TTC considers selling naming rights of stations
Corporations spend millions of dollars on naming rights to sports and entertainment venues and the TTC is now exploring a similar concept a concept to offset ongoing financial pressure.
TTC board member and city councilor Stephen Holyday proposed the motion, which the board adopted at its meeting on Thursday.
“We need to look to see if this (is) doable, if there is interest because that's the first step in solving our financial issues,” Holyday said in an interview with CTV News Toronto. “It’s a test of ideology at city hall whether or not we’re willing to think outside the box and look within before we turn to other levels of governments, taxpayers and transit riders to fund financial pressures.”
The TTC will now explore potential revenue opportunities for naming rights and sponsorships. That could include selling the naming rights for transit lines, stations, the TTC’s rolling stock and other assets.
“I think we have to look at all things including like this to avoid future fare increases and future cuts,” Holyday said. “There is opportunity out there, just look at Scotiabank Arena as an example, a place like Scotiabank Arena has a 20-year naming rights deal worth $800 million.”
Other agencies in the United States have sold naming rights for transit lines and stations including Philadelphia and San Diego.
The Ontario government rolled out this concept for Go Train stations, but so far it has only applied to one station. Metrolinx and Durham College signed a 10-year deal for Oshawa Go station.
Metrolinx did not provide details on the amount of revenue it will generate, citing financial details “are commercially sensitive and can’t be shared.”
The idea is not new in Toronto – back in 2011, the city and TTC approved a policy for selling naming rights, but nothing materialized.
Marketing experts say the concept is rare and branding stations may lead to headaches for transit riders, especially those who are not familiar with the transit system.
“There are two important criteria which I think the TTC should employ. The first is to make sure they don’t confuse riders – if your start renaming stations that their name is actually for their geographic location, you’re going to confused people,” said David Soberman a professor at the University of Toronto’s Rotman School of Business.
“The second is also make sure the contracts are short term so they can cut the contract if the idea is not working or resign the contract if the idea is working.”
Soberman points out that incentives likely won’t be aligned between transit agencies and sponsors. He also notes that unlike sports and entertainment venues, companies may see little value in sponsoring a transit line.
“As a sponsor you're going to be interested in what does the value of the sponsorship create, is it a modern station, does it fit with my brand or is it a rundown station.”
The TTC has already made service cuts to routes and increased fares to address its budget shortfall.
“I think we have to look at all things including like this to avoid future fare increases and future cuts,” Holyday said.
Transit advocates argue selling naming rights would not generate enough revenue to address the financial challenges and would result in confusion for riders and tourists.
“We do think it’s a distraction from the bigger picture which is this immense budget shortfall that will need all three levels of government to come to the table,” said Shelagh Pizey-Allen, the executive director of the TTCriders.
The motion also calls for additional advertising opportunities for properties, vehicles, online and print materials.
The board has directed the TTC to report back on the matter at its meeting in June.
CTVNews.ca Top Stories
Judge in Trump's hush money trial threatened to throw witness out of court for behavior on stand
Michael Cohen testified Monday that he stole tens of thousands of dollars from his ex-boss Donald Trump’s company, an admission defence lawyers hope to use to undermine Cohen’s credibility.
What is BORG drinking, and why is it a dangerous trend? An expert explains
If you've been to a party lately and haven't seen someone drinking a BORG, you're likely not partying with college students.
The world's best airline is paying staff a bonus of 8 months' salary
Singapore Airlines will reward its employees with a bonus worth nearly eight months of salary, a person familiar with the matter told CNN on Friday.
Oilers win Game 7 over Canucks, advance to Western Conference Final
The Edmonton Oilers weathered a late Vancouver Canucks charge on Monday night, beating the hosts 3-2 to win their seven-game second-round playoff series in the decisive showdown.
McGill says pro-Palestinian protest outside senior administrator's home 'crosses the line'
McGill University has denounced a pro-Palestinian protest held Sunday outside the home of one of its senior administrators.
Red Lobster probes 'endless shrimp' losses after bankruptcy filing
U.S.-based restaurant chain Red Lobster has filed for Chapter 11 bankruptcy protection in a Florida court after securing $100 million in financing commitments from its existing lenders, the company said on Sunday.
Katy Perry sings goodbye to 'American Idol'
Katy Perry said her goodbyes on 'American Idol' after seven seasons. On Sunday night’s live 'idol' season finale, a medley of Perry's hit songs were performed, including 'Teenage Dream,' 'Dark Horse' and 'California Gurls.'
Microsoft's AI chatbot will 'recall' everything you do on a PC
Microsoft wants laptop users to get so comfortable with its artificial intelligence chatbot that it will remember everything you're doing on your computer and help figure out what you want to do next.
Judge cites error, will reopen sentencing hearing for man who attacked Nancy Pelosi's husband
A federal judge will reopen the sentencing hearing for the man who broke into Nancy Pelosi's San Francisco home and bludgeoned her husband with a hammer after the judge failed to allow him to speak during his court appearance last week.