GLOBAL NAMING RIGHTS REPORT 2015 SPECIAL EDITION PREVIEW
CONNECTED SOLUTIONS
Expertise by Repucom Your contact persons: Andre Haberla | Nils Coch
© REPUCOM | GLOBAL NAMING RIGHTS REPORT 2015 | MAY 2015
CONTENTS
» INTRODUCTION
3
» EXECUTIVE SUMMARY
6
» THE NORTH AMERICAN NAMING RIGHTS MARKET
9
» General results across all leagues » Specific results for the five Major Leagues » » » » » »
NFL NBA NHL MLB MLS Multi-sport venues
» NAMING RIGHTS IN EUROPEAN FOOTBALL » General results across all leagues » Specific results for selected key markets » » »
Germany England Netherlands
» JAPAN’S NAMING RIGHTS LANDSCAPE » General results across all leagues » Specific results for individual leagues » »
Nippon Professional Baseball J. League
10 14 14 16 18 20 22 24
25 26 31 31 33 35
37 38 41 41 43
» NAMING RIGHTS IN THE AUSTRALIAN FOOTBALL LEAGUE
45
» ACTIVATION OF NAMING RIGHTS SPONSORSHIPS
49
» TRENDS & DEVELOPMENTS
55
» TERMS & CONDITIONS
63
» CONTACT DETAILS
64
© REPUCOM | GLOBAL NAMING RIGHTS REPORT 2015 | MAY 2015
INTRODUCTION
BACKGROUND OF THE STUDY » The Global Naming Rights Report 2015 sheds light on the use of commercial stadium and arena names in selected global key markets. It delivers data, facts and expertise on the sponsorship tool of naming rights. » Apart from European football, which was the core field of analysis in the previous editions of Repucom’s Naming Rights Report, this time Repucom focused on the most popular sports leagues in the top naming rights markets by volume worldwide. » Thus, the US Major Leagues, Japan’s professional baseball and football leagues and the Australian Football League are subject of the analysis for the first time. » In total, the following sports leagues have been analyzed: » North America: NFL, NBA, NHL, MLB and MLS » Europe: first and second divisions of the 54 UEFA member associations as well as national team stadiums » Japan: J. League Division 1, J. League Division 2 and Nippon Professional Baseball (NPB) » Australia: Australian Football League (AFL) » All these markets have been the subject of investigation. Comprehensive data has been gathered and prepared to form an in-depth analysis of prices paid in each relevant market observing market specifics, developments and trends. » As this is the first time Repucom has conducted a global naming rights market analysis, the relevant markets are also compared using a qualitative approach. Thus, insights of Repucom’s global network of sponsorship experts are included throughout the report to point out the specifics, similarities and differences of the investigated markets.
© REPUCOM | GLOBAL NAMING RIGHTS REPORT 2015 | MAY 2015
SPECIFIC RESULTS FOR INDIVIDUAL LEAGUES ANALYSIS OF NAMING RIGHTS LANDSCAPE
Development of revenue from naming rights sponsorship deals from 2012 to 2015 All single-sport venues Average of all leagues
Total volume per league
CAGR: 10.1%
2012
2013
2014
2015
2012-13 & 2013
2013-14 & 2014
2014-15 & 2015
Average revenue per team
2011-12 & 2012
Notes: Only single-sport venues; figures in million US$ p.a.; compound annual growth rate across the relevant seasons
Percentage of venues with commercial naming rights 2015
Total expenditure of the top 5 industry sectors 2012 2015 Retail
75% NAMING RIGHTS
Banking / Financial services Automobile Non-alcoholic beverages Telecommunication service provider
Notes: Single-sport and multi-sport venues
Š REPUCOM | GLOBAL NAMING RIGHTS REPORT 2015 | MAY 2015
Notes: Only single-sport venues; figures in million US$ p.a.
