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The City of Miami Beach is in negotiations with Miami-based Norwegian Cruise Line on an agreement for the naming rights of the Miami Beach Convention Center, following its $620 million renovation and expansion.
Spectra Partnerships, which has led an outreach to identify naming rights and sponsorships for nine Miami Beach landmarks that include the Colony Theater, the 10th Street Auditorium and the North Beach Bandshell, is proposing a 10-year naming rights agreement with Norwegian Cruise Line, after ongoing discussions, to name the convention center “Norwegian Cruise Line Center at Miami Beach,” said City Manager Alina Hudak in a letter to the mayor and city commission.
The compensation to the city for the convention center’s naming rights, said the letter, would be divided in 10 years if the agreement is approved. The city would receive yearly payments of $1 million this year; $1.1 million in 2023 through 2026; $1.2 million in both 2027 and 2028; $1.3 million in 2030; and $1.35 million in 2031 through Jan. 31, 2032, for a total of $11.75 million over the 10-year period.
Norwegian Cruise Line declined to comment on the proposed agreement.
Norwegian Cruise Line (NCL) is the third-largest cruise line in the world. According to the 2021 Worldwide Cruise Line Market Share report by Cruise Market Watch, NCL controls about 9.5% of the total worldwide cruise market in passengers and produces 12.6% of the industry’s total revenue, almost $3 billion.
The final agreement is to be reviewed and subject to a vote by the mayor and city commission, requiring five of the seven votes. If approved, the agreement is anticipated to begin March 1 and to include, aside from the naming rights benefits, advertising and marketing opportunities related to the venue.
Four focus areas where the funds from the Miami Beach Convention Center naming rights could be allocated include parks and recreation, arts and culture, public safety and sustainability, said the letter.
“The process will include a referral to the Neighborhood and Quality of Life committee for discussion and recommendation,” said the letter, “followed by a public hearing at a city commission meeting.”
Spectra Partnerships has negotiated more than 40 naming rights partnerships in the past decade, Miami Today reported in August.
Other city facilities that are available for naming rights include the Historic City Hall at 1701 Meridian Ave.; the Byron Carlyle Theater; city-owned and operated parking garages; the Adaptive Recreation Center, and the to-be-constructed 72nd Street Community Complex.
Spectra also provides venue management services for the Palm Beach County Convention Center, as well as food and hospitality services at the Drive Pink (DRV PNK) Stadium – formerly known as Inter Miami CF Stadium, in Fort Lauderdale – and the Adrienne Arsht Center for the Performing Arts.
The Miami Beach Convention Center is now a “reimagined” 500,000-square-foot convention floor space with a 60,000-square-foot Grand Ballroom, a 20,000-square-foot Junior Ballroom, 84 breakout rooms, the latest audio-visual technology and soundproofing and LEED Silver certification, according to the Greater Miami Convention & Visitors Bureau, which helps to bring meetings and conventions to the center.
https://www.miamitodaynews.com/2022/01/04/norwegian-cruise-line-bids-millions-for-convention-center-naming-rights/
