Ads up for grabs
The Aloha Stadium Authority will be seeking bids for selling space
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The right to sell advertising with Aloha Stadium will go out to bid following a decision by the Stadium Authority yesterday not to extend its current contract.
The vote by the board at its monthly meeting called for a request for proposals to be issued for the stadium's advertising contract.
The University of Hawaii could be among the entities interested in assuming the task of selling ad space within the Halawa facility, though athletic director Herman Frazier declined to speculate on the school's potential role in the process.
The Authority took issue with wording within the current contract, and chairman Kevin Chong Kee said the board decided to refine the terms rather than exercise an option to extend the pact.
The current contract expires in April and is held by Hawaii Malls, which has acted as the stadium's agent in soliciting advertisers since 1999. Company officials projected ad revenues, which are largely driven by UH football, to top $411,000 this year. Those revenues go into the stadium's fund with a 19 percent commission paid to Hawaii Malls.
Hawaii Malls sells the ads that appear on the stadium structure, adding banners hanging from the concourse bridges this year, as well as those appearing on the scoreboards and the commercials running on the Jumbotron. UH generates revenue through on-field advertising at its football games.
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The Aloha Stadium Authority yesterday voted against extending its current advertising contract, opening the way for other entities -- potentially including the University of Hawaii -- to bid for the right to handle ad sales within the stadium.
A "faulty mechanism" within the existing contract held by Hawaii Malls led to the board decision not to exercise a one-year option included in the current three-year deal that expires next April.
The board plans to issue a request for proposals by the end of the year and set a goal of having a new contract in place by April.
UH athletic director Herman Frazier attended the meeting and declined to speculate on the school's possible interest in bidding on the contract.
"I have no idea, it just happened," Frazier said as he left the meeting. "I haven't had a chance to talk to our people."
Hawaii Malls has held the contract since 1999, acting as an agent for the stadium in soliciting advertising sales. In a presentation to the board, company representatives reported that it had sold more than $350,000 in ads for the stadium last year, covering the areas stated in the contract. They also projected revenues -- driven primarily by UH football -- to top $411,000 this year.
The revenues from ad sales go into the stadium's fund, with a 19 percent commission paid to Hawaii Malls. The terms could change depending on the outcome of the bidding process for the new contract.
The board took issue with wording in the current contract, which doesn't allow advertising sales beyond the deal's expiration date. Following an executive session, the six board members present voted unanimously to end the current contract to refine the terms.
"What the board wants to do is, instead of extending, reword the way the contract is stated and provide that we can have continued revenue from advertising past the limit of the licensee," said board chairman Kevin Chong Kee.
"That was a problem for us because you'll never get out of that contract, you'd always have to extend it."
As it stands, both Hawaii Malls and UH are selling ad space within the stadium.
Hawaii Malls is responsible for ads appearing around the stadium structure and on the scoreboards, as well as commercials shown on the Jumbotron. Those revenues go into the special fund, with those monies released to the stadium by the Legislature.
UH, which bid for the contract in 2005, generates revenue at football games through ads appearing on the on-field signage along the sidelines, behind the end zones and on the nets behind the goal posts.
A subcommittee of Authority members Kenneth Marcus, Marcia Klompus and Kathryn Inouye was formed to look into recommendations in crafting the new RFP.