11/14/02
The Chicago Transit Authority will generate more money each of the next five years from billboard advertising under a new contract approved today by the Chicago Transit Board. The five-year, $3 million agreement with Viacom Outdoor, Inc., guarantees CTA no less than $600,000 per year for 18 billboards located on CTA property. The new contract represents a 25 percent increase over billboard revenues in 2001 and will more than double 2002 revenues, which generated only $281,509 in a nine-month period.
Competitively bid, the new agreement is demonstrative of CTA's aggressive effort to seek creative revenue sources that help maintain operations.
?This contract makes good financial sense for the CTA," said Chicago Transit Board Chairman Valerie B. Jarrett. ?In this challenging economy, it is more important than ever for us to establish the most viable sources of revenue."
?The more money we can generate from alternative sources, the more money we have to spend directly on services for our customers," said President Frank Kruesi.
Under the new agreement, the CTA will receive 65 percent of Viacom's net revenues with a guaranteed minimum of $600,000 for the first two years of the contract. That amount will increase to 68 percent of net revenues during the third, fourth and fifth years.
CTA's billboard advertising contract was formerly held by Clear Channel Outdoor and ended on September 30, 2002.
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