As reported in the London Free Press by Chip Martin, the question now is ‘Hey London, is this Bud for you?’ A plan is in the works to rename the John Labatt Centre as Budweiser Gardens. The plan was to do it quietly and quickly Tuesday when council will be asked to renew the soon-to-expire naming rights held by London’s hometown brewer. Global Spectrum, operator of the decade-old facility, obtained the domain name www.budweisergardens.com in February in anticipation of the change. Budweiser is one of the brands Labatt brews in London under licence from a U.S. brewer. Some councillors privately object to what appears to be a slam-dunk move Mayor Joe Fontana has been promoting heavily behind the scenes.
The existing 10-year, $5-million deal expires in October. Some councillors say it should be put out to tender, a move a sports marketing expert predicted last year might fetch $1 million a year. Brian Ohl, JLC general manager for Global Spectrum, couldn’t confirm the Budweiser renaming but said, “We are going to council on Tuesday for some approvals.” While the city has final approval on any name for the arena, the existing contract allows Labatt to change the name subject to approval and Global Spectrum to negotiate a new deal – again, subject to city approval – to replace the expired contract.
Councillor Stephen Orser says the process should include a public airing. “The public needs input because the public’s going to have to live with it. And if another company wants to pay more, then that’s the way it goes.” A special session of council’s investment and economic prosperity committee is slated for the hour before council, which afterward will be asked to OK the new deal and name change. Documents the committee will consider are being withheld until the meeting, fueling concerns about undue secrecy and a done deal. “There is going to be no fast track to anything,” Orser vowed. “There is no done deal.”
Another councillor unhappy at what he considers the general level of secrecy surrounding the JLC’s financial aspects, Dale Henderson, said he wants to refer the plan for further review. “I want to sell the whole building,” he said. In the past he’s called for a public process to deal with the naming rights issue to maximize city returns. Henderson is promoting a grandiose scheme in which the city would turn the facility over to Global Spectrum provided it builds a 1,400-seat performing arts centre on the site. Councillor Bud Polhill said he understands Labatt has a provision in the existing contract that allows the brewer to renew, but council has the final say on any such deal. He said his support for any renewal will depend on the numbers he sees in the deal. “Labatt’s has done a good job,” he said. Another council member, who didn’t want to be named, suggested the name Budweiser Gardens isn’t associated with London in any way and the public will have trouble swallowing it.
Budweiser is one of the world’s largest-selling beer brands. John Kinder Labatt founded his brewery in London in 1847 and the Labatt name appears on the historic ballpark at the forks of Thames River and on buildings at Western University. In London, Labatt brews Budweiser under licence from St. Louis-based Anheuser-Busch. Both firms are owned by Belgian-Brazilian brewing conglomerate Inbev. Budweiser represents about 40% of the volume produced by the London plant that brews about 50 beers in all. Labatt brands include Blue and 50.
Over the years Budweiser, whose brands include Bud Light, has traditionally used Clydesdale horses in its promotion. More recently, it has focused on the catch-phrase “This Bud’s for You.” The firm’s name adorns Busch Stadium in St. Louis.
Naming rights have become big business for brewers and others, with Molson Centre in Montreal, Sleeman Centre in Guelph and Coors Field in Denver. Bob Wanzel, a Canadian sports marketing expert, predicted last year that naming rights for the well-run London centre could reach $1 million annually because the business these days “is huge money.” The JLC often appears among the top-ranked centres of its kind in Canada and North America. The $42-million centre returned more than $500,000 to the city last year, while comparable facilities in some Ontario cities require as much as that and more in annual subsidies. The city of London receives an unspecified share of the naming rights money.