By Barry Janoff
May 29, 2016: If the Disney Co., Farmers Insurance, Live Nation or any other multi-dimensional company, especially those based in Southern California, is considering making a move on naming rights for the new NFL stadium being built in Inglewood, Calif., the incentive just got juicer.
But so likely did the cost.
According to industry analysts, the total package could top $1 billion with naming rights and top tier sponsorship deals.
The NFL last week named the venue, currently known as Inglewood Stadium, as the host for Super Bowl LV, scheduled to be played February 2021. The stadium itself, for which ground is just now being broken on 298 acres of land — with an estimated construction value currently at $2.6 billion — is scheduled to open prior to the 2019 season as the new home for the Los Angeles Rams.
"The estimated annual price for (naming rights to) the stadium is $18-$20 million, which factors in getting one Super Bowl over ten years," and may even top $25 million if a second team moves in with the Rams, said Eric Smallwood, managing partner for Apex Marketing Group, St. Clair, Mich., a leading naming rights and sponsorship marketing firm.
Sponsorship top tier deals beyond a naming rights deal could hit $40,425,000 if one team plays there, $74,294,278 for a two-team stadium, according to Smallwood.
That would be money well spent, according to Smallwood.
The value projection for the stadium naming rights partner for the 2021 Super Bowl is estimated at $75 million in value from the game during the television broadcast," said Smallwood.
Within that ten years, it is not unlikely that the NFL could award another Super Bowl to the venue.
Between 1977 and 1993, the Rose Bowl in Pasadena hosted five Super Bowls. Before that, the Los Angeles Memorial Coliseum hosted two Big Games, making Super Bowl LV the eighth to be played in the region.
Super Bowl LV might not be the only event of major importance to be held at the new stadium. It could also host the Opening and Closing Ceremonies and other events for the 2024 Summer Olympics if Los Angeles wins the bid (to be determined in late 2017 by the International Olympic Committee.
The Los Angeles Super Bowl Bid Committee was headed by committee chairman Casey Wasserman, CEO, for Wasserman, one of the world's leading sports and entertainment talent management agencies. Wasserman is also chairman for the LA 2024 Candidature Committee.
"Suffice to say the most expensive and most technologically advanced stadium ever built will certainly be a key part of our (LA 2024 Olympic) plans going forward," Wasserman said during a media conference call earlier this year.
When the NFL in January approved the relocation of the St. Louis Rams back to Los Angeles — where the franchise had played from 1946 through the 1994 season — following majority team owner Stan Kroenke's guarantee to build the stadium, it set into motion what might become the largest naming rights deal in sports history.
"Given the vision of this development, we may be looking at the first billion-dollar naming rights deal or a new model that others would likely follow," said Peter Stern, president of The Strategic Agency, NY, a leading sports and lifestyle marketing agency with expertise in sponsorship, experiential and promotional marketing.
The venue is being designed by HKS Sports and Entertainment Group.
In addition to a naming rights deal, stadium and team owners would look to sign several high-profile founding partners.
"Suffice to say the most expensive and most technologically advanced stadium ever built will certainly be a key part of our (LA 2024 Olympic) plans going forward."
The only two-team stadium in the NFL is MetLife, home to the New York Giants and Jets.
MetLife in 2011 paid $400 million ($16 million annually) for a 25-year naming rights deal.
The venue hosted Super Bowl XLVIII in 2014.
Levi Strauss & Co. signed in 2014 a $220 million deal ($10 million annually) for 20-year naming rights to the new home for the San Francisco 49ers, which opened prior to the NFL season that year ad hosted Super Bowl 50 in 2016.
AT&T is paying some $18-$19 million a year for naming rights to the home venue for the Dallas Cowboys via an estimated 20-year deal signed in 2013 (two years after the then Cowboys Stadium hosted Super Bowl XLV). It also hosts the annual Cotton Bowl Classic, which is part of the college football post-season.
NRG Energy is in the midst of a $310 million ($10 million annually) 32-year deal for NRG Stadium, home for the NFL's Houston Texans (signed in 2002 by Reliant Energy, now a division of NRG). It will host Super Bowl LI in 2017.
Super Bowl LII will be in Minneapolis on Feb. 4, 2018 in U.S. Bank Stadium, scheduled to open this coming season. U.S. Bank has a 25-year naming rights deal valued at $220 million.
Super Bowl LIII is scheduled for Feb. 2019 in Atlanta's new Mercedes-Benz Stadium, scheduled to open in 2018.
Super Bowl LIV, in Feb. 2020, was awarded to South Florida's New Miami Stadium, undergoing a $500 million renovation.
In 2011, Farmers Insurance aligned itself with a deal for 30-year naming rights valued at $700 million for a proposed NFL stadium to be built in Los Angeles.
In March 2015, the firm driving that stadium, Anschutz Entertainment Group (AEG), pulled the plug on the project when political, environmental, financial and other logistics became too overwhelming to resolve.
Farmers was not scheduled to begin paying for the naming rights until the proposed 65,000-seat venue was completed. Despite the fact that the company paid no money, it received nearly $6 million in media exposure over the four years, according to Smallwood.
Among the potential contenders for Los Angeles stadium naming rights:
• DirecTV, a division of AT&T, headquartered in El Segundo.
• Farmers Insurance, based in Woodland Hills.
• Live Nation Entertainment, with headquarters in Beverly Hills.
• Hyundai Motor America, with U.S. headquarters in Fountain Valley, Calif. — about 35 miles south of the Inglewood stadium site — is the official automotive partner with the NFL.
• Walt Disney Co., based in Burbank, which already has an entertainment complex, Disneyland, located in nearby Anaheim.
• Health Net, headquartered in Woodland Hills, a division of Centene Corp., had more than $14 billion in revenue in the past 12 months.
• Western Digital, based in Irvine, had more than $14.5 billion in revenue in 2015.
• Ingram Micro, also headquartered in Irvine, a division of China-based HNA Group, reports more than $42 billion in revenue.
"We are honored that the NFL is bringing the Super Bowl to Los Angeles in 2021," said Wasserman when the game was awarded. "The league’s selection of Los Angeles is a testament to its commitment to innovation and diversity, and I couldn’t be prouder of our winning bid,
“Stan Kroenke's vision for the Rams stadium and the surrounding campus makes Inglewood an ideal venue for staging the Super Bowl of the future, and we look forward to inviting the nation and the world to L.A. for an historic fan experience," said Wasserman.
Los Angeles Stadium Naming Rights Are In Play
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