Naming Rights Agreements

The naming rights at transit stations were sold in Las Vegas and Philadelphia (NRG-Station, Jefferson Station and Penn Medicine Station). [13] These sales were considered in New York[14] and Boston and excluded in San Francisco. [15] A sponsorship of MMBTA State Street by the Bank of Citizens lasted from 1997 to 2000. Naming rights are available in Tampa for streetcar stations and vehicles. [16] The MLB lacks 10 of the places, many of these older places. The most expensive deal is the $20 million paid each year for Citi Field in Queens. 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. But that doesn`t mean everything is on a downward trajectory. SoFi is spending $30 million a year for 20 years to get rights to the new NFL stadium near Los Angeles, and Allegiant Airlines is probably spending up to $25 million a year on the new NFL building near Las Vegas. Miller Park in Milwaukee will be American Family Insurance on January 1, 2021. When negotiating naming rights and sponsorship agreements, attention should be paid not only to adverse contingencies, but also to issues related to the evolution and constant expansion of naming rights and sponsorship agreements. Constant technological advances and the development of new media, such as Twitter, require precise wording of contractual provisions on the rights granted to a corporate sponsor. For example, a corporate sponsor may request guaranteed quotes of its name in conjunction with the team in all media that exist now or are invented later, while the team explicitly wishes to delineate the media forms involved in order to make room for other (perhaps still unforeseen) sponsorship opportunities and to prevent different sponsors from being granted inconsequential rights due to ambiguities in the language of the contract.