redskins loudon partnership

8/14/2019 Redskins Loudon Partnership

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Date of Meeting: February 3, 2009

BOARD OF SUPERVISORS

ACTION ITEM

#16ASUBJECT: Redskins Ad-Hoc Committee Report:

Loudoun County/Redskins Marketing Partnership

ELECTION DISTRICT: Countywide

CRITICAL ACTION DATE: At the pleasure of the Board

STAFF CONTACTS: Larry Rosenstrauch and Buddy Rizer, Department of EconomicDevelopment

RECOMMENDATIONS:Committee: The Redskins Ad-Hoc Committee recommends approval of the two-yearLoudoun County/LCVA/Redskins Partnership.

Staff:: Staff concurs with the Ad-Hoc Committees recommendation._____________________________________________________________________________

BACKGROUND:

For the past eight months, a county team (County Administration & Economic Development,LCVA, and CEO Cabinet leadership) has been in discussions with the Washington Redskinsabout potential partnerships. Recognizing the value of engaging the Redskins as a nationallyknown brand, the Countys team developed a marketing sponsorship package that capitalized onkey Redskins marketing assets. This included closely associating the national reach of theRedskins name, logo, and hometown presence in the County with Loudoun County and itslogo. These include sponsoring media and events through the Redskins that feature the Loudounbrand. In addition to this, the marketing package included identifying Loudoun County in allwritten and broadcast media originating from Redskins Park, a prominent banner ad on theRedskins website, the ability to host several events at the Park, a County/LCVA presence attraining camps, and invitation to be a part of events with corporate sponsors.

At their business meeting on December 2, 2008, the Board of Supervisors reviewed an earlierRedskins Marketing Partnership initiative, but the motion to refer the item to the EconomicDevelopment Committee failed. At the Board of Supervisors special meeting on December 18,2008, the item was reconsidered. The Board voted 6-2-1 (Supervisors Kurtz and Burton No;Supervisor McGimsey absent for the vote), to direct that an Ad-Hoc Committee be formed tofurther examine the partnership opportunities. The Board further directed that the Ad-Hoc


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Committee consist of four Board members and three non-voting advisory members from theLoudoun Convention and Visitors Association (LCVA), the Loudoun County Chamber ofCommerce, and the Loudoun County Economic Development Commission (EDC); and that theAd-Hoc Committee review and recommend to the Board action likely to lead to a relationshipbetween the County and the Washington Redskins that would benefit the Countys economic

and/or tourism initiatives.

At their December 30, 2008 meeting, the Redskins Ad-Hoc Committee reviewed and discussedthe original proposal and requested that staff provide additional information, including responsesto other Board members requests. At the Committees request, staff clarified existing deal pointsand negotiated several new items, including added attendance for scheduled Redskins Parkevents, additional involvement at events from Redskins staff, and the ability for LCVA to createpackages around Redskins Training Camp. The Committee also separated any discussion of apotential Redskins Hall-of-Fame from the marketing agreement. On January 7, 2009, the Boardmembers on the Redskins Ad-Hoc Committee voted unanimously, and advisory membersconcurred, to recommend to the Board that it approve a two-year marketing sponsorship using

$250,000 of Restricted TOT funds in two phases to promote the Loudoun brand through theRedskins. The completed contract has been reviewed, edited and approved by the CountyAttorney and Department of Management and Financial Services, Division of Procurement andhas been approved by the Redskins Legal Department.

FISCAL IMPACT:

There is a balance of $268,000 in FY 09 for Strategic Growth Initiatives. In addition to theRestricted TOT funds budgeted in FY 09, there is a carryover balance of funds from previousyears of $1,924,918.

The funding recommendations for the Redskins Partnership amount to $100,000 from restrictedTOT funds from FY 09 and $150,000 from TOF Carryover Funds in FY 10. The total amount offunding requested is $250,000 which is recommended to be appropriated at one time with theproject covering a two-year timeframe.

DRAFT MOTION(S):

1. I move that the Loudoun County Board of Supervisors approve the two-year LoudounCounty/LCVA/Redskins Partnership in the amount of $250,000 using TOT funds, andapprove BA 094008 for $250,000.

OR

2. I move an alternate motionATTACHMENTS:

1. Partnership Package Details2. Redskins Marketing Contract3. Responses to Board members questions


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Loudoun County/LCVA/Washington Redskins Partnership Package Details #A-1

Deal Points

1. Loudoun County is authorized to use the Redskins logo on County marketing materials and website,

positioning Loudoun County as the "Corporate Home of the Redskins."

2. Mention of Loudoun County included in all team controlled Media and On-Air Datelines, including:

Redskins Nightly News Redskins Players Club Redskins Game Day TV Show Redskins Weekly TV Show Redskins Game Plan Radio Show General Manager's Bi-Weekly Radio Show in season Redskins Coaches Show TV Redskins Game Plan TV Show Redskins Late Night TV Show All other team-controlled broadcasts in and out of season

3. Website banner ad on Redskins.com, which gets more than ten million (10,000,000) unique visitors per

month on-season and has more than 200,000 registered users. This banner will be above the fold on

rotating pages for the entire term of the agreement.

4. Four banner ads and one feature story (such as a profile of a player who lives in Loudoun County) on

e-mail blasts to more than 200,000 subscribers including:

Corporate suite owners Redskins Club, premium seat holders Corporate team sponsors Season ticket holders and waiting list General fans living in the Mid-Atlantic region

5. Redskins Park identified as being located in Loudoun County in all Redskins marketing materials and

press releases.

6. The right to distribute materials at Training Camp at Redskins Park. Also, the team will refer to the

training camp as Redskins Training Camp in Loudoun County, VA.

7. The right to develop hospitality packages based on Training Camp.

8. The county has the right to host an annual event at Redskins Park, with up to 200 attendees, including

tours and the right to use team meeting spaces. A Redskins Executive will be made available to speak atthe event.

9. The county has the right to host five off-day VIP Tours of Redskins Park for up to 10 people to be used

by the County, LCVA or their designee (such as the Loudoun County Chamber of Commerce).

10. Participation in Redskins-hosted networking events, which include decision-makers from some of the

largest corporations in the region.


