Sun Life Hopes Naming-Rights Deal Will Boost Brand Awareness

Sun Life Seeks To Boost U.S. Name Recognition Through Stadium Deal

Toronto-based Sun Life Financial officials yesterday said that they hope their stadium naming-rights deal with the Dolphins "will result in significantly higher name recognition" for the company in the U.S., according to Barry Jackson of the MIAMI HERALD. Sun Life Financial U.S. President Westley Thompson yesterday said, "Our efforts are to get our name out so sooner or later, you will know our name. This is another step." Jackson writes the impact "should be immediate," as Sun Life Stadium will host the January 31 Pro Bowl, broadcast by ESPN, and Super Bowl XLIV on February 7, broadcast by CBS. Sun Life Senior VP & Head of Marketing Priscilla Brown said that the deal is for "five years, with an option for a minimum of five additional years." A source added that Sun Life's rights fee is "less than" the $7.5M previously reported, though it is "believed to be worth at least" $5M per year. Dolphins CEO Mike Dee, when asked if the rights fee "could be used to help finance proposed stadium renovations," said that it would be "premature to answer that because a cost for the project has not been tabulated." Meanwhile, Brown said South Florida is appealing to Sun Life because the company has "a number of agents who represent our products in South Florida and group offices" there. Brown: "The South Florida market is very important to the financial services industry. It's where most of the boomers, where most of the financial services profits will come from in future years." Jackson notes yesterday's official announcement of the sponsorship was "made in front of more than 150 fans at the stadium and included a performance by K.C. and the Sunshine Band" (MIAMI HERALD, 1/21).

TERMS OF THE DEAL: In Ft. Lauderdale, Sarah Talalay cited a source as saying that the deal is "initially five years with three options that could stretch the deal to 20 years." The Dolphins will "receive roughly $5[M] a year but that could rise to the $7.5[M] range if the Dolphins and Marlins reach certain playoff benchmarks." Sun Life officials said that what attracted them to the stadium "was that it is home to football, baseball, the Orange Bowl, Super Bowl and other events and exposes them to lots of new potential customers." The deal also will "help the company overcome the fact that many people in the U.S. aren't familiar with what they do" (SUN-SENTINEL.com, 1/20). The GLOBE & MAIL's Andrew Willis cites sources as indicating the "$40[M], 10-year marketing contract is guaranteed for its first five years." Sun Life as part of the deal has a "suite set aside for the Super Bowl" and has $250,000 a year "earmarked for a campaign tied to the stadium that will recognize youth leaders in community work in Miami and other cities" (GLOBE & MAIL, 1/21). Thompson said the partnership with the Dolphins is "multifaceted so it isn't just simply putting our name on the stadium." Thompson: "It also gets involved with the Miami Dolphins Foundation. ... This venue is broad and deep in terms of its exposure. This is a real national location" ("Power Lunch," CNBC, 1/20).

Sun Life Paying Less Than Other Financial Sponsors For Naming Rights

GETTING A BARGAIN? GLOBE & MAIL's Willis noted Sun Life "benefited from striking a deal in the aftermath of the financial meltdown," as the company is "paying far less than what other financial sponsors have paid for stadiums with less visibility." Lincoln Financial pays $6.7M annually for the rights to Lincoln Financial Field, Bank of America pays $7M each season to "hang its logo on the home of the Carolina Panthers, and M&T Bank spends" $5M for naming rights to M&T Bank Stadium (THEGLOBEANDMAIL.com, 1/20).

LIMITED IMPACT UPSTATE: Jaguars Senior VP/Stadium Operations & CFO Bill Prescott said that the Dolphins' naming-rights agreement is "expected to have little impact on the Jaguars' quest for a similar deal." Prescott: "There's not a lot of activity going on right now. Nothing is on the front burner. ... You've got to find the right company that fits for you. It’s usually a consumer product company looking to build brand recognition. It helps if they have ties to the community." Prescott added that it is "too early in the year to tell whether the Jaguars have a chance to land a sponsor this year." If the team does not reach a deal, the facility "will be known as Jacksonville Municipal Stadium for the third consecutive season" (FLORIDA TIMES-UNION, 1/21).