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District reviews PowerAd proposal to fund new gym scoreboards in exchange for a decade of advertising rights
Summary
Representatives from PowerAd described a proposal to fund two gym scoreboards, shot clocks and a protected 85-inch display for Jersey Shore Area SD in return for a 10-year advertising agreement and a revenue split; board members asked for clarification on revenue shares, warranties and local sponsor disclosure.
Representatives from a private vendor called PowerAd presented a proposal to the Jersey Shore Area School District on Sept. 8 to fund new gym scoreboards, two shot clocks and a protected 85-inch indoor display in exchange for advertising rights in the district’s gymnasiums.
PowerAd’s presenter said the company would secure sponsorship dollars from businesses, buy the equipment once sponsorships were sufficient and manage the advertising sales and artwork. The written proposal attached to the board packet describes a 10-year agreement that would give PowerAd exclusive advertising rights for that project during the contract term and a proposed 50/50 split of sponsorship revenue between the company and the district.
The proposal would supply two Fair Play scoreboards, two shot clocks and a protective indoor TV display. PowerAd said the district would own the equipment once delivered and that the company would handle fundraising, ordering and artwork. The only expected district out-of-pocket cost cited in the presentation was electrical work to provide a power supply for installation; the presenter said maintenance staff could likely handle the physical installation but an external installer could be hired and quoted if needed.
Board members pressed the presenter on how the revenue split would work and when the district would begin to receive funds. The presenter said sponsorship revenue would continue after the equipment cost was paid off and described an initial 50/50 split; board members noted the presentation and contract language appeared to show variations (50/50 in the presented agreement, but other materials referenced different splits for other schools). The board requested the company clarify whether the district would receive 50% of gross sponsorship payments from the outset or 50% of net ad revenue only after the equipment is paid off.
Members also asked about warranties and ongoing technical support for the digital indoor display. The presenter said the standard manufacturer warranty (identified in the presentation as the Fair Play warranty for the scoreboard) would apply for the scoreboards and said the indoor display would be a protective-enclosure model intended to resist incidental impact. The presenter acknowledged that the indoor TV display and its digital-ad system would be the most IT-intensive element and that the district would likely be responsible for some IT maintenance tasks under the draft agreement.
Board members raised questions about transparency to local sponsors, including whether prospective donors would be told that a portion of their payment would be retained by the vendor. The presenter said the company’s proposals are explicit in sponsor materials and that the district would approve any sponsors chosen; she said the district would have the right to exclude businesses that conflicted with district policy. The presenter also said PowerAd aims to sign sponsors for multi-year terms (typically three- or five-year tiers) to help pay off the equipment within the first few years of the contract and then generate revenue for the athletic department afterward.
The board did not vote on the PowerAd contract on Sept. 8. Members asked the administration to collect clarifications from the vendor about the precise revenue-sharing calculation, the contract language giving ad rights, the warranty and IT responsibilities for the indoor display, and examples of comparable Pennsylvania districts that have used the company.
PowerAd representative (presentation): “We will purchase the scoreboards once we secure enough sponsorship dollars” and described a 10-year agreement that “gives PowerAd rights to being the sole advertisers on the project for that 10 years.” Superintendent Dr. Ulmer confirmed the presentation and said board members’ questions would be collected and forwarded to the presenter for written clarification.
Next steps: administration will request written clarifications from PowerAd on the timing and calculation of revenue shares, warranty coverage and IT responsibilities, and will report back to the board in a future meeting.