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#A-2

SPONSORSHIP AGREEMENT

SPONSORSHIP AGREEMENT (this Agreement) dated as of the __ day of _______, 2009, among WFISTADIUM, INC., (Stadium Company), and PRO-FOOTBALL, INC., doing business as the Washington Redskins(the Team and, together with the Stadium Company, collectively referred to as the Companies), each withoffices located at 21300 Redskin Park Drive, Ashburn, Virginia, 20147, and LOUDOUN COUNTY, VIRGINIA, amunicipality of the Commonwealth of Virginia (Sponsor), with offices located at 1 Harrison Street, S.E.,Leesburg, VA 20175. (The Companies and Sponsor are collectively referred to herein as the Parties.)

In consideration of the covenants contained herein and other good and valuable consideration, the receipt

and sufficiency of which are hereby acknowledged, the Parties intending to be legally bound, hereby agree asfollows:

1) TERMa) The term of this Agreement is two (2) years (the Term), commencing with the start of the Football

Season that begins on April 1, 2009 and ending at the conclusion of the Football Season ending on March31, 2011. A Football Season as used herein means the twelve (12) month period beginning April 1 ofeach calendar year and ending on the immediately following March 31.

2) MARKETING RIGHTSa) Each Football Season, during the Term, the Companies shall provide Sponsor with the following marketing

elements (the Marketing Elements):

i) Media(1) Team Controlled Media

(a) On-Air Mentions(i) In all Redskins team controlled media originating from Redskins Park, the on-air talent

will make regular references to Sponsor, such as: Welcome to this edition of theRedskins Nightly News, live from Redskins Park in the heart of Loudoun County.Such on-air mentions shall be of a quantity and frequency determined by the Companiesin their reasonable discretion.

(2) E-mail(a) Sponsor shall receive the opportunity to place a special value based fan-related

offer/marketing message in four (4) Team e-mail communications to fans on Team e-mail

list(s).(3) Internet

(a) Sponsor shall receive one (1) rotational run-of-the-site banner advertisement on theCompanies website (www.redskins.com) to be used by the Sponsor to promote the Sponsorsbrand and/or products. Such banner advertisement shall rotate through the sub-category pagesof the Companies website on a pro-rata basis with other third-party sponsors receiving suchbanner advertisements.

(4) Press Releases
http://www.redskins.com/http://www.redskins.com/


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(i) In Team-controlled press releases originating from Redskins Park, Team will referenceLoudoun County as the originating point of the press release (e.g. Redskin Park Loudoun County, Virginia).

ii) Non-Game Day Hospitality(1) Redskins Park Event

(a) One (1) time on a non-practice day (when the facility is open to outside guests), Sponsor shallreceive the right to use the Redskins Park facility for one (1) event:

(i) up to two hundred (200) people shall be permitted to attend the event;(ii) the event shall include a tour of Redskins Park (not including restricted areas) and use of

mutually agreed upon indoor and outdoor meeting spaces (which may include a largetented area outside the facility);

(iii)the Companies shall provide Sponsor with on-site parking, standard utilities, basic audio-visual support, and standard cleaning service in connection with such event. All otherevent expenses and services shall be at Sponsors sole cost and expense;

(iv)The Companies shall cause a Team executive, coach or member of the player personneldepartment to appear at the event with all details of such appearance to be subject to the

Companies prior written approval.(v) Sponsor shall be required to obtain separately from the Companies designated

concessionaire any food or beverage for the event, the costs of which are not included inthe Marketing Fee;

(vi)Sponsor may enter into a separate agreement with the Washington Redskins cheerleaders,alumni and/or players to attend the event, on such terms as the parties may agree withSponsor. The expenses and fees relating to such appearances are not included in theMarketing Fee.

(vii)Team personnel shall be permitted to attend the event and solicit Sponsors invitees.(viii) All details of the event shall be subject to the Companies prior written approval.

(b) Up to five (5) times on non-practice days (when the facility is open to outside guests),Sponsor shall receive the right to schedule corporate guest tours at Redskins Park (notincluding restricted areas). Up to ten (10) people shall be permitted to attend each tour.

(2) The date of such events shall be selected by Sponsor, subject to availability and prior bookings.The Companies reserve the right to reschedule the date upon thirty (30) days notice to theSponsor.

iii) Washington Redskins Training Camp(1) Training Camp Display

(a) Sponsor shall have the right to distribute Team-approved materials from a fixed location attraining camp during all public sessions. The location of such distribution and dates of suchsession(s) shall be determined by the Companies in their sole discretion.

(2) Training Camp Mentions(a) In all Team media and advertising promoting Training Camp, Team shall use commercially

reasonable efforts to reference that training camp takes place in Loudoun County, Virginia(i.e. Redskins Training Camp, hosted in Loudoun County, Virginia)

(3) Hospitality Packages

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(a) Sponsor shall be permitted to develop hospitality packages based on the Washington RedskinsTraining Camp, which may include local hotel, restaurant and tourist properties; provided,however, all entities receiving inclusion in such packages and the specific terms of suchpackages shall in all cases be subject to the Companies prior written approval.

iv) Special Events(1) To the extent the Companies host local events for Team sponsors collectively (as opposed to

events limited to select Team sponsors), a mutually agreed upon number of Sponsor personnel orguests shall receive invitations for such events. The type, frequency, scheduling, duration andnature of such events shall be determined by the Companies in their sole discretion.

v) Trademark(1) Sponsor shall be permitted to use the Teams Trademarks (as defined herein) in the Marketing

Elements and in certain other materials, in all cases subject to the Teams prior written approvaland Sponsor shall be permitted to refer to itself as the Corporate Home of the WashingtonRedskins.

3) CONSIDERATIONa) The Cash Fee as defined herein, shall be collectively referred to as the Marketing Fee.b) Pre-season, Regular Season & Off-Season

i) A fee (a Cash Fee) shall be paid by Sponsor to the Companies for each Football Season during theTerm. All Cash Fee payments are net of any and all agency or third party commissions or fees. Thetotal 2009 and 2010 Cash Fee shall both be due and payable during the 2009 Football Season asfollows: The 2009 Cash Fee shall be due upon execution of this Agreement; the 2010 Cash Fee shallbe due in full no later than August 1, 2009.

