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 <strong>cover</strong>age. 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 2<strong>01</strong>8 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 re<strong>cover</strong>y 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 <strong>International</strong> • No. 152 • 12.09
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