Chapter 10
Venue Naming Rights
McGraw-Hill/Irwin
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
10-1
Venue Naming Rights
• Building Sponsorship
• Sponsor Pays to Have Its Name Attached
to a Facility for A Specified Period of Time
• Many Types of Facilities beyond Sports
• Also Driven by ROI
10-2
Brief Historical Perspective
• Early Ego-Driven Motives
• 1973 – Rich Stadium for NFL’s Buffalo
Bills ($1.5 million over 25 Years)
• Percent of US Professional Teams Playing
in Venues with Corporate Sponsor
– 30% in 1997
– 69% in 2007
10-3
Benefits for Four Constituencies
• Benefits for the Fans
• Benefits for the Community at Large
• Benefits for the Resident Organization
• Benefits for the Sponsor
10-4
Benefits for the Fans –
Often Involves New Facility
• Better Seating Configurations
• More Amenities
• Potential for Lower Ticket Prices
• Better Product
• Team Retention
10-5
Benefits for the
Community at Large
• Provides Jobs
• Higher Levels of Tourism
• Lower Taxpayers’ Burden
10-6
Benefits for the
Resident Organization
• New Revenue Stream
• Enhanced Level of Prestige
• Greater Corporate Interest for Involvement
Via Traditional Sponsorship
10-7
Benefits for the Sponsor
• Increased Awareness
• Improved Image
• Sustainable Competitive Advantage from the Association
with the Venue and Its Resident Organization
• Hospitality Opportunities
• Increased Sales
10-8
Plan Components
• Comparable to Traditional Sponsorships
• Insert Box 10.1 Here
10-9
Plan Components
• Signage
– Places like main entrance, gathering areas,
scoreboards, concession areas
– May Include Virtual Signage Opportunities
• Logos
– On uniforms of participants, service workers,
and items such as napkins and cups
10-10
A Key Component: Signage
• Drop in Figure 10.1 Here
10-11
Plan Components
• Advertising – Broadcast and Programs
– Many venue naming rights deals include
advertising for the building sponsor; these
may include radio, TV, and the event program
• Designation for Leveraging Purposes
– A building sponsor often seeks ability to
position itself as an “official sponsor” of the
venue’s primary resident organization
10-12
Plan Components
• Category Exclusivity
– Competitors of the building sponsor may not
be allowed any official role with the venue
• Recognition on Public Address
Announcements and Scoreboards
– Contract often specifies a minimum number of
such acknowledgements during each event
that is staged at the venue
10-13
Plan Components
• Hospitality
– Provision of an area for entertaining; may
include a luxury suite for some (or all) events
• Complimentary Tickets
– Free tickets to events staged at the venue
10-14
Plan Components
• Web Presence
– Acknowledgment or even a direct link to the
sponsor’s Web site from the venue and the
resident organizations’ Web sites
• Distribution Rights
– Ability of sponsor to sell its products at the
venue
10-15
Plan Components
• Other Marketing Initiatives
– Take orders for products
– Accept applications (i.e. credit card company)
– Showcase products
– Engage in promotional giveaways
10-16
Example of
Venue Naming Rights Contract
• Drop in Table 10.1 Here
10-17
Key Success Drivers
• Target Market Fit
• Ability to Leverage
• Integration within Sponsor’s IMC Plan
• Multipurpose Facilities
10-18
Target Market Fit
• Capitalize on Strategic Linkage to Reach
the Sponsor’s Target Market
• Marketer May Need to Consider Venues
beyond the Sports Environment
10-19
Ability to Leverage
• Resident Organization May Receive a
Significant Amount of Media Exposure
• Building Sponsor Should Use Leveraging
Program as a Means of Capitalizing on
that Exposure
• Leveraging Should Tie the Sponsor to the
Resident Organization
10-20
Integration within
Sponsor’s IMC Plan
• Sponsorship Fits Other Elements of the
Building Sponsor’s Marketing Strategy
• Sponsorship Is Not a Stand-Alone
Promotional Strategy; It Must Work in
Harmony with the Other Components of
the Sponsor’s Integrated Marketing
Communications (IMC) Plan
10-21
Multipurpose Facilities
• Multipurpose Facilities:
– Reach a Varied Array of Market Segments
– Reduce the Seasonal Variation Regarding the
Use of the Venue
10-22
Value Determination
• Drop in Box 10.3 Here
10-23
Examples of Sports Venues
Venue
Citi Field
Location
New York, NY
Total Contract ($US) Years
400
20
Reliant Stadium
Houston, TX
300
30
Philips Arena
Atlanta, GA
180
20
Emirates Stadium
London, England
200
13
Lucas Oil Stadium
Indianapolis, IN
121.5
20
Allianz Arena
Munich, Germany
120
15
Air Canada Centre
Vancouver, Canada
25
20
10-24
Opportunities Beyond Sports
• Examples Include
– Hospitals
– Educational Facilities
– Museums
– Performing Arts Centers
– Shopping Malls
10-25
Measuring the Results
• Qualitative Assessment
• Consumer Surveys of Awareness
• Media Equivalencies
10-26
Problems, Concerns
and Criticisms
• Cost
• Public Reluctance to Embrace Corporate
Name
• Media Resistance to Use Corporate Name
10-27
Problems, Concerns
and Criticisms
• Difficult to Measure Sponsorship’s Impact
• Sponsor Transition (i.e. Merger)
• Arena Obsolescence
• Lack of Consistency – Performance of
Resident Organization Varies over Time
10-28
Problems, Concerns
and Criticisms
• Limited Number of Opportunities Remain
in the US Professional Sports Market
• Teams Move
• Sponsorship Clutter
10-29
Growth Opportunities
• Some Pro Sports Opportunities in USA
• Nonsports Environment
• Secondary Sports Facilities
• Opportunities Outside of United States
10-30
Building Sponsorship?
• Drop in Figure 10.2 Here
10-31
Brokers and Consultants
• Specialized Agencies that Negotiate Deals
that Work for Either the Sponsor or the
Sponsee in the Negotiation Process
– Work to Get Maximum Revenue for Venue
– Work to Get Best Deal for the Sponsor
– For Example: Front Row Marketing
http://www.frontrow-marketing.com/
10-32
Closing Capsule
• Venue Naming Rights Is Our First Special
Case of Sponsorship
• Primary Emphasis Has Been on Sports
Venues, but Other Opportunities Abound
• It’s Not Just about Attaching a Corporate
Name to a Building
10-33
Closing Capsule
• Sponsors Seek Reasonable ROI
• Focus Is on the Potential Value of the Plan
Components and the Sponsorship’s Cost
• Measuring the Results Is Difficult
• Done Correctly, Many Parties Will Benefit
10-34