The biggest benefit to purchasing the naming rights to an arena or event is the increase in visibility. Whenever the named property gains any media attention, the company’s name is automatically attached to that property.
Why do stadiums have naming rights?
Naming rights in United States may have been traced back to 1912 with the opening of Fenway Park in Boston. The stadium’s owner had owned a realty company called “Fenway Realty” (itself named for a nearby parkland), so the promotional value of the naming has been considered.
Why are football stadiums named after companies?
Local or not, companies opt to pay to put their names on sports venues because they get a lot of media and fan attention, or so the return-on-investment strategy theory goes.
Why do sponsors buy naming rights?
Naming rights are like a long-term advertisement. You sell a sponsor the right to their name being put on a building, often a sports arena. Then your sponsor’s name could become the next Gillette Stadium or Wells Fargo Center.
Why are stadium named after companies?
Hundreds of stadiums around the globe host professional sports teams. To generate revenue, many of these venues sell the right to name the stadium after a corporate sponsor.
Where does the money from stadium naming rights go?
Naming rights deals help both the sports facilities and their corporate sponsors. The owner of the professional sports venue receives substantial revenues to pay for construction costs or high player salaries by selling a package deal. The benefits for the corporate sponsor include the amenity clause.
How much do companies pay to have their name on a stadium?
| Stadium Name | Sponsor | Avg. $/Year |
|---|---|---|
| Delta Center | Delta Airlines | $1.3 million |
| Edward Jones Dome | Edward Jones | $2.65 million |
| FedEx Field | Federal Express | $7.6 million |
| FedEx Forum | Federal Express | $4.5 million |
What is the value of naming rights?
A primary purpose behind paying for these rights is brand building. Naming rights offer some unique brand building opportunities over more commonly employed advertising and marketing campaigns.
Why do corporations sponsor stadiums?
A big advantage of sponsoring a stadium is being able to have countless opportunities to promote the company. When a professional sporting team hosts a playoff competition in a stadium named after a corporation, it leads to increased recognition of the company name.
What do NFL stadium naming rights cost?
The rights could be worth $8 million to $12 million per year, depending on the specifics of the partnership, according to sponsorship consulting firm Apex Marketing Group.
Are stadium naming rights worth it?
But as sports professionals know, stadium naming rights are more than just the physical act of putting a brand on the side of the arena. These names can shape communities, and they can be huge revenue drivers for the sponsored brands.
Why would a company want to sponsor an event?
Probably the most common reason for sponsoring an event is to increase your brand exposure to an audience that may not know of your company yet— it’s obvious but necessary. Get to know as much as you can about the event before signing the dotted line and so you can add elements that support your marketing strategy.
How do you respectfully decline a sponsor?
State your reason for declining.
I always start by thanking them for considering us, then follow that up with an apologetic reason why we are unable to take part. An example form of this would be along the lines of: “Regrettably, we are unable to participate in your event at this time due to [insert your reason here].
Why do banks own stadiums?
That’s because when a bank buys a sponsorship, they’re not just getting the right to paste their name on a big building — they become financial partners with the team. Bank sponsors can help with budgeting, ticketing, and even media rights.
Are naming rights an asset?
The cost of the naming rights has been recorded as an intangible asset with an offsetting liability as of the date of the contract. The intangible asset is being amortized over the life of the agreement on a straight line basis commencing in June 2021.
When did stadiums start being named after companies?
Corporations started putting their business name on stadiums as far back as 1912 with the opening of Fenway park in Boston. The owner of the stadium owned a realty company called “Fenway Reality” so he named the Boston red sox stadium “Fenway Park” to promote his business.
How do stadium owners make money?
Stadiums make money in a variety of ways. One of the more interesting ways is ancillary real estate. People associate stadiums with players, and with fans coming there to watch a game, but many stadiums also develop real estate around their buildings.
How much does Gillette pay for naming rights?
Gillette Stadium, Home of the New England Patriots.
However, the original naming rights deal netted the New England Patriots organization $105 million for 15 years or $7 million per season. The current sponsorship agreement for Gillette Stadium will expire in 2031.
Which NY stadium has not sold its naming rights?
Eight ballparks do not have corporate naming rights deals: Angel Stadium, Dodger Stadium, Fenway Park, Kauffman Stadium, Nationals Park, Oriole Park at Camden Yards, Wrigley Field, and Yankee Stadium.
Stadiums.
| Name | Yankee Stadium |
|---|---|
| Capacity | 46,537 |
| Location | Bronx, New York |
| Surface | Grass |
| Team | New York Yankees |
How much does it cost to get a stadium named after you?
Most companies pay between $5m and $12m and Axios reports that private lender SoFi is expected to pay a whopping $400m over 20 years to put its name on the new Rams/Chargers stadium in LA ($20m per year).
What NFL stadiums do not have naming rights?
There are now only two NFL stadiums remaining without a naming rights deal signed with a company: Green Bay’s Lambeau Field and Chicago’s Soldier Field. Here’s a look at why teams, including now the Bengals, have signed stadium naming rights deals in recent years.