Pittsburgh-based PPG Industries yesterday signed a 20-year deal to assume the naming rights to the Penguins' arena, and though no financial terms were disclosed, SportsCorp President Marc Ganis "estimated the deal could be worth" $4-9M a year, according to a front-page piece by Mark Belko of the PITTSBURGH POST-GAZETTE. Consol Energy "gave up the naming rights six years into a deal slated to run 21 years." The company "will remain as a corporate sponsor under a restructured agreement that will run 14 years and cost less money." Consol "reported losses" in Q1 and Q2 as it "struggles with low natural gas and coal prices." Penguins CEO David Morehouse said that a "handful of companies had inquired about the naming rights," and PPG "first discussed it about six months ago." Morehouse said that when the company "advanced a 'firm offer,' the Penguins approached Consol, knowing that 'their business priorities were changing.'" Consol Dir of Communications Brian Aiello said that while the naming rights deal "helped Consol increase brand awareness and attract talent, the firm is now focused on a more targeted community engagement effort." The company in May "launched a marketing initiative to raise awareness of its paint brands, which include Olympic and Glidden, and to counter impressions that it primarily was a maker of glass and industrial chemicals" (PITTSBURGH POST-GAZETTE, 10/5). Morehouse said that "'four or five' other companies approached the team, but PPG was the only one making a serious commitment and a firm offer." In Pittsburgh, Bauder & Boren note PPG "will have naming rights until" '36. PPG's blue logo is "already displayed under center ice." Penguins officials said that Consol signage "may start coming down outside the arena right away and should be gone by the home opener Oct. 13" (PITTSBURGH TRIBUNE-REVIEW, 10/5).
PAINT IT BLACK: PPG Industries VP/Marketing Bryan Iams said the most important reasons for the deal were to increase traffic and sales at the more than 700 PPG-branded paint stores, along with the 15,000 retail points of distribution for PPG brands, including Glidden, Olympic and Dulux, a top seller in Canada. As is often the case with naming-rights deals, it is a hometown play. PPG's Pittsburgh HQ is about a mile from the arena. The deal includes the paint and coatings categories, the latter of which has produced a fair amount of new sponsorship activity from the likes of Axalta, a competitor in the coatings market. Paragon Marketing is PPG's sponsorship agency (Terry Lefton, Editor-at-Large).
