Board of Directors Regular Meeting Agenda


Print

Return to the Search Page Return to the Agenda
 
Meeting Date: 02/22/2018  

SUBJECT MATTER:
Receive, consider and act upon a proposal to modify the Host Venue Sponsorship Agreement with Premier Soccer for the Copa Rayados Internacional Soccer Tournament (C-2016-0105);
FISCAL IMPACT:
Per the terms of the Host Venue Sponsorship Agreement, The Woodlands Township has waived all athletic field rental fees and permit fees related to the venues.  The field rental fees waived for the 2016 & 2017 tournaments would have equated to $23,705 if based on the rates established for approved local organizations; or would equate to $74,865 if based on the non-resident field rental rate.  Based on the projected reduced need for fields for the 2018 proposal, the field rental rate would total $7,272.00.  

In 2016, The Woodlands Convention and Visitors Bureau (CVB) Board of Directors approved a rebate program to assist in bringing the soccer tournament to The Woodlands. The Hotel Rebate program provides Premier Soccer Services (PSS) a 25% rebate of the hotel tax generated by hotel rooms in The Woodlands Township sold for the event. The rebate is based on the actualized hotel occupancy tax generated for the Township which is 9% of the room rate. 

The 2016 tournament attracted 202 teams: 10 local teams, 84 from the Houston area, 73 from around the country and 35 teams from Mexico.   The teams booked 6 of the 14 hotels within the Township for the four day tournament totaling 483 room nights. An additional 3,108 room nights were booked outside the Township.   CVB rebated PSS $1,313.37 for the 2016 hotel rooms. 

The 2017 tournament attracted 192 teams: 14 local teams, 90 from the Houston area, 43 from around the country, 1 from Canada and 1 from the Netherlands and 43 teams from Mexico.  The teams booked 6 of the 14 hotels within the Township totaling 440 room nights.  Room nights booked outside the Township were 3,028.  CVB rebated PSS $900.50 for the 2017 event.  

Per the documentation provided by PSS to CVB in their original proposal in 2016, the tournament could have significant economic impact on The Woodlands Township.  The National Association of Sports Commissions (NASC) Economic Impact Calculator estimates that the tournament generated $6,344,946 in direct spending by event spectators at the 2015 tournament hosted in San Antonio which hosted over 200 teams.

For 2018, PSS has proposed reducing the size of the tournament. As the local clubs are required to pay an established rate for field use and host tournaments of similar size as the PSS proposed 2018 tournament model, the Board may consider establishing a field use rate/fee for PSS for the 2018 tournament. Based on the projected reduced need for fields for the 2018 proposal, the field rental rate would total $7,272.00.  
BACKGROUND:
In March 2016, The Woodlands Township Board of Directors approved a Host Venue Sponsorship Agreement with Premier Soccer Services, LLC  (PSS) to host the Copa Rayados International Soccer Tournament for 3 years, 2016, 2017 & 2018. (Attachment A). Premier Soccer Services had hosted the tournament in San Antonio but moved to The Woodlands due to the all-weather turf fields at the sports complexes to limit the potential for tournament cancelations due to bad / rainy weather.  The tournament is held around Thanksgiving each year,  which is a typically a slow use period of the Township's sport complexes and a slow time for local hotels. 

PSS has produced the event the past two years and recently submitted proposed changes for the 2018 tournament (Attachment B).  The proposal indicates the tournament "is not financially viable due to the required resources required."   PSS is requesting to reduce the number of teams from 160-200 teams per the current agreement to 80 teams and make the event a more exclusive tournament and to reduce the number of soccer fields required to produce the tournament.

The CVB Board of Directors  was scheduled to consider the PPS proposal at its February 14, 2018 meeting (Attachment C).  After discussions, the CVB Board tabled its decision pending the outcome of the Township Board's decision on this matter.

While the 2016 Copa Rayados Internacional Soccer Tournament attracted the most number of teams over the longest number of days that has been hosted in the community to date, all other similar tournaments produced by local non-profit clubs and for-profit organizations have paid to use the sports fields including  Rush/Dynamo Dash Youth Soccer, Woodlands Rugby and the Lacrosse Club.

