Frequently, team and arena owners are in need of determining additional revenue sources for their operations. The sale of naming rights, Permanent Seat Licenses (PSL’s), and luxury suites have evolved as potential sources of additional long-term income for a franchise or facility. While there are political issues involved with selling the name of a facility, particularly those that are newly constructed and/or publicly owned, political entities and businesses have realized that facility naming rights have become a unique source of income which could offset costs borne by taxpayers. Furthermore, corporations seek facility naming rights due to their desire for facility name inclusion in all media coverage of the venue’s attractive calendar of events, for exclusive in-venue product distribution rights, and to demonstrate local community citizenship. Additionally, the purchase of naming rights represents a unique marketing opportunity as there are a limited number of facilities and arenas which house the operations of major league teams, making imitation or duplication by competitors virtually impossible.

Corporations often employ SportsEconomics to assess the return on investment of their naming rights initiatives, while properties often seek to gauge their true market value. Often, both corporations and properties/franchises will utilize these analyses to better their position in contract negotiations.  Moreover, such analyses can determine whether the naming rights opportunity aligns with its sales, marketing and public relations objectives help corporations find ways to strategically enhance the value of the deal they are considering, and to.

Click here to link to our case study: Naming Rights Analysis