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February 11, 2008
Prices of Stadium Name Sponsorship Soar
Associated Press, via amNY
By Janet Frankston Lorin
All sports teams want bragging rights, but with the cost of a new stadium now more than $1 billion, it's naming rights they're after.
As several of the most storied franchises in sports replace their stadiums, sports marketing experts expect corporations to pay record amounts for the right to name them.
...
If the [new Giants/Jets] stadium brings in at least $25 million to $30 million annually as predicted, and with the four additional sponsorships, the teams could get more than double or even triple what the highest deal has brought in so far.That belongs to the New York Mets, which will receive $20 million annually from Citigroup to name its new baseball stadium, or about $400 million over a 20-year contract. The New Jersey Nets got a similar deal from Barclays Bank PLC for their proposed new arena in Brooklyn, N.Y.
...
Barclays wanted to expand its brand to the U.S., said Nets CEO and President Brett Yormark. The arena, part of a $4 billion project, has also earned cachet with star architect Frank Gehry and Brooklyn's reputation as an up-and-coming borough, he said."It's not about the team," he said. "It's about the building. This will be landmark building, a destination area."
NoLandGrab: When hundreds of millions of public dollars are going towards building these new sports venues, why do all of the corporate naming-rights proceeds go to the teams?
Posted by lumi at February 11, 2008 4:47 AM