Are stadium naming rights worth the steep price?

Have you ever noticed what a lot of professional sports fields have in common? MetLife Stadium, Bank of America Stadium, Levi’s Stadium, Ford Field — they’re all named after brands. But not too long ago, stadiums were typically named after the teams, rather than brands. But in 1912, the owner of the Boston Red Sox stadium decided to call it Fenway Park, named after his real-estate company. Later on, William Wrigley named the Chicago Cubs stadium Wrigley Field, starting the naming trend.

As the trend in naming rights grew, the prices became steep. In 1999, FedEx agreed to pay the Washington Redskins $205 million for the rights to name the Redskin’s stadium. MetLife Stadium’s naming deal cost the company $400 million over a 25-year period. And most recently, U.S. Bank negotiated a $220 million price tag for the right to name the new Minnesota Vikings Stadium.

But is the right to name a major sports venue worth such a high price tag?

These brands would argue yes. Visitors, passersby, TV and internet viewers, news audiences and social-media viewers are just a few of the audiences that see a branded stadium’s name. That’s why brands are happy to negotiate naming deals at any chance to generate additional revenue.

With so many factors involved, it’s hard to say if the initial investment is worth it. For example, are the teams and events happening in the venue successful? Do they generate home and visitor traffic as well as enough media attention? Could you make the same amount of brand impressions using a different medium?

Do naming rights boost sales or simply generate awareness?

In a 14-year study, sports economist Michael Leeds examined how naming rights affected a company’s stock price. On average, he found that the payoff was virtually nothing. His question was, “If it doesn’t boost your bottom line, then why do it?” If your goal is to drive sales, then a naming deal might not be right for you. Stadium brand impressions might increase awareness, but not necessarily grow your sales.

While purchasing the naming rights to a stadium might be right for a giant corporation, there are other ways you can establish your brand. A good vanity toll-free number works to boost your brand, company credibility and provide stronger customer recognition. To learn more, check out customtollfree.com/how-it-works.