The Staples Center today will unveil "complex and
potentially lucrative sponsorship agreements that could
define how arenas of the future craft sponsorship deals,"
according to Greg Johnson of the L.A. TIMES. The eight
marketing partners to be announced today are: McDonald's,
United Airlines, PepsiCo., Toyota Motor Sales, BankAmerica,
A-B, Pacific Bell and the L.A. Times. Two more sponsors,
including an energy company, will be announced at a later
date. The pacts "allow sponsors to parade their brands" to
fans "as never before," and will "serve as a test of whether
an arena financed largely with private money can operate
profitably." Marketing "industry observers" believe that
sponsors like Pepsi, PacBell and United are paying $2.5M "or
more" per year for "exclusive signage rights" at Staples
Center. Johnson writes that it is "possible that some
'exclusive' signage deals won't turn out that way, because
each team has the right to select sponsors for rotating
signs to be installed at courtside." While the NHL Kings
have allied with the founding sponsors, and the Lakers "are
close to a similar arrangement," Johnson writes that it is
"possible that the Clippers will break ranks." Each team
also controls its own radio and TV broadcasts, "setting up
the possibility of dueling advertisers" (L.A. TIMES, 10/15).
MONEY MAKER: Financial projections reveal that the
Staples Center could gross "potentially more than" $2B over
the next 25 years, "not including ticket sales from the
remaining 16,000-plus seats at the annual 230 games and
events." The Bonham Group "estimates annual profits" at the
Staples Center of $35-40M (LOS ANGELES, 11/98 issue).