Who gets how much money in deal that changes Columbus stadium’s name for Double-A Braves?
Two weeks ago, during the groundbreaking ceremony to celebrate the city-funded $50 million renovation of 98-year-old Golden Park, a surprise announcement broke the news that the historic baseball stadium in Columbus has been renamed Synovus Park.
That’s where professional baseball will be played in Columbus for the first time in 17 years, when the Atlanta Braves move their Double-A minor league affiliate from Pearl, Mississippi, to Columbus in time to open their 2025 Southern League season.
It was a surprise not so much because of the name choice. Synovus, a Columbus-based banking and financial services company, is one of the Chattahoochee Valley’s largest employers and a frequent sponsor in the community.
And it was no surprise the naming rights to Golden Park were sold at all. That’s a trend across the nation as public and private organizations seek ways to generate more revenue from their facilities.
What was a surprise? The city won’t receive any money from the sale of the naming rights to the city-owned stadium.
Mayor Skip Henderson told the Ledger-Enquirer that the Columbus Consolidated Government relinquished the naming rights to Diamond Baseball Holdings, a New York-based company that owns and operates 34 minor league baseball teams, including all Atlanta Braves affiliates.
“It was part of the negotiations and was approved by Council as part of the terms of the lease” with DBH, Henderson said in an email to the L-E.
Synovus communications manager Tiffany Capuano and DBH communications director Lauren Flemming declined to disclose how much money was paid for the naming rights and for how many years.
A 2013 study by Team Services, a Maryland-based sales and marketing company specializing in naming rights, says the average total value for naming rights of minor league baseball stadiums was $3.193 million over 13.82 years, and the average annual value was $227,000.
Now, five months after the Columbus Council voted 6-3 to approve the lease with DBH, some councilors still are concerned the city gave away the naming rights, while others insist it’s part of what was needed to bring the Double-A Braves to the Chattahoochee Valley.
During that Jan. 9 council meeting, voting yes were Jerry “Pops” Barnes (now deceased) of District 1, Bruce Huff of District 3, Mayor Pro Tem Gary Allen of District 6, Walker Garrett of District 8, Judy Thomas of citywide District 9 and Tyson Begly of citywide District 10.
Voting no were former Major League Baseball player Glenn Davis of District 2, Charmaine Crabb of District 5 and Joanne Cogle of District 7. Toyia Tucker of District 4 was absent.
After the name change announcement, the Ledger-Enquirer asked the councilors whether they knew the agreement with DBH included CCG relinquishing the naming rights to the city-owned baseball stadium and not receiving any money for it. Four councilors answered before this story’s publication. Here are their responses:
Toyia Tucker of District 4
Absent from the vote, Tucker said she would have voted against the lease.
“We were letting them (DBH) get way too much profit, with the city not getting anything in return (for the naming rights), especially when we’re footing the bill for $50 million,” Tucker said. “… I don’t even recall them mentioning that word for word, that we were letting them rename Golden Park. I feel like we should have had at least some input as the government. I know Synovus is a huge supporter locally. I understand. But I also understand … you can get funds for those naming rights.”
Charmaine Crabb of District 5
Crabb wrote in an email that she is “flabbergasted at the fact that A TENANT is allowed to rename a facility owned by the citizens.”
Relinquishing the naming rights was “alluded to in discussion, and some councilors objected to that,” Crabb wrote. “I voted NO because they had not finalized the lease yet when they were asking us to vote on it. I asked to see the finalized contract prior to voting. I was not going to vote for it unless I saw it. I was only shown a term sheet.”
The city not receiving any revenue for the naming rights, Crabb wrote, “makes me extremely angry! It makes me question the claims of Economic Development for Columbus, it looks as if we gave away our ability for any economic gain and gave it to the baseball team owners.”
Walker Garrett of District 8
Garrett wrote in an email that, during the council’s discussion about the lease, he questioned why the city would give DBH the naming rights.
“I was told if we retained naming rights or got revenue from the naming rights,” he said, “it would be offset with a lower lease payment to the city.”
Tyson Begly of citywide District 10
Begly said via email that the lease terms were clear.
