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Home > Blogs > Get on the Bus > Archives > 2008 > March > 26 > Entry
Making business sense
(An artist rendering of a renovated Welcome Stadium)
With other area hospital networks giving big money to sponsor stadiums in suburbs like Centerville and Springboro as part of their marketing efforts, it was surprising to hear Kettering Health Networks President Fred Manchur say Tuesday that a $1 million contribution that earned the hospital system naming rights for the new turf at Welcome Stadium could not be justified as a business expense.
Manchur said after a press conference that no matter how they added it up, the hospital’s executives felt the contribution for Welcome did not make sense from a business standpoint. But Kettering, which has long viewed its relationship with the district for sports medicine services primarily as community service, decided to give the money anyway out of a sense of mission.
So to recap, when a hospital sponsors an athletic facility in the suburbs, it’s marketing. But when a hospital sponsors an athletic facility in the city, it can only be considered charity?
For more on Kettering’s gift, here is the story I wrote about this for Wednesday’s paper:
One way to look at Kettering Health Networks $1 million contribution toward the rebirth of Dayton schools-owned Welcome Stadium is as an investment in marketing. Kettering’s President Fred Manchur doesn’t look at it that way.
“This really doesn’t make business sense,” Manchur said at a press conference Tuesday.
Sports stadiums in suburbs like Centerville and Springboro may be attracting big dollar corporate sponsorship from other area hospital systems seeking to promote their brands to consumers, but having Kettering’s name on the field at Welcome on the city’s showcase stadium really did not add up, Manchur said.
As a marketing or advertising vehicle, the $1 million contribution could not be cost justified, he said. But part of Kettering’s mission is to serve its community and for more than two decades, that has included supporting the city schools’ athletic programs with sport medicine services and even providing discounted or free medical treatment or even surgeries to needy city athletes.
In the context of the hospital’s greater mission, the gift made sense, Manchur said. “You have to take away the business aspect and look at what is the right thing to do,” he said.
Kettering’s gift will be combined with state grants for a $3.6 million total renovation of the stadium before the fall sports season.
Welcome Stadium first opened in 1949 after years of private fund-raising efforts in the community, which paid for much of the cost of building it. The district owns the stadium and most of the parking lot that surrounds it and the University of Dayton Arena.
Superintendent Percy Mack said the goal is to host more revenue-producing events at the stadium. Already, the Cincinnati-based Skyline Football Classic has agreed to expand with season-opening games in Dayton at Welcome. The Classic will be the first games on the new turf on Aug. 21, pairing Lakota’s east and west high schools against Centerville and Wayne high schools.
The city’s football schedule opens the following day with Thurgood Marshall High School’s home opener.
Mack said the field also will be lined for soccer, which he hopes will draw revenue-producing soccer events, such as state tournament matches. The stadium has not been a major source of outside funds in recent years. In fact it was losing significant money three years ago. Treasurer Stan Lucas said Welcome so far this year has turned a small profit on a cash basis, but when depreciation of the building and equipment is figured in those profits likely will be wiped out.
(Image courtesy of Lorenz & Williams)
Permalink | Comments (5) | Post your comment | Categories: Dayton Public Schools
Comments
By null
March 28, 2008 10:02 PM | Link to this
co-idiots, I like that!!!By Laura
March 28, 2008 5:20 PM | Link to this
Although I do think there were better ways to spend the $1 mil., as Scott pointed out, other hospitals have donated big bucks to wealthier districts like Springboro and Centerville. Why should they have state of the art athletic facilities but not the students of DPS? I know I would be thrilled if someone would offer my district money for a tennis court and a new stadium at our high school. Mary, most of your suggestions for the money are good except the one for a “healthy” food kitchen. The kids wouldn’t eat it. Check out the waste in the trash cans at the schools after breakfast and lunch. Then check out the waste at the summer lunch programs. You would be appalled. Many kids take a breakfast only for the juice and throw the rest away. Many kids take a lunch and drink only the chocolate milk. This is because for breakfast for example, the regulations require them to take at least three items which means they take them and throw the others away.By Terri
March 28, 2008 12:11 PM | Link to this
If they are going to spend money for marketing in the area why not help out DPS while they are at it?By Caroline
March 27, 2008 5:41 PM | Link to this
Fred called it a “donation” because he didn’t want employee backlash because of the expenditure. Obviously, they will be rewarded for their 1M contribution. I’m sure their name will end up all over the stadium. This isn’t really about “helping” the DPS kids, it’s about what looks best for the hospital. It’s also about what works best on the taxes.By Mary
March 27, 2008 10:34 AM | Link to this
Well, I give Fred and his executive co-idiots in charge an “F” for their sense of “mission” for medical center funds. Try providing premed and medical scholarships for underpriviledged gifted students, not athletes, who can go on to serve their community. Try free medical clinics or healthy food kitchens for all underpriviledged children, not just athletes - the educational “elitists”. Try supporting school academic programs in the sciences so we have medical workers who know what the “h” they are doing. Send his own medical staff to state of the art training upgrades. Cut medical costs for everyone if he has a million bucks to throw around for a stadium. I could go on. Mr. Fred has confused his mission with the NFL commissioner.