MetLife Stadium's $400 million deal
By Brian Finkel
When the NFL season kicks off next month, 22 of the league's 32 teams will be playing in stadiums with a corporate name. The New York Giants and New York Jets are the latest teams to tap this lucrative revenue stream, signing MetLife to the richest naming-rights deal in NFL history.
Naming-rights deals are particularly valuable to teams because they provide a way to recoup some of the multimillion-dollar investment necessary to build new stadiums. For companies, the rights are a valuable piece of a larger sports-marketing portfolio. Why haven't some teams yet landed big corporate sponsorships? In some cases it's legacy (Lamebau Field); in others it's delusions of grandeur (Cowboys Stadium). In rare instances, it's the inability to find any deal at all.
Naming-rights deals are particularly valuable to teams because they provide a way to recoup some of the multimillion-dollar investment necessary to build new stadiums. For companies, the rights are a valuable piece of a larger sports-marketing portfolio. Why haven't some teams yet landed big corporate sponsorships? In some cases it's legacy (Lamebau Field); in others it's delusions of grandeur (Cowboys Stadium). In rare instances, it's the inability to find any deal at all.
Bank of America Stadium
Tenant: Carolina Panthers
Year Opened: 1996
Cost to Build: $248 million
Cost of Naming Rights: 20 years, $140 million
Bank of America (BAC) bought the naming rights to the stadium in 2004 when the sponsorship deal of LM Ericsson (ERIC) expired. BofA had previously been the team's financial-services partner before expanding the relationship. Headquartered in downtown Charlotte, N.C., BofA is the largest U.S. corporation with an NFL naming-rights deal.
Year Opened: 1996
Cost to Build: $248 million
Cost of Naming Rights: 20 years, $140 million
Bank of America (BAC) bought the naming rights to the stadium in 2004 when the sponsorship deal of LM Ericsson (ERIC) expired. BofA had previously been the team's financial-services partner before expanding the relationship. Headquartered in downtown Charlotte, N.C., BofA is the largest U.S. corporation with an NFL naming-rights deal.
CenturyLink Field
Tenant: Seattle Seahawks
Year Opened: 2002
Cost to Build: $360 million
Cost of Naming Rights: 15 years, $75 million
Monroe (La.)-based telecom CenturyLink (CTL) took over the stadium's naming rights earlier this year when it completed a buyout of Qwest Communications. Qwest originally put its name on the home of the Seahawks in 2004, two years after the building opened.
Year Opened: 2002
Cost to Build: $360 million
Cost of Naming Rights: 15 years, $75 million
Monroe (La.)-based telecom CenturyLink (CTL) took over the stadium's naming rights earlier this year when it completed a buyout of Qwest Communications. Qwest originally put its name on the home of the Seahawks in 2004, two years after the building opened.
Edward Jones Dome
Tenant: St. Louis Rams
Year Opened: 1995
Cost to Build: $280 million
Cost of Naming Rights: 12 years, $31.8 million
St. Louis-based brokerage firm Edward D. Jones signed on as the Rams's naming partner in 2002. The stadium previously was known as the Trans World Dome, but American Airlines (AMR) didn't want to keep the naming rights after it bought bankrupt TWA. As part of a smaller sponsorship deal with Russell Athletics, the stadium was renamed Russell Athletic Field at Edward Jones Dome for a day in 2006.
Year Opened: 1995
Cost to Build: $280 million
Cost of Naming Rights: 12 years, $31.8 million
St. Louis-based brokerage firm Edward D. Jones signed on as the Rams's naming partner in 2002. The stadium previously was known as the Trans World Dome, but American Airlines (AMR) didn't want to keep the naming rights after it bought bankrupt TWA. As part of a smaller sponsorship deal with Russell Athletics, the stadium was renamed Russell Athletic Field at Edward Jones Dome for a day in 2006.
EverBank Field
Tenant: Jacksonville Jaguars
Year Opened: 1995
Cost to Build: $121 million
Cost of Naming Rights: 5 years, $16.6 million
Jacksonville (Fla.)-based EverBank purchased the naming rights to city-owned Jacksonville Municipal Stadium last July. The stadium hadn't had a naming partner since Alltel's agreement expired in 2007. With more than 400 signs featuring EverBank's name, the company is branding the stadium far more intensely than Alltel did.
Year Opened: 1995
Cost to Build: $121 million
Cost of Naming Rights: 5 years, $16.6 million
Jacksonville (Fla.)-based EverBank purchased the naming rights to city-owned Jacksonville Municipal Stadium last July. The stadium hadn't had a naming partner since Alltel's agreement expired in 2007. With more than 400 signs featuring EverBank's name, the company is branding the stadium far more intensely than Alltel did.
