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SBJ/September 10-16, 2012/FacilitiesPrint All
The Florida Panthers have signed a long-term extension with BB&T for naming rights to their arena, a deal that could extend over 20 years.
Sunrise Sports and BB&T officials refused to disclose the value of the deal, but industry sources valued the agreement at $3.7 million a year. That would be the most lucrative naming-rights deal for a major league arena in Florida, considering Amway Center’s deal, valued at $4 million a year, was done internally. The DeVos family owns both Amway Corp. and the Orlando Magic, the arena’s NBA tenant.
In South Florida, the extension materialized over the past month after federal regulators approved BB&T’s purchase of BankAtlantic at the end of July. BankAtlantic had held the arena’s naming rights for the past seven years in a deal that was to expire in 2015.
BankAtlantic’s deal, valued at $3.2 million annually, was torn up, team officials said, and the Panthers negotiated new terms with BB&T for the 19,250-seat facility in Sunrise, Fla., a Fort Lauderdale suburb.
For the Panthers, it was important to get the new deal done, considering the challenges for securing naming rights, Yormark said. In Miami, the Florida Marlins opened their new ballpark this year without a naming-rights partner. Sun Life Stadium, home of the Dolphins, has naming rights through 2014, but the 25-year-old venue has struggled historically to keep a corporate name on the building.
BB&T hopes its name on the hockey arena, shown in this rendering, will develop greater brand awareness in South Florida.
Photo by:ROBERT J. NELSON
The bank’s sponsorship reflects its strategy for developing greater brand awareness in the local market, said Mike Oster, BB&T’s president for the South Florida region. The region of Broward, Miami-Dade and Palm Beach counties has about 6 million residents.
BB&T’s purchase of BankAtlantic has vaulted its market share to sixth from 11th in South Florida, and it has expanded from 70 to 115 branches, Oster said. BB&T first entered the market in 2009 after buying Colonial Bank.
The arena’s position in South Florida as a top draw for concerts and family shows was a key factor for BB&T signing a long-term deal, Oster said. Over the past year, the arena booked about 100 events in addition to 47 hockey games, Panthers officials said.
The bank is now the team’s Premier Pillar Partner, a platform reserved for the Panthers’ biggest sponsor. BB&T receives dominant arena signs and an extensive media advertising campaign covering Fox Sports Florida game broadcasts, radio, print, billboards and social media.
BankAtlantic’s naming-rights deal, signed before the Panthers took control of their television and radio rights two seasons ago, gave the old bank minimal media advertising, Yormark said.
BB&T’s brand exposure extends to its logo painted at center ice for Panthers games and on the basketball floor used for the MetroPCS Orange Bowl Classic, a college basketball tournament played at the arena in late December.
The bank also receives exclusive use of two suites; four seats in Club Red, the arena’s new center-ice club; and more season tickets in the bowl.
The bank also has naming rights to a minor league ballpark under development in Charlotte and a few sports facilities in its hometown of Winston-Salem. It is title sponsor of the BB&T Atlanta Open tennis tournament and the official bank of the Atlantic Coast Conference and the Big South Conference.
The bank supports Auburn and Alabama sports programs through donations to those SEC schools’ athletic departments, deals it picked up through its purchase of Colonial Bank, said Merrie Betbeze Tolbert, a BB&T spokeswoman.
BB&T Center is the fourth corporate name for the Panthers’ home. The facility’s first naming-rights deal with National Car Rental Center dissolved after the company’s parent firm filed for bankruptcy protection in 2001.
As a result, the value of National Car Rental’s deal fell from $2.2 million a year to about $1.4 million after Office Depot took over naming rights in 2002 as part of a “distressed sale” of the rental car firm’s assets, Yormark said. BankAtlantic took over the arena’s naming rights in 2005.
Bagley, the Vikings’ vice president of public affairs and stadium development, played a key role in getting legislation passed by the Minnesota Legislature to build a new $975 million facility in downtown Minneapolis.
In May, with two nights remaining in the 2012 legislative session to get a deal done, legislators told the Vikings that they would have to kick in an additional $50 million for the bill to be able to get to the floor for a vote. The Vikings agreed to the last-minute change in terms, increasing to $477 million the amount of private money to help pay for construction, about half the project cost. It drew a favorable response publicly compared with the state’s deal to build Target Field, in which the Twins contributed $130 million for a $530 million project.
