The Ravens, who paid the state of MD $10M for the right
to sell naming rights at their stadium, "have already made
that much -- and more -- on their deal with PSINet,"
according to Jon Morgan of the Baltimore SUN. Documents
filed by PSINet with federal regulators earlier this year
show that the company has already paid the team $11.8M and
"expects to pay" $93.5M during the duration of the 20-year
agreement. The documents "provide a detailed look" at the
sponsorship agreement. Ravens VP/PR Kevin Byrne said that
the naming rights are "only a part of the team's deal with
PSINet" and account for only a portion of the $93.5M. Other
elements of the deal include a double-decker skybox at the
stadium for PSINet execs, free advertising for the company
on game broadcasts and around the stadium and the
development of special Internet services for fans. Both the
team and company "share in the profits of the Internet
services." PSINet's first payment, made in January,
consisted of a "one-time prepayment" of $9.25M, in addition
to the first annual payment of $2.55M. The company will pay
the Ravens $2.6M next year, after which the payments will
increase by 5% each year. The Ravens "anticipate gaining a
total of" $105.5M from the arrangement, a figure that
"apparently includes money made on endeavors jointly
developed with PSINet." PSINet Senior Manager for Sports
Marketing & Business Development Michael Binko said that the
deal "has been a good investment" for PSINet, "raising the
company's profile and developing new business in an
important market" (Baltimore SUN, 11/18).
BROKEN WEB? In a sidebar, Morgan reports that the
Ravens' members-only premium Web site at www.ravenszone.net
has "attracted only" 400 customers and "will be opened up to
fans next week at a reduced price in an effort to boost
business." Membership currently costs $20 per month, but
now members can pay $50 per year to receive Webcasts of team
news conferences, online chats with players and other
services. The Ravens will start advertising the new service
on Monday and will offer free 21-day trials through the end
of the year. The team and PSINet say that they "have been
pleased with the venture so far" (Baltimore SUN, 11/18).
