NBA Kings, Sleep Train Mattress Centers Ink Five-Year Arena Naming-Rights Deal
The NBA Kings and Rocklin, Calif.-based Sleep Train Mattress Centers yesterday announced a multiyear marketing partnership that includes naming rights for the Kings' arena. Financial terms were not disclosed (Kings). In Sacramento, Kasler & Bizjak in a front-page piece report the agreement is "a five-year deal." Sleep Train Founder & CEO Dale Carlsen, a Kings season-ticket holder for 25 years, said that the deal "will boost his company's profile and possibly help solidify the team's uncertain standing in Sacramento." Kasler & Bizjak report the agreement "contains an insurance policy in case that doesn't happen." Carlsen said that Sleep Train "has the option to end the contract or renegotiate if the Kings decide to leave Sacramento within the five-year period." Kasler & Bizjak note the arena name change "takes place immediately, although signage won't go up until November." Marketing consultants said that Sleep Train "would be a significant upgrade from Power Balance, a sports-wristband marketer that filed for bankruptcy protection after getting hit with a slew of consumer lawsuits about its products." It is "unclear, though, how much of a boost the deal brings to the team's financial bottom line." Carlsen and Kings President of Business Operations Matina Kolokotronis "refused to discuss dollar amounts." But Kolokotronis said the deal is "very fair and very competitive." Kasler & Bizjak note Power Balance "was supposed to pay" the Kings $975,000 in the first year of its agreement, and the deal was "supposed to ramp up to $2.3 million in the fifth year." Meanwhile, the team "appears about to lose another key financial partner." Thunder Valley Casino spokesperson Doug Elmets said that the company "has decided not to re-up as a Kings sponsor." The casino "reportedly committed" $1M as a sponsor last year. Elmets said that the casino "will keep its suite at the arena but has decided to focus its advertising dollars elsewhere" (SACRAMENTO BEE, 10/16).