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While
the sale of naming rights has generally become more
accepted over the past decade, there are still
situations where their use is simply untenable or
impossible. This is especially the case in existing
stadiums or arenas that are named for a community benefactor
or the municipality. As such, several alternatives have
developed in lieu changing the name of the building to one that
reflects a corporate sponsor's name.
It is important
to note that these alternate methods often do not
generate the dollars that a sponsor would be willing to
pay for a traditional naming rights arrangement. The
reason for this is sponsors are paying for media
impression and customer exposure. Any reduction in that
potential exposure diminishes the value of the deal for
the sponsor which naturally results in them paying a
lower figure for these alternate opportunities.
But in many instances, this helps
facilities generate some revenue while satisfying the
desires of the community to keep a more traditional
name.
Interior Naming Rights
Traditionally the most lucrative of these
alternatives, interior naming rights consist of a
sponsor acquiring the right to name a designated portion
of a stadium or arena, usually the luxury suite level.
For example, it could be the "XYZ Luxury Suite Level at
John Smith Stadium."
Seating sections can be named as well. Patrons could
sit in the XYZ section instead of sitting in Section
322. These type of arrangements are traditionally called
zone sponsorships.
Presenting Sponsorships
A presenting sponsorship is when a company is noted
as helping to present the team or facility in question.
For example, it could be "John Smith Stadium presented
by XYZ Corporation" or "The Any Town Baseball Team
presented by XYZ Corporation."
This approach is particularly effective when
discussing non-profit or museum situations. For example,
it could be the "War Veterans Memorial presented by XYZ
Corporation."
Playing Surface Sponsorships
In this situation, the sponsor acquires the right to
name the actual playing surface of the stadium or arena.
For example, it could be "XYZ Field at John Smith
Stadium." If league rules permit, logos or signage could
be placed on the playing surface to note this
relationship.
Area Sponsorships
An area sponsorship gives the company the right to
decorate a designated area of a facility's concourse in
an agreed upon manner. Usually, this decoration consists
of company colors, products and other information about
the company's products, history and place in the
community. Such an approach usually does not involve any
name at all. Of course, patrons could be directed to the
"XYZ Concourse" if the parties agree on this concept.
Hyphenated Names
In many instances, a community that finances the
construction of a sports facility is doing so in hope of
generating new economic activity in their municipality.
As such, they desire to have their name remain in the
name of this facility in hope of securing publicity.
In an effort to accommodate these desires and
generate incremental revenues, several facilities have
gone with a new concept in which the municipal name is
blended with a corporate name. For example, it could be
"XYZ Stadium at Any Town."
While it has been commonly believed
that such approaches diminish the value of the naming
rights, it does not appear as if this is the case as the
deals in Anaheim for the homes of the Anaheim Angels and
Mighty Ducks of Anaheim fell in line with dollar amounts
received by similar facilities during that time period.
Honorary Items
If the aforementioned methods are not feasible and a
facility needs to be named in spite of community
pressure to do otherwise, a small form of compromise is
to create an honorary item that acknowledges the
community or an individual who the facility was or was
supposed to be named for.
The City of San Diego took such an approach when the
naming rights for Jack Murphy Stadium were sold to
Qualcomm in order to help finance a renovation of the
building. In addition to naming field for Murphy, the
city also erected a statue honoring the former
sportswriter who was instrumental in bringing major
league sports to the city.
Corporate Benefactor
A concept that was floated in Denver
for the then-new home of the NFL Denver Broncos was to have a
consortium of corporations acquire the naming rights for
the facility and name it Mile High Stadium in honor of
the team's former home. While the concept was publicly
discussed, it was not executed as financial services
company Invesco acquired the naming rights for "Invesco
Field at Mile High." |