“Based on what I know about the industry, it’s very common for stadiums to get a new name via a corporate sponsor,” he wrote. “My analysis was that even if the City pushed harder for naming rights revenue, it would have resulted in a lower lease payment, which would have resulted in a similar overall economic benefit. I felt it was a more straightforward lease to have a higher lease payment rather than a complicated naming rights revenue arrangement.”
Money details in stadium lease between Columbus and Diamond Baseball Holdings
The agreement with Diamond Baseball Holdings the Columbus Council approved Jan. 9 leases the city’s baseball stadium, what then was named Golden Park, to DBH for 20 years with up two five-year renewals in exchange for the Columbus Consolidated Government renovating and upgrading the stadium to the professional standards for minor league affiliates of Major League Baseball.
Rent: DBH pays CCG $250,000 per year in quarterly installments, increasing every five years by the cost of inflation measured by the Consumer Price Index.
DBH also pays an additional $50,000 per year in each of the first five years. But that annual extra $50,000 won’t be taken into consideration in the sixth and subsequent years when determining the percentage of increase from the CPI.
For example, if the CPI increase in the first five years is 10%, the rent for years 6-10 is $275,000 per year.
From the rent, $200,000 per year goes into the stadium’s fund for repairs and replacements in each of the first five years. Beginning in the sixth year, whenever that fund’s balance is less than $1 million, the city deposits at least $100,000 per year (increasing every five years by the CPI) into the fund until the balance equals $1 million.
Ticket fee: $1 from every ticket goes into the stadium’s repair and replacement fund.
Operating costs: DBH pays all operating costs, including utilities, insurance and applicable taxes (other than real property ad valorem taxes).
Usage and routine maintenance and repairs: DBH occupies, manages and operates the stadium year-round. In addition to baseball and other sports, the lease mentions community, cultural and charitable events, including concerts.
DBH has exclusive rights to all ticketing, food & beverage, merchandise, sponsorships, advertising, marketing and naming rights, as well as stadium operating and event rights. DBH retains all revenue from these rights, except revenue from city events and for parking rights.
DBH pays for stadium operating costs for its events and for routine stadium maintenance and repairs.
Capital improvements, repairs and replacements: CCG pays for capital repairs and replacements due to physical deterioration of the stadium, for capital improvements required by MLB for professional baseball standards (rather than fan amenities) and for mutually agreed capital alterations and renovations, which CCG agrees to build at its expense or reimburse DBH.
If the estimated cost exceeds insurance proceeds or the balance of the stadium’s repair and replacement fund, CCG may decide to not do such work, and DBH may decide to do it. If the estimated cost is greater than the remaining payments owed to CCG and failure to do such work will adversely affect DBH or stadium operations, DBH may terminate the lease.
If DBH pays for required capital repair or replacement, CCG must reimburse DBH for agreed-upon reasonable costs. But CCG doesn’t have to reimburse DBH if the alteration is optional, unless CCG otherwise agrees.
If CCG isn’t obligated to reimburse DBH, or if the amount for the proposed optional alteration is estimated to be more than the remaining payments owed to CCG, and there are less than 10 years left in the initial lease term, DBH may terminate the lease if the optional alteration is needed to make the stadium competitive with stadiums in comparable markets with baseball teams at the same minor league level and failure to make such optional alteration will adversely affect DBH or stadium operations.
CCG isn’t obligated to reimburse DBH for the cost of any required or optional alteration if it exceeds the stadium’s repair and replacement fund, unless CCG otherwise agrees.
City events: Subject to stadium schedule and field conditions, CCG may use the stadium for as many as 10 city-sponsored events per year. CCG retains all net revenue from these events and pays for all expenses related to these events.
Parking: Rates for any city-owned, city-leased or city-controlled parking spaces will be mutually agreed upon between CCG and DBH. Parking revenue for DBH events at the stadium will be equally split between DBH and CCG. This provision doesn’t address any rights to revenue sharing for any parking structure that may be developed, provided that CCG agrees to negotiate in good faith with DBH about such revenue.
Suites: CCG has the right to use one suite (location to be agreed upon) at each DBH-owned event at no cost to CCG, other than payment for food and beverage costs and services. CCG has the right to use all suites at CCG-owned events, subject to terms of the suite holder’s agreement.
This story was originally published June 26, 2024 at 12:00 PM.