Over the course of a year, the following events are produced in the community (partial listing):  

Non Profit Clubs:
  • Memorial Day Classic- Dynamo Dash  5v5 Tournament one day tournament -100 teams - 30% local, 70% out of town
  • Houston Youth Cup- Dynamo Dash  three day tournament - 125 teams - 30% local, 70% out of town
  • Winterblast- Dynamo Dash 3v3 Tournament- two day tournament - 250 teams - 25% local, 75% out of town
  • Houston Dash Premier Cup - two day tournament - 80 teams - 50% local, 50% out of town 
  • Nike South Cross County - 2,500 participants two days - 20% local, 80% out of town
  • Nike Team Nationals Cross Country -1750 participants two days -10% local, 90% out of town
  • Kilt Cup Soccer Tourney- 30 teams -  3 days - 5% local, 95% out of town
  • Cleats and Cavs Tourney-15 teams - 3 days - 5% local, 95% out of town
  • JV Highlander Cup (soccer)- 10 teams - 2 days - 10% local, 90% out of town
  • Friday Night Lights 2500 participants - 1 day - 90% local; 10% of out town
  • Come and Take It (Rugby) - 40 teams - 2,400 participants - 25% local, 75% out of town
  • HS Rugby - 5 teams, 4 out of town 
  • Boys HS Lacrosse - 8 teams, 6 out of town teams 
  • Girls HS Lacrosse - 4 teams, 2 out of town teams
  • Boys and Girls JH Lacrosse - 5 teams, 3  out of town  
  • 7 for 7 Lacrosse - 80 teams - 10 teams out of town
  • Mudslinger HS Boys Lacrosse Playday - 20 teams - 100% local-Houston area
  • TCAL State Soccer Tournament - 20 teams - 3 days - 60% local, 40% out of town
  • Shootout for Soldiers- 48 teams- 3 days 80% local, 10% out of town
For Profit organizations:
  • 7v7 flag football tourney - 100+ teams - 3 days 95% out of town
  • Super 7’s (lacrosse) - 30 teams - 2 days 50% local, 50% out of town
As the local clubs are paying an established rate for field use and host tournaments of similar size as the PSS proposed 2018 tournament model, the Board may consider establishing a rate/fee for PSS for the 2018 tournament.  Based on the projected reduced need for fields for the 2018 proposal, the field rental rate would total $7,272.00. 

CONSIDERATIONS
When the Host Venue Agreement was approved in 2016, it contained the following benefits for the Township and CVB.
  • For the CVB, there was a promise of added room nights during a slow time of the year for Township hotels. Although there has been an increase in room nights as a result of the tournament, the additional room nights booked in The Woodlands as a result of the tournament have been less than projected.
  • For the Township, the organizer agreed to bring approximately 160 to 200 teams into the area. The net benefit to the Township is the increased spending that occurs from tournament teams and visitors which we believe has resulted in an increase in sales tax revenues for the Township. The Township host venue incentive to the tournament was a waiver of field use, fields which amounted to a savings for the organizer of over $12,000 per year in 2016 and 2017. The proposed change in the agreement in 2018, as submitted by the organizer, would significantly reduce the number of tournament teams for 2018 and this reduction in participation is expected to have a negative impact on the amount of sales tax generated by this event.

The Copa Rayados tournament with approximately 200 teams, is larger than most tournaments sponsored in The Woodlands by non profit clubs and profit clubs. The Township benefit provided as part if the host venue agreement is appropriate for this larger scale event which was negotiated in the 2016 agreement. A Township incentive may not be appropriate for the proposed 80 team tournament.
RECOMMENDATION:
Recommend that the May 2016, Host Venue Sponsorship Agreement between Premier Soccer Services, The Woodlands Township and The Woodlands Convention & Visitors Bureau be continued as originally agreed by the parties through the original contract term of 2018 and that consideration of the proposed reduction in tournament teams be evaluated in future agreements. 
Attachments
Attachment A - Host Venue Sponsorship Agreement PSS Copa Rayados
Attachment B - PSS Proposed changes for 2018 Copa Raydos
Attachment C - CVB Executive Summary and Copa Rayados Annual Reports


    

Level double AA conformance,
                W3C WAI Web Content Accessibility Guidelines 2.0

AgendaQuick ©2005 - 2020 Destiny Software Inc. All Rights Reserved.