Corporate sponsors will have committed $1 billion to put their names on North American stadiums and sports arenas by 2000, according to research by a Denver consulting firm.
Since 1973, more than 30 major stadiums and arenas have put naming rights agreements in place with a value of more than $730 million, according to The Bonham Group Inc. And that figure will only grow as the naming-rights strategy continues to prove its effectiveness, said the group's chief executive officer Dean Bonham."The benefits . . . from a naming-rights deal are considerably more than traditional forms of advertising," Bonham said.
What companies are buying is a solid association to games that millions of people have formed emotional ties to, he said.
In Colorado, Coors Brewing Co. agreed to pay more than $30 million to put its name on the stadium where the Colorado Rockies play, said Bonham. And Pepsi is in the process of striking a deal worth up to $60 million for naming the Pepsi Center, where the Avalanche and the Nuggets will play.
Bonham's figures include the total commitments companies have made, including agreements to purchase additional signage, broadcast advertising, tickets, hospitality suites and other amenities.
Bonham's research into the name game begins with a 1973 deal - when Rich Products Inc. signed a 25-year, $1.5 million agreement to put its name on the football stadium in Buffalo, N.Y., where the Buffalo Bills play. The largest deal cited was Bank One's recent 30-year, $66 million deal to name the new Arizona Diamondbacks' ballpark.
According to Bonham, there are 36 naming-rights deals in some stage of discussion that will be signed by the end of the century.