(1) Cash Fee for the 2009 Football Season: One Hundred Thousand Dollars ($100,000).(2) Cash Fee for the 2010 Football Season: One Hundred Fifty Thousand Dollars ($150,000).

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[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first set forth above.

LOUDOUN COUNTY, VIRGINIA

By:_____________________________________________

Title: ___________________________________________

WFI STADIUM, INC.

By: _____________________________________________

Title: ____________________________________________

PRO-FOOTBALL, INC.

By: _________________________________

Title: ________________________________

The Parties shall also each initial the attached Terms and Conditions in the space provided on the each page of the Terms and

Conditions. Failure to do so, however, by either or both Parties shall not in any way affect the validity or enforcement of such Terms

and Conditions or the Agreement in its entirety once the Agreement has been fully executed by the Parties in the space provided above.

Sponsor Contact Information:

Name: ____________________________________________________

Mailing Address: ___________________________________________

__________________________________________________________

Business Phone: ____________________________________________

Business Fax: ______________________________________________

SPONSORSHIP AGREEMENT

TERMS AND CONDITIONS

1. MARKETING RIGHTSSponsor shall have the rights to the Marketing Elements expressly setforth in the Agreement and no others. All rights granted to Sponsorhereunder are subject to the policies and guidelines for sponsorshiparrangements of NFL Properties and all applicable NFL and NFLProperties agreements, rules, regulations and restrictions (the NFLRestrictions). In the event, during the Term of the Agreement, itbecomes necessary to modify or alter the terms of this Agreement to

comply with the NFL Restrictions, the Parties shall use reasonable bestefforts to agree upon appropriate modifications hereto. If the Parties areunable to agree on modified terms, the Marketing Fee shall be reducedto reflect any Marketing Elements not provided, with such reduction tobe determined in the reasonable discretion of the Companies. Any suchmodification of the terms, Marketing Elements or Marketing Fee shallbe set forth in a written instrument and executed by the Parties. Allremaining terms of this Agreement not so modified shall remain in fullforce and effect throughout the Term of this Agreement.

Unless otherwise expressly set forth herein, Sponsor shall be solelyresponsible for all costs associated with the production of any necessarymaterials relating to the Marketing Rights, including, but not limited tothose costs relating to the design, creation and timely delivery ointernet advertisements, radio advertisements, print advertisementstelevision advertisements, signage, and all other collateral materials.

The Companies reserve the right to alter the specifications ofadvertising media described in the Marketing Elements. The Companieshall use commercially reasonable efforts to notify Sponsor of suchalterations of specifications prior to the implementation of suchalterations.

In the event any Marketing Elements are not available due tocancellation of an agreement with a third-party supplier, vendor orsponsor, or other causes outside the Companies' reasonable control, theCompanies may substitute such Marketing Elements with reasonablyequivalently valued elements, in consultation with the Sponsor. Inaddition, the radio and television programming described in theAgreement is subject to change in the Companies sole discretion withrespect to show titles, show content and air dates, times and stationsCompanies shall use commercially reasonable efforts to substitutecomparable program, where such changes are made.


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Acknowledged by: Sponsor _______

Companies (WFI) _______

Unless otherwise expressly set forth herein, the Marketing Rights shallbe for Sponsors corporate use only and shall not be offered to thirdparties (e.g. customers, fans) for promotional purposes (e.g. contests,sweepstakes, giveaways). In all cases where the Companies grantSponsor permission to use Marketing Elements for promotionalpurposes, Sponsor shall be solely responsible for development of allnecessary rules and documents relating to the promotion and Sponsorshall create and secure signatures on affidavits of eligibility under allapplicable rules and liability releases from all prize winners (and otherparticipants, as appropriate). Such affidavits and releases shall includethe Companies as releases and shall be in a form acceptable to the

Companies. Unless otherwise agreed to in writing by the Parties,Sponsor, and not the Companies, shall be considered the legalsponsor of any such promotions. Sponsor warrants that it will complywith any and all state and federal regulations relating to any promotionsand shall hold the Companies harmless from any claims relating to suchpromotions.

Unless otherwise expressly set forth herein, neither Party may disclosepublicly the existence or the specific terms of this Agreement, includingbut not limited to use of a press conference or press release, and allterms and conditions herein shall be kept confidential by each Party,except as disclosure may be required by law or for audit and accountingpurposes.

The rights granted by the Companies herein do not include the right to

use the image or likeness of any individual or group of players, coachesor other team employees, and the permission to use the image orlikenesses of any such individuals must be separately obtained fromsuch persons or their representatives.

Sponsor acknowledges and agrees that the Companies may not controlvenue signage and marketing rights for non-Washington Redskinsevents at FedExField. The Companies will use commercially reasonableefforts to permit Sponsors marketing presence to remain at such events,but shall be under no obligation to do so.

The resale or barter of any Marketing Elements to any third-party,including but not limited to the resale or barter of hospitality elements,such as game tickets and parking passes is strictly prohibited and shallbe considered an Event of Default hereunder.

2.

DEFAULTAn Event of Default by a party shall be deemed to occur if:

(i) such party fails to perform or observe any material term,covenant or agreement contained herein and such failure is notremedied within ten (10) days after written notice thereof to suchparty;

(ii) such party becomes insolvent or is unable to pay its debts asthey mature; is the subject of a voluntary petition in bankruptcy orthe subject of any other voluntary proceeding under insolvency orsimilar law; is the subject of an involuntary petition in bankruptcy,or the subject of any other involuntary proceeding underbankruptcy, insolvency or similar law, in any such case which isnot dismissed within ninety (90) days of its filing; makes an

assignment for the benefit of creditors; is named in, or its propertyis subject to, a suit for appointment of a receiver; or is dissolved orliquidated; or

(iii) any representation or warranty made by such party in thisAgreement or in any document delivered in connection with thisAgreement proves to have been incorrect in any material respectwhen made or deemed made.

Upon the occurrence of an Event of Default by Sponsor, the Companiesshall be entitled to terminate this Agreement by written notice toSponsor and to pursue any other available remedies at law or in equity,provided that upon the occurrence of an Event of Default by Sponsor

described in (ii) above, this Agreement shall be terminatedautomatically without further act of or notice by the Parties. In theevent this Agreement shall be terminated following any Event oDefault by Sponsor, Sponsor shall not be entitled to any full or partialrefund of any Fees previously paid and Sponsor shall be liable for alldamages and losses to the Companies arising as a consequence of suchtermination.

