Miller Brewing had acquired naming rights ahead of the ballpark's opening in '01GETTY IMAGES
American Family Insurance has "agreed to a 15-year naming rights sponsorship" of the ballpark now known as Miller Park beginning in '21, and the deal goes "beyond naming rights" for the Brewers, according to Schuyler & Kass of the MILWAUKEE BUSINESS JOURNAL. The future name and branding elements for the ballpark "will be announced at a later date." The Madison-based company "takes over the naming rights sponsorship" once the current deal with MillerCoors expires. MillerCoors "inherited the sponsorship" in '08 when the company was created by the '08 merger of Miller Brewing and Coors Brewing. Miller Brewing "acquired naming rights" ahead of the ballpark's opening in '01, "agreeing to pay" more than $40M over 20 years. Financial terms of the naming-rights agreement with AFI "were not disclosed." Meanwhile, the Brewers and AFI will "collaboratively fund community projects, including refurbishing youth and high school baseball fields." The organizations will also "conduct marketing and promotional initiatives to enhance the fan and customer experience" in the ballpark and the community. The sponsorship also "runs beyond" the team's current ballpark lease, which expires in '30. The Brewers said that the final five years of the naming-rights agreement, which would expire in '35, is "predicated on an extension" of the Brewers' ballpark lease. The Brewers and MillerCoors "held preliminary talks" late last year on renewing the sponsorship, but AFI "stepped into the scene late in the year to pitch an 'incredibly rich offer.'" The estimated $2.1M-per-year payment for Miller Park "appears low in the current market for stadium and arena naming-rights deals" (BIZJOURNALS.com, 1/22).
EARLY FAVORITE: In Milwaukee, Nelson, Barrett & Gores in a front-page piece note the Brewers had "conducted quiet behind-the-scenes talks for months." Brewers COO Rick Schlesinger said that the team last summer approached AFI and "'a select group' of other companies about the naming rights." He added that it "became evident early on that American Family was a strong contender." Both MillerCoors Wisconsin GM Jim Kanter and Schlesinger "indicated that Miller was involved in talks with the Brewers." They "stressed that the brewer would have a large presence" at the ballpark after the naming-rights change. Kanter "indicated that the length of the commitment might have been an issue for MillerCoors." A source said that the deal between the Brewers and AFI "came together quickly and didn't involve an unusually high price tag." The source said, "The deal is consistent with the size of the market, and comparable to what teams are receiving in similar naming rights deals" (MILWAUKEE JOURNAL SENTINEL, 1/23).
CRUCIAL FOR BUSINESS: In Milwaukee, Tom Haudricourt notes with MillerCoors' deal worth $40M, observers "have to figure" the new deal is worth at least $50M. The Brewers, who have 21 players signed for about $113M, "already are headed for their highest opening day payroll." Their one-year, $18.25M deal for C Yasmani Grandal has pushed their payroll to "new heights," as the previous high was $104M in '15. Haudricourt: "So, every little bit helps." The Brewers are "operating in the smallest market" in MLB, so "maximizing their revenue stream remains vital to competing against big-pocket clubs." Meanwhile, the Brewers are putting $60M into an "expansion and renovation" of their Spring Training facility in Phoenix, with a "ribbon cutting set for Feb. 12." The former Maryvale Baseball Park has been "renamed Brewers Field of Phoenix." But Schlesinger said that the club is "open to selling naming rights there as well" (MILWAUKEE JOURNAL SENTINEL, 1/23).
