Stadium Naming Rights

Despite the original naming rights of Fenway Park in 1912, it is more widely believed that naming major sporting arenas begun in 1926 when William Wrigley, the chewing gum entrepreneur and owner of the Chicago Cubs, named his team's stadium "Wrigley Field."  Naming rights are a financial transaction where a corporation or other entity purchases the right to name a facility, typically for a defined period of time.  The duration of these purchases can last anywhere from three to twenty years depending upon the contract. 

University of PHX Stadium
Home of AZ Cardinals

Being a native of Arizona I remember all too well the bidding war that took place in 2006 when the multipurpose football stadium in Glendale (home of the Cardinal NFL team) had officially been built.  The University of Phoenix acquired the naming rights in September 2006, shortly after the stadium had opened under the name Cardinals Stadium.  The naming rights contract totals $154.5 million over the course of 20 years.  Over those twenty years the stadium played/will play host to Super Bowl XLII and Super Bowl 2015,  WrestleMania XXVI and the 2011 BCS National Championship Game.  Each event can draw crowds up to 63,000+ people who all will see University of Phoenix logo as the premier sponsor for that stadium.

Notre Dame Football Stadium

With what seems like a win win for both the stadium operators and sponsoring company, why is it not all large stadiums such as Michigan and Notre Dame participate in naming right contracts and cash in on the dough?  Sports Business Daily states Notre Dame could gain $6M per year from corporate stadium naming rights, while Michigan and Ohio State could command more than $2M per year.  So what’s stopping these institutions from cashing in?  Sports Business Daily reports, “Notre Dame Senior Associate AD John Heisler said unless there is a “radical change in philosophy” among the university’s administration, the uncluttered look at Notre Dame Stadium will endure. “It’s not a conversation anyone spends a lot of time thinking about,” he said. “In many respects our stadium is a non-commercial zone.”  Univ. of Michigan Associate AD for Media Relations Bruce Madej said the estimates for Michigan Stadium naming rights did not surprise him, but he added the brand equity in the stadium is more important to the school. “The Michigan name and the branding of the University of Michigan is of utmost importance and we want that name to be recognized as the leader in athletics and academics,” he said. “We want to stay as collegiate as possible.””

Essentially it boils down to tradition and brand recognition.  Though lots of money is generated and lost through these multimillion dollar contracts, is it really worth it in the end?  I think yes.  If the two parties can come to a collaboration where both end up happy, then why not.   

**More INFO @ http://www.sportsbusinessdaily.com