JOHN GULLUSCIO
PRESIDENT
63 Galloping Circle
Belford, NJ 07718
ph: 732-673-1799
fax: 732-495-1544
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Board OKs Ads at 6 Schools
Ads bring $120G to area districts
October 26 , 2008
By: Jennifer Bradshaw
MIDDLETOWN — Within a few months, CMA — Corporate Marketing Associates — has been able to secure more than $120,000 in revenue for six area high schools, president John Gulluscio said.
During the summer, the Holmdel, Red Bank Regional, Old Bridge, Monroe and Middletown districts inked deals with the Belford-based company, which acts as a liaison between the districts and companies interested in placing ads on high school property.
CMA does not charge a retainer fee for its services but is paid commission on the signed deals: 30 percent goes to CMA, while the remaining 70 percent is given to the district.
CMA has already been able to secure several sponsors, such as High Point Insurance, Brookdale Community College and AAA.
The project is well under way — ads have already gone up in Red Bank Regional and Holmdel high schools, and signs for the two Middletown high schools are expected to be up Nov. 5. Most of the ads go in common areas of schools and are targeted at students.
At their Oct. 22 meeting, the board approved a list of sponsors including Sovereign Bank, The Grove and the Army National Guard, and reviewed a breakdown of revenue from two deals.
From a two-year contract with Brookdale Community College, $12,000 would be paid to the district for the ad space (two years at $3,000 per school). $8,400 of that would be paid to the district, while $3,600 would be paid in commission to CMA.
A two-year exclusive deal with High Point Insurance breaks down to the same amounts, and between the two, the district would be taking in a total of $16,800. The exclusive contract bars other district fund-raising groups from approaching that company.
Despite recent progress, there have been snags along the way.
The Middletown Board of Education postponed the initial approval of a contract with CMA at its May meeting, carrying the vote to July, when it was finally approved with a 6-2 vote. Members Sherry Gevarter and Joan Minnuies voted against it.
At its Aug. 27 meeting, the board had scheduled a vote to approve its first sponsor list, including High Point Insurance, Poland Spring, IHOP of Keyport, Neves Jewelers and AAA, but after further discussion the majority of the list was tabled until its approval at the Sept. 24 voting meeting.
Gulluscio said all sponsors are contingent on board approval, but a question of who CMA can approach also has gone before the board, with some of the parents involved in fund-raising efforts going before the board to ask that their sponsors be left alone.
Despite the initial hiccups, Middletown's relationship with CMA appears to have calmed after an additional review of their contract, and provisions set in place to preserve the income of the school's parent fund-raising groups.
High School North booster club president Jerry Wexelberg said the group's revenue source has taken a hit from the ongoing artificial turf field project at the school. Because of the field project, the booster club is at about one-third of pre-existing sign sales within the township, he said.
But not all signs hung on the field are purchased; many of them are displayed as a thanks for donations made to the school.
"We're relying on the patronage of those companies who sponsor signs. Not for the aspect of advertisement, but for community spirit," he said.
Wexelberg voiced his concerns during the summer, but Gulluscio said that CMA and the booster club recently reached an agreement.
Gulluscio said he has worked out a deal with the booster club where he may now approach some sponsors who appear on signs on the football field. However, instead of putting CMA-produced signs up on the field, the sponsor will receive an additional sign within the school as part of their package.
Basically, instead of taking a booster club client away, CMA will be starting a new account with that same sponsor, and displaying their signage elsewhere on the property grounds so it doesn't directly compete with the club, Gulluscio explained.
"As long as we don't dip into the field again, we're OK," he said. "It's going to be a good way out."
School districts studing ABCs of raising money through advertising
September 3, 2008
By: Jennifer Bradshaw
Toms River Regional district was the first in the state to allow businesses to advertise on school property, a trend that has now spread to high schools in the Middletown, Holmdel, Red Bank Regional, Old Bridge and Monroe districts.
