Sprint blasts Enterprise (and announces arena commitment)

QueSi2Opie · Post by **QueSi2Opie** » Thu Jul 22, 2004 4:58 pm

Sprint announces terms of arena commitment
Sprint Corp. will commit about $2.5 million a year for 25 years -- or $62.5 million -- to buy naming rights for a proposed downtown arena in Kansas City, to be called the Sprint Center. That commitment would decrease by $800,000 a year -- to $1.7 million, or a total of $42.5 million -- if the arena doesn't attract a team from the National Basketball Association or the National Hockey League as an anchor tenant, company spokesman Bill White said.

At a news conference at Sprint's Overland Park headquarters, CEO Gary Forsee said he expects to land an NBA or NHL team and also anticipates the Big 12 Conference's basketball tournament will return to Kansas City after the arena's scheduled opening in 2007.

Forsee said the outlay represents a good investment for Sprint, amounting to less than 0.5 percent of the company's annual advertising budget of about $700 million.

"Sprint's financial well-being and growth prospects are inextricably tied to the health and vibrancy of Kansas City," Forsee said. "We need to be able to attract and retain a creative, enthusiastic work force if we are to compete against larger rivals."

Kansas City voters will decide Aug. 3 whether they want to boost hotel and rental car taxes to pay $143 million of the arena's cost, estimated at $225 million to $250 million. The vote must pass for the arena to be built.

Forsee blasted opponents of the proposed tax, led by Enterprise Rent-A-Car, as "short-sighted" and "myopic."

"Their arguments are misguided," he said. "They want to prevent economic growth and vibrancy for our region, and that makes no sense at all."

Officials with Enterprise could not be reached immediately for comment.

Forsee said he plans to talk with other corporate executives to rally support for the arena. But the Leawood resident won't be able to vote for the tax.

Sprint's deal with the Anschutz Entertainment Group Inc., which will pay $50 million to operate the arena, includes rights to develop exclusive branding opportunities within the arena in addition to the external signage.

Sprint also will get access to suites and premium tickets for arena events, along with the chance to roll out new technology at the arena.

The $62.5 million deal is a good amount for AEG and a good amount for the city, said David Wilkinson, whose Burlingame, Calif.-based advisory firm put together Pacific Bell's $50 million naming rights deal for the San Francisco Giants new stadium in 2000. He said the real value of the deal won't be seen until Sprint unveils its advertising strategy within the arena.

"To me, the name on the building means relatively nothing," Wilkinson said.

Steve Epstein, a Kansas Citian who was laid off by Sprint in January 2003, said the company's investment represents a raw deal to the more than 23,000 people who have been cut since 2001 at Sprint.

"I know it's marketing dollars, it's not payroll," Epstein said. "At the end of the day, it's all out of the same bucket. It's rubbed a lot of people the wrong way."

Epstein said he will not vote for the arena, and expected other laid off ex-Sprint employees to do the same.

Beltonhawk · Post by **Beltonhawk** » Thu Jul 22, 2004 5:10 pm

Steve Epstein, a Kansas Citian who was laid off by Sprint in January 2003, said the company's investment represents a raw deal to the more than 23,000 people who have been cut since 2001 at Sprint.

"I know it's marketing dollars, it's not payroll," Epstein said. "At the end of the day, it's all out of the same bucket. It's rubbed a lot of people the wrong way."

Epstein said he will not vote for the arena, and expected other laid off ex-Sprint employees to do the same.

Wow, I didn't think of that angle - the laid off Sprint workers not voting for the arena out of spite. Or people who just hate Sprint in general.

I wonder how many laid off Sprint workers live in KCMO?

Post by **staubio** » Thu Jul 22, 2004 5:15 pm

I'd guess not many. I work there and I can count the KCMO residents that I know on one hand.

