Title
a. Approve a Sponsorship Agreement between MacNeil Automotive Products Limited (“WeatherTech”) and the County of Monterey for exclusive title sponsorship of the Raceway at Laguna Seca Recreational Area.
b. Authorize the Chair of the Board to execute the Agreement.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Approve a Sponsorship Agreement between MacNeil Automotive Products Limited (“WeatherTech”) and the County of Monterey for exclusive title sponsorship of the Raceway at Laguna Seca Recreational Area.
b. Authorize the Chair of the Board to execute the Agreement.
SUMMARY/DISCUSSION:
Sports Car Racing Association of the Monterey Peninsula (SCRAMP) and Mazda Motor of America, Inc. (Mazda) entered into a Sponsorship Agreement on March 1, 2006, allowing Mazda to be the exclusive title sponsor of the Raceway and the facility became known as Mazda Raceway Laguna Seca. The original agreement expired on March 31, 2011.
The Sponsorship Agreement with Mazda was first amended effective April 1, 2011, with an expiration date of March 31, 2012; a second amendment extended the agreement an additional five (5) years, effective May 1, 2012, through April 30, 2017; a third amendment, effective February 17, 2014, expired on March 24, 2017; and, a fourth amendment, dated March 24, 2017, extended the agreement through March 31, 2018. The naming rights agreement with Mazda ends on March 31, 2018. Mazda will remain as an engaged premier sponsor during the 2018 and 2019 seasons.
County and the Sports Car Association of the Monterey Peninsula (SCRAMP) staff have negotiated a potential Sponsorship Agreement with MacNeil Automotive Products Limited, also known as WeatherTech. The potential agreement shall be effective April 1, 2018, for a term of five (5) years. Beginning on October 1, 2022, WeatherTech shall have the exclusive right of first negotiation to enter into a new five-year Sponsorship Agreement with the County for years 2023-2027.
During the term of the agreement, the Raceway shall be referred to as the “WeatherTech Raceway at Laguna Seca.” In consideration for County obligations under the agreement, WeatherTech shall pay County a minimum of five (5) million dollars in installments equal to one (1) million dollars per year.
WeatherTech sells and distributes floor and cargo liners and other products for motor vehicles. Securing a naming rights sponsor that is not a car manufacturer, opens the door for manufacturers to become more involved in race events and other special events and allows additional manufacturer-specific programs to utilize the track, e.g., testing, “Ride & Drive” and promotional days.
OTHER AGENCY INVOLVEMENT:
The County Administrative Office and SCRAMP collaborated on development of the agreement.
FINANCING:
The Sponsorship Agreement provides for additional funding which will be available to continue the capital improvements required at Laguna Seca Recreational Area.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
The items included in this report relate to the Board of Supervisors Strategic Initiatives on Economic Development.
Mark a check to the related Board of Supervisors Strategic Initiatives
X Economic Development
__ Administration
__ Health & Human Services
__ Infrastructure
__ Public Safety
Prepared by: Lavonne Chin, Special Events Manager, CAO-Budget & Analysis Division
Approved by: Dewayne Woods, Assistant County Administrative Officer
Attachments: Sponsorship Agreement
(Hard copies on file with the Clerk of the Board.)