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Inside Naming Rights Deals

By Rich Brand and Christina L. Campbell

Barclays Center, Levi's Stadium, Golden 1 Center, Mercedes-Benz Stadium, Hard Rock Stadium — any sports fan or concert-goer can rattle off these names as venues of spectacular games and top-notch musical performances. What is behind those names? Naming rights transactions, which are increasingly popular thanks to their unique intersection of advertising, promotional opportunities, and headline-grabbing financial terms.

Each naming rights agreement can be thought of as a sponsorship transaction, with the added element of naming. Depending on the magnitude of the transaction, a naming rights agreement will include a wide variety of marketing elements, including sponsorships, ads, television spots, integrated technology and other promotions. All of these elements have brought naming rights transactions back into vogue for sports leagues and franchises after the market cooled down following the economic recession in 2008.

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