Rhode Island news
Philanthropist Feinstein in battle with IMAX over naming rights
12:59 PM EST on Wednesday, January 7, 2009
Feinstein
PROVIDENCE — You might notice something missing at the Providence Place mall these days: philanthropist Alan Shawn Feinstein’s name has been stripped from its big-screen theater.
The theater, with its mammoth six-story screen, had borne Feinstein’s name since it opened in 2003 under an agreement with the IMAX Corp. The company that bought the cinema about a year ago, however, opted to remove the ubiquitous handle, arguing it wasn’t obligated to continue the deal. Feinstein’s name came off the mall just weeks ago.
Feinstein has filed a federal suit accusing the companies of breach of contract. He is asking the court to order the theater’s name be restored to Feinstein IMAX Theatre at Providence Place and that associated charitable programs be reinstated. He seeks unspecified monetary damages.
“They made promises to me. Now the promises they made to the youngsters aren’t being kept,” Feinstein said yesterday. “What else can I do?”
But National Amusements asserts that its affiliate, Quincy Amusements Inc., bought the furniture, fixtures and equipment from IMAX, but did not expressly assume or accept any obligations related to any third-party contracts, let alone one with Feinstein. It says the suit should have been brought against Massachusetts-based Quincy and should be dismissed.
According to Feinstein’s suit, he agreed in 2000 to pay $1.4 million over five years for exclusive naming rights to the theater. The deal specified that his name be about the same size as the IMAX logo and be linked to all promotions and ticket sales.
In exchange, the theater would provide a total of 50,000 free tickets for students participating in Feinstein programs as well as 15 percent discounts on admission for children who did good deeds. And 5 percent of the ticketed price would then go to the Rhode Island Hunger Fund in each child’s name.
In June 2005, Feinstein and IMAX agreed to extend the arrangement through 2010, and that the theater would maintain its name in perpetuity if all the conditions were met, Feinstein’s lawyer, Mark B. Morse, wrote. Feinstein, in turn, would pay $280,000 in return for 7,000 free tickets annually and the discounted sales.
Feinstein argues that National Amusements purchased the rights and obligations to the Feinstein IMAX Theatre last January, becoming its “successor in interest.” A month later, it alerted Feinstein it would not honor the contract terms but would continue limited programs through August.
In September, it stopped all joint programs and refused to honor discounts. The theater was soon renamed the IMAX Theater.
In the suit filed the following month in U.S. District Court, Feinstein says he suffered damages to his reputation, “a loss of his prestige in the community” as well as a loss of income for his charities.
“The bottom line is I gave them funding,” Feinstein said. He says the company asked for “hundreds of thousands” more dollars to continue the arrangement. “Quite frankly, I’d rather give the money to schools.”
In contesting the suit, IMAX, which has denied any wrongdoing, notes that the agreement actually says Feinstein would be entitled to naming rights and 500 tickets through expiration of any lease it held. The agreement is silent on what would take place if the theater were sold.
National Amusements, too, claims the purchaser of assets “does not automatically assume the debts and liabilities of the seller, including obligations under a contract.”
To the contrary, the company writes, Quincy simply agreed to use its “reasonable good faith efforts” to discuss Feinstein’s possible continued sponsorship.
Joseph V. Cavanagh and New York City-based Jonathan K. Cooperman, who represent the companies, declined comment.
Feinstein, a Cranston resident, has donated millions of dollars after making a fortune from a newsletter and collectibles sales.
The eponymous Alan Shawn Feinstein has since emerged, with classes commencing at the University of Rhode Island Alan Shawn Feinstein College of Continuing Education, the URI Feinstein Center for a Hunger-Free America, the Alan Shawn Feinstein Graduate School at Johnson & Wales University, the Feinstein College of Arts & Sciences at Roger Williams University and the Feinstein Institute for Public Service at Providence College.
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