by Bradley Parsons
Staff Writer
Citing a recent revival of big–money stadium sponsorship deals, the mayor’s office thinks it can squeeze more money out of the naming rights for its City–owned stadium.
If the City can bolster its annual $300,000 take, mayoral aide Susan Wiles said the extra money will help repay Jacksonville Jaguars owner Wayne Weaver for up to $15 million in stadium improvements.
Alltel Corp. pays $620,000 each year to put its name on the City’s 83,000–seat stadium. That deal, which expires in 2007, is among the league’s cheapest, according to numbers provided by the City. Charlotte’s Bank of America recently signed a 20-year $140 million deal to put its name on the Carolina Panthers’ stadium.
Compared to that deal and others in Philadelphia, Denver and New England — they average $6.8 million annually — Alltel’s deal is a relative bargain said Wiles. While she doesn’t expect to compete dollar for dollar with those larger markets, Wiles said even a healthy fraction of the annual funding could be a big boost.
“Even if we get half of some of those deals, we’d improve our bottom line substantially,” said Wiles.
Houston holds the naming–rights gold standard. Their 30–year deal with Reliant Energy returns $10 million annually.
Sponsorship deals are a lagging indicator of the economy, said Bob Downey, general manager of SMG, which manages the City’s sports venues and is seeking sponsors for the Baseball Grounds of Jacksonville and the Equestrian Center.
Companies like Enron and ProPlayer were eager in the cash–flush economy of the late 1990s to attach their names to pro venues. However, a rash of corporate scandals and a recession plunged many potential sponsors into scandal (Enron) or bankruptcy (ProPlayer), leaving venues bare or offering their rights at a discount.
“The market really changed quite a bit with the dip in the economy a few years ago,” said Downey. “Houston lost Enron, the (Tennessee) Titans lost Adelphia. But you can see things have been picking up recently.”
After losing Enron, the Houston Astros signed a $6 million annual deal with Coca Cola to hang Minute Maid’s name over the door until 2030. Football teams in Denver, Philadelphia and Pittsburgh all signed multi–million sponsors in the last three years, but Downey said it was the Carolina Panthers’ bank–busting deal signed last year that raised the most eyebrows in City Hall.
“They’ve really pointed to Carolina,” he said.
Although positioned in a smaller market, Downey said Alltel Stadium’s reach extends beyond National Football League broadcasts. The stadium will join the world’s largest stage when next year’s Super Bowl comes to town, and is broadcast nationally for the Florida/Georgia game and the Gator Bowl.
The stadium’s marketability would increase if efforts succeed to bring the Atlantic Coast Conference football championship to Jacksonville or to join the Gator Bowl with the Bowl Championship Series, said Downey.