Naming Rights Industry Continues Strong 2004 Calendar Year

By Bill Miller

As noted on this site earlier this year, the first quarter of 2004 saw a strong start for the sale of naming rights for professional sports facilities throughout North America.

This trend continued in the second quarter of the calendar year as we have now seen 14 naming rights agreements announced through the halfway point of 2004.

However, it is important to note that the pace of naming rights announcements for professional sports facilities actually slowed in the second quarter from the potential record-setting pace demonstrated in the first quarter. Again, while it is risky to extrapolate data over the course of the year, the industry is currently on track to have its second-best year ever in terms of the number of agreements completed as it needs ten more announcement to tie this mark set in 2000 and matched in 2002.

As the following chart illustrates, there have been 204 naming rights agreements announced for major league and minor league sports facilities since the first agreement was completed for Buffalo's Rich Stadium in 1972. This total does not include any naming rights agreements for training facilities, concert & entertainment venues, theatres, college facilities, high schools or other venues.

While there has been a drop from the explosion of deals completed since 1999, there have been at least ten naming rights agreements completed in every calendar year since 1994.

Announced Naming Rights Agreements

• 2004 (14; so far)

• 2003 (18)

• 2002 (24)

• 2001 (15)

• 2000 (24)

• 1999 (34)

• 1998 (14)

• 1997 (10)

• 1996 (15)

• 1995 (14)

• 1994 (9)

• 1993 (2)

• 1992 (1)

• 1991 (2)

• 1990 (4)

• 1989 (0)

• 1988 (1)

• 1987 (0)

• 1986 (2)

• ***

• 1972 (1)

As indicated earlier, it is always dicey to extrapolate too much information from early numbers. A unexpected slowing in the economy or any other number of events could negatively impact the sale of naming rights throughout the remainder of the year. However, even if the pace slows considerably in the second half, 2004 has been another strong year for the sale of naming rights.

Of the fourteen agreements announced so far in 2004, seven involved new names for existing facilities (Texas, Seattle, Florence, Dunedin, Saskatoon, St. Lucie & Harrisburg); four were for new facilities (Corpus Christi, Clearwater, Victoria & Allentown); two exchanged one corporate name for another (Carolina & Kelowna) and one was the restructuring and finalizing of a deal preliminarily announced several years ago (Rochester/PaeTec).

Unfortunately, only thirteen of these agreements will be implemented as the proposed baseball stadium that was to be named in Allentown was unable to secure funding despite the presence of a naming rights agreement and will not be constructed.

Another positive development is the apparent strength in the sale of naming rights throughout other sectors of the sports industry not covered to this point at Naming Rights Online.

For example, in June, the NBA's Memphis Grizzlies sold the naming rights for their parking garage to Ford Motor Dealers. Numerous amateur fields have sold naming rights for dollar amounts ranging from the mid-five to low six figures. Finally, several colleges and other general purpose public facilities have also inked deals through the first half of 2004 demonstrating industry-wide strength.

Posted 7/04/2004.

Bill Miller is an Executive Vice President at The Leib Group, LLC in Mequon, Wisconsin. He is a regular contributor to Naming Rights Online and can be reached at bmiller@namingrightsonline.com