Naming rights

• 1. Defining The Transaction

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  A corporation purchases the right to name a facility, object, location, program, or event for an agreed time. This financial transaction typically ranges from three to 20 years for properties such as multi-purpose arenas, performing arts venues, or sports fields. Longer terms are more common for higher profile venues like professional sports facilities. The arrangement gives buyers a marketing property to promote products and services, enhance customer retention, or increase market share. Several forms of corporate sponsored names exist within this framework. A presenting sponsor attaches the name of the corporation into a traditional name, such as Mall of America Field at Hubert H. Humphrey Metrodome. A title sponsor replaces the property's original name with a corporate-sponsored name without referencing the previous name.

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• 2. Historical Evolution In America

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  Until the 1990s, most sports stadiums in the United States were given generic or descriptive names after the team that played there or a person associated with the team. The history may date back to 1912 with Fenway Park in Boston, where the owner owned a realty company called Fenway Realty. It is more widely believed to begin in 1926 when William Wrigley named his team's stadium Wrigley Field. In 1953, August Busch Jr. proposed renaming Sportsman's Park Budweiser Stadium, but the idea was rejected by Ford Frick. Anheuser-Busch subsequently released Busch Bavarian Beer and the venue became known as Busch Stadium. Foxboro Stadium bore the name Schaefer Stadium from opening in 1971 until 1983. The first prominent example of a business purchasing naming rights solely for advertising was ARCO Arena, home of the Sacramento Kings, which opened in 1985. By 2004, 61 percent of major professional sports venues in the United States were named after a corporate sponsor compared to just 7 percent in 1994.

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• 3. Global Expansion And Variations

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  Sports stadiums with naming rights deals can be found in Australia, Japan, China, Finland, Canada, Israel, and Germany. Eight of the 10 largest football stadiums in Germany sold their naming rights to corporate sponsors. The practice is widening in the United Kingdom where Bolton Wanderers play at Toughsheet Community Stadium. Arsenal Football Club's stadium opened for the 2006/2007 season as Emirates Stadium. In cricket, The Oval has had several sponsors over the years and is currently known as The Kia Oval. Examples outside the United States include Madrid Metro, where Line 2 and Sol station were renamed from 2013 to 2016 after Vodafone. Many stations on the Dubai Metro carry corporate names. Monumento Station in the Manila Light Rail Transit System was renamed Yamaha Monumento Station in 2018 following renovations. In Sweden, Friends Arena was previously Swedbank Arena before the company donated the rights to the Friends Foundation in 2012.

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• 4. Record Breaking Financial Deals

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  The record for the largest naming rights payment belongs to Crypto.com Arena in Los Angeles. On the 17th of November 2021, a 20-year, US$700 million sponsorship deal was reached between Anschutz Entertainment Group and Singapore-based Crypto.com. The venue became known as Crypto.com Arena on the 25th of December 2021. The Staples Center had held the arena's naming rights since its opening in 1999. The previous record belonged to Toronto's Scotiabank Arena which garnered CA$800 million or US$517 million over 20 years starting in 2018. The former New Meadowlands Stadium was expected to eclipse both deals with an estimated value of US$25, 30 million annually but fell short. MetLife Stadium earned $17 million annually from its deal with insurance company MetLife. In Salt Lake City, Delta Air Lines re-bought the naming rights to the main indoor arena in 2023 after holding them from 1991 to 2006.

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• 5. Public Reaction And Controversy

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  Naming rights sold to new venues is largely accepted, especially for well-established or locally connected buyers like Heinz Field in Pittsburgh. Selling naming rights to existing venues has been less successful, such as the attempt to rename Candlestick Park in San Francisco to 3Com Park. Public reaction included passing Proposition H in November 2004 requiring name reversion to Candlestick Park once the contract expired. The initiative proved largely ceremonial and was overturned by Proposition C in 2009. Some people consider it selling out when they see no benefit to themselves. They may refuse to use a new name, preferring to use a non-branded name. Rebranding can lead to confusion during a lengthy period where the property is known by both names. Willis Tower in Chicago is often referred to as the Sears Tower even though the building was sold in 1994. In Indonesia, Semarang Tawang station gained Bank Jateng naming rights on the 11th of April 2023 but faced criticism from historian Johanes Christiono regarding cultural heritage laws.

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• 6. Beyond Sports Venues

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  While highest prices have traditionally been paid for stadium naming rights, many companies found that selling their naming rights funds business operations. Since the early 2000s, categories opened including the sale of rights to name a species of monkey for $650,000. Naming rights to public transit stations were sold in Las Vegas and Philadelphia including NRG Station, Jefferson Station, and Penn Medicine Station. A sponsorship for MBTA's State Street station by Citizens Bank lasted from 1997 to 2000. In December 2016, Los Angeles County Metropolitan Transportation Authority approved a policy for its facilities before rescinding it two months later. Television series like The Fleischmann's Yeast Hour frequently sold naming rights of programs to sponsors in the early days of each medium. One of the last surviving examples is Hallmark Hall of Fame which has aired since 1951. The International Star Registry has sold unofficial naming rights to stars since 1979 though these carry no scientific or official authenticity.

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