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DMN: Dallas Cowboys stadium naming rights may top record deal


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:laugh: :laugh: :laugh:

Great puff article to make Jerruh look good...problem is, Jerruh is having problems getting a huge sponsor...otherwise it would have happened by now.

:laugh: :laugh: :laugh:

By SUZANNE MARTA / The Dallas Morning News

http://www.dallasnews.com/sharedcontent/dws/dn/latestnews/stories/033008dnbusnamingrights.2b2caec.html

The Dallas Cowboys and owner Jerry Jones may have a title before they even kick off in their new stadium – the holder of the biggest naming rights deal in sports history.

The current top spots go to the Barclays Center, future home to the NBA's New Jersey Nets, and Citi Field, where Major League Baseball's New York Mets will play in 2009, each pulling in 20-year, $400 million contracts.

"I would think the Cowboys would expect at minimum what's been done in New York and look to exceed it," said Jim Biegalski, who specializes in naming rights for Millsport, a Dallas-based sports marketing firm.

Sports marketing experts say the marketing prowess of Mr. Jones, combined with the team's global brand strength, could translate into a record.

A spokesman for the Cowboys declined to comment on the team's efforts. However, the team's executive vice president, Stephen Jones, said in a news conference this month that the Cowboys have had talks "with a few people" regarding the stadium's name.

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Sports business experts say the companies that could consider such a deal could include some of the region's largest firms – not to mention others not based in the region.

After all, the Cowboys are the world's most valuable sports franchise, worth about $1.5 billion, according to the most recent report by Forbes magazine. That's more valuable than even Manchester United, the world's top soccer team, and the New York Yankees.

The new stadium under way in Arlington – whose construction costs have grown to an estimated $1.1 billion – is expected to be the sport's premier facility, one that team officials have suggested could go unmatched in its amenities.

It is already set to receive additional exposure after the Cowboys kick off there in 2009. The AT&T Cotton Bowl Classic will move to Arlington from Dallas in 2010, and the Super Bowl will be played there in 2011.

While a naming rights deal could be several months away – experts say Mr. Jones could wait until shortly before the 2009 season opens to make an announcement – it will involve far more than simply hanging a name on a building.

Marketing partners

Today's stadium deals are part of multifaceted marketing strategies by both the teams and the companies that sign up.

Companies are looking for broad-based, exclusive promotional rights, the ability to develop new and uniquely licensed products and special events they can offer to key customers. Deals made in recent years include more opportunities to sell products – including to the team itself.

Such added layers mean contracts for naming rights become more like a courtship than a business transaction, as both parties try to weigh how they might profit from an alliance.

Likely candidates for the Cowboys stadium would probably have established brands, a strong cachet and a vision for the stadium as part of a powerful marketing effort, says Rob Vogel, president of the Bonham Group, a Denver-based sports consulting firm.

"The Cowboys consider themselves a mega brand, so they'll want a mega brand in the corporate world to associate with," he said.

Mr. Vogel says a telecommunications company might take interest, since those firms have a strong presence in Texas. Examples could include AT&T and Verizon Communications.

Energy companies, such as Irving-based Exxon Mobil, also might be strong candidates, given their importance to the Texas economy and the booming profits many of those firms have enjoyed in recent years, said Marc Ganis, president of Chicago-based sports business consultancy Sportscorp Ltd.

"An energy company would be a natural fit for a lot of reasons," he said.

At least two big North Texas companies seem to be unlikely candidates. American Airlines already has its name on arenas in Dallas and Miami, and Southwest Airlines doesn't have a track record with stadium branding.

Mr. Ganis said the team isn't likely to limit itself to North Texas companies, adding that the venue could be a kickoff point for a multinational firm trying to establish a presence in the United States.

The financial staying power of company candidates will undergo careful analysis after the recent collapses of some stadium sponsors – including the Houston Astros' Enron Field (now Minute Maid Park) and the Texas Rangers' Ameriquest Field (now the Rangers Ballpark in Arlington).

"You don't want to be changing the name of your stadium in five years," Mr. Biegalski said.

And while the sluggish economy could pare the list of companies vying for the Cowboys stadium, experts said they don't expect it to rule out a deal.

"Anyone who looks to do this type of transaction is looking long term," Mr. Vogel said.

Finding the right fit

Naming rights have come a long way since the 1980s, when the Los Angeles Lakers sold rights to The Forum to Great Western Savings & Loan.

"There's a lot more attached to these deals now," said Jeanie Buss, whose dad, Lakers owner Jerry Buss, did the original deal with Great Western.

Ms. Buss, executive vice president for the team's business operations, said teams must think carefully about how the branding will work for the stadium.

"A team is building its home, and you want it to stand for something," she said. "For us, it worked out great – it was the Great Western Forum. It fit better than it probably would have been if we were the Clorox Forum."

Typically, the most successful deals are those formed before the stadium opens. Those made after a venue has been opened face challenges in getting the new name accepted – and used – by the community.

Recent comments by Sam Zell, whose Tribune Co. owns the Chicago Cubs, that he would consider selling the naming rights to Wrigley Field sparked community outcry.

The home of the San Francisco 49ers – Candlestick Park – has undergone three christenings since the first deal with 3M was signed in 1996, starting a boom in naming deals.

Dissatisfied with naming rights agreements, the community passed a measure in 2004 that rules out future deals.

Mega deals, markets

Price tags for naming rights are in part a reflection of the size of the media market – the larger the market, the bigger the deal.

The two largest deals – about $20 million a year – have been in New York, and a deal for the $1.3 billion new home of the New York Giants and the New York Jets is expected to eclipse those agreements.

The Dallas deal should reach $15 million to $18 million a year, based on market size and the appeal of the NFL, Mr. Ganis said.

