Naming Rights as a Strategic Investment
- October 20, 2023
- SponsorPulse Staff
With fans returning to arenas and stadiums breaking attendance-record numbers in the post-COVID-19 era, interest in these opportunities has been resurgent.
However, naming rights often come with a significant price tag:
SoFi paid $625 million for rights for 20 years in Los Angeles.
Crypto.com signed a 20-year, $700 million sponsorship deal to rename the iconic Los Angeles's Staples Center.
Overseas, Spotify took over the naming rights of the legendary Camp Nou stadium for $310 million.
But are the hefty price tags on naming rights justified?
To answer this and many other questions surrounding naming rights’ value, we’ll delve into some of the most relevant numbers, takeaways, and facts from the findings from the latest SponsorPulse's NHL Venues Report in Canada.
Recognizing the Naming Rights Leaders
The SponsorPulse report on NHL Venues in Canada evaluated the value of naming rights in the region through four core key performance indicators (KPIs): Name Recognition in the Local Market, Name Recognition Nationally, Name Utilization, and Noise (misattribution with previous sponsors).
Here’s the ranking:
Rogers Place: No venue in Canada outshines the home of the Edmonton Oilers in local recognition. With a whopping 58% local name recognition, it's clear that the investment made here is paying off. But even more impressive is the 78% name utilization — a testament to the effectiveness of the naming rights in the local context.
Rogers Arena: Though coming in at second place, the impact from the home of the Vancouver Canucks is far from negligible. Tying for first place in national name recognition at 43%, it’s evident that the reach of naming rights extends well beyond the local arena. Moreover, the minimal noise associated with the previous sponsor (General Motors) shows that the naming rights can establish a lasting identity.
Canadian Tire Centre: The third spot is taken by the home to the Ottawa Senators, with 47% name recognition in the local market. Impressively, this is achieved with minimal misattribution to past brands despite a history of changing sponsors. The data here suggests that a consistent local strategy can weather sponsorship transitions.
Naming Impact in the Canadian Sports Powerhouse
Arguably, the Greater Toronto Area could be considered one of Canada's most prominent sports areas due to its participation with teams in the NHL, the NBA, the MLB, MLS, and the CFL.
Locally, Rogers Centre —home of the Blue Jays— leads the ranking of Name Recognition within the area with 44% recognition, followed closely by Scotiabank Arena —home of the Raptors— at 33%, and BMO Field —home of Toronto FC— at 27%.
Surprisingly, nearly 1 in 3 Toronto residents recognize these brands due to their naming rights — suggesting a solid impact in awareness within the highly populated area with over 6 million inhabitants.
All these numbers underline the importance of naming rights in capturing the attention of one of Canada's most sports-engaged populations.
A Cost-Benefit Equation
In the dynamic world of sports sponsorships, the battle for naming rights is no less than a high-stakes chess game, with billions of dollars at stake.
But while the cost of acquiring naming rights has been steep, data shows that the returns can be substantial, especially within local and national recognition.
The question for brands is whether the strategic value and potential returns these naming rights can offer exceed the monetary costs of acquiring them.
Take Your Brand to the Next Level with SponsorPulse
The SponsorPulse NHL Venues Report in Canada shows naming rights can be a compelling case to establish a lasting, impactful presence in the hearts and minds of local and national audiences.
If you’re ready to explore sponsorship opportunities for your brand, let SponsorPulse be your compass in the dynamic world of sports sponsorships.
Create a free SponsorPulse account today to read the report in full and uncover insights beyond the surface and guide your brand toward strategic and impactful sponsorships.