The media was just one of the constituencies Lester Bagley dealt with during the Vikings’ stadium campaign.
Photo by:STEVE SMITH
“The reaction since the bill passed has been incredible in the sense that when the Twins bill passed there was much grumbling about Twins ownership,” Bagley said. “The Vikings are putting in more than three times the money the Twins put in their deal, 49 percent of capital costs.
“My point here is the Wilfs stepped up. It was an interesting end to a long saga.”
For Bagley, those pats on the back are especially gratifying. Over the past 13 years, Bagley worked tirelessly to get a stadium deal done, starting in 1999 as a consultant under former team owner Red McCombs, and for the last seven years as a Vikings vice president.
In that time, Bagley has outlasted two Minnesota governors, Jesse Ventura and Tim Pawlenty, both of whom had no interest in building a new stadium for the Vikings, and several other politicians tied to a state Legislature with 201 members, one of the largest in the nation.
“Many of the players have changed except for Lester,” said Tina Smith, chief of staff for Minnesota Gov. Mark Dayton. The governor, unlike his two predecessors, stood in the Vikings’ corner as a stadium proponent. “He was able to grit it out. Lester never threw in the towel.”
Bagley (right) with (from left) the Vikings’ Mark and Zygi Wilf and Minnesota Gov. Mark Dayton at the Capitol in St. Paul.
Photo by:STEVE SMITH
“We lived on a farm and my mom would tell us … to take them out to a field and dump them,” said Benson, who worked with Bagley at the Minnesota Business Partnership and is now a member of the authority overseeing stadium development. “No sooner would we do that than they would beat us home. It’s the same thing with Lester, that willingness to beat you home. You can’t sidetrack him. He’s a cat you can’t dump.”
Bagley, similar to Benson, grew up in a small farm town of Barron, Wis. His father ran a few businesses, including a successful farm implement dealership. His mother had a long career working for the Farmers Home Administration, which was part of the federal government.
Their work ethic rubbed off on Bagley. He got his start in public affairs as a student at UCLA working on the unsuccessful 1982 Senate campaign of U.S. Rep. Barry Goldwater Jr. Through that campaign, he met some staff members in the Reagan White House. After serving as an intern for White House press secretary Larry Speakes, Bagley decided to pursue a full-time career in government relations. After working for legislators in Oregon and Wisconsin, Bagley landed a job with the Minnesota Business Partnership, a group of CEOs representing the state’s 100 largest companies.
It was working as the group’s associate director from 1993 to 1999 that got Bagley’s feet wet in public policy at the state level, representing the business interests of Fortune 500 companies such as 3M, Best Buy, General Mills, Target and US Bank.
David Olson, president of the Minnesota Chamber of Commerce, has known Bagley for 15 years, dating to when both were involved with the partnership. Their paths crossed again on the Vikings stadium issue, with Olson teaming with the speaker of the House to develop a proposal all legislators could support.
“The key thing is there was a pecking order on these stadiums and the Vikings followed the rules,” Olson said. “There were a lot of expectations Lester navigated through. I’m sure the Wilfs ran out of patience a long time ago.” Bagley displayed the “patience of Job,” he said.
There are few states where the process could have been more complicated than in Minnesota, a populist state where the debate for publicly funding a third stadium in 10 years played out under the bright lights of the local media.
“The thing about Minnesota is it’s a very open form of government,” Bagley said. “Not to point at other states where deals are done in the back room, but in Minnesota, everything is done excruciatingly in front of the public.”
The previous two years, Vikings stadium bills had died in session, and it looked like a third bill was headed down the same path this year before NFL Commissioner Roger Goodell flew to Minnesota in April and asked everyone to put partisan politics aside and reach a solution.
The league’s involvement was critical, Bagley said. Goodell asked legislators to “help us get the bill to the floor,” he said. “For many years, we were never able to do that. We felt if we could get the bill to the floor, we would have a decent chance of passing it.”
Every political system has its own quirks, said Mark Wilf, Vikings co-owner and president, and through the strong relationships Bagley has developed over the years with legislators, he kept a finger on the pulse of the ups and downs inside the House and the Senate, as well as the governor’s office.
