Syracuse remains wed to Carrier as college naming rights industry takes off

first_imgUPDATED: Oct. 10, 2017 at 3:23 p.m.One morning in February 1979, then-Syracuse University Chancellor Melvin Eggers stood at a podium in Drumlins Country Club and announced a charitable gift that would alter the course of Syracuse sports history. It was believed to be a needed donation to finance construction of the new stadium on campus, but with it came unintended consequences.“It is most gratifying,” Eggers said that day, “that the keystone for this project — a major investment in central New York and a vote of confidence in SU — comes from Carrier, a most wonderful neighbor to everyone in the community.”With those words, Eggers set in motion a $2.75 million agreement between Syracuse and Carrier Corp., then the world’s largest manufacturer of air conditioning units and heaters. It was not a naming rights deal but a one-time gift, which contributed to keeping Dome construction on time.Now, more than 38 years later, the Dome is a fixture of central New York but leaves SU with an untapped source of revenue: a naming rights deal. Last fall, Syracuse was attempting to end its deal with Carrier, according to Bloomberg. By not getting out of its current agreement, Syracuse University is missing out on about $1.5 million per year in naming rights for the Dome, according to experts.AdvertisementThis is placeholder textBased on industry trends, renovations could tie into a name change as part of a wider rebranding. The university has said it will make significant upgrades to the Dome, including the installation of an air conditioning system and new roof. A timetable has not been announced.Syracuse University and Carrier Corp. did not reply to requests for comment on this story.Andy Mendes | Digital Design EditorIn the months before Eggers stood at Drumlins, Syracuse needed to raise $9 million over an 18-month period to meet the September 1980 deadline. The university was searching for a private business to make a gift, and SU could not find any bidders until Carrier’s pledge. As a courtesy, Syracuse named the facility after the firm.Members of the SU Athletic Policy Board, which influenced the university’s decision to construct the Dome, said they believe Eggers made a phone call with Carrier Corp. sometime after New York state gave SU $15 million to start the project. Then, without much conversation with colleagues, Eggers inked the agreement with Carrier Corp.“We got a hell of a deal from the state on that,” said Ronald Cavanagh, a former professor at SU and member of the Athletic Policy Board. “Why Mel turned around and did what he did with Carrier on the naming is beyond me.”Melvin Holm, former Carrier Corp. chairman, promised his gift would lessen fears that Carrier, headquartered in Syracuse and the city’s largest employer, would leave the area. Yet, in 2004, the company closed the two manufacturing plants in East Syracuse, laying off 1,200 workers and moving those operations to Asia and the South.Throughout the 2000s, as Carrier’s footprint in the region faded, there were still discussions between SU and Carrier. In 2009, SU named the field at the Dome “Ernie Davis Legends Field,” in honor of SU’s 1961 Heisman Trophy running back. While most fans interviewed by The Daily Orange said they refer to the facility as just “the Dome” or “Carrier Dome,” there had been backlash for why the facility was not named in Davis’ honor in the first place.Dr. Jake Crouthamel, the athletic director at the time, said the deal with Carrier seemed necessary. The deadline to finance the Dome was looming. Buried in chapter 7 of a Syracuse sports stadium feasibility study from April 1976 are several paragraphs detailing how the cost to build large new stadiums spiked, somewhere between $5 million and $30 million. The Dome, a first-of-its-kind venue on a college campus, cost $31 million, according to SU tax documents.Meanwhile, bond interest rates had risen while ticket prices stagnated. As a result, revenue per seat had not risen as fast as the cost of providing the seat. The problem of financing a stadium had become difficult, especially for a private university like Syracuse that gets no state or federal funding for its operations.“The donation was better than nothing and nothing was what we were dealing with,” Crouthamel said. “In retrospect from a purely financial standpoint it was not a good deal, but it was the only deal out there and that to us was sure better than nothing.”Daily Orange File PhotoA late-1970s university-wide fundraising project raised more than $35 million, which was allocated to mostly academic buildings and programs. About $6.5 million of that went toward the Dome. Why more of that $35 million wasn’t allocated is “beyond me,” Cavanagh said.Nevertheless, a $15 million sum from the state accelerated the project. The state tacked on an additional $1 million to implement additional safety design, while $6 million came from the general operating fund at SU. Carrier’s gift brought SU’s funding drive to more than two-thirds complete, at around $21 million. More important, it made meeting deadline likely.