But you have to factor in the marketing power of the Cowboys – and their owner.

Mr. Ganis said anything above $18 million – which he and other experts said the Cowboys could garner – would reflect "the Jerry Jones premium."

"Jerry Jones is the best pure marketer in U.S. sports," Mr. Ganis said. "He has been able to generate more attention and more revenue for his brand than any other team in sports. In this area, he has no peer."

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He's certainly putting all of his eggs in one basket.

After all, the Cowboys are the world's most valuable sports franchise, worth about $1.5 billion, according to the most recent report by Forbes magazine. That's more valuable than even Manchester United, the world's top soccer team, and the New York Yankees.

Appears Jerry has several smaller ones and one VERY BIG BASKET full of egg$.

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The stadium won't make a profit for at least 10 years in my opinion. Its not **** talking on my end, I just think he is sinking alot of money and taking alot of loans out that will have to get paid back.

And how long before Dallas fans end up like us where they are pissed over parking permits, prices of beer, seats, food, and memorabilla?

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The stadium won't make a profit for at least 10 years in my opinion. Its not **** talking on my end, I just think he is sinking alot of money and taking alot of loans out that will have to get paid back.

And how long before Dallas fans end up like us where they are pissed over parking permits, prices of beer, seats, food, and memorabilla?

Are saying the stadium will run at a loss for 10 years or wont cover the investment for about 10 years....big difference here.

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dude, this is the second thread you have followed me in to challenge me.

Please stop.

Dude this is a message board, people state their opinions and debate.

I asked a simple question. Is it that hard to answer?

(ps i was in this thread first :silly: )

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:laugh: :laugh: :laugh:

Great puff article to make Jerruh look good...problem is, Jerruh is having problems getting a huge sponsor...otherwise it would have happened by now.

:laugh: :laugh: :laugh:

The two largest deals – about $20 million a year – have been in New York, and a deal for the $1.3 billion new home of the New York Giants and the New York Jets is expected to eclipse those agreements.

TR1, since your our resident expert on the financial conditions of football teams, why haven't you given us the insider dirt on the problems with the Giants & Jets. Appears they are having difficulties getting a sponsor(s) for their stadium too. Is Woody Johnson not sleeping at nights like Jerry?

What can you tell us or is your financial expertise limited to just the Boys? Thanks.

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The stadium won't make a profit for at least 10 years in my opinion. Its not **** talking on my end, I just think he is sinking alot of money and taking alot of loans out that will have to get paid back.

And how long before Dallas fans end up like us where they are pissed over parking permits, prices of beer, seats, food, and memorabilla?

Sorry, but that stadium will be profitable from day one. Naming rights, PSLs, dozens of other sponsorships, suites, season ticket sales and who knows what else generates cash flow from a stadium like that. You act like there will be $1 billion debt on the stadium. The debt will be a little over $400 million. That debt service will be well covered and then some. I bet the suite sales alone will cover the debt. 300 suites @ an average of $100,000 per season is $30 million right there. Thats more than enough to cover the debt service on $400 million.

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I'm just trying to figure out why he is spamming the ATN with all of these JJ is Broke threads. Really, this is getting ridiculous, IMO.

insecurity. I think he believes Snyder is broke (due to six flags) and wants to believe Jerry is broke, but this is off topic.....

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I guess I might as well chime in.

1. The "pukes and their owner threads" are getting a little old. However, wake up puke fans, it is the loooonnnnggg off-season. Not really seeing a whole lot of other news.

2. Skins56, 54 24 or whatever number you are, what the heck is the deal? You are starting to act like the Philly fan that created an account with some skins user name. If you don't agree with TR, just go to the puke site and post your JJ is not poor and his stadium is going to be a big success threads there. Having to read all the puke fans respond to your comments is also getting old.

3. Puke fans, and no I don't want the skins impersonator to respond, how do you know JJ is not just a little worried about financing? Of course TR is blowing smoke, but really, what if the stadium naming rights doesn't net what they expect or they encounter other problems?

Do I see that happening, no, but it is a possibility. A possibility TR is just exploring in a round about way. But please, continue to entertain the rest of us during the long off-season with your TR is always wrong comments.

I believe he was one of the few that consistently said you would fail by the end of the season during the height of your winning streak last season.

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The stadium won't make a profit for at least 10 years in my opinion. Its not **** talking on my end, I just think he is sinking alot of money and taking alot of loans out that will have to get paid back.

The stadium will likely make a lot of profit over the next decade. Now, I dont know what the operating costs will be, but PSL's and the naming rights alone will be a huge chunk of cash. Then consider a very large portion of the stadiums cost is being paid for by taxpayers, and that the Cowboys will likely bring in 50 mill more per year in ticket sales than previously(they make 50 mill less than us in gate receipts right now), and you have a very large chunk of change. A full revenue stadium at half the cost? Thats a deal.

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The stadium will likely make a lot of profit over the next decade. Now, I dont know what the operating costs will be, but PSL's and the naming rights alone will be a huge chunk of cash. Then consider a very large portion of the stadiums cost is being paid for by taxpayers, and that the Cowboys will likely bring in 50 mill more per year in ticket sales than previously(they make 50 mill less than us in gate receipts right now), and you have a very large chunk of change. A full revenue stadium at half the cost? Thats a deal.

OK, well that takes me to my other point. How long is that 50mil a year going to be secured and guaranteed once the fans get sick of paying the overpriced seats, parking passes and everything else. Plus are sponsors really going to continue to pay super high prices for a billboard when they can go down the road (sarcasm) to Houston and pay probably half that for the same thing?

Im not saying Im right. Im not saying they cant make a profit. I am NOT bashing, I am just thinking that they wont recoup any profit for at least 10 years.

And I totally appreciate your side to this. :cheers:

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