How much do naming rights for a stadium cost

The deal is one of the largest sponsorship agreements in professional sports history and was the largest in the National Football League until recently. Lucas Oil is a California based company that distributes automotive oil and lubricants. With Indianapolis' rich history of auto racing, the company purchased the naming rights to the Indianapolis Colts' home stadium in Everbank, a Jacksonville based financial services company, purchased the naming rights to the Jacksonville Jaguars' home stadium in Everbank Field was previously known as Alltel Stadium.

The Miami Dolphins fan base has been through the ringer when it comes to name changes at their home stadium. However, after receiving a major face lift, the Miami Dolphins organization secured a monster naming rights agreement with Hard Rock Cafe International, Inc. Bank Stadium. The Vikings leveraged a hefty sponsorship agreement when Minneapolis banking giant U. Bank purchased the naming rights to the stadium.

The agreement was signed in and will expire in For three seasons, the Vikings played their home games at TCF Bank Stadium on the campus of the University of Minnesota while awaiting the stadium's construction. Since then, Gillette has been acquired by Proctor and Gamble and has also extended the original naming rights deal with the Patriots. The terms of the new deal has not been disclosed to the public.

The current sponsorship agreement for Gillette Stadium will expire in After having spent many years known simply as "The Superdome", luxury automobile company Mercedes-Benz purchased the naming rights to the New Orleans Saints home stadium in Mercedes-Benz has also purchased the naming rights to the future home of the Saints' rival Atlanta Falcons; Mercedes-Benz Stadium which will open in The naming rights deal for Metlife Stadium is the largest to date in American professional sports history.

The 25 year sponsorship agreement was first signed in and will expire in Some would argue that it's only right that the stadium commands so much money.

It is the only NFL stadium that is home to two different teams, is located in America's largest sports market and is also the largest stadium in the NFL with more than 82, seats. Lincoln National Corporation of Radnor, Pennsylvania purchased the naming rights to the Philadelphia Eagles home stadium in The stadium sits on the South Philadelphia Sports Complex which houses three stadiums and all four of Philadelphia's professional sports teams.

Food processing company H. Brand-building is a full-time pursuit of marketers, and major sports teams can create or enhance brand awareness. Additional mentions can occur when any team news breaks. This intense media attention might be of particular value to companies trying to get in the public consciousness.

Corporate marketers strive to achieve an emotional connection with target audiences. For instance, Wrigley Stadium became a beloved institution to Chicagoans while Busch Stadium achieved the same result in St. While these facilities were actually named after corporate founders, both individuals shared their names with their companies. That was good news for one car company, since it took place at the Mercedes-Benz Superdome in New Orleans.

For that matter, all important seasonal games and playoff contests in all four major team sports garner valuable unpaid ad time with every facility mention. Despite the potential financial gain, several top football clubs in Europe have been hesitant to sell the naming rights of their home ground so far. The market reveals that revenue is the prime consideration among several others when a club ventures into the prospect of inviting a sponsor to rename their home ground.

Neighbours Manchester United, or Spanish giants Real Madrid and Barcelona, could likely make even more a year, if they decided to change the name of their stadia to include a sponsor. Nevertheless, they have been reluctant to sell rights and thus rename their iconic venue. A kit supplier is rarely an issue in these regards, while a main shirt sponsor can provoke more passionate sentiments.

The move was meant to be a temporary measure to "showcase the sponsorship opportunity to interested parties". But in less than a year, the historical name was restored, as supporters were outraged and even the media refused to call the stadium SDA.

The right moment to involve a naming rights sponsor could be during the refurbishment of old stadia or for the development of a new, well-equipped venue that provides a top-notch user experience and can be used for multiple purposes, making any name change more acceptable, even for the most loyal fans.

In , Manchester City left their Maine Road stadium, which had a reputation for being one of English football's most atmospheric grounds, and once at their new home, in , the club struck a combined shirt and stadium deal with airline Etihad, signed for 10 years and worth GBP m.

In addition, they may also combine shirt and stadia sponsorships. These examples also show that venue naming right deals are often part of larger contracts , in contrast to stand-alone deals. Leveraging the synergies of the partnership can take other formats, too. When a financial sector corporate becomes the naming rights holder at a club, typically the firm would also provide several related financial services to the club.

Similarly, a retail brand sponsor may try to capitalize on the opportunity to get consumers to engage with their product, also involving the squad and players to help sell the brand, particularly if they have significant popularity with followers on social media channels. A sponsor must also be a reliable and stable partner. These are just two examples among many similar failures in the US, while clubs in Europe, where venue sponsorship is a relatively late development compared to the US, could avoid such fiascos so far, partly due to having learned the lessons from those failures.

The overall impact of the current pandemic on venue sponsorships is yet to be seen. However, the uncertainty around the pandemic makes it hard to estimate the fair value of new stadia sponsorships, putting all the excitement at the negotiation table regarding deal value. Andrea Sartori. All rights reserved.