Upon the occurrence of an Event of Default by the Companies, Sponsorshall be entitled to terminate this Agreement by written notice to theCompanies and the Companies shall refund to Sponsor a prorated

portion of any Fee paid for the then-current Football Season based onthe allocated value of the elements of the sponsorship program noreceived by Sponsor.

Except as otherwise specifically provided herein, termination of thisAgreement shall not relieve the parties of any obligations accruingunder or with respect to this Agreement for periods prior to suchtermination.

3. TRADEMARKUnless otherwise expressly stated herein, neither Party shall be grantedrights to use the other Partys name, trademarks, service marks, logosand colors (collectively, the Trademarks) for any purposes. Any suchuse of the Trademarks, once granted, shall be non-exclusive, royaltyfree, non-transferable and subject to the other Partys prior written

approval and the NFL Restrictions to the extent applicable.Any exclusivity granted hereunder shall be subject to the Companiesright to license Team Trademarks to third parties (including competitorof Sponsor) for charitable purposes and/or cause marketing initiativesexcept that the Companies may only license Team Trademarks tocompetitors of Sponsor for a charitable program or cause marketinginitiative in the event that Sponsor, after being given the opportunity todo so, opts not to participate in said program or initiative.

To the extent Sponsor is permitted to use the Teams Trademarks underthis Agreement, Sponsor agrees to only use authorized NFL licenseesfor the production or manufacture of any apparel, merchandisepremium or similar items bearing the Teams Trademarks and agrees topay all costs associated with such items. Sponsor further agrees tofollow such reasonable policies and procedures established by the

Companies or the NFL with respect to the production, manufacture ordistribution of such items. Sponsor agrees to hold the Companiesharmless from any claims, by the NFL or any NFL Licensee, includingclaims for royalty payments, arising from Sponsors failure to use anNFL Licensee.

To the extent Sponsor is permitted to use Teams Trademarksunder this Agreement. Sponsor acknowledges that it shall nothave any rights to use the Teams Trademarks or Team-brandedinventory to conduct promotions which involve partnership withany media company (e.g. radio station, television stationinternet site, newspaper, etc.) without Teams prior writtenapproval, which may be granted or denied by Team in its solediscretion. Notwithstanding the foregoing, nothing set forth

herein shall prevent Sponsor from purchasing advertising fromany media company to advertise a Sponsor promotion, providedsuch media company is not involved with such promotion.

4. APPROVALSSponsor shall submit to the Companies for their prior written approvaall advertising, promotional and other materials and items referring to orinvolving the Companies or their facilities (including, but not limited toRedskin Park and FedExField) or in which there appear the CompaniesTrademarks as well as any materials relating to the Marketing Elementssuch as signage or media. Failure to obtain the Companies prio


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written approval as specified herein shall be deemed a material breachof this Agreement.

5. FORCE MAJEUREIf any Party is delayed in or prevented from complying, either totally orin material part, with any of the terms or provisions of this Agreementby any reason out of its control (such as but not limited to riot, war,terrorism, or rebellion; fire, flood, severe storm, accident, or other act ofGod) or by a player strike, management lockout, walk out,postponement or any other work stoppage (whether or not theCompanies have supported such work stoppage) (a force majeure),then the affected obligations of such Party shall be suspended during theperiod of such inability, and such inability shall not be deemed a breachof this Agreement.

If three (3) or fewer regular season home games, any away gamesand/or any pre-season games are cancelled and not rescheduled as aconsequence of such force majeure, the Companies shall have noobligations or liability to Sponsor in connection with any MarketingElements that cannot be provided as a consequence.

If four (4) or more regular season home games in any Football Seasonare cancelled and not rescheduled as a consequence of such forcemajeure (a Cancelled Season), the Term of this Agreement shallautomatically be extended by one additional year upon approval of the

Sponsor. The Marketing Fee payable during the year following aCancelled Season will be the same as the amount that was payableduring the Cancelled Season. The Marketing Fee payable during anysubsequent years remaining in the Term will be the Marketing Fee thatwould have been payable the immediately preceding year if there hadbeen no Cancelled Season.

Sponsors payment or barter obligations will not be delayed or abateddue to a force majeure. With respect to in-stadium Marketing Elementsnot provided due to a Cancelled Season, the parties will work togetherin good faith to agree either upon additional Marketing Elements to beprovided during any Football Seasons remaining under this Agreementor to an amount to which Sponsor will be credited with respect toSponsors remaining payment obligations under this Agreement.

If any games are postponed or played at a location other thanFedExField due to a force majeure, then the parties shall resumeperformance of their obligations on the date(s) and at such location(s) atwhich any such games are played. The Companies will be able tosatisfy their obligations with respect to in-stadium Marketing Elementsunder this Agreement by making commercially reasonable best effortsto provide such Elements in such other location.

If any home game is scheduled by the NFL (with or without the consentof the Washington Redskins) to be played at a location outside theUnited States, the Companies may satisfy their obligations with respectto in-stadium Marketing Elements by making commercially reasonableefforts to provide such Marketing Elements at such other location,which will be the exclusive remedy with respect to any such gameplayed outside the United States.

A force majeure shall not release the parties from their other obligationsunder this Agreement that are not prevented or delayed by the forcemajeure. A force majeure shall not include any event that a party couldhave prevented by any exercise of due diligence and expressly does notinclude financial hardship.

6. TERRITORY RESTRICTIONSSponsor acknowledges that the Marketing Rights set forth in thisAgreement may only be exercised in the following geographic areas:

State of Maryland: all points within Montgomery and Prince GeorgesCounties

Commonwealth of Virginia: all points within seventy-five (75) miles ofthe District of Columbia

District of Columbia: all points within the District

outside Maryland, Virginia, Washington, D.C.: all points withinseventy-five (75) miles of the District of Columbia

Notwithstanding the territory restrictions described above, Sponsor

acknowledges that the NFL from time-to-time imposes or assertsalternate territorial restrictions on its member clubs. In the event theNFL informs the Companies that the territory restrictions describedabove are not in compliance with NFL Rules, the Parties agree torestate the territory restrictions accordingly.

