I wonder (and am too lazy to Google it) if the first naming-rights agreement for a new building is considered to be more valuable than subsequent ones. I'm talking about those stadiums and arenas that, like HDC, were never known as anything but the corporate name. I would think that there is some value to a sponsorship that results in at least a few "used to be known as..." mentions, and so pays off after the original agreement runs out.
That's an interesting point, and one some cursory googling can't really answer. I need to break out the Excel spreadsheet. The tough part is that some of these deals get extended before expiring, and in that case, do you average the value over the life of the deal? Or treat it as separate naming agreements. At any rate, the volatile nature of the financial industry makes it a real pain to track indoor arenas in the US. The Artist Formerly Known as The Home Depot Center has a long future ahead. There's a massive gulf between places that sell out when the end is near and when the arena will be there for a while. For example, Compaq entered a deal to name The Summit here in Houston from 1998-2003. It was worth $900,000 a year. In 2001, Compaq took over naming rights for the then San Jose Arena for $3.1 million a year; that deal will last until 2016. It's not easy to predict. HDC was worth an additional $30 million for construction costs. Reliant Energy symbolically added value to the Astrodomain deal because the Texans were the 32nd NFL franchise. MetLife already had a major sponsorship deal with New Meadowlands Stadium. So there's a lot at play with these deals. We also have our share of unique situations in MLS. New England and Seattle were driven by other circumstances. NYRB and Montreal are named for owners. There's the LSP fiasco. I'm unsure of the exact services rendered, but BBVA Compass Bank played a part in the stadium financing here in Houston. And we have The Home Depot materials agreement in Carson. There's not a huge body of deals made in a vacuum, to say the least.
The only stadium I could find consecutive naming rights deals for was Minute Maid, which paid $170 million for 28 years, after Enron died, which had committed to $100 million for 30 years. Minute Maid was 80% more than Enron, so apparently not worried about the "used to be known as" problem. And some things I've read made it sound like the Astros were keen to sell to get rid of the unofficial "used to be Enron field" name of their stadium (it was "Astros Field" for a few months in 2002), but still got a higher contract.
Pink Taco Stadium. They did try to get the Arizona Cardinals Stadium naming rights when that stadium opened.
I heard there was this new up and coming successful company called Herbalife. Maybe they'd be interested. A buddy who is a hedge fund manager gave me the stock tip so they must be a good company.
The Honda Center (Where the Ducks play hockey) used to be called the Arrowhead Pond. Arrowhead paid $15 million for 10 years in 1993. In 2006, Honda paid $60 for 10 years. Not sure what happened with the naming rights between 2003-2006. And obviously inflation plays a part in all of this. But it doesn't seem to be unheard of for the second naming rights deal to be considerably more lucrative than the first.
$15 million in 1993 was worth about $21 million in 2006 (using CPI Inflation), so yeah, that's a big 2nd contract.
There is also the Hec Edmunson Pavilion where UW plays basketball. Was called Bank of America Arena. Recently switched to Alaska Airlines arena. Depending on what source you want to go with, they went from $500k/year to $700k/year when they went through the sponsorship change.
Yeah, but outside TV announcers nobody calls it that. Everybody calls it HecEd. I'm guessing that might have an effect on the amount. Though it was that way for both BoA and Alaska, so the relative difference is probably still valid.
What does everybody call FC Dallas' stadium? I still find myself referring to it as Pizza Hut Park for wont of a better label.
I call FC Dallas Stadium, FC Dallas Stadium since FC Dallas Stadium has been the name since the sponsorship was dropped. //bing maps still has Pizza Hut Park.
Yeah. I just through that in there because there are so few examples of stadiums I can think of off the top of my head that have been around long enough to have their original naming rights sponsor deal expire, who have then moved on to a new partner. I'm sure there are plenty of others out there. But those are two just popped up off the top of my head. It should be noted that I still find myself referring to the Honda Center as "The Pond" more often than not.
We prefer to call it The Trophy Case. And until you guys move out of The Rental Wreck, we'll be happy to store your trophies for you if you can remember where you put them.
So in reality, it was just a 40 million dollar deal. 70 million looks great on a newspaper but it's more of a smokescreen.
So, you're saying they didn't get 30 million worth of building materials? EDIT: A lot of sponsorships aren't just cash transfers. The big adidas deal with MLS is mostly goods. Basically adidas extends a line of credit from which MLS uses adidas' money to buy adidas clothing and gear. The signboard at your local stadium for a local sports medicine provider is usually a swap deal with the team doctor. The team gets free/heavily discounted services and the doctor gets the status and recognition of being affiliated with the team. Whether Home Depot wrote checks totaling 4o million or 70 million isn't really germaine. What is is the total value of the sponsorship.
I think you misunderstood what I wrote.. From Home Depot's point of view, the net sponsorship was $40m. However from LA's point of view it was most certainly $70m. The $30M in materials was going to be spent at some store no matter if the sponsorship deal was signed or not as the complex needed the materials to be built. It was the perfect marriage of a win-win deal.
$4 million a year is still excellent, more than what some NFL, MLB, and NBA teams get for their venue deals.