Since the beginning of organized sports in the modern era, sponsorship’s have played a prominent role in defining how we see athletics. Whether it is a promotional commercial, a professional soccer jersey, or a stock car at the Daytona 500, we are exposed to an unfathomable number of company advertisements and logos on a daily basis.
Sports sponsorship’s have dramatically increased after a tremendous boom in the sports industry during the 1970’s, and with the quantity of sponsorship’s continuing to rise, it appears there is no turning back. In fact, IEG’s annual sponsorship report predicts over $13 billion to be spent solely on sports sponsorship’s by the conclusion of 2013 in North America alone.
A rising player in this expanding field is the technology industry, especially in regard to the naming rights of sporting venues. With the likes of AT&T, Microsoft, and other tech companies at the forefront, expect the number of similarly sponsored stadiums to increase in the coming years. However, it must be noted that not all rights agreements go as smoothly as they might seem, and each deal comes with its own unique ups and downs.
In recent history, Qualcomm Incorporated completed a notable naming rights deal in the acquisition of San Diego Charger’s home venue, Jack Murphy Stadium. The wireless manufacturing giant acquired the naming rights after signing a contract costing $18 million over fourteen years, effectively removing the stadium’s former title of the past three decades.
While the deal has generally been prosperous for both sides, Qualcomm has run into deep water by pushing the limits of the legal agreement. In December of 2011, Qualcomm Stadium was temporarily renamed “Snapdragon Stadium,” as a marketing strategy to promote its new technology. San Diego Deputy City attorney, Carrie Gleeson, informed the mayor’s office that such an alteration would violate the naming rights agreement Qualcomm signed with the city. Surprisingly, the mayor’s office took no action towards the situation, and Qualcomm carried out a very successful advertising campaign, exposing millions of viewers to the Snapdragon brand.
In Seattle, the naming rights of multi-purpose venue, CenturyLink Field, have been dominated by technology companies. Formerly known as Seahawks Stadium, the naming rights were bought by Qwest Communications in 2004 for $75 million over fifteen years. In 2011, CenturyLink, a larger communications company, absorbed Qwest and the stadium changed names again.
Not only is this a blockbuster deal for the NFL’s Seattle Seahawks and CenturyLink, but software tycoon Microsoft has also cashed in as well. During soccer matches for the stadium’s co-tenants, Seattle Sounders FC, the playing field is referred to as “The Xbox Pitch at CenturyLink Field,” as required in the club’s deal with Microsoft.
In Oakland, the newly renamed “O.co Coliseum,” short for Overstock.com Coliseum, has undergone its own technological sponsorship saga.
From its inaugural season in 1966 until 1998, the home of the Raiders and the Athletics was officially labeled as the Oakland-Alameda County Coliseum. In ‘98, the naming rights were acquired after a five year, $5.8 million dollar contract was signed by the software security company, Network Associates. After the contract was renewed in 2003, Network Associates was renamed McAfee, and the stadium’s moniker was changed to McAfee Coliseum.
However, in 2008, McAfee declined to renew its contract, and the arena’s title was reverted to its original name until April of 2011, when Overstock.com signed for the naming rights via a six year, $1.2 million contract. Oddly enough, the Oakland A’s, were not included in contractual discussions with Overstock.com. As a result of their exclusion from the financial benefits of the naming agreement, the A’s still refer to the ballpark as the Oakland-Alameda County Coliseum, while it remains O.co Coliseum during football season.
Ultimately, all technological companies currently possessing naming rights pale in comparison to that of AT&T’s mini-empire, recently expanded to include the Dallas Cowboys’ mega-stadium. The telecommunications giant now owns naming rights to four major sports venues: San Antonio’s AT&T Center, San Francisco Giant’s AT&T Park, Texas Tech’s Jones AT&T Stadium, and lastly, AT&T Stadium, formerly known as Cowboys Stadium.
Their most recent sponsorship deal is one of the largest in recent history, and it spans beyond the renaming of the venue. This contract, reportedly worth $17-$19 million a year (official numbers have not been disclosed), will also see the nearby Legends Drive re-titled either AT&T Boulevard or AT&T Drive. It is expected that AT&T and the Cowboys organization will now bind together for an extended period of time, playing off each other’s strengths to maximize the promotion of their respective brands.
This new agreement opens doors for AT&T to enhance fan’s wireless experience as well. At the start of the 2013 season, AT&T doubled both the capacity of its Wi-Fi network inside the venue and its 4G LTE network capacity around the entire complex. Such a blockbuster deal is a brilliant marketing opportunity for AT&T and provides Jerry Jones more revenue to continue the prosperity of his dream stadium.
The modern technological revolution has certainly played a large role in establishing tech companies as primary buyers of stadium naming rights. With the vast wealth among powerful technological organizations, stadium owners are beginning to realize the great value of signing with tech companies like AT&T. As stadiums look to enhance their fan’s experience through modern technology, forming long-term bonds with tech companies will only benefit both parties and further propel technology to the forefront of sports sponsorship.