NYC Snapple sponsorship reveals sticky spots

Remember that deal where a former sports markerter arranged for NYC to get Snapple as the exclusive drink of the NYC Dept of Education and bagged $40MM in revenue for the citiy from the agreement?
Well, a Daily News story today outlines a couple of sticky spots–notably that $10MM–that’s 25%–of the deal value– is going to a marketing company called Octagon for arranging the deal in the first place.
According to the story, Octagon stands to get $540,000 a year for its 18% take of sponsorship payments and upwards of $1.6 million a year for its 15% cut of sales of Snapple by the case.
For for the $126 million part of the Snapple deal that covers non-school city properties, Octagon will get an estimated $6 million over five years.
According to the News, Snapple rivals testified that Octagon botched the bidding and said the standard commission paid to brokers is about 3%.