01 cover sbi 152.indd - FIFA/CIES International University Network

NAMING RIGHTS
Tottenham FC/PA Archive/Press Association Images
“Critical to a successful naming rights deal is creating a partnership where both
the rights owner and the brand feel they are achieving their goals. A good rights
owner can facilitate the naming rights partner’s integration into the wider
community. Likewise, leading brands have a lot more to offer than cash.”
significant exposure and fits the brand image. But
that’s not to say smaller franchises can’t secure
excellent deals. For them, it’s about identifying the
most appropriate partners then demonstrating
why their facility might have relevance.”
Credit crunch
Of course, all of the above has to be seen in the
light of the current recession - which has had an
inevitable impact on the naming rights market.
Take a look at the US, for example, where
financial service company Citigroup Inc signed
a U$400 million, 20-year deal in 2006 for the
naming rights to the new New York Mets Major
League Baseball stadium.
When the deal was struck, it looked like
the perfect example of a naming rights deal -
between a state-of-the-art sports franchise and
a stable blue-chip brand. But as a result of the
financial crisis, Citigroup’s involvement with
the Mets is now seen by many as excessive -
particularly since the company needed U$45bn
of taxpayer money to survive. When the
economy bounces back, Citigroup’s deal with
Mets may look like good value. But for now,
the criticism it is receiving is indicative of the
difficulties facing financial service groups.
Not only are they strapped for cash, they are
subjected to opprobrium by politicians and the
press if they spend it.
This is a challenge for the naming rights
market, which has been heavily reliant on
financial services for support. Aside from Citi, for
example, one of the biggest US deals of the decade
was Bank of America’s 20-year link-up with NFL’s
Carolina Panthers. Others to have stepped up
included Barclays, Prudential and the TCF Bank
of Minneapolis - which paid $35 million for title
rights to the University of Minnesota’s stadium
(the biggest deal in the college sector).
It’s a similar story outside the US. In
continental Europe, says Moore, the standout deal
is the Allianz Arena - home to Bayern Munich.
Also prominent are the Suncorp Stadium in
Brisbane and Aviva’s support for the new national
stadium in Ireland - which, from 2010, will host
the country’s rugby union and football teams.
Now though, the financial services has gone quiet
- which may explain why major US franchises
such as The Dallas Cowboys, New York Jets and
the New York Giants (see box off) have yet to sign
deals for newly-constructed stadia. It may also
be one reason why 2009 saw the closure of the
Denver-based Bonham Group, a market-leading
agency which handled 100 naming rights deals
over a 20-year period.
New players
It’s not all doom and gloom however. While
many banks and automotive groups are
struggling, some other sectors are still able
to flex their muscles. O2, already mentioned,
has spearheaded the mobile sector’s move into
naming rights (though mainly, it has to be said,
in live music venues). Similarly, Etihad Airlines
has joined Emirates and American Airlines as a
high-profile player in the space - securing rights
to the 55,000-capacity Telstra Dome stadium
in Melbourne. Back in North America, office
supply retailer Staples has just become the first
brand in the US to sign a naming rights deal
in perpetuity - extending its current 20-year
deal (1999-2019)with the Los Angeles sports
arena for the lifetime of the building (home of
the Los Angeles Lakers NBA team). No price
was revealed - but so iconic is the so-called
SportBusiness International • No.152 • 12.09 31