Branding with Stadium Names
Citigroup's Citi Field Raises the Price in the Sports Name Game
Sep 27, 2008
Corporations are committing millions to put their names on sports stadiums and arenas, some to reach the masses, some to impress tightly targeted prospects and clients. Citigroup bid a record $20 million per year to name the new New York Jets-Giants stadium Citi Field. Even bigger deals may be in the making.
According to Forbes Magazine, Reliant Energy in 2000 committed a record $300 million over 32 years to name the Houston Texans football home Reliant Stadium. That was two years before the new National Football League franchise started playing. It was a $9.375 million-per-year package.
Citigroup is paying more than twice that much for the name rights to the Jets-Giant stadium in East Rutherford, New Jersey, but will get exposure in twice as many NFL games in the nation’s premiere television market. The stadium opens in 2009.
Dallas Cowboys Stadium Could Challenge Citi Field
Observers say two other new stadiums could challenge Citi Field as the name champion, but both may eliminate themselves.
- The billion dollar stadium that Jerry Jones and the Dallas Cowboys plan to open in Arlington, Texas in 2009. Texas-based AT&T has been mentioned as a potential sponsor, but some fans want the stadium named after Jones.
- The new Yankee stadium scheduled to open for the 2009 Major League Baseball season. According to CNNMoney, the Yankees will probably auction the name of stadium gates rather than the name of the stadium.
Selling stadium names has angered some fans so much that the income may not be worth the public relations problems. The Yankees are particularly sensitive to the tradition behind that name. The San Francisco 49ers experienced such negative reaction, including ridicule from sportscasters, to two sponsors that it has gone back to the name Candlestick Park.
Enron Scandal and Bankruptcy
Teams and facility owners have grown cautious about the strength and character of potential sponsors. Before Reliant Energy became its sponsor, the Houston stadium had to live through the national Enron scandal and bankruptcy.
CMGI, the original sponsor of New England’s stadium, experienced severe financial problems and had to drop its name rights.
For sponsors, buying a stadium name is a gamble on the amount of direct and TV exposure and good will they will receive on what amounts to a huge billboard. Winning teams increase the publicity, but sponsors can also be tempted by the prospect of a Super Bowl, World Series, college bowl or concert being played in their stadium, providing additional national and international television exposure.
Sponsors can reap additional exposure from simple directional signs on highways leading to the stadium.
Other Branding Opportunities
Corporations are learning to take advantage of other branding opportunities that come with the name rights, such as ticket, suite and meeting room privileges, program and game promotions.
Gillette places its products in the player locker rooms, sometimes picking up extra exposure during television interviews. It doesn’t hurt that the stadium is nicknamed "the Razor."
Lincoln Financial gets access to Philadelpha Eagle players. Millionaire players can be good investor prospects.
FedEx Committed $205 Million for Redskin Stadium
Here, according to Forbes, are prices being paid by other top NFL stadium sponsors:
- Washington Redskins—FedEx $205 million, 27 years
- Arizona Cardinals—University of Phoenix, $154 million, 20 years
- Carolina Panthers—Bank of America, $140 million, 20 years
- Philadelphia Eagles—Lincoln Financial, $139.6 million, 20 years
- Indianapolis Colts—Lucas Oil, $121.5 million, 20 years.
References:
- Kate Macmillan, Forbes 9/10/08
- money.cnn.com, 1/21/07