“He knew when to bring things up and when not to, where to meet and with who, and what points we needed to press on,” Wilf said. “Lester was very helpful in advising us on the issues.”
Educating the Wilfs, the New Jersey developers who bought the Vikings in 2005 and were looked upon as outsiders on the issue, to the nuances of Minnesota politics was an important part of Bagley’s task, said Sen. Julie Rosen, the author of the stadium bill.
There were times, though, when Rosen told Bagley he had to stay positive.
“My colleagues grew tired of hearing about how the Vikings had waited years and years for their project,” Rosen said. “I gave Lester some constructive criticism — keep his eye on the ball moving forward.”
This fall, as the Vikings move ahead with stadium development and hire an architect and a builder, Bagley is taking a step back from his advocacy role. As vice president of public affairs, Bagley still oversees the team’s public relations and community relations departments, and he hopes to be part of the city’s effort to help Minneapolis secure the 2018 Super Bowl. The stadium is set to open in 2016 on the site of the Metrodome, and the Vikings have already applied to the league to play host to the game.
Bagley has thought about working for other teams facing similar challenges to get new facilities built in their markets. For now, those considerations are on the back burner, he said.
“I have two young boys and a wife who grew up in Minneapolis, so we are fairly well rooted in the Twin Cities,” Bagley said. “Right now, I am trying to catch my breath from the long, winding road.”
Don Muret can be reached at email@example.com. Follow him on Twitter @breakground.
Early plans for renovating Daytona International Speedway call for reducing the number of fan entrances from 17 to a maximum of six, and track officials have begun meeting with marketers to gauge corporate interest in buying title sponsorships for those entryways.
The track’s renovation plan calls for up to six “grand entrances” that could be branded areas.
Photo by:GETTY IMAGES
The speedway currently has three branded areas: the Sprint FanZone, a fan viewing platform in the infield; the Budweiser Party Porch, located in Turn 3; and Gatorade Victory Lane, located on pit lane at the start-finish line. Chitwood wants to increase that number if Daytona gets approval later this year from the city and track owner International Speedway Corp.’s board for its proposed renovation.
“We don’t have that many unique areas [for sponsors],” Chitwood said. “We have to think about this property moving forward and create a great fan experience and an experience that sponsors and brands want to be a part of. This could be one of them. We just have to get the ideas and input together [from sponsors and marketers] to be sure … whatever we do is good for the sport.”
The speedway and ISC filed initial paperwork in June with the city of Daytona Beach seeking approval for a major renovation of the facility. They recently received rezoning approval from the city’s planning board that will allow the track to develop everything from retail space to dining facilities to a museum. That was the first step in what is expected to be a series of approvals it will need from the city and ISC’s board before it can go forward with a renovation.
Chitwood said the grand entrances in Daytona’s preliminary plans would be expansive enough to accommodate escalators or stairs and perhaps even an elevated concourse that would make it easier for fans to get to the top row of the grandstand and back down for concessions. Currently, all the concessions are on the ground floor, and fans have to climb the stairs from that level to their seats at the top of the grandstand.
“We want [the entrances] to be massive,” Chitwood said. “It’s not just about entering the facility; it’s how you load the facility. Vertical transportation is a huge thing we have to figure out.”
Chitwood and Terry Kalna, ISC managing director of partnership sales and marketing, met with Charlotte-based sports marketing agencies in August to get their input on what their clients would want from a renovated Daytona. They shared preliminary designs with the agencies and sought their opinion on the viability of selling sponsorships to the entrances. “We want to know if it resonates,” Chitwood said. “We haven’t put a price tag on anything. We’ve not said that these are the assets.”
One of the things Chitwood and Kalna discussed with the agencies was the possibility of relocating the sponsor midway from its current position outside Turn 4 to a more central location outside one of the proposed grand entrances. Doing so would make it an area where fans would pass through rather than need to make a special trip to visit, and that might improve foot traffic at sponsor showcases, Chitwood said.
Another thing they talked about was improving the corporate hospitality experience at the track. The Daytona 500 is one of the largest, if not the biggest, event for corporate hospitality in NASCAR, but most of that hospitality is relegated to temporary tents in the track’s infield. Agencies told Chitwood that is one of the things they would like to see improve if the renovation takes place.