What are sponsorship naming rights?

Naming rights are like a long-term advertisement. You sell a sponsor the right to their name being put on a building, often a sports arena. Then your sponsor’s name could become the next Gillette Stadium or Wells Fargo Center.

Are stadium naming rights worth it?

But as sports professionals know, stadium naming rights are more than just the physical act of putting a brand on the side of the arena. These names can shape communities, and they can be huge revenue drivers for the sponsored brands.

What are 2 advantages of a naming rights sponsorship agreement for the sponsor?

Financial boost to the team In exchange, teams receive a large boost to their bottom line which contributes to player incomes, new equipment, upgrades to facilities, and increases team negotiating power with corporate sponsors in smaller level sponsorship contracts such as shirt deals.

Why do companies buy venue naming rights?

The biggest benefit to purchasing the naming rights to an arena or event is the increase in visibility. Whenever the named property gains any media attention, the company’s name is automatically attached to that property.

What are the primary benefits for the naming rights sponsor?

First and foremost, naming rights sponsorship gives you a dominant platform for leverage. No one else in the sponsorship roster will have access to what you do. No other sponsor will have the control to create the perfect benefits package that you do.

What is the value of naming rights?

Naming rights offer some unique brand building opportunities over more commonly employed advertising and marketing campaigns. Enhanced advertising via media coverage — such as dispensing with the cost of a 30-second TV ad ranging from US$200 for local to US$123,000 broadcast nationally.

How do you determine naming rights?

Specifically Describe the Naming and Promotional Expectations. A naming rights agreement should describe in detail how the name will be publicly displayed or utilized. For physical displays, such as the way a name will appear on a building façade or in a common area, the agreement should incorporate a visual rendering.

Is naming rights an asset?

Now that we understand when you have a lease, let’s get back to my colleague’s question at the beginning of this blog: how to account for “leases that are stadium naming rights.” Analyzing the agreement, is there an identified asset? Most likely, stadium is specified in the contract. So yes.