from staff
EverBank, based in Jacksonville, reached a deal this week with the Jacksonville Jaguars to buy the naming rights to Jacksonville Municipal Stadium, now EverBank Field.
The five-year, $16.6 million agreement restores a naming sponsor to the facility, which was Alltel Stadium in a 10-year, $6.2 million partnership until it expired after the 2006 season.
City Council is reviewing a city offer to waive its 25 percent stake in the transaction.
To learn more about the deal, the Daily Record submitted questions Thursday to EverBank Chair and CEO Rob Clements through EverBank’s public relations agency, Shift Communications. Here are his responses.
Other than just brand visibility, why does this deal make sense for EverBank?
EverBank has strong ties to the Jacksonville market. We are headquartered here, have nearly 1,600 local employees and enjoy a strong constituency of customers who call Jacksonville home. We also conduct significant business nationally, with more than 700,000 customers across the country. As we evaluated various opportunities to market our banking, lending and investing products, this partnership aligned best with our desire to enrich our ties in Jacksonville while serving our broader business model. As a result, we think this partnership is a unique fit which is great for Jacksonville, great for the Jaguars and great for EverBank.
It’s been mentioned that “the timing was right” for the deal to happen. What factors were involved?
We were in discussions with the Jaguars for two years. At that time, the partnership did not fit with our marketing objectives and expansion plans. Since then, we have grown to a level where it now fits within our plans. We also tend to take our time and evaluate opportunities very thoroughly before we proceed. Those factors, as well as the great momentum the Jaguars have experienced this offseason, combined to make the timing right for EverBank and the Jaguars.
How do you measure success with such a deal? Is there a tangible way to evaluate how it affects your bottom line?
We typically don’t release our metrics or methods for evaluating such programs, but expect all of our marketing programs to make customers more aware of our award-winning banking, lending and investing products.
From EverBank’s side, what were the needed steps to propose such a deal? How did the board receive it and what was the discussion like? Were there any dissenting opinions?
We conducted a thorough analysis which resulted in support from a variety of stakeholders to pursue this opportunity.
How did you come up with the figures?
We have decided not to discuss the financial terms of the partnership.
It’s been mentioned EverBank will have a negotiating window toward the end of the contract to discuss a new deal. What is that window? And if the thought is there will be another contract, why not make the original contract longer?
EverBank believes in the Jaguars, believes in Jacksonville and expects this partnership to be a successful one for both parties for awhile.
Did you use other stadium naming-rights deals as a template or a starting point?
We evaluated a variety factors, including market comparables.
How long has the idea been discussed?
EverBank negotiations with the team restarted several months ago after being on and off for a couple of years, after Alltel’s contract expired.
You’ve mentioned visibility would strengthen the EverBank brand. How so? Do you believe it will just be online banking that will see an increase? Are there plans for brick-and-mortar expansions?
We have a unique business model that delivers high-value banking, lending and investing products to customers online, by telephone and through financial centers. We have grown each of those distribution channels and think the visibility we receive from this partnership will complement our existing marketing activities.
EverBank is the now the official bank of the Jaguars. How much of that was a factor?
EverBank and the Jaguars believe that for their respective organizations, the partnership is a great business move that will continue the strong momentum each party has recently experienced.
In the few days since the reports and announcements, have you seen an increase in people opening accounts?
It’s too soon to tell, but we’ll continue to monitor activity.