After $1 million was raised for Toms River schools through advertising at the Ritacco Center over the past five years, other districts are now taking the first steps to possibly bring in this nontax revenue. Within the last couple of months, school boards representing six high schools — Middletown High Schools North and South, Holmdel, Red Bank Regional, Old Bridge and Monroe — have signed deals with Belford-based Corporate Marketing Association, or CMA.
CMA President John Gulluscio said that after two weeks of soliciting, the company already has been able to arrange a possible $62,500 worth of business for the six recently signed schools. All deals with advertisers are predicated on schools giving their acceptance, Gulluscio said.
CMA does not charge a retainer fee for its services, but is paid commission on the signed deals: 30 percent goes to CMA, while the remaining 70 percent is given to the district.
But that doesn't mean the process has been smooth. In Middletown, for example, there have been glitches that may raise questions for other districts considering corporate advertising, such as: What role does CMA have in helping to determine a list of sponsors and how much input should the district have? What happens to local fundraising organizations such as the booster club? Will the clubs now see their sources of revenue dissipate — or is there enough advertising revenue available for both the local organizations and marketing company to draw from?
Gulluscio said the auto insurer High Point Insurance was the first company he was able to work out a deal with to bring into the schools, for a total of $36,000 over two years to be split among the six high schools.
Gulluscio has said that CMA is flexible when it comes to how each district would like to approach and approve potential sponsors. For example, Holmdel has decided to group its potential sponsors by category, while Red Bank Regional goes by final superintendent approval. Middletown itemizes its potential sponsors in a list for board approval.
In Holmdel, board secretary Michael Petrizzo said that potential sponsors are grouped together in categories by business, which is then taken to the board, who approve the categories for CMA to approach, rather than the board approving each sponsor individually.
"(CMA) discussed that these are typical categories they have done business with, and the board comfortable was with all of them." Petrizzo said. "They're still going to come back to us with specific advertisers, then once we're to that point, we can provide them with a specific list. We're pursuing all possible leads."
Petrizzo said the partnership has been fairly smooth so far, but will take some time before it is fully functioning.
"(The) first time through anything, you have to develop a routine, and I think we are doing a good job getting there. . . . I think a year from now, it'll be that much better," he said.
Middletown may be unique in what appears to be initial confusion over the contract, but it serves as a guide to other districts on potential problems of corporate sponsorship — and how to solve them.
At its Aug. 27 meeting, the Middletown Board of Education had scheduled a vote to approve a list of 10 sponsors, including High Point Insurance, Poland Spring, IHOP of Keyport, Neves Jewelers and AAA. But several board members expressed concern over the process of how the deals were approved, and ultimately, the majority of the list was tabled for future discussion.
Gulluscio stressed that everything CMA does hedges on board approval, but he said time is of the essence when trying to sign potential sponsors. While waiting on board approval that might take an extended period of time, the sponsors could easily take the $3,500 they would spend on a basic signage package in a school and spend it on a billboard or print advertising, Gulluscio said.
Currently, Middletown has decided to enforce a rule that all booster club clients cannot be approached by CMA.
"Our original discussion was (that) we do not want to interfere with anything the booster club is doing, but (we'll) see if existing clients want to expand their contracts," Gulluscio said.
High School North booster club president Jerry Wexelberg said he is in favor of CMA securing corporate dollars for the district, but wants the board to stay mindful of all the parent groups in the district that secure donations for their respective schools.
Wexelberg added that CMA sells signage, but the booster clubs often display signs not because they are purchased, but as a show of gratitude for a contribution from a business.
"My biggest fear is that the contract wordage is changed to ultimately eliminate input from the community," he said. "We're watching, as we always do; the booster club and . . . touchdown club are very interested in what goes on in these (board) meetings."
Red Bank Regional Business Administrator Christina Galvao said the contract for the high school is still very new, but so far, the process has been moving along positively.
"We've secured two sponsors so far, Brookdale Community College and High Point Insurance," she said.
Galvao said that approval of the sponsors is contingent on superintendent approval, but the board is made aware of each sponsor.
"(Approval) is superintendent designated, based on criteria that we discuss with board based on location and types of sponsors."
Galvao said that if anything "questionable" is suggested, it is brought before the board for additional discussion.