7. INSURANCEThe Companies shall, at their own expense, secure and maintain in fulforce and effect during the term of this Agreement a generacomprehensive liability insurance policy with a limit of not less thanFive Million Dollars ($5,000,000) per occurrence and Five MillionDollars ($5,000,000) per general aggregate covering bodily injuryincluding death, property damage, personal injury and advertising injuryinvolving or which occurs at FedExField (the "Facility") or events heldin or at the Facility.

Sponsor shall, at its own expense, secure and maintain in full force andeffect during the term of this Agreement a general comprehensiveliability insurance policy. Sponsor shall provide Team, on or before thexecution of this Agreement and annually thereafter, with a certificatefrom Sponsor's qualified and licensed insurer certifying that Sponsorhas a commercial general liability insurance policy in force with a limiof not less than Five Million Dollars ($5,000,000) per occurrence andFive Million Dollars ($5,000,000) per general aggregate covering theindemnity requirements as set forth in Paragraph 7 above, including acontractual liability endorsement to cover Sponsor's obligations underthis Agreement, and which shall cover bodily injury including deathproperty damage, personal injury and advertising injury involving orwhich occurs at the Facility or events held in or at the Facility which areattributable to any act or omission of Sponsor or its affiliates or any o

their respective agents or employees. The certificate shall also certifythat the Companies are added as additional insureds under the insurancepolicy to the extent permitted by Virginia law. Coverage shall be on anoccurrence rather than on a claims made basis. The policy shall providethat the Companies will be notified of the cancellation or any restrictiveamendment of the policy at least thirty (30) days before the effectivedate of such cancellation or amendment. Sponsor's liability is notlimited to the amount insured. Sponsor shall not violate, or permit to beviolated, any conditions of said insurance policy, and Sponsor shall aall times satisfy the requirements of the insurance company writing saidpolicy. Failure to provide such certificate in the manner and timrequired or to maintain the insurance coverage specified herein shall bedeemed a material breach of this Agreement. It shall be a conditionprecedent to the enforcement of the Companies' obligations hereunderthat Sponsor shall have furnished to the Companies the insurance

certificate as aforesaid. All insurance required hereunder shall be issuedby a reputable insurance company or companies, with Best's rating(s) ofA- VII or better, duly authorized to transact business in the State oMaryland and acceptable to the Companies.

8. SUCCESSORS AND ASSIGNSThis Agreement shall be binding on, and shall inure to the benefit ofthe parties hereto and their successors and permitted assigns. ThiAgreement may not be assigned by any party hereto without the priowritten consent of the other party; provided, however, that (a) inaddition to and without limiting the right in clause (b) of this Section


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the Companies may assign this Agreement to any existing or futureaffiliate of the Companies or to any affiliate of any shareholder of theCompanies, whose business would then include the operation of theCompanies (a Permitted Assignee), and (b) in addition to and withoutlimiting the right in clause (a) of this Section, the Companies or anyPermitted Assignee may assign, revocably or irrevocably, any or all ofits rights to receive payments hereunder from Sponsor.

9. GOVERNING LAWThis Agreement and the rights and obligations of the parties shall begoverned by, and construed and interpreted in accordance with, the lawsof the Commonwealth of Virginia, without regard to the conflict of lawsprovisions thereof.

10. AMENDMENTS AND WAIVERSNo change or modification of this Agreement shall be valid unless thesame is in writing and signed by the Companies and Sponsor, or theirrespective successors or assigns. No waiver of any of the provisions ofthis Agreement shall be valid unless in writing and signed by the partyagainst whom such waiver is sought to be enforced.


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Response to Board Questions #A-3

These are the questions from Supervisors Burton and Kurtz regarding questions about thePartnership Proposal with the Washington Redskins.

Introduction

The partnership with Loudoun County and the Redskins and the partnership between theLCVA and the Redskins are two different proposals yet they share the same coreobjective - to brand Loudoun County using the Washington Redskins fan base andmarketing power.

Some of the questions raised about the advertising details for the LCVA/Redskinspartnership can serve as examples of how the sponsorship worked, while keeping in mindthat the media details are different for the Loudoun County/Redskins partnership.

Tom Simmons, of the Thomas Simmons Agency Inc. is quoted as stating, Thedistinction must be made between direct-response advertising and brand advertising.The former is metrics-based and is evaluated entirely on short-term results, such as retailsales. Brand advertising is a positioning strategy with long-term goals and no availablemetrics. Why would advertisers spend millions on campaigns that cant be measured?Simple. Brand management and positioning are the strategic core of all marketing.Direct-response advertising is tactical and self-liquidating; brand advertising is strategicand long-lived.

The branding initiatives undertaken by the LCVA and under consideration by the Countyof Loudoun utilize advertising to establish awareness, not to sell a product. Theawareness of Loudoun County as a place for visitors, meetings and conventions, and tolive, work and play is important positioning that will be accomplished throughestablishing a destination brand.

The following responses have been prepared for the questions regarding the tactics of thepartnerships with the Washington Redskins, Loudoun County, and LCVA.

1). Where is the research on our targeted tourism markets? Do we have any? Do

we know where they search for information on places to visit? Is it the Redskins

website? Advertising people who ignore research are as dangerous as generalswho ignore decodes of enemy signals - David Ogilvy, Founder of Ogilvy & Mather

Advertising.

The LCVA uses research to understand general travel trends as well as specific marketsegments that we work to attract. We use the research to match-up with the visitorinformation we gather through intercept interviews, conversion studies, and other visitorinformation we gather about the people traveling to Loudoun County. Based upon theresearch we have reviewed the Washington Redskins fans as a target audience is a naturalfit for the tourism market segments targeted by the LCVA. This is especially trueconsidering that this is a branding campaign, not an advertising campaign. The


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Redskins fans are interested in more than just football, and brand loyalty to the Redskinswill successfuly position Loudoun County as a place for this audience throughout thepartnership.

Redskins fans, as well and primary target audience the LCVA is working to attract, use

the internet to explore travel options and many of them book their travel plans online.Thus far, there have not been travel options per se on the Redskins website but theawareness of Loudoun as a place will be a feature of the partnership.

Our plan is to introduce them to Loudoun County as a place for a positioning andbranding campaign so that when they think about places to visit, hold a meeting, etc. theywill be aware of and hopefully consider Loudoun County as an option.

