The acquisition of naming rights means a financial transaction for advertising purposes, with which a company purchases the right to name the subject of the contract at will, such as an event, a stadium or a sports arena, thus becoming its main sponsor.
In the case of a sports facility, the concession allows the company to add its name to it (becoming presenting sponsor) or to completely change the original one (title sponsor), with a term that generally ranges from three to twenty years. In this way, the company becomes sponsor of the entire structure and, indirectly, of everything that happens inside it. The changeover is almost instantaneous and therefore immediately allows the sponsor company to make the best use of the denomination rights purchased.
In Italy, the Allianz Company renewed the agreement reached with Juventus in 2017: for an amount equal to approximately 103 million euros until June 2030. This is a significant marketing operation, little known to the public but very large effectiveness and around which a real market is developing: that of naming rights, (naming rights).
Naming rights represent an excellent opportunity for a company to stand out, in fact having its own corporate brand associated with a whole stage increases awareness among consumers and fans that the brand is a “top of mind” making it immediately recognizable and associable to a particular market.
Moreover, naming rights increase the effectiveness in introducing new products, especially in competition with other companies, and in affirming those already on the market: the sponsor, in fact, can interact with the public present at the events held in the structure through gifts , competitions and entertainment moments aimed at promoting the company in all its aspects.
An example is the case of the Orange Vélodrome of Marseille, whose denomination rights in 2016 were transferred precisely to Orange, the French telecommunications leader. The company has equipped the structure with a thousand wi-fi routers, ensuring a fast and above all free connection to the fans, and has started offering experiences in the pre-match with VR (virtual reality) devices and 8K video transmissions, both of which can be used thanks to the 5G system in development.
Naturally, the visibility that the sponsoring company acquires with the naming rights is strongly influenced by the performance of the club that plays in that stadium, and in which competitions it takes part: the more the team appears on television and in the media, the greater the market value of the same naming rights when the agreement expires.
This type of market is very popular in the United States and finds space in any sport, from basketball to American football. The center of everything is New York: it is home to the MetLife Stadium, home of the Jets and Giants (National Football League, NFL teams), the CitiField, which hosts the Mets baseball games, and the Barclays Center, facility multi-purpose among the most important in the world, in which the Brooklyn Nets play in the NBA. Adding the three contracts that guarantee the naming rights to the respective sponsoring companies, it reaches a figure that is between 1.02 and 1.22 billion dollars.
In Europe the phenomenon is less present, but well rooted in some countries, such as Germany, where 80% of the stadiums in the Bundesliga have the name of a sponsor. In Spain in La Liga there is a unique case in the world, the Villarreal Stadium, called Stadio della Ceramica, is a rare case because it is the only one to have a multiple naming right, that is, multiple sponsors on the outside (Pamesa, Porcelanosa, Argenta , Torrecid, ect) the first naming right of a consortium of companies belonging to a single production sector (business district). The Italian Serie A has only three such structures, at Sassuolo (Mapei Stadium), Udinese (Dacia Arena) and Juventus (Allianz Stadium). We cannot fail to mention the 15 million euro per season contract that binds the Italian championship to the Title sponsor TIM.