Term “Special Events” shall refer to all non-baseball events such as Concerts, Boxing, MMA, and any event in which the general public is able to buy a ticket. It shall exclude all privately held events where tickets are not sellable to the general public. The Revenue from “Private events” would fall into the general revenue account and payment would be subject to the revenue thresholds as described in section viii.

vii. The new corporation will spend not less than Thirty Thousand (30,000.00) Dollars promoting the Shaw’s Center and the Baseball Team.


viii. In addition to the payment under the license agreement as required by section A ii (above) ten (10%) per cent of gross revenues (“GROSS REVENUE” shall mean the total dollar amount received by New Corporation or LLC (in all cases less sales or similar taxes) State & Local Meals and Use Taxes, Tips, Gratuities, and Administrative Fees on Food & Beverage on events at The Shaw’s Center) in excess of Two Million Two Hundred Fifty Thousand ($2,250,000.00) and eight (8%) percent of gross revenues*** in Excess of Three Million Two Hundred Fifty Thousand ($3,250,000.00) Dollars in any Calendar year from the combined facilities shall be paid to Brockton 21st Century Corporation as percentage rent. Special Events at the Stadium will be paid separately as listed in section vi. And not be included in the Complex’s general revenue stream.

ix. Subject to the approval by the Brockton 21st Century Corporation which will not be unreasonably withheld, in the event the baseball team is sold, moves to a different league, or changes its character and becomes affiliated with a new league, the terms of the license agreement shall be renegotiated.

x. Within 30 days of the close of each quarter, the new corporation will submit balance sheets and income statements for the Shaw’s Center and the Stadium to Brockton 21st Century Corporation on a quarterly basis. Failure shall constitute a term of default under the lease.

1 comment:

  1. Easily Boost Your ClickBank Traffic And Commissions

    Bannerizer makes it easy for you to promote ClickBank products with banners, simply visit Bannerizer, and grab the banner codes for your selected ClickBank products or use the Universal ClickBank Banner Rotator to promote all of the available ClickBank products.

    ReplyDelete