Unlike some of the other districts, Galvao said Red Bank Regional already has early plans for the advertising revenue that will be coming in.
"The goal is to put money aside for the fitness center," she said. "But it's so new, we don't know how much we will generate."
Marketing group gets OK to put advertising in school
July 17, 2008
By: Jennifer Bradshaw
MIDDLETOWN — The Board of Education voted Wednesday night to accept a two-year contract with Corporate Marketing Associates, or CMA, to bring advertisements into the district.
The board voted 6-2 to approve the contract. Board members Sherry Gevarter and Joan Minnuies dissented.
Originally scheduled for the June 25 meeting, the vote was tabled after board members had questions about the wording of the contract.
CMA, which is based in the Belford section of the township, would serve as a liaison between the school board and potential advertisers who want to purchase ad space on school grounds in the district.
Seventy percent of the revenue generated from these ads goes back into the district, with CMA taking 30 percent as commission, the only payment the company takes from the contract. The contract is effective retroactive to July 1 and expires June 30, 2010.
The Holmdel school board approved a separate contract with CMA at its June 25 meeting by a unanimous vote of members present. Toms River Regional Schools has received revenue from CMA-produced advertising for the past five years. CMA president John Gulluscio said that a total of nearly $1 million in revenue has been generated from the ads during that five-year period.
CMA also has one-year contracts with the Red Bank Regional, Old Bridge and Monroe school districts.
Holmdel board OKs deal for ads at school
June 26, 2008
By: Jennifer Bradshaw
The Holmdel Board of Education approved a contract Wednesday night with a company to arrange advertising on school grounds.
The Middletown school board, however, tabled a vote on a contract with the same company, Corporate Marketing Associates, or CMA.
The two school districts are among those increasingly turning to — or considering turning to — corporate advertising to generate revenue.
The CMA contract with Holmdel provides the district with 70 percent of the advertising revenue.
The board voted unanimously to approve the one-year contract with one absence, Mary Harnett.
"It's not going to solve the whole (budget) problem, but it will help," Michael Petrizzo, school business administrator, said after the vote.
In Middletown, some board members said they wanted more information about the proposed contract.
Board member Sherry Gevarter, who said she received the bid specifications only Wednesday afternoon, raised a number of questions about the wording of its two-year contract. That prompted member Joan Minnuies to offer a motion to table the vote. The vote to table was unanimous.
Board President Laura Agin said the bid will go back before the finance committee, which will take a closer look at the contract and present it to the full board at a future meeting.
CMA acts as a liaison between school districts and potential advertisers who wish to place ads on high school grounds. Generated revenue from those ads goes back into the district.
CMA President John Gulluscio said that schools are not charged a retainer fee for CMA's services, and the only returns the company sees are in the form of commission.
CMA has one-year contracts with the Red Bank Regional, Old Bridge and Monroe school districts.
It is also responsible for advertising at the Poland Spring Arena at the Ritacco Center in Toms River. As a result of working with the Toms River Regional district for the past five years, a total of nearly $1 million in ad revenue has been generated, and the company's contract has been renewed three times.
Middletown Schools Superintendent Karen Bilbao has said that her district was investigating this type of revenue for more than a year, and that seeking alternative funding is a goal in the district's five-year strategic plan.
Gulluscio said after a contract is awarded, the next step is a walk-through of the school facilities where ads will be displayed. CMA would then draft a package of potential ad spaces and advertisers to present to the district.
A walk-through has already been done in Middletown, Gulluscio said.
The school board has the final say on what companies may advertise and where the ads will be, the board usually knows which companies CMA will be soliciting, Gulluscio said.
School revenue answer may lie in advertising
RITACCO CENTER: Ads have generated nearly $1M
June 25, 2008
By: Jennifer Bradshaw
MIDDLETOWN — Several area school districts are exploring a new source of revenue: corporate advertising.
The man offering the method is John Gulluscio, president of Middletown's Corporate Marketing Associates.
Gulluscio, 61, arranges multiyear contract packages with advertisers who want to place ads on high school grounds. The advertising revenue goes to the district as additional funding, with the company taking a portion of the sales as commission.
