SBJ/September 19-25, 2011/In Depth

Do naming-rights deals pay off?

Measuring ROI in naming-rights deals

Research from 21 Marketing shows that sponsors are receiving a solid return on naming-rights deals.

The firm's 21 Empirical Solution uses 11 key metrics to determine overall sponsorship value and subsequently ROI: national and international TV exposure; exterior exposure; on-site exposure for attendees; ad campaigns; local TV and radio broadcasts; editorial coverage; team publications; collateral material; direct mail, Internet, community and partner promotions; image association in ad campaigns; and hospitality.

Content drives the delivery of value higher, so those venues that play host to more events — especially major events such as the Super Bowl, Final Four, NBA Finals, World Series, etc. — generate bigger ROI numbers for naming-rights partners.

The chart below shows select venues and the calculated value of the naming-rights deals for 2010 and 2011, compared with the average annual rights fee sponsors actually pay, and that fee over the past two years. The final column shows the value multiplier. For example, with Lucas Oil Stadium, the nearly $74 million in calculated value to the sponsor in 2010 and 2011 was more than six times what the sponsors actually paid over the two-year period for those rights.

FOOTBALL STADIUMS 2010/2011 VALUE ANNUAL NAMING-RIGHTS FEE 2-YEAR NAMING-RIGHTS FEE VALUE: FEE MULTIPLE
Lucas Oil Stadium $73,959,345 $6,050,000 $12,100,000 6.112
Sun Life Stadium $62,901,580 $7,500,000 $15,000,000 4.193
Reliant Stadium $59,086,055 $9,375,000 $18,750,000 3.151
Lincoln Financial Field $39,994,291 $6,980,000 $13,960,000 2.865
University of Phoenix Stadium $39,581,794 $7,725,000 $15,450,000 2.562
MetLife Stadium $56,422,876 $16,000,000 $32,000,000 1.763
         
FOOTBALL STADIUMS 2010/2011 VALUE ANNUAL NAMING-RIGHTS FEE 2-YEAR NAMING-RIGHTS FEE VALUE: FEE MULTIPLE
AT&T Park $43,734,597 $2,083,333 $4,166,666.67 10.496
Citizens Bank Park $53,295,195 $3,800,000 $7,600,000 7.013
Petco Park $21,197,317 $2,727,273 $5,454,545 3.886
Target Field $28,116,706 $5,000,000 $10,000,000 2.812
Citi Field $40,185,952 $20,000,000 $40,000,000 1.005
         
FOOTBALL STADIUMS 2010/2011 VALUE ANNUAL NAMING-RIGHTS FEE 2-YEAR NAMING-RIGHTS FEE VALUE: FEE MULTIPLE
Staples Center $124,561,640 $5,800,000 $11,600,000 10.738
TD Garden $89,933,337 $6,000,000 $12,000,000 7.494
Pepsi Center $46,923,746 $3,400,000 $6,800,000 6.901
American Airlines Center $75,150,017 $6,500,000 $13,000,000 5.781
Prudential Center $34,378,212 $5,265,000 $10,530,000 3.265

Source: 21 Sports & Entertainment Marketing Group

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