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NAMING RIGHTS
CORNERSTONE SPONSORS
The O2 is a successful example Getty Images Sport
Staples Center that it’s hard to see either side
wanting to end the partnership. For Staples, the
deal represents an onsite audience of 4 million
people a year - not to mention huge swathes of
media coverage. Meanwhile for AEG (the arena’s
rights holders), the deal represents steady
income, support via the Staples retail chain
and, tellingly, a brand which is now inextricably
associated with the golden era of LA Lakers.
This last point harks back to something
Watkins said earlier, with regard to European
stadia. While the sponsoring brand may want
to become deeply embedded in the fabric of
a stadium, does that necessarily serve the
long-term interests of the rights holder What
happens if the venue owner wants to replace the
incumbent - only to find that new partners are
concerned about the background noise created
by its predecessor. Who, after all, would want
to try and rename Bolton Wanderers’ Reebok
Stadium Or the Staples Center
A new direction
Just how significant an issue this is should
become clearer once Etihad Airways beds in as
naming rights replacement at the AFL Telstra
Dome. Venue boss Ian Collins expects the new
name “to become part of Melbourne’s sporting
vernacular” quite quickly. But brands should
watch and learn.
Conflict with previous sponsors is not the only
consideration for naming rights partners. There’s
also the issue of how to juxtapose the needs of the
naming rights partner with those of other existing
partners. This is true in motorsports - where the
diverse array of team, driver and event sponsors
may be one explanation for the lack of circuit
naming rights deals.
It’s also an issue in soccer, where big clubs
like Manchester United have shirts sponsors,
official suppliers and, increasingly, partners with
sets of geographic rights. Partly, the answer is
to have clearly defined contracts, says Watkins.
But this is another example of a situation where
an effective working relationship will also help:
“When you are looking at a 10-20 year contract,
it’s inevitable the venue rights holders will find
new ways to commercialise its facility,” says
Watkins. “That’s reasonable - but it has to be
done in a way that doesn’t impact adversely on
the naming rights partner.”
Still, for all the potential pitfalls, the general
view is that naming rights is set for another
surge. Moore sees potential in France and Italy,
where stadia investment is needed to prepare
both countries for hosting big events.
The same would be true for England if it
hosts the 2018 World Cup. Further afield, there
are opportunities in developing markets which
have hosted, or will soon host, major events.
China’s National Stadium (The Bird’s Nest)
and South Africa’s Cape Town Stadium are
just two of the venues looking for big brand
involvement. In the case of the former, there
have been reports in the Chinese media that the
venue management is looking for as many as
14 partners in the form of naming rights deals,
partnership sponsors and suppliers.
With the Chinese economy already bouncing
back from the downturn, perhaps this is where
we’ll start to see the first shoots of recovery in
the naming rights marketplace.
Barry Wilner on a new naming rights
trend emerging in the US.
MORE THAN HALF A YEAR before the new
$1.3 billion stadium opens in the New Jersey
Meadowlands, the future home of the NFL’s
Giants and Jets has four cornerstone sponsors
in place. That was achieved even before naming
rights were sold.
Well, not precisely, because in 2008, those
naming rights were about to be purchased by
Allianz for approximately $30 million annually
before the teams broke off negotiations.
So while the Giants and Jets have proceeded
slowly and carefully in that area, they had
no delays in lining up the four cornerstone
partners: Verizon, Pepsico, Bud and MetLife.
Each of those companies will pay more
than $6 million a year to have branding inside
the building and on the stadium’s facade, plus
signage in the concourses.
“In what is a challenging time economically,
the fact that we have attracted four major
corporate sponsors for the stadium is
significant,” said Mark Lamping, president and
chief executive officer of New Meadowlands
Stadium Co.
In addition, the Giants previously announced
a 15-year agreement with Timex for the naming
rights to their training facility and corporate
headquarters located within walking distance
of the new stadium. That deal is worth about $3
million annually.
Does all of this mean that smaller
partnerships with sponsors will become
the norm for US stadium deals The Dallas
Cowboys opened their billion-dollar palace
in Arlington, Texas, without awarding naming
rights, but with a collection of sponsorships on
a lesser scale.
“The Jets and the Giants will be playing in
this facility for a long, long time,” Lamping said.
“You can’t force the economics of the deal in
year one or year two simply because the market
may not be where it needs to be.”
When Yankee Stadium opened in the spring,
baseball’s most famous franchise kept the
iconic name and opted instead for agreements
similar to the cornerstone partnerships in the
Meadowlands. The new Yankee Stadium has
deals with Audi, Budweiser, Delta, H&R Block,
Jim Beam, Ketel One and Mohegan Sun for
such things as clubs and suites.
One NFL team owner whose stadium does
not have a naming rights deal, believes a trend
is being set. Speaking anonymously because
“I don’t want to damage any opportunities with
anyone,” he added: “In this economy, there
are so many large corporations - Fortune
500 companies - who simply can’t make the
investment or are fearful of the repercussions
publicity-wise if they sink millions of dollars into
naming rights.
“Plus, you won’t see any automakers or
airlines doing it the way they once did. Instead,
they are willing to spend less for a smaller
presence, perhaps with the idea that later
on, when the economy is stronger and their
businesses are on more solid ground, they can
move up to full naming rights.”
32 SportBusiness International • No. 152 • 12.09