“Without that donation,” said David Kaval, a lecturer in management at Stanford’s Graduate School of Business, “the Carrier Dome probably wouldn’t be here.”The Dome project made naming rights deals more common for financing facilities, said Kaval, who is also the president of the Oakland Athletics and San Jose Earthquakes. He said the Dome ushered in a new era of getting stadiums completed via gifts and, over the next couple of decades, corporate sponsors.In the Atlantic Coast Conference, Louisville (Papa John’s) and Wake Forest (BB&T) are the only two schools with football naming rights deals. Nationwide, Washington, USC and Kentucky are among football programs with million-dollar deals. Pitt and Miami also play in stadiums with naming rights, but they don’t belong to the universities.With the San Jose Earthquake’s stadium, Kaval said that Avaya, a technology company and an existing partner, inquired about the possibility of a naming rights deal. One of SU’s existing partner could do the same, Kaval said. Some organizations hire a third-party firm to seek potential sponsors.“It’s like a marriage,” Kaval said. “You need to make sure you get to know the other group and be patient. There’s so much pressure to get stuff down yesterday. Both parties need to feel they get something out of it.”Experts said football stadiums can bring in lower price tags than arenas because, in part, sponsors are more willing to pay for facilities with multiple tenants. The Carrier Dome, which hosts football, basketball, lacrosse, Monster Jam and concerts, fits that bill and could be an effective sales point to companies, said Patrick Walsh, an associate professor of sport management in the David B. Falk College of Sport and Human Dynamics.Plus, naming rights deals can represent a few percentage points of an athletic department’s revenue. Naming rights are a revenue driver and can create positive associations between brands and teams, Walsh said. That’s important because over the past decade, only about 25 FBS schools generated more revenue than they spent, according to NCAA reports.Walsh cautions against the over-commercialization of college sports. Fans may respond negatively toward what could be a more corporate feel. Schools are also reluctant to pursue corporate name tags because, if the company moves out of town or struggles to sustain itself, like Carrier, the name doesn’t have as much weight or tie in the community, Walsh said.One particular challenge with the Dome, Walsh noted, is that because it’s been under the same name for nearly four decades, it would take “a long time” for people to call it the new name.It could be logical for a Dome naming rights deal to finance any potential renovations, Walsh said. At USC, revenue from its recent naming rights deal will reportedly help offset the $270 million renovations to the stadium, which are in the early stages. In 2013, Washington’s Husky Stadium got a $282 million makeover, before the university made an agreement with Alaska Airlines. The partnership benefits Washington because its teams use the airline for discounts on sports travel, which can be costly.“For any naming rights partnership to be successful,” Walsh said, “it can’t just be simply slapping the name on the side of an arena. That’s good from an awareness perspective, but you want both parties to be more involved with each other.”Back on the muggy Saturday night of Sept. 20, 1980, the Carrier Dome opened its doors. Holm, of Carrier, walked down a carpet toward midfield, alongside Eggers and other leaders of the Dome project. Holm waved to the sold-out Dome in its debut, a football game against Miami of Ohio.“You Mr. Holm gave this project the push that got it into high gear,” read the announcer, Marty Glickman.With that, Holm received a round of applause. He walked back off the field and down a Dome tunnel, the beneficiary of relatively small gift whose effects still linger nearly 40 years later.CORRECTION: In a previous version of this post, a graphic element misstated Syracuse University’s gift from Carrier Corp. as an annual payout. The university received the money as a one-time gift. The Daily Orange regrets this error.CORRECTION: In a previous version of this post, the David B. Falk College of Sport and Human Dynamics was misnamed. The Daily Orange regrets this error. Comments Published on October 9, 2017 at 11:55 pm Contact Matthew: mguti100@syr.edu | @MatthewGut21 Facebook Twitter Google+last_img read more

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first_img Comments   Share   Former Cardinals kicker Phil Dawson retires – / 26 The last time the Cardinals were 9-1, the team called Chicago home, Harry S. Truman was the president and the Phoenix metropolitan area was still two decades away from landing its first professional sports franchise.Well, it took 66 years, but the Cards are back in the rarefied air of a 9-1 record after their hard-fought 14-6 win over the Detroit Lions last Sunday at University of Phoenix. Drew Stanton, making the first start of his second stint as Arizona’s starting quarterback this season, threw two first-quarter touchdown passes and the defense held the Lions out of the end zone to push the Cardinals’ winning streak to six. Even some of the Stanton naysayers, who believed Arizona’s inclusion in the group of true Super Bowl contenders died when Carson Palmer blew out his ACL, have given the Cardinals credit (looking at you, Shutdown Corner.)Here’s a look at the Cardinals’ spot in some of the leading Week 12 NFL power rankings from around the country. The 5: Takeaways from the Coyotes’ introduction of Alex Meruelo Top Stories Derrick Hall satisfied with D-backs’ buying and selling Grace expects Greinke trade to have emotional impactlast_img read more