Gulluscio said that he believes he has discovered a niche market, and that CMA is the only company providing this kind of service within the New Jersey/New York area. While companies similar to his exist in the Midwest, New Jersey has yet to take full advantage of bringing corporate advertising into its districts, Gulluscio said.
In Monmouth County, the Middletown and Holmdel boards of education are expected to vote tonight on awarding contracts to CMA to line up advertisers. CMA has already been awarded contracts by the Red Bank Regional, Old Bridge and Monroe districts.
CMA's most prominent client, though, may be what is now called the Poland Spring Arena at the Ritacco Center in Toms River, Gulluscio's first undertaking with a school district. CMA has worked with the Toms River Regional district for the past five years, during which a total of nearly $1 million in ad revenue was generated, and the company's contract renewed three times.
Gulluscio referred to the revenue from the Ritacco Center, located at Toms River High School North, as "found money." It is not intended to fund huge projects, like building the next sports venue, but rather to enhance existing facilities, such as new computers for their laboratories or new uniforms for their bands and sports teams.
Holmdel school Business Administrator Michael Petrizzo said that after speaking to Toms River Regional Schools Superintendent Michael J. Ritacco, who he said "raved" about CMA's results, Petrizzo contacted Gulluscio almost a year ago as part of the district's pursuit of revenue opportunities.
"It's a new concept for public school districts," Petrizzo said. "Certainly in this community, (the idea) has never been (approached) before. We wanted to get everyone comfortable with it."
Petrizzo said that Gulluscio gave a presentation at a Holmdel school board meeting, addressing questions and concerns of the public. Gulluscio also gave a presentation before the Middletown board at the beginning of the year.
"There were certainly questions that it didn't interfere with other fundraisers, and that there was no loss of any type of control and that (ads are) done tastefully." Petrizzo said.
Districts are recognizing that property taxpayers are becoming overburdened, and there is no certainty of state funding, said Frank Belluscio, director of communications for the New Jersey School Boards Association.
"Over the last 15 years, we've seen the interest in non-tax revenues for schools (rise)." Belluscio said.
To a similar degree, within the state, there are about 120 districts with active education foundations, Belluscio said, whose purpose is to pursue alternative funding, with advertising being an option.
Gulluscio lists among his 27 clients all of the major New Jersey-New York professional sports teams, the Lakewood BlueClaws and other minor league teams, Monmouth Park Racetrack and the Woodbridge Community Center. He said, however, that his focus has now shifted to working with school districts.
Gulluscio insisted that he doesn't see any harm being done to the students by bringing advertisements onto school property, as long as they are in good taste and at the discretion of the district administration.
To that end, the process of choosing which companies advertise on school grounds will be heavily influenced by what the board of education decides, he said.
Middletown Schools Superintendent Karen Bilbao said that her district has been investigating this type of revenue for more than a year, and that seeking alternative funding is a goal in the district's five-year strategic plan.
After reading about the work Gulluscio had done with the Ritacco Center, Bilbao said that Gulluscio was invited to draft a proposal for Middletown. The administration also visited Ritacco "to get a reference and . . . a sense of the work done in Toms River," she said.
One of the concerns of bringing in another company to secure advertising is the potential conflict between a company like CMA and the high school booster clubs, who customarily bring advertising to school sports venues themselves.
Gulluscio said that he is not looking to compete with booster clubs, but to work alongside them.
Holmdel Booster Club President Jim Murtaugh said that historically the club has not been able to pursue advertising as a form of revenue. It generates the majority of its revenue from memberships, donations and concession fees, Murtaugh said, so there isn't much conflict bringing in another group searching for advertisers.
However, Murtaugh said that for some booster clubs, advertising is a very lucrative source of income.
Bilbao said that as a result of a recent meeting held for members of parent groups seeking to learn more about the process, a set of guidelines is being drawn up based on suggestions and concerns from the public, which will serve as a guide during the process.
Belluscio said that ultimately, each district will have to individually decide how to handle the placement of ads, based on their needs and the concerns of the community.