Farmers Field
Tenant: TBD
Year Opened: 2016 (estimated)
Cost to Build: $1.2 billion (estimated)
Cost of Naming Rights: 30 years, $700 million
With neither the commitment of an NFL team nor a shovel in the ground, Farmers Insurance signed the largest facility naming-rights deal in history for the proposed downtown Los Angeles stadium. The agreement tops the previous record set in 2006 by Citi Field's $400 million naming-rights deal. By signing the deal before construction, Farmers receives additional publicity during the building phase. In the event the stadium is never built, the company likely will pay little, if anything.
Year Opened: 2016 (estimated)
Cost to Build: $1.2 billion (estimated)
Cost of Naming Rights: 30 years, $700 million
With neither the commitment of an NFL team nor a shovel in the ground, Farmers Insurance signed the largest facility naming-rights deal in history for the proposed downtown Los Angeles stadium. The agreement tops the previous record set in 2006 by Citi Field's $400 million naming-rights deal. By signing the deal before construction, Farmers receives additional publicity during the building phase. In the event the stadium is never built, the company likely will pay little, if anything.
FedEx Field
Tenant: Washington Redskins
Year Opened: 1997
Cost to Build: $250 million
Cost of Naming Rights: 27 years, $205 million
When the Redskins announced the deal in 1999, FedEx (FDX) Chief Executive Officer Fred Smith said it "made sense from a global perspective" because of Washington's access to foreign embassies. At the time, the naming-rights deal was the most lucrative in sports history. FedEx also owns the naming rights to FedEx Forum in Memphis.
Year Opened: 1997
Cost to Build: $250 million
Cost of Naming Rights: 27 years, $205 million
When the Redskins announced the deal in 1999, FedEx (FDX) Chief Executive Officer Fred Smith said it "made sense from a global perspective" because of Washington's access to foreign embassies. At the time, the naming-rights deal was the most lucrative in sports history. FedEx also owns the naming rights to FedEx Forum in Memphis.
Ford Field
Tenant: Detroit Lions
Year Opened: 2002
Cost to Build: $430 million
Cost of Naming Rights: 20 years, $40 million
Is there a more appropriate naming-rights partner for the home of the Detroit Lions? Not only is Ford (F) the largest company in a city known for its rich automotive history, but William Clay Ford Sr., the youngest grandson of company founder Henry Ford, owns the NFL team.
Year Opened: 2002
Cost to Build: $430 million
Cost of Naming Rights: 20 years, $40 million
Is there a more appropriate naming-rights partner for the home of the Detroit Lions? Not only is Ford (F) the largest company in a city known for its rich automotive history, but William Clay Ford Sr., the youngest grandson of company founder Henry Ford, owns the NFL team.
Gillette Stadium
Tenant: New England Patriots
Year Opened: 2002
Cost to Build: $325 million
Cost of Naming Rights: 15 years, $105 million (extended from 2017)
Gillette bought the stadium's naming rights in 2003 for an undisclosed amount of money. Previous sponsor CMGI (MLNK) had to revise its Patriots sponsorship following the bursting of the dot-com bubble. Gillette, which has since been purchased by Procter & Gamble (PG), recently extended the naming-rights deal, from 2017 to 2031.
Year Opened: 2002
Cost to Build: $325 million
Cost of Naming Rights: 15 years, $105 million (extended from 2017)
Gillette bought the stadium's naming rights in 2003 for an undisclosed amount of money. Previous sponsor CMGI (MLNK) had to revise its Patriots sponsorship following the bursting of the dot-com bubble. Gillette, which has since been purchased by Procter & Gamble (PG), recently extended the naming-rights deal, from 2017 to 2031.
Heinz Field
Tenant: Pittsburgh Steelers
Year Opened: 2001
Cost to Build: $281 million
Cost of Naming Rights: 20 years, $57 million
The relationship between Pittsburgh's first families�the Heinzes and the Rooneys, who own the Steelers�predates this naming-rights deal by several decades. Not coincidentally, the total value of the agreement pays homage to Heinz's (HNZ) most famous Ketchup product: Heinz 57.
Year Opened: 2001
Cost to Build: $281 million
Cost of Naming Rights: 20 years, $57 million
The relationship between Pittsburgh's first families�the Heinzes and the Rooneys, who own the Steelers�predates this naming-rights deal by several decades. Not coincidentally, the total value of the agreement pays homage to Heinz's (HNZ) most famous Ketchup product: Heinz 57.
Lincoln Financial Field
Tenant: Philadelphia Eagles
Year Opened: 2003
Cost to Build: $512 million
Cost of Naming Rights: 21 years, $139 million
Naming rights were granted to Lincoln Financial Group in 2002, a year before the Eagles's stadium opened. The sponsorship was part of an LFG marketing campaign aimed at heightening name recognition among the public.
Year Opened: 2003
Cost to Build: $512 million
Cost of Naming Rights: 21 years, $139 million
Naming rights were granted to Lincoln Financial Group in 2002, a year before the Eagles's stadium opened. The sponsorship was part of an LFG marketing campaign aimed at heightening name recognition among the public.