2). Who is the targeted tourist market(s) for this media buy? Is it wine lovers,

romantic couples, sports fans? Where is the research that suggests it makes sense to

advertise wine tasting and B&Bs to sports fans?

The targeted audience is the Washington Redskins fan base. The National FootballLeague relies upon Scarborough Sports Marketing to conduct research about thedemographics, interests, and behaviors of the fans. Weve compared the general NFLdata with the Washington Redskins data and it aligns with the market segments theLCVA targets. According to Scarborough Sports Marketing, Redskins fans are educated,earn more than $100,000 per household, enjoy wine, golf, culinary arts, getaways, travel,watch the History Channel, and plan meetings or conventions.

This huge audience is loyal to the Redskins, and also shares interests as the marketsegments targeted by the LCVA in a geographic area of the Washington DC metropolitanregion.

3). How many people clicked on the DCs Wine Country banner ad shown in the

materials the Board received? How does that number compare to people who have

clicked on other banner ads on the Redskins site? Of the people who clicked on theDCs Wine County banner ad, how many spent time exploring the LCVA website?

How many further clicks?

There were 524 click-through users in a 60 day period which is in-line with other click-through programs the LCVA and DED have participated in. The website users spent anaverage of 5 minutes on the LCVA site and viewed a variety of pages; specific furtherclicks are not able to be evaluated based upon how this program was generated by theRedskins.

The click-through program is not utilized by every banner advertiser on the Redskins site weve asked for a comparison but this is a difficult request because it is not necessarilyapples to apples.

4). What would be considered a successful investment? How will success be

measured?


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Success would be recognition of Loudoun County as a place for visitors, meetings andconventions, as well as the embracement of DCs Wine Country, Loudoun County, VA.This is a long term process and will not be accomplished solely through this partnership.Tactics will be measured to include impressions, and response to specific messages

however, the long term branding measurement will require surveys and research toevaluate. The benefits from the partnerships should not be underestimated all theparties involved bring value to the partnerships and in two years ideally we will bediscussing how to take the relationship to a new level and explore new, expansiveopportunities.

5.) What direct activity is this advertising designed to produce?

This is primarily about name recognition. Value is derived from the overall positioning ofthe Loudoun County brand, by affinity with the Washington Redskins organization, as adynamic, engaged community where people want to "live, work and play." It will draw

people from the Washington DC Metro area to Loudoun County to spend money andtime.

Staff feels that the relationship between Loudoun County and the Redskins may lead toother opportunities that focus on players who live here and why. Business leaders maysee their employees as wanting the same "quality of life" experiences as the Redskins.

Finally, increased association between Loudoun County and the Washington Redskins inthe minds of corporate prospects and visitors will enhance Loudoun's appeal.

6.) How will you trace this desired direct activity?

Branding is always tough to track, and without significant market research, it is hard toset up true metrics. From a business development perspective, it would not be realistic toevaluate this proposal merely on the basis of businesses located during the contract term,though we will certainly track them. It is not designed to achieve short-term goals.

On the tourism side, LCVA plans on conducting surveys (with a enter-to-win enticement)at the Redskins training camp. LCVA will track all new business and tourism leads andreport out. Also, other tourism aspects will be tracked by LCVA by measuring the returnof coupons and travel and hotel packages. We will be tracking the clickthroughs monthlyand will report the results to the ED Committee.

Culinary Tourism & Culinary Travelers Overview from LCVACulinary tourism is defined by the Travel Industry Association of America as Travel tolearn about or enjoy unique and memorable eating-and-drinking experiences.

Generally, culinary travelers are younger, more affluent, and better educated than non-culinary travelers. Travel in parties of 2. And they use the Internet more for trip planning


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purposes over non-culinary travelers. Deliberate culinary travelers are those who reportthat food or wine-related activities were a key reason they took a trip or helped themchoose between destinations. 2 in 5 of wine travelers say that their most recent trip was toa repeat destination. Other attributes include:70% of culinary travelers (deliberate or opportunistic) want to bring back regional foods,

recipes, wines, etc from the places they visit and share them with friends and family.Over 66% always want to have their travel to be experiential, so they make an effort totry regional cuisines, culinary specialties, local wines/spirits, etc.60% visit wineries or participate in wine tours to try wines unique to the destination.25% of all leisure travelers say that food is central to picking their destination. This risesto 51% for culinary travelers.

Market Segment DemographicsAge: Culinary travelers cut across all age groups equally (18-64); highest concentration ison the lower age ranges (ages 18-34 account for 31% of segment; 44 and under accountfor 53%). Seniors (65+) are less likely now or in the future to engage in culinary travel.

Gender: Both men and women equally, but the interest is higher among women.

Travel Party: Vast majority (87%) of food travelers took someone on their trip and 63%of those were a spouse/significant other. One-third of food travelers are party sizes of 2.Another one-third is made up of parties of one, three, and four people. Only 15% ofdeliberate food travelers bring children. 28% of accidental food travelers bring children.43% of wine travelers are in a party of 2 (67% bring spouse). One = 6%, three=9%, andfour=22%. Only 7% bring children.

Geographic: Over of all deliberate wine travelers travel to wineries within their ownstate.

Education: Those with post-graduate educations three times more likely to engage inserious culinary travel, with household incomes of $100,000 or more. Most are somecollege or college grad.

Transportation: 60% of food travelers arrive at a destination by car, 30% by air. Distancetraveled varies. 64% of wine travelers use their car, 21% use air. 59% of wine travelerstravel 51-500 miles from home.

Length of trip: Food travelers: Day 9%, 1-2 days 17%, 3-4 days 29%, 5-6 days 18%, 7+ days 26%. Wine travelers Two-thirds stay 3+ days; 20% day trip (mostlikely wineries in their home state)

Accommodations: Majority (58%) stay in hotels.

Spending: One-third to one-half of travel budget spent on food-related activities. Winetravelers spend one-quarter to one-third of their travel budget on wine-related activities.


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Type of traveler: Active traveler that engages in cultural activities, enjoys spa services,visits state/national parks, visits historic sites, and participates in a variety of outdooractivities.

