Even though Continental Airlines assumed naming rights to
the former Brendan Byrne Arena six months ago, airline officials
and the NJSEA are still in the process of finalizing an official
agreement, according to the ASBURY PARK PRESS. Laurence Arnold
writes the arrangement, which could be finished within the week,
is expected to give Continental even more exposure at a slightly
lower cost, since the airline will be able to meet its 12-year,
$29M obligation with less cash and more bartered tickets than
planned. Under the initial deal, Continental was to make annual
payments that were to rise incrementally from $1.5M during the
final nine years, as well as $700,000 in airline tickets each
year. The new deal, however, would reverse that by raising the
value of bartered tickets from $700,000 in '96 to $1.2M in 2007,
while keeping the cash payment steady at $1.5M for the final nine
years. The deal will also give Continental greater exposure
rights, including the placement of banners and signs throughout
the arena, and the opening of an airline ticket desk in the
lobby. Also possible: Redecorating arena seats in Continental's
colors and retitling parking lot sections after the names of
Continental's destination cities. As part of the new agreement,
NJSEA will be able to sell the bartered tickets to third parties,
such as travel businesses, or sell the tickets back to
Continental for 50% of retail. Continental is expected to
receive use of a luxury box, ten free season tickets to both
Giants and Jets games, $100,000 in tickets for public events this
year and $25,000 in event tickets each year until the deal
expires (ASBURY PARK PRESS, 6/23).