LP Field
Tenant: Tennessee Titans
Year Opened: 1999
Cost to Build: $290 million
Cost of Naming Rights: 10 years, $30 million
Nashville-based construction company Louisiana-Pacific (LPX) took over the stadium's naming rights in 2006, four years after previous sponsor Adelphia's name came off the building following a missed payment and a bankruptcy filing. LP has done a fantastic job of activating its stadium sponsorship, creating concession stands and restrooms decorated to look like homes built with LP products.
Year Opened: 1999
Cost to Build: $290 million
Cost of Naming Rights: 10 years, $30 million
Nashville-based construction company Louisiana-Pacific (LPX) took over the stadium's naming rights in 2006, four years after previous sponsor Adelphia's name came off the building following a missed payment and a bankruptcy filing. LP has done a fantastic job of activating its stadium sponsorship, creating concession stands and restrooms decorated to look like homes built with LP products.
Lucas Oil Stadium
Tenant: Indianapolis Colts
Year Opened: 2008
Cost to Build: $720 million
Cost of Naming Rights: 20 years, $122 million
Although the company is headquartered in Corona, Calif., Lucas Oil Products was already a Colts sponsor and had strong business ties to Indiana when it committed more than $120 million for naming rights. The company can expect from $30 million to $40 million worth of media exposure when it hosts the 2012 Super Bowl.
Year Opened: 2008
Cost to Build: $720 million
Cost of Naming Rights: 20 years, $122 million
Although the company is headquartered in Corona, Calif., Lucas Oil Products was already a Colts sponsor and had strong business ties to Indiana when it committed more than $120 million for naming rights. The company can expect from $30 million to $40 million worth of media exposure when it hosts the 2012 Super Bowl.
M&T Bank Stadium
Tenant: Baltimore Ravens
Year Opened: 1998
Cost to Build: $220 million
Cost of Naming Rights: 15 years, $75 million
M&T Bank's (MTB) 2003 naming-rights purchase coincided with the company's decision to acquire Allfirst Bank and move into the Baltimore market. Has the investment paid off? These days, M&T is the second-largest bank in Baltimore by market share.
Year Opened: 1998
Cost to Build: $220 million
Cost of Naming Rights: 15 years, $75 million
M&T Bank's (MTB) 2003 naming-rights purchase coincided with the company's decision to acquire Allfirst Bank and move into the Baltimore market. Has the investment paid off? These days, M&T is the second-largest bank in Baltimore by market share.
Mall of America Field at the Hubert H. Humphrey Metrodome
Tenant: Minnesota Vikings
Year Opened: 1982
Cost to Build: $68 million
Cost of Naming Rights: 3 years, $6 million
The city of Minneapolis gave the Vikings permission to sell naming rights when the Twins and the University of Minnesota football team moved into their own stadiums in 2010. Since the Vikings hope to build a new facility in the next few years, the team settled on a short-term naming-rights deal with the iconic Mall of America.
Year Opened: 1982
Cost to Build: $68 million
Cost of Naming Rights: 3 years, $6 million
The city of Minneapolis gave the Vikings permission to sell naming rights when the Twins and the University of Minnesota football team moved into their own stadiums in 2010. Since the Vikings hope to build a new facility in the next few years, the team settled on a short-term naming-rights deal with the iconic Mall of America.
MetLife Stadium
Tenant: New York Giants, New York Jets
Year Opened: 2010
Cost to Build: $1.6 billion
Cost of Naming Rights: 25 years, $400 million
The Giants and Jets thought they had sold naming rights in 2008 to Allianz (ALV:GR), but the financial services company's ties to Nazi Germany caused that deal to fall apart. Next, online dating site Ashley Madison offered to rename the Meadowlands as AshleyMadison.com Stadium, though this was seen as nothing more than a publicity stunt. MetLife (MET) had been paying $7 million a year as one of the stadium's four cornerstone partners before upgrading to this bigger deal.
http://images.businessweek.com/slideshows/20110822/nfl-stadiums-with-the-most-expensive-naming-rights/slides/16
Year Opened: 2010
Cost to Build: $1.6 billion
Cost of Naming Rights: 25 years, $400 million
The Giants and Jets thought they had sold naming rights in 2008 to Allianz (ALV:GR), but the financial services company's ties to Nazi Germany caused that deal to fall apart. Next, online dating site Ashley Madison offered to rename the Meadowlands as AshleyMadison.com Stadium, though this was seen as nothing more than a publicity stunt. MetLife (MET) had been paying $7 million a year as one of the stadium's four cornerstone partners before upgrading to this bigger deal.
http://images.businessweek.com/slideshows/20110822/nfl-stadiums-with-the-most-expensive-naming-rights/slides/16
