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Understand naming rights as a corporate partnership

This is an excerpt from Sport Finance by Gil Fried,Timothy DeSchriver & Michael Mondello.

Naming Rights

Naming rights are a form of corporate partnership in which a corporation purchases the right to attach its name to some part of a sports facility or event. These deals are quite common in professional sport. Most pro sports facilities have a corporate name attached to them, like Citi Field in New York City, FedEx Field in Washington, District of Columbia, and the STAPLES Center in Los Angeles. Some corporations pay in excess of $10 million per year for these naming rights. As of 2018, the largest naming rights deal in North America was MetLife Stadium, the home of the NFL's New York Jets and Giants. MetLife is paying $450 million over 25 years for the naming rights. Table 5.3 provides a breakdown of the top five naming rights deals in North America. Some facilities have gone beyond the naming of the entire facility and are now also selling naming rights to facility features such as parking lots, entrance gates, and concourses. The NFL's New England Patriots have sold the naming rights to their facility, Gillette Stadium, and also the names of entrances (Bank of America Gate), pavilions (NRG Plaza), and suite levels (Dell Technologies Suite Level) (“Seating map,” 2017)


Table 5.3