Naming rights: a two-way synergy
Managing IP is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX
Copyright © Legal Benchmarking Limited and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Naming rights: a two-way synergy

Sponsored by

daniel-400px.png
ivars-utinans-8bqilrds7ak-unsplash.jpg

Carolina Schueler of Daniel Law discusses why naming rights and sponsorship deals could be a profitable two-way partnership that may last for decades

Allianz Arena in Munich, Nissan Stadium in Yokohama, Neo Química Arena in São Paulo, Vodafone Park in Istanbul, and American Airlines Theatre in New York City. What do these iconic venues have in common besides gathering a lively and excited audience?

Like hundreds of other stadiums, arenas, office towers, theatres and concert halls around the globe, these venues are sponsored by corporations that acquire the rights to name them.

The naming rights strategy was first introduced in the US in 1926, when the American  chewing gum company Wrigley named the Chicago Cubs Stadium as the Wrigley Field – the stadium still carries the name up until now. In 1972, the Rich Products Corporation signed the first naming right formal agreement: a 25-year deal for the Buffalo Bills' new stadium, which then became the Rich Stadium. This was just the beginning of a new advertising practice.

Globally, naming rights contracts have substantially increased in popularity since the 1980s. As many stadiums or arenas now host multi-sport competitions and often serve as a stage for concerts, venue-naming rights can present an excellent opportunity to expose brand names to a diverse customer base.

In terms of cost effectiveness, a brand’s addressable market can be accessed without the regular and high running costs that advertising boards on single concerts, matches or multimillion-dollar prime time slots require.

In Brazil, the most recent deal in sports puts a spotlight on Hypera Pharma, the country’s largest pharmaceutical company. In an agreement of $55.6 million, Hypera acquired the naming rights of Arena Corinthians, now called Neo Química Arena – one of the company’s most valuable brands. The 20-year deal also covers hosting rights for concerts and non-soccer events.

The benefits of the naming rights go far beyond their long-term exposure in total exclusivity to the public: corporations and brands become more easily associated with their engagement to environmental, educational, and cultural development.

Another category of partnership that companies explore to gain media exposure is the Title Sponsorship. Usually focused on events, expositions, programmes, this is a more targeted investment for companies, such as the Turkish Airlines EuroLeague, the Formula 1 Rolex Australian Grand Prix, and the Brazilian Petrobras Symphony Orchestra.    

Nuestro Sound presented by Target, Rio Open presented by Claro and NAPA Auto Parts 200 presented by Dodge are a few examples of events that carry the sponsor name or brand in their titles. In this particular contract, the name of the event remains unchanged, but sponsors acquire the rights – that might be exclusive or not – in a prominent spot alongside the event name.

Naming rights and sponsorship deals may be delivered in a variety of formats to bring benefits for both sides. Through positive brand associations, injection of capital and broadened customer awareness, these strategies create desirable synergies – a profitable two-way partnership that may last for decades.

Carolina Schueler

Partner, Daniel Law

E: carolina.schueler@daniel-ip.com


 

more from across site and ros bottom lb

More from across our site

Based on surveys covering more than 25,000 in-house lawyers, the series provides insights into what law firms must score highly on when pitching to in-house counsel
We provide a rundown of Managing IP’s news and analysis from the week, and review what’s been happening elsewhere in IP
Tony Nguyen, who returned to Fish & Richardson this month after a year travelling overseas, tells Managing IP how and why he took the plunge
Tom Treutler, who previously managed the Vietnamese office of Tilleke & Gibbins, has joined East IP
Counsel discuss upcoming AI and data privacy legislation and what they’ve learned since Chile joined the Madrid Protocol
INTA has postponed its planned Annual Meeting in Dubai, but the organisation should think carefully about whether it wants to go there at all
The firm has named its new managing director after its former Asia head resigned earlier this year
As law firms explore how best to support clients at the UPC, members of the UPCLA network believe they have found the best of both worlds
The Industry Patent Quality Charter hosted a conference in which it discussed the importance of granting high-quality patents
Julia Holden explains why, if she weren’t in IP, she would be directing and producing live English-language theatre
Gift this article