"The decision must be made locally," he said. "If the (state) steps in and makes an overall rule, that wouldn't be right."
Several cash-strapped North Jersey school districts are considering turning to businesses to fund expenses such as computer labs, athletic fields and uniforms.
The Wayne schools are looking for a company willing to pay for naming rights to a list of school facilities.
The Clifton schools approached Nike to pay for an artificial-turf field. The district offered to display the Nike logo at its football stadium but the company wasn't interested.
Corporate sponsorship is gaining acceptance among North Jersey school districts that are looking to South Jersey where such an arrangement has been profitable. The Jersey Shore district of Toms River sold Poland Springs the naming rights to an auditorium -- which is leased for several regional sporting events and doubles as a regional entertainment venue.
Such agreements are being considered as a way to pay for field trips or maintenance of sports fields in Wayne, band uniforms in Clifton and even athletic equipment such as softballs and basketballs in the Middlesex County district of Monroe.
Critics argue that it's inappropriate to invite more commercialism into the schools. But officials who support the idea say it's a way to enhance education without putting more pressure on taxpayers.
"I think the question is when you are a taxpayer: Do you want the Board of Education to become innovative and save you tax dollars, or are you going to worry about the Nike swoosh being in an end zone?'' Wayne trustee Robert Ceberio said.
Toms River, which has become a model for raising money through corporate sponsorship agreements, is in the fourth year of an $800,000 contract for naming rights to its auditorium -- the Poland Springs Arena at the Ritacco Center. The building was originally named for the district's long-serving superintendent.
The Ocean County district sought additional corporate sponsorship agreements and generated $2 million in revenue over five years, Superintendent Michael Ritacco said. The district used the money to buy defibrillators and train coaches to use them, and to buy art supplies, fund an art show and buy school buses.
Sponsorship money is also used to offset taxes. The district did not raise taxes this year, and plans to keep them from increasing in 2008-09, Ritacco said.
CMA Sports Marketing, based in Middletown, helped the Toms River district broker its sponsorship agreements. Company President John Gulluscio said schools can generate revenue without having to name facilities for a company. Districts can allow local businesses to put up signs in the auditorium or sports stadium, print corporate names on the back of event tickets and allow companies to advertise on district Web sites.
That is the kind of arrangement that interests the Monroe schools. The district is close to entering into an agreement to allow local companies to put up signs at the high school athletic fields. Money generated would likely be used to buy equipment for the sports programs, Board of Education President Kathy Kolupanowich said.
The district wants to follow Toms River's lead.
"We hope to share in some of their success,'' she said.
Raising money through corporate sponsorship is appealing for many districts, but opponents say it sets a bad example for students.
In Midland Park, where the education foundation might seek corporate sponsorship of its high-tech virtual computer lab, board member Anne Polhemus said, "You can't let corporate America invade every part of your life.''
She said she doesn't have a problem with soft drink companies having their name on a scoreboard, but she doesn't want to see any corporate sponsors on the walls of the high school library.
"Where day-to-day education goes on, you have to be very careful about sending the wrong message to kids: that money is very important, that money can buy you anything,'' Polhemus said.
Robert Weissman, managing director of Commercial Alert, a Washington, D.C.-based watchdog group, said there is a "misconception'' that companies offer schools free money.
"It's not someone paying the schools in exchange for nothing,'' Weissman said. "They are getting access to a captive audience, which has significant value to them and comes at a significant cost to the students: the infusion of commercial values into their school lives more than what was already there.''
But stand outside any public school before the morning bell and it becomes clear that there is already plenty of advertising that goes on in the schools, said Gulluscio, of CMA Sports Marketing.
"Tell me how many kids come to school with a Nike hat, or Juicy on their jeans or stuff like that,'' Gulluscio said. "They are all walking billboards.''
Capitalizing on advertising can help the schools, he said.
"If schools have to let go of a teacher or two because of a salary crunch, this extra $50,000 or $100,000 may let them keep two teachers, or a secretary or buy computers,'' he said.
