The Kraft family "may be sweating out CMGI's stock
swoon, but the family remains confident the stock will rise
and the company will remain solid," according to Nick
Cafardo of the BOSTON GLOBE. Cafardo writes there "is no
fear by the family" that the team's new stadium "will have a
different name when it opens in 2002" (BOSTON GLOBE, 11/27).
MA-based CMGI paid a reported $112M over 15 years for naming
rights to the new facility, and late last week, Patriots
Exec VP Jonathan Kraft said that despite CMGI's declining
stock price and staff cuts, "The naming rights deal is set,
and we have the utmost faith in [CEO] David Wetherell and
his management team." CMGI execs declined comment. The
company "won't be on the hook to the Patriots for another
two years," but "given CMGI's recent struggles, and the
badly battered technology stock market in general, some
skeptics question whether CMGI, as currently configured,
will exist in a few years" (BOSTON GLOBE, 11/23).
SHOULD RAVENS RE-SELL NAME? BUSINESS WEEK's Mark Hyman
examines VA-based PSINet's recent struggles, as the company
"may even be sold." While PSINet has already paid $17M to
the Ravens as part of its naming rights deal in Baltimore,
the Ravens "might be better off if PSINet fumbles. Missing
a payment would breach its contract. The team could then
resell the stadium name" (BUSINESS WEEK, 12/4 issue).
STATE OF THE NAMING RIGHTS INDUSTRY: USA TODAY's Becky
Yerak reported that of the 51 buyers of naming rights to pro
baseball, football, basketball and hockey facilities, the
stocks of 23 "have buckled at least 25% from their 52-week
highs" recently. Of those, 13 -- including Corel, Conseco
and Qualcomm -- "are experiencing an outright bloodbath,
with stocks trading at less than half of their 52-week
highs." The Bonham Group Chair Dean Bonham said after
analyzing name deals, "In every instance, we've seen between
a $1 and a $1.50 return. ... There's no question there's
value, but is it enough to assure the company's stock won't
go down? Absolutely not" (USA TODAY, 11/24).
MIAMI NAME DEAL PENDING? In Ft. Lauderdale, Sarah
Talalay reported that while Pro Player Stadium execs "had
hoped to have a new" naming rights deal in place before the
start of the Dolphins season," there is a chance the rest of
the season and the collegiate national championship on
January 3 will be played at the stadium with no new sponsor
at the facility (Ft. Lauderdale SUN-SENTINEL, 11/26).
Dolphins VP/Marketing Jim Ross: "We hope to have it done by
(Jan. 3). We received multiple offers but are waiting for
the right deal" (SPORTSBUSINESS JOURNAL, 11/27 issue).
