With the opening of Toledo's new downtown sports arena still more than a year away, project officials concede the city's struggling economy is confounding efforts to find a company willing to pay millions of dollars for naming rights.

"Obviously, when possible, you'd like to get a major sponsorship commitment of that level sooner than later, but we've never, quite frankly, experienced an economy as unusual as this one," said Joe Napoli, vice president of the Toledo Mud Hens.

"That's been a bit of a challenge for us."

The new arena will be operated by Toledo Arena Sports, Inc., a nonprofit organization that is a subsidiary of the Mud Hens organization. Mr. Napoli said his organization is in contact with several companies and eventually will find a sponsor - but now may not be the best time to sign a deal.

"For a company to make a long-term commitment for naming rights in the current environment is a new experience, even for us," Mr. Napoli said. "I can't even compare it to our last experience, because it's not the same."

To negotiate the naming rights, county officials hired Gateway Consulting, a Cleveland-based firm whose other clients include the Cleveland Indians and Cleveland Cavaliers, along with the Mud Hens.

"We could sell the naming rights tomorrow, but I don't think that's the best thing for the project," said Tom Chema, a consultant with Gateway.

Mr. Napoli and Mr. Chema wouldn't say how much they were asking for naming rights, but because the stadium will be open year-round and will host other events besides sports, they are expecting much more than the $5 million that Fifth Third Bank paid to sponsor the Mud Hens' home.

Naming-rights revenue is intended to help Lucas County pay off debt from the arena's construction.

The planned 8,000-seat arena, situated between Madison and Jefferson avenues in downtown Toledo, will host the Toledo Walleye minor-league hockey team, plus concerts and other events. It is scheduled to open in the fall of 2009.

County officials said they are looking for other teams - perhaps an Arena Football League team, or one from the NBA Development League - to play at the arena.

With a price tag of about $100 million, the arena's price tag easily doubles that of the Fifth Third Field, which opened for the Mud Hens in 2002.

The county plans to borrow about $90 million, using 35-year bonds, to finance the project. The balance will come from state grants, investment income, and other sources.

An increase in the county's hotel-motel tax and revenue from the stadium is expected to fund the debt service, as was done with Fifth Third Field.

The money for arena-naming rights, along with other sponsorships and ticket sales, will immediately go back to the county to help it pay off the debt. County Administrator Michael Beazley said he expects the revenue to be between $1 million and $3 million per year.

In the Mud Hens' deal with Fifth Third, the bank owns the naming rights for the stadium for 15 years plus a 10-year option.

Officials said they still were negotiating the period for which the arena's naming rights would be sold.

If the economy worsens, Mr. Napoli said, they even could wait until after the arena opens to sell naming rights.

"Everything is within the realm of possibility. We still have 14 months to go. We still have an exceptional chance to sell the naming rights," Mr. Napoli said. "But I would certainly not hit the panic button if that did not occur."

He said he had faith in the project's ability to attract residents downtown and promote the area, but it may be necessary to wait until the national economy improves in order to maximize the facility's value.

But despite the economy, Mr. Napoli said his organization has had "exceptional" success selling club seats and other sponsorships within the stadium.

"That's been surprisingly fruitful, taking into account the economy," Mr. Napoli said.

On Aug. 11, Standard & Poor's issued its highest possible rating for $34 million in one-year bond-anticipation notes that the county issued for the arena project.

The county already has bid most of the project's construction, with about $9 million in contracts remaining.

So far, county officials say the project is actually $4 million under budget - savings that could pick up the slack if the naming rights are sold for less than expected.

Contact Alex M. Parker at:

aparker@theblade.com

or 419-724-6107.

First Published August 16, 2008, 10:16 a.m.