Schools have to strike a "delicate balance'' said Victor Hayek, Wayne's Board of Education president.
"You don't want to stamp marketing all over the place,'' Hayek said. "We want to keep our identity as a school.''
But if the money is used to improve education "it benefits everybody,'' Hayek said.
"It benefits the kids for having the additional experience, plus it increases morale so it changes their attitude toward school and improves learning indirectly,'' he said.
CMA Sports Marketing is talking to at least seven districts around the state about corporate sponsorship agreements. Clifton Board of Education member Michael Urciuoli said the board is going to invite the company in to discuss other options besides Nike.
Money from corporate sponsorship could be used to cover the cost of new band uniforms or to pay for athletic programs, he said.
"Every board needs to look at ways to increase revenue,'' Urciuoli said. "Educating children is expensive.
"We don't want to turn the schools into a commercial, but if you could get sponsorship for the scoreboard, and the sponsorship money goes to make the scoreboard better, and they have their name there, it's not a bad thing.'
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Friday, December 21, 2007
BY CHANDRA M. HAYSLETT
Star-Ledger Staff
The next time you're at your child's high school basketball game, glance around the gym for ads. The walls may look more like a professional sports arena than a space for amateur athletes.
Faced with tight budgets and pressure from taxpayers, school officials across the state are considering corporate sponsorships for high school gyms and sports fields to bolster revenue.
Four years ago, the Ritacco Center, a sports and entertainment venue, opened at Toms River High School North. Today, the center is known as the Poland Spring Arena at the Ritacco Center after the bottled-water company agreed to pay the school district $50,000 a year for naming rights.
Officials in the Ocean County district contracted with CMA Sports Marketing and, in four years, have made nearly $800,000 from local and national advertise ments. The money has paid for a fleet of new buses and scholarships at the school, said Michael Citta, assistant superintendent for the Toms River schools.
"We're educators and we're working with local businesses and we found there's a market for that. It's a nice give and take in the community," Citta said.
Other districts are looking to follow Toms River's lead. Officials in Monroe Township in Middlesex County, Franklin Township in Somerset County and Red Bank in Monmouth County have recently had presentations from advertising firms about possible naming rights and ad placement in school sports venues.
"I had an idea that this could be the next niche in corporate adver tising," said John Gulluscio, president of Middletown-based CMA Sports Marketing. "They already have gyms or sports centers, and the advertisers are always looking for different ways of doing things."
Gulluscio said he makes sure the board of education gets prior approval of all advertisements to assure the product or message is appropriate for school-age children.
CMA did a presentation for the Monroe district in November, and Superintendent Ralph Ferrie said he expects to have further discussion with the school board next month. While it's up to the board to decide on moving in that direction, Ferrie believes his district can benefit as long as it maintains oversight of the ads.
"We want to make sure the district has control," he said. "It provides an opportunity for districts to raise funds. We have to start thinking in different ways."
If Monroe embraces corporate sponsorship, Ferrie said the district would probably work with an agency to sell ads for its football and baseball fields and the high school gym.
But if Franklin Township agrees to allow advertisements, the board would likely sell the ads itself to maintain total control of the placement and content, said John Calavano, assistant superintendent for business. Calavano said he plans to bring up the issue next month with the school board.
"We looked at Toms River and that's a real good model, but we have to be careful that in the pub lic's mind they don't think we're endorsing a company," he said.
Front Row Marketing Services in Philadelphia has been trying to sell the idea of corporate sponsor ship to school districts for nearly three years. But Bob Snyder, the company's project coordinator, said some school officials have reservations about selling naming rights and peppering gyms and sports fields with advertisements.
"They feel things should be named after people. Or if the superintendent asks for the money, then it looks like a gift," Snyder said.
Front Row's client list ranges from the Sovereign Bank Arena in Trenton to colleges in Rhode Island, Virginia and South Carolina, but Snyder said he remains convinced high schools remain an un tapped market.
"Every district wants to take a look at it because budgets are being squeezed," Snyder said. "It's an alternative means for revenue."
