Stafford Sports - Negotiation Services

Our Negotiation Services provide ownership with comprehensive agreements that mutually benefit both sides and help ensure the long-term operating sustainability of the facilty and the franchise. In addition to the Facility Operating Agreement and the Sports Franchise Lease, Stafford develops and negotiates all facility-related agreements including Naming Rights, Advertising, Sponsorship, Ticketing, Concessions and Catering, Premium Seating (suites and club seats), Restaurant and Retail Operations, E-Commerce, Merchandising, Parking Operations, FF&E, Maintenance and all Third Party Services.

In order to secure an Operating Agreement for owners of a facility, Stafford acts as lead negotiator in discussions. We utilize experienced facility management operators to participate in these discussions and review all project related materials with these companies in order to provide a framework for discussions and to solicit proposals. Stafford then conducts ongoing, separate negotiations with each facility management operator through formal meetings, conference calls and written correspondence.

In order to secure a Tenant Lease Agreement, Stafford functions as lead negotiator to develop a long-term Agreement that is beneficial for ownership, the tenant and the operator. We negotiate a binding Term Sheet to serve as the basis for a final Agreement and analyze the risk/reward potential of all documents relative to the business objectives of ownership, lender requirements for financing and industry standards. As part of the overall Tenancy Agreement, Stafford also negotiates additional related agreements such as Non-Compete, Non-Relocation and Guaranty Agreements.

In all phases of the Negotiation process, Stafford participates with the ownership’s financial and legal counsel in the negotiation and creation of a comprehensive Agreement. Throughout all aspects of the Negotiation, Stafford regularly advises ownership on current industry practices and the risk/reward potential of all business terms and conditions contained in any preliminary discussions as well as in the Final Agreement.

Phase l – Financial Analysis

In this Phase, Stafford conducts, in conjunction with ownership, a comprehensive financial analysis of the Project in order to identify all client goals and business issues that are material to the Negotiation process including:

A Review of all material documents such as existing contracts & agreements
An Analysis of any proposed contracts or agreements
A Review of financing and operating agreements

Based on our review of these documents, Stafford develops a Project Proforma based on historical activity, existing agreements and existing financial projections: The Project Proforma includes:

All operating revenues and projected attendance, average ticket prices, facility rental rates and income, concession and novelty per caps and income, retail income, parking revenue, naming rights revenue, advertising revenue and premium seating revenues.
All operating expenses including staffing and benefits, general and administrative costs, day of game costs as well as venue operations and maintenance

Phase ll – Recommended Negotiation Strategies

At the conclusion of the Financial Analysis phase, Stafford identifies for ownership those issues that are relevant to address as part of the negotiation process:

Ownership’s financial and operating goals and requirements
Negotiation timetable
Parameters for team lease agreement
Parameters for operator or team investment requirements
Facility operating issues
Related material agreements and contracts
Allocation of revenues for (I) operating expenses, (ii) financing to make debt service payments (iii) funding of renewal and replacement expenses
Impact of negotiation on the project finance plan

Phase lll – Actual Negotiation

On behalf of ownership, Stafford will meet with the prospective operator and/or primary sports tenant to secure the following:

Verbal/Written response to ownership terms and client parameters
Analyze response and develop term sheet
Provide written qualitative and quantitative evaluation of term sheet
Develop first contract draft based on term sheet
Review contract draft and subsequent decisions with ownership’s legal counsel
Facilitate execution of final contract between ownership and operator or team