1.1. The purpose of this Policy is to:
- 1.1.1. Define the criteria under which Council will enter into sponsorship agreements with a sponsor for its events and facilities.
- 1.1.2. Provide guidance to potential sponsors considering entering onto a sponsorship agreement with Council, and to the public to ensure confidence and transparency in the process.
2. Key Definitions
- Event: Any event, programme or campaign organised by Timaru District Council, on its own, or in partnership with another local authority or any other organisation.
- Facility: Includes all existing or planned Council-owned facilities and infrastructure or products.
- Sponsor: A sponsor is any business, organisation or individual who enters into a sponsorship agreement with Council.
- Sponsorship: A commercial agreement between Council and a sponsor whereby the benefits to Council are either cash or in kind, and the benefit to the sponsor is principally the association with the Council activity or facility.
3.1. This Policy applies to the sponsorship of Council events and facilities as defined in section 2, and at the discretion of Council or the Chief Executive.
3.2. This Policy applies to all facilities owned by Council-controlled organisations, where the facility is managed directly by Council.
4.1. Council supports sponsorship of its events and facilities where there is a benefit for the present and future wellbeing of the community, and where such sponsorship reduces the cost to Council.
4.2. Council will only enter into sponsorship agreements with a sponsor whose values, practices or products are not in conflict with Council’s vision, strategic priorities, community outcomes, or any other Council policy.
4.3. Sponsorship agreements should not be regarded by a sponsor as a means of gaining favourable terms from Council in any other business agreement, nor do they imply that Council endorses the sponsor or the sponsor’s products.
4.4. No elected member or Council officer shall receive a personal benefit from a sponsorship agreement, except where that benefit is no different to the benefit available to any other member of the public.
4.5. Council recognises that sponsorship contributions may not be stable from year to year and will not become financially reliant on sponsorship for the operational costs associated with the event or facility.
4.6. Where practicable, sponsorship of Council events and facilities will be subject to an open and competitive process.
4.7. There will not be a requirement to offer exclusivity in sponsorship agreements.
4.8. Council will not to enter into a sponsorship agreement where:
- 4.8.1. The sponsor or the sponsorship has the potential to negatively impact on Council’s reputation;
- 4.8.2. The sponsor or the sponsorship negatively impacts on the wellbeing of the community;
- 4.8.3. There are legal, moral or ethical concerns about the sponsor or the sponsorship;
- 4.8.4. The sponsor is involved in the delivery of products or services that are considered to be injurious to health, or are considered to be in conflict with Council’s social, environmental and cultural responsibilities to the community;
- 4.8.5. There is a significant risk that Council may have, or be perceived to have, a current or future conflict of interest;
- 4.8.6. The sponsorship agreement imposes or implies conditions that would limit, or appear to limit, Council’s ability to carry out its functions fully and impartially;
- 4.8.7. The sponsorship agreement could result in potentially significant costs beyond the term of the sponsorship agreement.
5.1. The term of sponsorship may cover a single event, or extend for the life of a facility or event, in the case of some naming rights.
5.2. Sponsorship agreements will detail all conditions relating to the term of the sponsorship, and may include a renewal option, if both parties agree.
5.3. Naming rights sponsorship of a Council facility or event may be for a duration of five years or more depending on the level of sponsorship, and terms agreed in the sponsorship agreement.
5.4. Any request for naming rights is to be carefully considered and if granted must be appropriate to the benefit received by Council.
6. Council's Interests
6.1. Council will retain the right to attach its name and logo to any activity or facility that is subject to a sponsorship agreement.
6.2. Council will permit sponsors to use its name, logo and images, and link to Council’s website, according to defined criteria based on the type and level of sponsorship, if and as detailed in the sponsorship agreement.
7.1. In principle Council supports a sponsor advertising to further promote the sponsorship relationship. Advertising rights, if any, will be specified in the sponsorship agreement.
7.2. Where permitted under a sponsorship agreement, advertising conducted on, or in Council facilities, or at Council events must:
- 7.2.1. Not impact negatively on the operation of the facility, event or activity being sponsored, or on any other activity being undertaken at the site.
- 7.2.2. Conform to Council by-laws, reserve or facility management plans and other relevant Council policies.
- 7.2.3. Be in accordance with Section 4.8 above.
- 7.2.4. Comply with accepted professional standards.
7.3. Council reserves the right to terminate a sponsorship agreement if advertising undertaken by a sponsor breaches the sponsorship agreement
8. Sponsorship Agreements
8.1. A sponsorship agreement will be prepared by Council and signed by all parties to the agreement.
8.2. The scope of the agreement will reflect the significance of the sponsorship.
8.3. Appendix 1 (see Related Documents) – Sponsorship Agreement Criteria details the matters which are to be addressed in the sponsorship agreement.
9.1. Naming rights for Council events and facilities are to be approved by Council.
9.2. The Chief Executive has delegated authority to enter into negotiations that may lead to a sponsorship agreement.
9.3. The Chief Executive has delegated authority to terminate a sponsorship agreement if a sponsor breaches this Policy or an associated sponsorship agreement.
9.4. Except where the sponsorship relates to the naming rights for a Council facility, the Chief Executive has delegated authority to approve sponsorship agreements up to the value of his/her delegated financial authority limits.
9.5. The Chief Executive may delegate the authority to enter into negotiations, and approve sponsorship agreements to Group Managers, subject to approval authority being limited to the Group Manager’s own delegated financial authority limits. For clarity, this delegation to Group Managers includes approval for naming rights for parts of, or a feature of a facility (as opposed to a whole facility).
10. Policy Review
10.1. This Policy will be reviewed at least every three years, or as required.
10.2. This Policy does not cease to have effect because it is due for review, or being reviewed.
10.3. This Policy takes effect from the date it is formally adopted by Council.
Adopted by Commercial and Strategy Committee 13 October 2020
Last updated: 02 Aug 2021