Click on the link to read the article from NY Newsday

Stadium names are raising roof

Neil Best
SPORTS WATCH

June 6, 2006

American Airlines has hit the naming rights lottery, a double whammy of exposure for a troubled pillar of a troubled industry.

The NBA Finals begin Thursday at Dallas' American Airlines Center before switching next Tuesday to Miami's American Airlines Arena.

Nice, assuming such things matter in consumers' decisions compared to, say, another inch of legroom or extra peanuts. Reasonable people disagree on that subject, but whatever the real value of naming rights, the market's upper limits soon will be tested as never before.

That is because the New York area at last is ready to join the fray, with several spanking new stadiums to rise in the next few years, including those for the Yankees, Mets, Giants/Jets, Nets and Devils.

The Yankees will sell plenty of sponsorships associated with their building, but they are not expected to sell the name "Yankee Stadium" itself.

That should leave the Mets and Giants/Jets poised to reap record deals.

The Mets are expected to seek $10 million per year, which would be the most for a baseball-only park. The Giants/Jets could command double that, which would blow by the $10 million a year Reliant Energy pays for the Houston Texans' stadium and the Astrodome complex.

There is so much money at stake that the competition is heated even for the right to represent the teams in selling the rights. Yesterday officials were to hear a pitch from the William Morris Agency to peddle the name of the football stadium.

The Mets, whose stadium is to open in 2009, could have a naming sponsor later this year. The football stadium won't open until 2010.

Tony Schiller, a partner at Paragon Marketing Group, a sponsorship and marketing consulting agency, said that in the New York market, "I think it's realistic to expect both of these naming rights agreements are going to be in the top [area], if not establish the record."

The trick is finding companies able and willing to pay. Of the football deal, Schiller said, "The universe of companies that have the brand power aligned with the right marketing objective and appropriate budget in that range is probably fairly small."

John Mara, the Giants' CEO, said he hopes to attract a company "you're comfortable having attached to the stadium, and one that lends its name to it." In other words, definitely not the next Enron and preferably not an outfit with a funky name that fans and the media will mock. Helpful suggestion: Newsday Stadium.

Faced with costs likely to exceed $1 billion, Mara said the hope still is to avoid personal seat licenses to make ends meet. He offered no promises, but $20 million a year for a name wouldn't hurt.

"No company has ever had an opportunity to be associated with an NFL stadium in the largest market with two teams," Mara said. "That's a lot of exposure."