COLD LAKE – The Cold Lake Fighter Jets Football Club will have its remaining ,582.80 debt to the City forgiven in exchange for a three-year sponsorship agreement, giving the organization a fresh start while providing the City with advertising and promotional benefits.

Cold Lake City Council approved the arrangement at its Aug. 11 regular meeting following a lengthy discussion about the club’s outstanding account, its contributions to the community and how the City can help make the football program more sustainable going forward.

The Fighter Jets owed the City $2,582.80 for field rentals and related services. Rather than provide another grant or simply write off the account, administration recommended converting the balance into sponsorship.

Under the agreement, the City will be recognized as the Fighter Jets’ premier municipal sponsor through signage, the team’s website and social media, game-day materials, digital communications and annual program advertising.

The Fighter Jets will also be required to keep all future accounts with the City current throughout the three-year agreement.

Debt has been an ongoing issue

The agreement follows council discussions earlier this year over whether the Fighter Jets should be permitted to continue booking City facilities while carrying an outstanding balance.

At that time, the club owed approximately $5,200. Administration told council the Fighter Jets wanted to continue operating its adult football season and youth flag football programming, with revenue from those activities, sponsorships and fundraising intended to help pay down what was owed.

Council ultimately allowed the organization to continue booking facilities despite the City’s outstanding accounts policy, although the decision wasn’t without concern.

Councillors questioned whether allowing one organization to continue using facilities while owing money could set a precedent for other community groups.

Since then, the Fighter Jets have cut that outstanding balance by roughly half.

The remaining $2,582.80 will now be dealt with through the sponsorship agreement rather than continuing as an unpaid account.

Council wants Cold Lake to benefit too

Council’s discussion Aug. 11 wasn’t simply about clearing the debt.

One issue raised was ensuring the City receives tangible value in return for its sponsorship, including having the Fighter Jets continue to play in Cold Lake.

During discussion, a member of council pushed for language stating the team’s games should be played at Tom Varughese Field in Cold Lake, noting taxpayer dollars are effectively being used for the sponsorship.

“I want it very clear that all their games have to be in Cold Lake, Alberta, at the Tom Varughese Field,” the councillor said during the discussion.

Councillor Chris Vining agreed with the intent but cautioned against wording that could create problems if circumstances outside the team’s control forced a game elsewhere.

“I would like them to make sure that they’re playing their games here,” Vining said, while noting scheduling conflicts, league requirements, smoke or other circumstances could make the field unavailable.

Council ultimately approved the agreement as amended, with the discussion settling on language intended to keep games in Cold Lake while recognizing circumstances may arise where that isn’t feasible.

City looking at longer-term solution

The conversation also opened the door to something potentially bigger for football at Tom Varughese Field.

Administration told council the City has been examining opportunities to create advertising space at the football facility, similar to advertising found on arena boards.

That could eventually lead to a revenue-sharing arrangement where sponsorship advertising at the field helps generate money for organizations such as the Fighter Jets.

Administration said the goal is to find a model that doesn’t simply solve the club’s immediate debt problem, but helps it become more sustainable.

“We want to do is try to generate something that will help with the success on an ongoing basis and sustainability,” administration told council.

The City has used a similar debt-for-sponsorship approach before.

During the discussion, administration referenced an earlier agreement involving Cold Lake’s Junior B hockey organization, which had dealt with approximately $30,000 in outstanding debt. That arrangement included sponsorship benefits and additional requirements, such as Cold Lake community youth nights.

Council also acknowledged the Fighter Jets’ involvement outside of football, including participation in community parades and providing security and volunteer support at local events.

The three-year agreement now gives the Fighter Jets a way to clear the remaining debt while requiring the organization to stay current on future City bills and provide sponsorship value in return.