CPPIB plans safer investing structure for hike in Canada Pension Plan contributions

first_img More Canada Pension Plan contribution rates for both employees and employers will rise to 5.95 per cent by 2023 from 4.95 per cent in 2018.Getty Images Comment Reddit advertisement Twitter Featured Stories The country’s biggest public pension fund says it has laid the lower-risk groundwork to invest increased Canada Pension Plan contributions that start in 2019.The Canada Pension Plan Investment Board (CPPIB), which invests funds for the CPP, said it will begin receiving and investing those additional amounts this week.The added CPP contributions follow a deal that was struck by the federal and provincial governments in 2016 to enhance the plan and bolster payouts to retirees. Contribution rates for both employees and employers will rise to 5.95 per cent by 2023 from 4.95 per cent in 2018.CPPIB is shorting $750 million worth of EU stock, making it one of the most active short-sellers in Europe, data showTrade war, market drag creating opportunities in China, CPPIB chief saysMinimize your 2018 tax bill with these seven last-minute tips“Over the past year, CPPIB has worked to ensure that both the base CPP and the additional CPP amounts will be managed efficiently and with a view to the opportunities that may be created as the CPP Fund grows,” Mark Machin, CPPIB’s chief executive, said in a press release.“We will invest the additional stream of CPP with the same attention to appropriate growth, risk control and transparency that Canadians count on.”According to the release, the CPPIB has crafted an investment structure that will cover the different needs of the base CPP and the expanded one.“This structure ensures fairness between the base CPP and additional CPP accounts, and that both benefit from CPPIB’s strengths and have a widely diversified portfolio with appropriate distinct risk characteristics for each account,” CPPIB said.The extra CPP contributions arrive on the heels of a rocky year for the markets, so risk may be on the mind of many investors heading into 2019.However, CPPIB’s strategy for investing the extra CPP contributions could involve less risk than the one it uses for the base fund as it has said the additional account will be fully funded from the start.In its 2018 annual report, the CPPIB said it would establish two investment pools on Jan. 1, 2019, one of which (the “lower-risk” Supplementary Pool, which would be in addition to the Core Pool) would only have assets of the additional CPP account invested in it. The Supplementary Pool would also only be made up of fixed-income securities.“The Supplementary Pool is designed in such a way that, when combined in the right proportion with the additional CPP account’s interests in the Core Pool, the resulting overall risk and the underlying exposures are appropriate for the additional CPP,” the report said.As of Sept. 30, 2018, the CPP Fund had assets worth nearly $370 billion. The CPPIB’s annual report added that the fund’s two accounts are each expected to have assets of around $840 billion by 2055.At a June meeting of the House of Commons’ finance committee, Machin said the additional CPP “is more of a fully funded pool of capital versus the base CPP, which grows into its liabilities over the long term.”Therefore, he added, according to a transcript, “we’re going to run a lower risk for the additional CPP and we’ll continue with the base CPP at the current risk levels.”• Email: gzochodne@nationalpost.com | Twitter: Recommended For You’We were experiencing headwinds’ — Canopy Growth stock heads south on poor sales ramp-upShaw Communications is selling its stake in Corus Entertainment for $548 millionB.C. vows to appeal after top court says province can’t restrict oil shipments across its bordersProtests, legal challenges planned to block Trans Mountain expansionFINCAD Now Accepting Applications for its 2019 Women in Finance Scholarship Email What you need to know about passing the family cottage to the next generationcenter_img 0 Comments CPPIB plans safer investing structure for hike in Canada Pension Plan contributions The extra CPP contributions arrive on the heels of a rocky year for the markets so risk is on investors’ minds ← Previous Next → January 2, 20197:00 AM ESTLast UpdatedJanuary 2, 20191:08 PM EST Filed under News FP Street Facebook Geoff Zochodne Join the conversation → Share this storyCPPIB plans safer investing structure for hike in Canada Pension Plan contributions Tumblr Pinterest Google+ LinkedIn Sponsored By: last_img read more