What are naming rights in sports?

What are naming rights in sports?

What are naming rights in sports?

Naming rights are like a long-term advertisement. You sell a sponsor the right to their name being put on a building, often a sports arena. Then your sponsor’s name could become the next Gillette Stadium or Wells Fargo Center.

How do companies get naming rights to stadiums?

Stadium naming may have shifted in recent years to promoting corporate trade names, but in earlier decades is largely traced to the family names of company founders. The record for the highest amount paid for naming rights belongs to Scotiabank Arena.

Why do teams sell naming rights?

The biggest benefit to purchasing the naming rights to an arena or event is the increase in visibility. Whenever the named property gains any media attention, the company’s name is automatically attached to that property.

What is an example of naming rights?

Some examples would be: Naming a college library, collection of books or art, swimming pool or dining hall. Naming a ward or treatment center in a hospital. Naming a pro stadium or arena.

How much do naming rights cost?

Stadium Name Sponsor Avg. $/Year
Ameriquest Field Ameriquest Capital Corp. $2.5 million
Arco Arena Atlantic Richfield $750,000
Bank of America Stadium Bank of America $7 million
Bank One Ballpark Bank One $2.2 million

What do naming rights cost?

About ninety-five percent of all sports facilities constructed since 1990 have a naming rights deal.” The price ranges from $4 million to over $200 million, with terms of the agreements ranging from five to thirty-one years.

How much do companies pay for naming rights?

Stadium Name Sponsor Avg. $/Year
Air Canada Centre Air Canada $1.5 million
Alltel Stadium Alltel Corp. $620,000
American Airlines Arena American Airlines $2.1 million
American Airlines Center American Airlines $6.5 million

How much does it cost to name a baseball stadium?

Investment banking giant Citigroup purchased the naming rights for Citi Field in 2008 before the ballpark opened. The terms of the deal includes $400 million dollars for 20 years or $20 million dollars per season.

How much do naming rights for a stadium cost?

Stadium Name Sponsor Avg. $/Year
Corel Center Corel $878,142
Delta Center Delta Airlines $1.3 million
Edward Jones Dome Edward Jones $2.65 million
FedEx Field Federal Express $7.6 million

When did sports teams start selling naming rights?

Once professional sports teams and facility ownership realized that selling the naming rights to a stadium was an asset that could generate a substantial amount of revenue with very little costs, there was a boom of increased naming rights deals in the 1990s. [13]

Why are stadium naming rights important in sports?

Because teams shifted towards single-use stadiums, local governments were not willing to foot the bill entirely for a new stadium like the multi-use stadiums, which promoted efficiency and were more cost effective. [16] As a result, teams and stadium owners have pursued corporate naming rights to help pay for new stadiums.

What are naming rights for college athletic facilities?

The purpose of this article is to shed some light on the relatively new phenomenon of corporate naming rights for college athletic facilities. First, the article will define naming rights and explain the benefits that are exchanged by the parties in a naming rights transaction.

When did New England Patriots start selling naming rights?

Foxboro Stadium, the home of the New England Patriots between 1970 and 2001, was an early example of a team selling naming rights to a company that did not own it, naming the stadium Schaefer Stadium after the beer company from its erection until 1983. The public reaction to this practice is mixed.