LITTLE ROCK — AT&T and the War Memorial Stadium Commission released details Thursday of a contract granting the telecommunications giant certain naming rights at the arena after the company rescinded its call for privacy in the deal that potentially earns $1.8 million for the stadium over 10 years.
Commission Chairman Gary Smith had refused to reveal details of the contract, saying it called for confidentiality even though the stadium is a public facility run by governor-appointed commissioners. The Arkansas Democrat-Gazette requested a copy of the contract Wednesday under the Freedom of Information Act.
Smith released details of the contract in a statement Thursday:
“The War Memorial Stadium Commission and AT&T fully respect the Arkansas Freedom of Information Act. AT&T requested that we deem the terms of the agreement confidential to the extent allowed by the Arkansas Freedom of Information Act,” he said. “AT&T competes for sponsorship opportunities throughout the nation and in its highly competitive marketing landscape, it is not uncommon for a corporation to make such a re-quest. However, today AT&T relinquished its right so that the following announcement could be made.”
Dale Ingram, a spokesman for AT&T, confirmed the commission’s announcement.
“As the statement from the commission explains, AT&T competes for many sponsorship opportunities throughout the nation, and we do so in a highly competitive marketplace,” he said in a prepared statement. “It is not uncommon for a corporation to seek confidentiality for the terms of such agreements.”
The AT&T contract states that details shall not be released “except as may be mutually agreed to in writing or as may be required by the Arkansas Freedom of Information Act,” Arkansas Code Annotated 25-19-101.
That law states that “when any state agency enters into a contract with any entity, the contract shall be deemed a public record in accordance with the Freedom of Information Act of 1967.”
Attorney General Dustin McDaniel said late Wednesday that while he hadn’t talked with commissioners about why the information was being withheld, “as a general rule I do not support conducting the public’s business in secret.”
On Thursday, McDaniel released a statement commending the commission’s decision to release the information.
“I want to applaud the efforts of the War Memorial Stadium Commission and AT&T for executing an outstanding agreement that is good for all concerned. AT&T is a key corporate citizen in Arkansas, and I appreciate its dedication to War Memorial Stadium, which is critical to the spirit and economy of Arkansas,” he said.
McDaniel also touted the commission for its work.
“The Commissioners made it clear in the contract that they would always defer to and follow Arkansas’s Freedom of Information Act,” he said. “They did a very good job of ensuring that their actions were consistent with the terms of their agreement and with the law. I personally thank AT&T and the commissioners for erring on the side of transparency and public accountability.”
In the deal, the playing field will be named “AT&T Field.”Outside, the company’s sign will replace a Bank of America sign that faces Markham Street; AT&T signs will also be inside and outside the stadium and the company’s name will be on signs guiding visitors to and from the arena.
The initial term of the sponsorship is five years, for which AT&T will pay $175,000 annually. If the company renews the contract, the second five-year term includes 2.5 percent annual increases, soin year six AT&T would pay $179,375 and in year 10 the company would pay $197,996.
The agreement also calls for the commission to pay the cost of installing the signs, which Smith estimates to be $50,000.
“Their independent consultant valued the agreement at $167,000 per year with us paying the initial sign cost,” Smith said. “Our consultant valued the agreement at $169,441 per year and suggested that we pay half of the initial sign cost.”
“By getting the $175,000 and covering the sign cost totally, we will net an average of $165,000 per year for the first five years, where their consultant thought we should net about $157,000 per year,” Smith said.
If AT&T is not going to renew the contract in five years, it must provide the stadium commission nine months’ notice. If it chooses not to renew at the end of the full 10 years, it must provide a year’s notice.
“We didn’t want them to come up in the last 30 days and say we’re not going to renew,” Smith said. “At the end of 10 years, we have to negotiate with them exclusively for 90 days, but beginning July 1, 2019, we can negotiate with anybody.”
Smith said the contract is the largest sponsorship deal for the stadium in its 62-year history.
The AT&T deal was made possible by the expiration of the commission’s $80,000-a year sponsorship agreement with Alltel, which is now Verizon. The commission also has an agreement with Regions Bank, which pays $25,000 annually to advertise on both scoreboards.
“We feel very good about it, as you can imagine,” he said. “In these economic times, we feel very fortunate to gain a sponsorship this large.”
Ingram said AT&T is proud to be a part of the stadium.
“AT&T appreciates the War Memorial Stadium Commission and everyone who has had a role in making the stadium a special place for all Arkansans,” Ingram said. “We are honored to join them in ensuring it remains a tribute to our fallen heroes.”
The new logo is one of several changes Razorback fans may notice this fall.
The stadium is undergoing renovations, and an $8 million press box is expected to open in August in time for the 2010 Razorback football season. The Hogs will also be playing on new turf.
The stadium was built in 1948, sits on public land and is surrounded by the public War Memorial Park. It hosts University of Arkansas football games as well as the Delta Classic between the University of Arkansas at Pine Bluff and Grambling State University in Louisiana.
Arkansas, Pages 11 on 06/25/2010