SPECIAL EDITION
SPECIFIC RESULTS FOR INDIVIDUAL LEAGUES ANALYSIS OF NAMING RIGHTS LANDSCAPE
Involvement of local companies in naming rights sponsorships 2015
Pricing of naming rights sponsorship deals 2015
13% LOCAL SPONSORSHIP
Price per seat Notes: Single-sport and multi-sport venues; global and national headquarters within a 100 km radius from venue
Price per 1,000 inhabitants*
Notes: Only single-sport venues; * excl. Canada, inhabitants of the Metropolitan Statistical Areas (2013 estimates); ** excl. Canada
The most valuable naming rights deals 2015 VENUE NAME
TEAM
Stadium A
Team A
Stadium B
Team B
Stadium C
Team C
Stadium D
Team D
Stadium E
Team E
Stadium F
Team F
Stadium G
Team G
Stadium H
Team H
Stadium I
Team I
Stadium J
Team J
Notes: Annual sponsorship fees are partly estimated; single-sport venues only
Š REPUCOM | GLOBAL NAMING RIGHTS REPORT 2015 | MAY 2015
Price per 1,000 TV homes**
ANNUAL SPONSORSHIP FEE
NAMING RIGHTS SPONSORSHIP TRENDS AND DEVELOPMENTS CONNECTED STADIUM
CHALLENGE » As the basic requirement for mobile connectivity increases almost daily, fans want to be online at any time to share their experiences, emotions and opinions via Social Media. This especially applies for such emotional surroundings like sporting venues at which the fan is very close to the action. » However, most of the stadiums worldwide have previously been incredibly poor for phone signal and online connectivity due to network overloads.
SOLUTION » Therefore stadiums and arenas are upgrading with high-tech internet infrastructure worldwide. Especially in the American Major Leagues many sport facilities are equipped with technology such as Wi-Fi or other mobile connectivity solutions. But it is not just the internet connectivity, rather than the whole fan experience that is about to change with the implementation of interactive apps featuring exclusive services. “Telecommunication and technology companies use » More and more telecommunication service naming rights agreements to showcase their providers use naming rights partnerships technological advantages. Technology showcase, or with venues to equip them with their mobile no business case.” connection solutions as a technology showcase.
EXAMPLES
Michael Lynch, Head of North American Consulting at Repucom
» AT&T activates its AT&T Stadium partnership with a mobile app featuring all necessary event and venue information enhancing the fan experience at the stadium. » Avaya, naming rights sponsor of San Jose Earthquakes’ recently-opened MLS venue, created a mobile app featuring an interactive stadium map, instant ticket access, a travel planner and social media integration. » In August 2013, Vodafone agreed on a naming rights deal with renowned Turkish football club Besiktas JK before the construction of the club’s new stadium, now called Vodafone Arena, began. As part of the sponsorship deal, Vodafone will install high-tech Wi-Fi, which guarantees fast internet access inside the stadium, and develop a stadium app.
© REPUCOM | GLOBAL NAMING RIGHTS REPORT 2015 | MAY 2015
TERMS & CONDITIONS
TERMS AND CONDITIONS OF USE Please note that this report is subject to copyright agreements. All rights are reserved by Repucom.
No part of this report may be reproduced, processed or further distributed in any fashion whatsoever without the author’s prior written consent. In this case Repucom. As a condition of publication of any contents of this study, as above, written consent must be given by Repucom. Please note that the images and logos in this report are intended for internal use only. Whilst proper due care and diligence has been taken in the preparation of this document, Repucom cannot guarantee the accuracy of the information contained and does not accept any liability for any loss or damage caused as a result of using information or recommendations contained within this document. Apart from that our General Terms and Conditions, status as of August 2014 shall apply. Available at http://repucom.net/general-terms/
Š REPUCOM | GLOBAL NAMING RIGHTS REPORT 2015 | MAY 2015
CONTACT DETAILS
ANDRE HABERLA Head of Market Intelligence
Phone Email
+49 (0)221 43 073 784 ahaberla@repucom.net
NILS COCH Manager Client Services Market Intelligence Phone Email
+49 (0)221 43 073 766 ncoch@repucom.net
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© REPUCOM | GLOBAL NAMING RIGHTS REPORT 2015 | MAY 2015