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
Robert Pickton to remain in medically induced coma until later this week: police
Serial killer Robert Pickton will remain in a medically induced coma for at least the next few days following an attack in a Quebec prison Sunday, according to police spokesperson Hugues Beaulieu.
Charlie Colin, founding member of the pop-rock band Train, dies at 58
Charlie Colin, bassist and founding member of the American pop-rock band Train, best known for their early-aughts hits like 'Drops of Jupiter' and 'Meet Virginia,' has died. He was 58.
'Five feet nothing': Pickton's safety likely behind Quebec transfer, says ex-prison judge
When serial killer Robert Pickton was transferred from British Columbia's Kent Institution to a maximum security prison in Quebec about six years ago, correctional authorities gave no public explanation or confirmation at the time, citing privacy.
'I feel betrayed': Ottawa-area customers out thousands of dollars warn of bad faith contractor
A group of people from eastern Ontario and western Quebec is issuing a warning about Dennis Walker and his company Vue Windows.
Fancy pigeon outfitted in custom diaper has free rein in B.C. family home
When Chrissy Chin volunteered to take in a fancy pigeon abandoned on a park bench, she never imagined she would one day be ordering custom-made diapers for the bird – who lives in her house and has become a member of the family.
'We'll need all hands on deck': Details emerge after deadly boat crash near Kingston
Police say they have wrapped up their on-scene investigation into a deadly boat crash in eastern Ontario as details of the incident begin to emerge.
WestJet planning new fare category for travellers willing to forgo carry-on bag
WestJet Airlines plans to launch a new cheaper fare category that would be available to travellers willing to fly without a carry-on bag.
5 dead and at least 35 hurt in Iowa tornado: officials
Five people died and at least 35 were hurt as powerful tornadoes ripped through Iowa Tuesday, with one carving a path of destruction through the town of Greenfield, officials said.
Woman found dead in Lake Ontario in 2017 matches identity of missing person in Switzerland
Genetic genealogy has helped Toronto police identify a woman who was found dead in Lake Ontario in 2017.