NEW ULM – How much value is in a name? New Ulm is going to figure that out.

New Ulm City Council approved a service agreement with Front Burner Sports Services, which helps secure sponsorships and naming rights for municipal facilities.

Through the agreement, Front Burner Sports Services would work with the city to solicit, evaluate proposals for and negotiate third-party naming rights for New Ulm’s recreation facilities.

Park and Recreation Director Joey Schugel said that Park and Recreation already use sponsorships to generate revenue but on a smaller scale. There are advertisement agreements with New Ulm/Sleepy Eye Hockey and New Ulm Baseball Association. These agreements generate advertising dollars that go back to the city.

Schugel said the top facilities being evaluated by the consultants are New Ulm’s Recreation Center and Civic Center. However, Schugel said there are smaller facilities that could be considered including the North Park baseball facility and the German Park amphitheater.

City Councilor Larry Mack asked how long the contracts typically last.

Schugel said the naming rights contract for larger facilities ranges from 10 to 20 years. There are also shorter, two to five years contracts.

Front Burner Sports Services would handle the negotiations with potential sponsors and would submit regular updates to the city.

Schugel said if negotiations are successful, the potential sponsorship would come back before the city council to make the final decision to move forward.

City Councilor David Christian favored approving the agreement. He said this sponsorship and naming rights could be a fantastic revenue generator.

Council President Andrea Boettger also favored the agreement.

“Everyone knows our park and rec is operating in a negative budget year after year and I think it is very important to look at new and creative ways to generate some revenue,” she said. “I feel like this would be a win-win because businesses can showcase themselves and we’re closing a gap.”

Councilor Mack made the motion to approve the service agreement with Front Burner Sports Services, with a second from City Councilor Tom Schmitz. It was unanimously approved.

The service agreement is not to exceed $46,500 and will be paid through the Park and Recreation fund balance. Any revenue generated from the agreement would be used to pay back the fund balance.