JMA Wireless to take over Carrier Dome Naming Rights | Page 6 | Syracusefan.com

JMA Wireless to take over Carrier Dome Naming Rights

SuFTW said:
Right, may not be a formal announcement but it may come out in other ways. That tax filing may not be for a while.
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Who's tax filing? JMA's? There's no requirement for them to report this deal in their tax filings, plus the obligation will be on the balance sheet, so you would have to deduce from a change in their liabilities, or possibly their advertising expense, assuming you can pull from all the other advertising expense it does. Plus, tax filings for companies are not public.

If it's SU's, not sure how you would find it in their tax filing.
 
SU68 said:
True, but the amount should be indicated on JMA's tax filing at some point. I believe that the naming, as advertising, is a pre-tax deduction.
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Again, how would one get a copy of their tax filing? It's private. IRS just doesn't hand those over to anyone. Plus, an accrual would be needed based on the term of the contract. If we don't know the number of years, then even if we could pull the dollars out of all their advertising costs, we wouldn't know the per year amount.
 
texascpa said:
According to another post, JMA's annual revenue (not profit) is only $153M/year. I would be highly surprised if it's multiple millions/year.
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I believe it’s much higher. 350-400 million a year is more accurate.
 
rrlbees said:
It’s not cheap. It cost $15m+ to do the super bowl stadium. The dome would be less but it’s still going to be millions. And if they do the whole campus, it’ll be many more millions.
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Preferred vendor contract will give SU a 10-20% discount.

For argument’s sake, SU will be paying them $10M for entire campus infrastructure upgrade. Maybe $20M. Let’s say JMA would charge someone $24M for a similar project. $4M savings but JMA gets business and likely still makes a profit in the end.

That’s a one-time upgrade. The naming rights are over a multi-year deal. Pretty sure all of these vendors that have deals with other stadium owners have similar deals.

JMA wins by doing this deal not only for the campus infrastructure project but also for the name recognition that brings with it other business.

As I said, based on market that’s out there recently for these types of deals, it should be multi-million dollar per year deal. If it’s only, let’s say, 10 years, $10 million, that is a severe discount compared to peer programs and would be disappointing IMO.
 
City of Cuse said:
Not sure if already posted, but 97.7 had the gentleman who broke the news on and he estimated from his sources the deal is 5mil/year.
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This would be much more than I would have thought, but more in line with market value than a sub-$1M/year structure.
 
City of Cuse said:
Not sure if already posted, but 97.7 had the gentleman who broke the news on and he estimated from his sources the deal is 5mil/year.
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If that is true, it would be an impressive deal for SU.

Here is a list of naming gifts for college athletic facilities.

Naming Rights Deals

Updated as of 12/2/14: This list only includes facilities owned by the school or a related-entity. It does not include city-owned or professional venues. * Naming...
businessofcollegesports.com businessofcollegesports.com

What are the biggest one?

It says Providence is getting $4 million for naming rights to their arena. But I see that arena is owned by the Rhode Island Convention Center Authority. Perhaps they get a cut of it.

NC State is reportedly getting $80 million for 20 years of naming rights for their basketball arena. But the document says that money gets split 3 ways. So assuming an even split of the revenue, they are likely getting in the range of $1.33 million per season.

That is around where most of these agreements land. In the $1-&2 million/year range.

The dome is unique given it hosts 2 marquee sports (and a couple of others on TV quite a lot).

Very interested to see what this agreement lands...
 
A different facility to be sure but the MVP Arena in Albany was recently awarded with a contract valued at $10M over 5 years. The contract value is split at $600k/yr for naming rights and $1.4M/yr to promote events at the facility.
 
texascpa said:
Who's tax filing? JMA's? There's no requirement for them to report this deal in their tax filings, plus the obligation will be on the balance sheet, so you would have to deduce from a change in their liabilities, or possibly their advertising expense, assuming you can pull from all the other advertising expense it does. Plus, tax filings for companies are not public.

If it's SU's, not sure how you would find it in their tax filing.
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texascpa said:
Again, how would one get a copy of their tax filing? It's private. IRS just doesn't hand those over to anyone. Plus, an accrual would be needed based on the term of the contract. If we don't know the number of years, then even if we could pull the dollars out of all their advertising costs, we wouldn't know the per year amount.
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What makes you such an expert, texasCPA? ;)
 
texascpa said:
Who's tax filing? JMA's? There's no requirement for them to report this deal in their tax filings, plus the obligation will be on the balance sheet, so you would have to deduce from a change in their liabilities, or possibly their advertising expense, assuming you can pull from all the other advertising expense it does. Plus, tax filings for companies are not public.

If it's SU's, not sure how you would find it in their tax filing.
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Yeah, thanks, wasn someone else’s claim on the tax filing.
 
Not many naming rights deal covers 5 major sports teams. The Dome gets exposure through Football, mens and women‘s basketball, and mens and women‘s lacrosse. It’s not just a one season sport.
 
texascpa said:
Again, how would one get a copy of their tax filing? It's private. IRS just doesn't hand those over to anyone. Plus, an accrual would be needed based on the term of the contract. If we don't know the number of years, then even if we could pull the dollars out of all their advertising costs, we wouldn't know the per year amount.
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If a company is incorporated with stockholders, is the filing still private?
 
SU68 said:
If a company is incorporated with stockholders, is the filing still private?
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Yes. Stockholders don't have any more insight to tax filings, or even financial information, than anyone else. Tax filings are not public record, and quarterly/annual reports are easily accessible by anyone, even non-shareholders.

Can you imagine the scrutiny and circus we would see if tax records of companies were public? And before someone argues "companies wouldn't get away with all the tax cheating they do if the public had access to their tax filings!", think about that for a minute. You would trust your own non-expert eyes versus those of the IRS's? If there is one government agency out that there that generally understands what they do better than the average joe, it's the IRS.
 
SuFTW said:
Yeah, thanks, wasn someone else’s claim on the tax filing.
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If I understand what you're saying and the person you are referring to, yes, he is correct. Just because others volunteer their filing doesn't mean anyone else has an obligation to release theirs.
 
SUFan44 said:
Preferred vendor contract will give SU a 10-20% discount.

For argument’s sake, SU will be paying them $10M for entire campus infrastructure upgrade. Maybe $20M. Let’s say JMA would charge someone $24M for a similar project. $4M savings but JMA gets business and likely still makes a profit in the end.

That’s a one-time upgrade. The naming rights are over a multi-year deal. Pretty sure all of these vendors that have deals with other stadium owners have similar deals.

JMA wins by doing this deal not only for the campus infrastructure project but also for the name recognition that brings with it other business.

As I said, based on market that’s out there recently for these types of deals, it should be multi-million dollar per year deal. If it’s only, let’s say, 10 years, $10 million, that is a severe discount compared to peer programs and would be disappointing IMO.
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Ok?
 
SUFan44 said:
Ok? Ok. Multi-million dollar deal per year is what it should be. Regardless of the work you have replied “would offset” anything.
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Did I ever say anything differently? You seem to be triggered. Go read my post using examples. Offset also doesn’t mean all of it. Read the post.
 
SUFan44 said:
Ok? Ok. Multi-million dollar deal per year is what it should be. Regardless of the work you have replied “would offset” anything.
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Here’s the only point I made. For example, if they were to give us $2m/yr for 10 years that would be $20m. If the cost to install 5G in the dome is $5m, the net would be $15m plus the work. If they do the full campus and it would cost $20m, we’d likely get no money. Of course these are all made up numbers because I have no idea what they should be. But the 5G work whatever it is will offset part of what they would give us in naming rights.
 
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