EDIT: make that two hands.

ignatius · Post by **ignatius** » Thu Jul 22, 2004 5:29 pm

It's hard for laid-off Sprint employess to understand but Sprint had only 12,000 local employees before the dotcom bubble and now has 18,000. Take away the bubble and the growth is about right. Those laid off were a victim of a crazy time, not Sprint specifically. Also, Sprint and the other telecomms were having to compete with Worldcomm's insane business practices and thought they were just keeping up.

JBinKC · Post by **JBinKC** » Fri Jul 23, 2004 11:29 am

I worked at Sprint and live in KCMO. I didn't get laid off, but even if I did I wouldn't even think of complaining about naming rights for an arena for the reason I didn't have a job. Naming the arena is a strategic marketing move. Every major company does it and Sprint is late to the game. Do they think Sprint should pull all PCS commercials so they can keep their job??? Same thing. They just have misguided anger and this is an easy target. If they were smart they'd realize that since they don't have a job it is in their best interest to vote for the arena and KC development.

GRID · Post by **GRID** » Fri Jul 23, 2004 1:08 pm

I heard where this is like .05% of Sprint's marketing budget.

scooterj · Post by **scooterj** » Fri Jul 23, 2004 1:11 pm

Yeah, the "they shouldn't be a sponsor since they laid off so many" argument is lame. Everyone had layoffs, we only heard about Sprint because they are local. Now Sprint is trying to turn things around. Why stop them?

Post by **staubio** » Fri Jul 23, 2004 1:19 pm

They probably spend just as much to put their logo all over Arrowhead -- and that isn't a bold move to give downtown a boost. People are just more outspoken because this is more publicized "big deal" and there is some controversy. People who complain about this don't understand how a major corporation operates.

Post by **dangerboy** » Fri Jul 23, 2004 2:00 pm

Kay's gettin' all up in Enterprise's grill...

[quote]â€œI'm not going to let some company from St. Louis come in here and tell us we cannot have a future,â€

KCN · Post by **KCN** » Fri Jul 23, 2004 2:37 pm

Perhaps MKB would want to consider something like this to tie Sprint Center in with Bartle Hall....facing east of course

QueSi2Opie · Post by **QueSi2Opie** » Fri Jul 23, 2004 3:08 pm

KCNorthlander wrote:Perhaps MKB would want to consider something like this to tie Sprint Center in with Bartle Hall....facing east of course

Hell no!!! I hate the sky stations! They look like giant hair-curlers.

scooterj · Post by **scooterj** » Fri Jul 23, 2004 3:19 pm

I think you're missing the point.... look closer.

QueSi2Opie · Post by **QueSi2Opie** » Fri Jul 23, 2004 4:40 pm

scooterj wrote:I think you're missing the point.... look closer.

Damn! I cannot believe I missed that! Nice job, that's some funny shit.

Thanks for pointing that out, Scooter!

scooterj · Post by **scooterj** » Fri Jul 23, 2004 4:52 pm

Of course you'll want to reorient that scultpure ever-so-slightly to the southeast. Otherwise the people of Troy, MO will be scratching their heads wondering what they ever did to us.

KCN · Post by **KCN** » Fri Jul 23, 2004 4:53 pm

Eh, screw em all!

Xpatriate · Post by **Xpatriate** » Fri Jul 23, 2004 11:38 pm

ShowME · Post by **ShowME** » Thu Jul 29, 2004 6:36 pm

ShowME's email to Enterprise:

"I'm originally from St. Louis and still attend many sports/civic events in your community. Many of my Kansas City friends love to point out that I'm definitely a St. Louis supporter. But after what I've witnessed the past 30 days from your company and from Fleishman Hillard I'm embarrassed to even call St. Louis home. I've already began discouraging as many people as possible from using your services and if this arena issue fails I promise to never support any St. Louis team, service or company. Your ads that you fund are an outright lie, your policies you practice(mainly selling insurance when you don't need it) are downright scandalous. I guess it's a safe bet to say that you may as well add the entire KC Metro area along with the rest of the state of Missouri that despises your city. Now I have first hand knowledge of it."