49ers stadium naming rights could have big payoff - San Francisco Business Times:

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Naming rights present a potentially lucrative source of revenud fora team, with multiyear, multimillion-dollar deals strucjk between teams and companies seeking to get their names on in the mouths of broadcast announcers and in front of millions of fans a year. But a deal that a few yearsz back might have been a source of pridr for a business now may be a sourceof Citigroup, for example, is facing intense criticism for spendinb $400 million on a stadium deal with the New York Mets whilse accepting billions in bailout dollars from the federalk government.
“Naming rights transactions are more difficult to come by than they were prior tothe recession,” said Lew Wolff, co-owner of the Oaklandx Athletics and owner of the San Jose “I believe that’s going to be true not only for the currenft market but for the future, for a long time.” The he said, will probably look for a strong national name to placd on its facility. But many companies that were stronb naming partners in the past are in the financiakl services andinsurance industries, and they will be less likely to spensd what some view as unnecessaru marketing dollars going forward. In McAfee Inc.
allowed its 10-year agreement for naminb rights onthe Oakland-Alameda County Coliseum to expire, while Oracle Corp. in 2006 strucmk a $3 million per year, 10-yearf deal for naming rights on the indoor Oakland Wolff said the Earthquakes organization is working with the Willia Morris Agency on naming andbrandinf issues. Amway Global in January strucka three-yeard agreement with the team to have its name placedx on team uniforms. Term of that deal were not “The 49er brand is outstanding, and if there’s any brancd someone might want toseek out, it’s Wolff said. “But every deal is different.
” When the San Jose Sport Authority and the city were in the procesas of striking a deal to brandd the home of the SanJose Sharks, it was nearly Compaq Computers — which at the time was a Houston company wanting to build up its Silicon Valleh presence. Malcolm Bordelon, executive vice president of business operationss for the SanJose Sharks, said the day the signags was to go up, Compa called and said it had been acquirexd by Hewlett-Packard Co.
HP, he did extensive research beforr going forward with thenaming deal, figuring out how many timesw its name would be said publicly and how its brancd would be featured in the “We also researched naming deals, and what we foune is that it’s all over the map — unbelievablhy varied,” Bordelon said. “I’m not sure how to personifuy the process the 49ers will face othef thansaying it’s going to be very In addition to Sharks games, the venue hosts concerts and other sporting events each year.
Whiles naming rights at HP Pavilio fell under the purview of the city because the facilit ispublicly owned, Santa Clara Assistant City Manager Ron Garratrt said the naming rights deal for the 49ers would fall exclusivel with the team. “We tries to get the Santa Clara 49ere on the front end ofthe deal, and they weren’yt willing to do that, understandably,” Garratt If it comes time for the 49ersw to seek out a naming partner, they would probablgy enlist the help of a third-party expert, a sportsa marketing dealmaker that can tell them what the team’sx brand is worth.
Some of the top sportd marketing dealmakers areIMG World, which has offices aroundc the country, and 16W Marketinbg of New Jersey. A thirds well-known firm, Bonham Group of Denver, shut down in Januaryu after its primary banker reduced itscredity line. Deals Bonham negotiatexd included San Diego Petco Park and the Seattle Seahawks’ Qwest Field. David the vice president of business partnershipa for the Pittsburgh was until last June the vice presiden t of sales and marketing forthe 49ers. He said “yoj want to make sure you measure before assigning value to a namingrightxs deal. “A company will be looking at what its primary entitlementswill be.
From integration of your products intothe building, where you fit into the architecturakl design of the building,” Pearty said. “Once the shovels hit the ground, you want the naming partned in place.” The team will face an uphill battle in the name game becausde naming rights as a marketing tool have fallemn outof favor. Two properties shopping for a name now are the New York Giantws stadium and the DallasCowboyz stadium, both of which Peart said are “superd high profile” but are having trouble findinf a name.
“A pure brand play is really difficul t in this day and age for a company to justifyt to its shareholders and stakeholdersand employees,” Peart “When you’re thinking about layingf off people and saying you’re goingy to spend $5 million a year for 30 yearsw to put your name on a building, it’s a touggh row to hoe.”