While districts on the East Coast may be reluctant to embrace corporate sponsorship, Midwestern schools have been at it for years. The Topeka schools in Kansas have generated $600,000 in adver tising sales in the last four years for their sports park, which has a football, softball and soccer fields, two baseball fields and a track, said Assistant Superintendent Michael J. Wilson.
"The money has been used to buy land, pay for activity funds and provide scholarships," Wilson said.
At Red Bank Regional High School, which has the largest fieldhouse in Monmouth County, officials were already brainstorming for ways to generate additional funds to finance a $1.5 million fit ness center when CMA did a presentation for administrators, said Superintendent Ed Westervelt. Ad vertising revenue would provide a better alternative than asking residents to foot the bill for the expan sion, he said.
"We'll probably work with CMA. It's not a good time to go for a referendum, and this will reduce the burden on the taxpayers," he said.
The Watchung Hills Regional High School District in Somerset County recently drafted a policy on corporate advertisements that will be placed on the flexible fence going up around the baseball field in the spring, said Superintendent Frances Stromsland.
"Hopefully, some of the revenue will offset capital projects," she said.
The district also has a new performing arts center. Officials talked about naming rights during the construction of the center, but no one came forward with money, Stromsland said, adding the opportunity is still out there and officials are talking with banks.
"We're hoping it leads to something," she said.
Chandra M. Hayslett may be reached at chayslett@starledger.com or (732) 404-8089.
Corporations: Financial relief for schools?
High school athletic facilities may be ideal spot for ads
March 13, 2006
By Scott Stump, Staff Writer
With school budgets being squeezed to the max, athletic budgets mushrooming by the year and budgets being defeated by frustrated taxpayers, many local school districts are on the lookout for ways to raise additional revenue.
An area that professional franchises and colleges have long used to bring in money is now slowly trickling down to the high school level — corporate advertising. With corporations always looking to get more exposure from different demographics, high school athletic fields and gymnasiums could be the next frontier.
The days of an ad here for Vinnie's Pizza or an ad there for Joe's Auto Body may soon be just a tiny part of a landscape filled with packaged ads from a group of large corporations or gyms named after soft drinks seeking the teenage demographic that is greatly coveted by corporate behemoths.
"I think we'll see that trend in the next decade of partnerships between corporations and schools," said Bill Bruno, the president of the Shore Conference and the athletic director for the Brick schools.
"It's already popular at high schools in the Midwest. I've spoken to some athletic directors at national conventions, and for some of them, it's part of their job description to bring in corporate advertisers to help defray the cost of their athletic programs."
The most prominent example in the Shore Conference is the Ritacco Center on the campus of Toms River North, which opened in June 2003. The state-of-the-art, 3,500-seat arena, which hosts everything from high school state championship games to concerts to art shows, has a large sponsorship from Poland Spring. The formal name of the building is The Poland Spring Arena at the Ritacco Center, and there is a large Poland Spring sign on the outside of the building in addition to Poland Spring water being sold at the concession stand and advertised inside.
Poland Spring is one of several corporate advertisements inside the building, all of which reportedly net the Toms River School District somewhere in the low- to mid-six figures a year in money that can be put back into the school system.
"The idea to bid out the naming rights came about after a few events there (at the Ritacco Center)," said Toms River schools superintendent Mike Ritacco. "This is different from a lot of school buildings because people visit from all over the state for NJSIAA events, concerts, home shows and numerous other events.
"That makes it more attractive to corporate sponsors because they get plenty of exposure to various groups of people from different areas."
While no other school in the Shore Conference has anything close to a Ritacco Center, that doesn't mean that football and baseball fields as well as gymnasiums couldn't attract a smaller degree of advertising that might be able to save a school program or supplement an existing one. It may not be $1 million, but $20,000 or $50,000 could still make a difference.
Carving a niche
While more schools are growing interested in attracting corporate advertising, actually doing it is not an easy task for officials who are more educators than businessmen. That's where Middletown resident John Gulluscio, the president of Corporate Marketing Associates, comes in.