Related Activities Engaged In:

Attend cooking classesDining out unique and memorable experienceVisit farmers marketsGourmet food shoppingFood and wine festivalsTouring wineries and breweriesDriving a wine trailVisiting artisan food producersTake home local foods and wines

Information Sources: Read print materials, including specialty newspaper sections,

official materials, culinary publications, and travel magazines. Utilize online resourcesfor trip research and planning.

DEMOGRAPHICS of WEEKEND TRAVELERS (Getaways)

59% visit cities/small towns 35% travel with children 32% travel in JUN/JUL/AUG 80% use personal auto 40% stay in hotel/B&Bs 49% are college grads

44.5% are members of AAA 57% stay 2-6 nights 43% plan 1-3 months in advance

SPAS 71% are female $72,200 average income 51% age 25-44 56% visit spa on weekend

ROMANTIC TRAVEL 41% are 35-54 years old 33% Gen X & Y 38% income of $50k or more

GOLF

34% went on 2 or 3 golfingtrips

GARDEN TOURS 20% of US residents went on a

garden tour or attendedgardens show or festival

33% income of $75k or more 36% attended a garden

show/festival


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Heritage/Cultural DEMOGRAPHICS:For 30 percent of historic/cultural travelers, their destination choice was influenced by aspecific historic or cultural event or activity.81% of US adult population included at least one heritage/cultural site in their trip.4 in 10 heritage/cultural trips are taken by Baby Boomer households (age 35-54)

6 in 10 trips are generated by households with college degrees1/3 of households have annual income of $75k or more81% of traveling adults are considered heritage/cultural travelersHeritage/cultural travelers spend an average of $623/trip (versus $457 for all travelers);18% say they spend more than $100044% of travelers include shopping as part of their trip62% of travelers stay in a hotel or B&B and 67% travel by carAverage stay is 5.2 nights

International Segment Demographics:

The average age for male visitors to the Capital Region is 44 years of age and 41 yearsfor females.

18-29 years 19%3039 years 26%40-54 years 32%55 + years 23%.Males make up 62% of visitor while female visitors make up 39%.Only 6 $ of overseas visitors to CRUSA traveled with their children (average family size3 people)

34% have professional or technical careers28% listed their occupation as manager/executive9% are retired9% Student travel7 % have clerical or sales careers

Annual household income for overseas visitors is $ 84,500.

46% traveled alone to the US23% traveled with a spouse12% traveled to the US with friends9% traveled with business associates3% traveled with a tour group

Travel Patterns:

17% decided to travel within 2 weeks of their visit (probably business travelers)44% decided to visit 2 weeks 2 months before their trip19% decided to travel 2 4 months before their trip20% decided to travel 4 months or more before their trip.


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55% used a travel agent to book their air travel which is lower than in previous years.CRUSA visitors are less reliant on travel agents than in the past, but they are still thenumber one source of information (46%).36% used the internet to gather information.

20% contacted the airlines directly.17% consulted family or friends10% used a company travel department.8% used travel guides6% contacted state/city travel offices5% contacted tour companies3% consulted magazines/newspapers1% contacted the national government tourist office

76% had traveled to the US before (repeat visitors)24% were first time visitors

Main leisure activities while in the CRUSA region88% shopping85% Dining in restaurants62% Visiting historical places52% Sightseeing in cities45% Art Galleries/Muesums28% Touring the countryside

Americas Cup Demographics

Age: The average age of polo enthusiasts and players is around 40.

35 44 37.0%25 34 27.3%45 64 23.7%Under 25 6.7%65 or older 5.3%

The sport is favored more by males, making up 73% of the sport, with 27.0% femaleparticipation. The average household income of polo fans is $ 174.000 with over 51.8%having an average of $ 100,000, 27.0 % over $200,000 and 8.5% with $500,000 and up.

Polo enthusiasts are mainly affluent and spend well when traveling to matches. They areuniversity educated, with 93.6 % pursuing professional or managerial careers. 40.5 %hold president or chairman positions.

Travel patterns:


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Based on credit card data from ticket purchasers from the inaugural Americas Cup ofPolo event as reported from their billing address on file with ONLINEDATE, INC andprocessed via Authorize.net Note: Ticket purchases made for groups represents oneticket. (Data does not include invited guests in Cartier, PNC Wealth Management Group,SunTrust Wealth Management, Merrill-Lynch Private Banking, Ritz Carlton VIP Tents,

other Hospitality private tents or the Chairmans Guest to include other special guests orInvited VIPs).TOP DMACCR ( Destination Marketing Area Credit Card Report) %

ARIZONA ( all areas) 1.80%CALIFORNIA (LA & BAY AREA GREATER DMAS) 9.80%COLORADO (all) 2.50%FLORIDA (all) 8.80%GA-ATLANTA 2.80%ILLINOIS / CHICAGO GREATER AREA 1.50%INT'L ( UK, EU, South America, Middle East, Australia, Asia, et al) 6.10%

MA-BOSTON 5.60%MD-BALTIMORE 4.40%NC-GREENSBORO-HIGH POINT-WINSTON SALEM 2.60%NEW JERSEY 2.70%NEW YORK 7.30%OHIO 1.30%OTHER DMA OR STATES NOT IDENTIFIED (ex: WY, NM, CT,OK, et al)


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Ages 60 and up (in 2005 16% of population) are generally described as heavy consumersof news and staunchly loyal newspaper readers. They are also the fastest growingdemographic online.Babyboomers: are the first generation to slip out of the loyal newspaper reader mold.Gen X and Gen Y are the most internet/gadget savvy and look for info online.

Travel Patterns: (source TIA from a survey of 1300 US adults from 2001)Readership:61% of travelers read articles about travel or destinations in the media or watch travelshows.37% contacted a destination after reading or hearing about it in the media.51% visited an attraction, theme park, or museum that was featured in the media.48% have eaten at a restaurant that was featured in the media.41% had attended a cultural event or festival mentioned in a travel article.Planning:40% used an internet website for travel planning (most used source for travel planning)

25% read the travel section in the newspaper.20% watched travel shows to plan their trip.17% used guidebooks when planning travel.17% used general interest magazines.Most useful sources:24% of media-user travelers found the internet most useful.16% rated motor club magazines most useful.10% rated newspapers most useful.

