Arena Naming Rights Agreement

Teams and leagues are attracted to such arrangements because they represent an important source of revenue, and corporate sponsors compete for priceless advertising and goodwill and pay the top dollar. Most of these agreements are a success for both parties, but there have been several warning stories. The Astros` naming rights in the stadium concern the Enron, that the team had to quickly dismantle after the 2002 scandal, and the 49ers naming rights with 3Com and Monster Cable, which were insemised by fans and local media (who continued to qualify the stadium of Candle Stick Park and finally adopted a referendum to reset the name of the stadium in Candlestick Park)5 argue in favor of reputational risk to associate one organization with another entity. There is obviously no way to predict an Enron scandal or extreme fan setbacks for corporate sponsorship; However, it is essential to develop contingency plans for naming rights and sponsorship agreements. For example, termination rules are important – what triggers a party`s right to terminate (for example. B, public accusations of moral turpitude? Accused of a felony? A felony conviction? Bankruptcy?) and how royalties and/or royalties are addressed in the event of termination, are points that should be carefully negotiated and carefully formulated in the agreement. It is also important that teams that enter into naming rights or sponsorship agreements, such as the 49ers, who give another call to sponsorship, actively seek a name sponsor for their new $937 million stadium6, work with the company`s sponsor to develop a public relations strategy both from the beginning and in real time on the media and fan reviews that change in real time. Sports stadiums with naming rights are not limited in the United States. “Named” stadiums are located in countries such as Australia, Japan, China, Finland, Canada, Israel and Germany, where 8 of the 10 largest football stadiums have sold their naming rights to corporate sponsors. The practice is becoming more common in the UK; For example, the current stadium of the Bolton Wanderers is the University of Bolton Stadium (after 17 years as Reebok Stadium and 4 as Macron Stadium) and the arsenal Football Club stadium (opened for the 2006/2007 season) is the Emirates Stadium, their previous stadium was the Arsenal Stadium.

In cricket, the most famous example is The Oval, home of Surrey County Cricket Club. It has had several sponsors over the years, and is currently known as “The Kia Oval”, originally known as Kennington Oval, the district of London where it is. The name of the stadium may have shifted in recent years to the promotion of company names, but in previous decades, it is largely because of the surnames of business creators. 6. Curtis Echelberger, “CAA Hired to Sell Naming Rights for San Francisco 49ers` Proposed Stadium,” April 27, 2011, www.bloomberg.com/ news/2011-04-27/caa-hired-to-sell-naming-rights-forsan-francisco-49ers-proposed-stadium.html (June 3, 2011).