Debated in Parliament on 6 Feb 2013.
Asst Prof Tan Kheng Boon Eugene asked the Acting Minister for Culture, Community and Youth (a) what is the policy on naming rights to facilities at the Sports Hub; and (b) whether bids for naming rights to Sports Hub facilities will be invited from other interested parties and, if not, why.
Mdm Speaker, the Sports Hub is being developed under a 25-year public-private-partnership (PPP) agreement, where a commercial operator undertakes to finance, build and operate the entire project in return for a pre-agreed payment and a share of the overall revenue. Part of the revenue from the operation of the Sports Hub would include revenue from the sale of naming rights, which then may be used to finance future enhancements to the facilities to have better events and shows, as well as to fund community events and support the development of our athletes.
Under the contract of the Singapore Sports Council (SSC), the operator may sell the naming rights to individual facilities within the Sports Hub, except for the National Stadium. However, any sale of naming rights within the Sports Hub is still subject to SSC's consent. Our aim is to strike a balance, preserving the character of our national icons while allowing sports to benefit from
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corporate sponsorship.
Based on the agreement, the marketing for the naming rights is undertaken by the operator. SSC is not involved in inviting bids from interested parties.
I wish to thank the Acting Minister for the reply. One supplementary question is whether the Ministry can ensure that the buyer of these naming rights does have a strong local flavour, a strong local character and identity that can connect with the community. And, of course, how can we ensure that there is longevity to these naming rights so that we do not keep changing names when we change the buyer?
We will do what we can. But as I mentioned earlier, this is already provided for in the agreement where the operator is allowed to sell naming rights for individual facilities within the Sports Hub. It can be for the aquatic centre; it can be for the indoor stadium. These are individual facilities within the Sports Hub, but not for the National Stadium which we have preserved. Whichever the company that is prepared to come forward, as I mentioned earlier, would still require the SSC's consent. Whether or not the SSC agrees to it, they have to do so within reasonable grounds.
They would be able to say no, if a tobacco company wants to put its name on the facility. But there would be limits. You will have to find reasonable grounds to evaluate the applications put up by the operator based on the discussions that it has with potential sponsors. So, that is what SSC has to do.
On the duration of the naming rights, again, that is a commercial arrangement that the operator would have made in discussion with different potential sponsors, and it depends on what the sponsors would be interested to do. I would imagine quite a number of them would be looking at long-term sponsorship arrangements. But, again, that is something that the operator would have to do, talk to the potential sponsors, put up an application and then SSC would look at the application on the merits of each individual case.
I thank the Acting Minister for his reply. The media reports have it that a local bank is in discussion with the Sports Hub operator. My question is whether this discussion could be open to all interested parties? Can any entity approach the Sports Hub operator? It seems as though there is this preferential treatment for the local bank. Secondly, much as I understand that there are commercial considerations, would the Ministry have any policy or preference with regard to
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naming some of the facilities to recognise some of our founding fathers or sports personalities?
I thank the Member for the suggestion. We would certainly be considering the naming of facilities that could take the name of some of our public figures or sports personalities. We are prepared to consider the suggestion and that is still provided for within the context of the Sports Hub because, as I said, not all of the naming rights have been sold or are part of the agreement with the operator. There are still entities where the naming rights have not been provided for in the commercial agreement. So, there are still entities within the Sports Hub which we can name and the Government can decide to so name in a different manner or after a sports personality or after a public figure, as he has suggested. We have not decided; we have not made that decision. But the option is there. So, we would be prepared to study that.
On the earlier question about whether there is any preferential treatment, the answer is no. Whatever the media speculation, any interested party can approach the Sports Hub company and let them know that they are interested in a sponsorship deal with naming rights for a particular facility. It is open to any company. I know that the Sports Hub operator has been talking to many parties. There has been a media report speculating about a potential deal with one local bank, but I do not think that means that it is only one party that is interested.
Mdm Speaker, earlier, the Acting Minister said that only the National Stadium's name would not be commercialised. In a subsequent reply, he mentioned that there could be other similar entities within the Sports Hub. Could the Acting Minister clarify whether there is actually more than one facility that is not open to commercial naming rights?
I thank the Member for the clarification. Yes, indeed, there is one particular entity, which is the National Stadium, which is not open for commercial naming rights. The others are, but, again, it depends on the outcome because if there are commercial parties that are not interested, then these facilities may be still open for us to name differently instead of commercialising them. Because it depends on whether there is any commercial interest. The naming rights of the overall Sports Hub itself is not going to be commercialised. So, that again can be discussed. There are various possibilities. It is not as though all of the naming rights have been sold away.
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