Demographics:More women than men read daily or Sunday newspapers (MRI Spring 2006). 77% ofCaucasians, 11.4 % of African-Americans, 2.9 % of Asians, 12.6 % of Hispanics and 8.3% other read daily or Sunday newspapers.

Equestrian Market

Age:Although the age profile of equestrian tourists is well distributed, 25 44 year olds makeup half of the equestrian tourism population and 66% of equestrian tourists are under 45.

Travel patterns:Individual travelers account for the majority of participatory equestrian tourists.8% of US riders participated in horse riding while on vacation during the past year.

Demographics:

Equestrian tourists are broadly affluent and spend well when on vacation.Participants in equestrian sports are mostly female.Ability and experience varies across markets, although the majority (60%) are leisureriders at beginner or intermediate levels of ability.Up to 50% of trail riders in the US have learned trail riding using western saddles.


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Membership in a riding club or association is 36%Readership of Equestrian magazines is 51%Participation in equestrian activities:Very regularly: 63 %Quite regularly: 12%

According to the United States Equestrian Federation profile of 70,000 members and onsite audiences at equestrian shows:40% report an individual income of over $ 150,000 per year80% have a minimum 4-year college degree43% travel on airlines at least 16 times per year78% are members of a frequent flyer program97% hold one or more credit cards55% of automobilies owned were purchased last year21.6 % of the circulation for Chronicle of the Horse is in the Mid Atlantic, 30.2 % in theSouth Atlantic, 10 % in East North Central area and 11.4% in New England.

Weddings Market

Age: median age for first time brides is 25 years, grooms is 27 yearsYounger brides looking for simpler wedding i.e. Destination wedding

Engagement Statistics:The average engagement in the US lasts 15 monthsThe average amount spent on a bridal gown is $800One third of engaged couples retain a wedding consultant

Travel patterns:Half a million couples will celebrate a Destination wedding this year37 percent of honeymoon trips are to domestic locations; 63 percent are foreignNumber 1 destination US city-Las Vegas, number 2 Gatlinburg, TN per Bride.comMost popular honeymoon activities visiting a new place for sightseeing, restaurants,entertainment and nightlife-75%; Beaches & lakes-45%

Demographics:During last 3 quarters the breakdown of brides home- 44% Loudoun, 7% Arlington, 7%Herndon, 7% Alexandria, 4% Gainesville, with 3% from DC, Brooklyn and Marylandalong with various other Virginia townsPer I Do, popular VA wedding destinations: VA Beach, HamptonJune is the most popular month for weddings followed by August, July, May, Septemberand OctoberBrides buy 4 to 6 issues of their favorite bridal magazineThe pass along value of bridal magazines is an average of 8 to 10 peopleMore than ever before, todays bride begins planning her wedding online. Over 80% ofall Brides and Grooms use the internet to assist in planning some portion of theirwedding.


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RedskinsTo recap, this information is from Scarborough Sports Marketing which is considered byall to be the Nielsen Media of the professional sports industry.

Age/Income/Eduation

40% of the Redskins fan base living in the Washington DC Metro cosists of peopleranging in age from 25-44 30% of the Redskins fan base living in the Washington DC Metro cosists of peopleranging in age from 45-60 54% of the Redskins fan base living in the Washington DC Metro earn more than$100k as a household 49% of college graduates living in the Washington DC Metro consider themselvesRedskins fans 55% of college graduates with some post graduate education living in the WashingtonDC Metro consider themselves Redskins fans 52% of post degree graduates living in the Washington DC Metro consider themselves

Redskins fans

Fan Experience, Interests, and/or Behaviors 60% of business travel or convention decision makers living in the Washington DCMetro consider themselves Redskins fans Redskins Fans are 18% more likely than the Washington DC Metro market average tobe in charge of business travel or convention planning decisions at work 60% of internet wine buyers living in the Washington DC Metro consider themselvesRedskins fans Redskins Fans are 19% more likely than the Washington DC Metro market average tobuy wine online 56% of wine drinkers living in the Washington DC Metro consider themselvesRedskins fans Redskins Fans are 11% more likely than the Washington DC Metro market average todrink wine

69% of golfers living in the Washington DC Metro consider themelves Redskins fans Redskins Fans are 36% more likely than the Washington DC Metro market average togolf 56% of Newspaper Food/Cooking Pages/Section readers living in the Washington DCMetro consider themselves Redskins fans 54% of Getaway Weekend Trip takers living in the Washington DC Metro considerthemelves Redskins fans 53% of people that traveled on vacation 10 or more times in the last year living in theWashington DC Metro consider themelves Redskins fans 46% of Historical/Educational Trip takers living in the Washington DC Metro considerthemelves Redskins fans 55% of History Channel viewers (last 7 days) living in the Washington DC Metroconsider themelves Redskins fans

SOURCE: Scarborough Sports Marketing Research Washington DC 2007 Release 2


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Sports Business Daily quoted Scarborough regarding the gender of NFL fans:

Men 49%Women 52%

According to the 2007 National Leisure Travel Monitor, a project conducted byFlorida-based Ypartnership (formerly YPBR) and Yankelovich Partners, two-thirds of allleisure travelers now use the Internet to obtain travel information. They surveyed 1,882consumers about travel trends. Fifty-seven percent made a reservation online last year.That's remarkable growth considering that seven years ago, 35 percent went online toplan leisure trips and only 18 percent made a purchase. All took at least one trip of 75miles or more last year requiring overnight accommodations. Of those people who madean online reservation last year, most booked hotels and flights. The online reservationsincluded: Hotel reservations, 68 percent;

Airline tickets, 62 percent; Car rentals, 33 percent; Vacation packages, 14 percent; Cruise reservations, 7 percent.

WHERE WE TRAVEL

Fifty-six percent of leisure trips last year were primarily to visit friends or relatives. Otherpriorities: Beach or lake vacation: 27 percent General sightseeing: 21 percent Visiting a city: 15 percent Cruising: 12 percent Camping, hiking and/or climbing: 12 percent Theme park: 11 percent Gambling: 9 percent All-inclusive resort: 7 percent Fishing: 6 percent Attending sports events: 6 percent Skiing or snowboarding: 3 percent Adventure travel/outfitter: 3 percent Golf: 2 percent Spa vacation: 0 percent Other: 10 percent

Source: 2007 National Leisure Travel Monitor

redskins loudon partnership

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