Council Approves Kings Deal
Partners with Alterra on six-year marketing agreement with NHL franchise
Mammoth Lakes Town Council approved a resolution at its meeting Wednesday allocating $675,000 in General Fund support to fund a sponsorship partnership with the Los Angeles Kings.
The agreement is part of an overall, six-year, $2 million sponsorship deal which also involves Mammoth Resorts.
Mammoth Resorts will pay the Kings $225,000 annually for a marketing sponsorship for the first 2/3 of each season (up to March 1). Mammoth Lakes Tourism then takes over for the final 1/3 of the season.
The Town of Mammoth is scheduled to pay $175,000 this year and then $100,000 per year thereafter.
In return, the Kings are supposed to make a $1 million donation to the Town and enter into a use/sponsorship agreement for the proposed Ice Rink/Multi-Use Facility.
As Town Manager Dan Holler said in a phone conversation Thursday, at the outset, the Town approached the Kings about a straight donation for Mammoth’s proposed new rink. What that has morphed into is more of a “trade.”
As Holler pointed out, the Kings will also get the benefit of a tax write-off for their donation, as the check would go to Mammoth Lakes Recreation, a 501c3 organization.
One interesting point in relation to the Town’s funding of its share of the deal.
Paragraph #2 of the resolution states, “Whereas, the Town Council has committed 2.35% of TOT revenues for tourism-related purposes to be provided to Mammoth Lakes Tourism (MLT) with any excess revenues generated over the Town’s base budget to be held in a reserve for the same purposes with use to be approved by the Town Council and in consultation with MLT.”
Meaning, the Town has capped its dedicated payment to MLT.
Holler said it would not have been appropriate for MLT to enter into a contract with the Kings given the uncertainty of its future revenue. Mammoth’s Tourism Business Improvement District (TBID) is up for renewal this year.
If it is not renewed, it would expire on August 31.
MLT’s marketing at Kings games could begin as early as tomorrow, when the Kings host the St. Louis Blues in an afternoon tilt at the Staples Center.