Since forming the company in 2000, Gulluscio has paired corporate sponsors with 22 clients ranging from the New Jersey Devils to the Lakewood BlueClaws to the Trenton Thunder. His first venture into the high school realm was in Toms River, where he met with Ritacco and school officials and helped pair up the district with advertisers. He now is looking to offer sponsors sports packages, where, for instance, they could get signage on baseball and football fields and in gyms.
"Wherever there's a high school field or a gym, you can package school sponsorships in these different venues," Gulluscio said.
"You could even put signage inside schools themselves. The natural backlash is that "We don't want to prostitute the school by putting signage in there,' but every kid who walks into the school is a walking billboard with what they're wearing. Why shouldn't you turn that wall into 20 grand?
"My wife is a schoolteacher and I see how there have been so many budget problems. This could be a way to put some money back into the school."
At the college and professional level, there are plenty of companies that are hired by schools or teams to attract corporate sponsorships. CMA is believed to be the first company in this area providing that service for high schools, which has become an entirely new niche in New Jersey. His company has become the one to seek if schools want to know what kind of opportunities are out there.
"It's nice to have somebody like John who can say, "You stick to education, I'll bring you the sponsors,' " said Keith Buscio, the regional vice president of marketing for Sovereign Bank, which advertises at the Ritacco Center.
Buscio has seen the landscape from both sides, as he is also a member of the Central Regional Board of Education.
"The timing is right for the public sector with funding so tight, to at least look into signage (at high schools)," Buscio said.
How much is too much?
If schools start partnering with numerous sponsors and signage increases, will it get to the point where, for example, the outfield fence at Toms River East will look like the ad-filled outfield wall at FirstEnergy Park in Lakewood? Where does it end?
"Who knows, one day you might see a car ad on the football helmets at Middletown South or something like that," Gulluscio said.
"I think a school district has to find corporate sponsors and balance it in a tasteful way," Ritacco said.
"Would I mind seeing an ad for a large bank on the back of the backstop at the baseball field? No," said Red Bank Catholic athletic director Joe Montano. "Would I have a problem with it being on (center fielder) Ryan Kalish's jersey? Yes."
However, in the advertising-saturated age that we live in, most people are conditioned to see signage everywhere. When it can be pitched as a way to put more money back into the school, opinions may change.
"The public expects to go into most places and see it (advertising)," Buscio said. "It's accepted. People may be upset, but when you say that these signs may be paying for kids' equipment, all of a sudden it would be, "I like these signs.' "
Stopgap or supplement?
While the money is out there for schools to attract, Ritacco warns against seeing it as some magic cure to budgetary problems.
"This money won't help balance a $200 million budget, but it can help programs," he said. "Our original concept was to be able to do some extra things for our students. You don't want to count on the money to fund new programs. It's more to supplement existing programs."
Some school districts have resisted venturing into the world of corporate sponsorships, because it is viewed as more of a last resort or selling your soul.
"We've had some discussions about it, but the Board feels that at this point it would be commercializing the school," said Red Bank superintendent Edward Westervelt. "There are no plans to do that at this time even though school funding is extremely tight. (However), it doesn't preclude it from happening in the future."
"We've been lucky that we get a lot of donations," said James Wasser, superintendent of schools for the Freehold Regional District. "It (corporate sponsorship) is an option. In the event things got tight, it's something to consider."
It can also be an option when unexpected fluctuations can occur, such as the spike in gas prices that have bludgeoned the transportation budgets of numerous athletic departments. Plus, the rise of sports like lacrosse, ice hockey, volleyball and others mean that there are more teams to financially support.
That also raises another question. When the money from large corporate sponsors is pumped back into the school system, who gets their hands on it and how big of a chunk do they get?
"I do see it coming, to supplement athletic programs and the school budget at large, but what percentage of it is going where?" Bruno asked. "The band will want some, the football team, other athletic teams, extracurricular clubs, etc. Those are all things that local boards of education will have to deal with."
The wave is coming, and it just remains to be seen how far schools choose to ride it. Keep an eye out for that big championship game between bitter Acme Conference rivals Foodtown High School and ShopRite Regional in 2020.