New Ulm Medical Center/Allina Health and the school district are working on a naming rights agreement to name NUHS gym “Allina Gymnasium.”

The decision to give Allina the naming rights to the gym stems from a conversation in last month’s School Board meeting. During the meeting, New Ulm Public School Superintendent Sean Koster informed the school board that athletic trainer fees were rapidly rising. Allina Health’s annual athletic trainer fees were $2,915 for the 2022-23 school year, are $20,000 this school year, and were set to rise to $31,500 next year.

For around 30 years, New Ulm Medical Center’s Sports Medicine and Orthopedics Team provided athletic training services to the school. For a time, these services were offered for free but as New Ulm Medical Center saw increased financial pressures, the school was asked to pay a percentage of the fee.

New Ulm Medical Center Director of Operations Carisa Buegler said initially New Ulm Public Schools were asked to pay 8-10% of the cost for athletic trainer services. For this school year, the school paid 50% of the cost. Next year, Allina was going to ask the school to pay 80% of the cost of the program.

The New Ulm High School junior and senior class compete in a homecoming volley ball match in the school’s gymnasium. The school is considering renaming the gym “Allina Gymnasium” as part of a naming rights agreement. The agreement would include new signage at the gym entrances and graphics on the main gymnasium floor. Photo by Jayden Grunst

Buegler said Allina is willing to find new marketing opportunities and collaborations with the school to reduce the 80% trainer fee.

Going into Thursday’s School Board Work session Superintendent Koster presented a potential agreement to reduce costs to the trainer fee program going forward. Allina Health has tentatively agreed to contribute an in-kind donation of $115,000 to New Ulm Public Schools in exchange for the naming rights fee to the gym. Every year for the next 10 years, Allina would give $11,5000 as an in-kind donation to reduce the overall cost of the annual athletic training service agreement starting with the 2025-2026 school year. The $11,500 annual payment would be reflected in a reduction of the training service agreement, keeping it at $20,000 throughout the 10-year term of the agreement.

Koster said the naming rights agreement follows the policy previously established by the board.

Koster said if the contract is approved, Allina will receive special signage identifying the gym. Two “Allina Gymnasium” signs would be placed above the main gym entrances. Two sets of “Allina Gymnasium” graphics will be placed on the main gymnasium floor, one on each side.

Event programs would also include a logo and the phrase “Our athletes are proudly supported by New Ulm Medical Center’s Sports Medicine and Orthopedics Team.” This phrase must be mentioned and displayed on all programs of sporting events hosted by the high school within the gymnasium.

The school and Allina have agreed to be jointly responsible for the creation and installation costs. The school would be responsible for maintaining signage and replacing it as reasonably necessary.

Koster said this agreement could lead to agreements for the naming rights for other school facilities, such as the school stadium.

School Board member Amanda Groebner asked the board if they were comfortable with opening up the naming rights for other facilities.

School Board Chair Steve Gag said the naming rights policy was established around the time the high school was built. The board expected this issue would need to be addressed.

The school’s baseball field already sells advertising space along its fences, but Koster said the school’s fields are not big sellers. Johnson Park and Mueller Park are more heavily used and see more advertisements.

Board member Melissa Sunderman said she was comfortable with the Allina agreement but was concerned that future naming rights could be granted to anyone who donated enough money.

Gag said the school’s naming rights policy does have a provision to protect against that issue.

Koster added that any future naming rights agreement would need to go through the school board. The board could request a request if it were not appropriate.

Buegler said Allina Health is grateful to be given this opportunity to have naming rights for the gym but also remains committed to the athletic trainers who have worked with the school for years.

“We’re really grateful you are expressing your appreciation in this way,” she said. “It’s made our athletic trainers feel even more valuable about the service you are providing.”

Buegler said NUMC has the largest athletic training program in all of the Allina Health System, serving six high schools, a college and other sports associations.

Koster said the next step was to fine-tune the contract with Allina Health. The final contract will come back to the school board for final approval during the next board meeting on Thursday, April 24.