Vikings look to market naming rights to Metrodome

Posted on July 29th, 2009. Written by Emmett Jones.

The recession’s effect on sports has really been incredible. Sporting events, which many thought to be impervious to any sort of economic downturn, have not only seen a decline in participation, but have actually needed to borrow money, close stores, and the like.  It’s a really unfortunate cycle when you look at it.  Team loses revenue — team looks to generate revenue by selling X — since economy is bad no one buys X — team loses revenue.  This week, the team involved in the cycle is the NFL’s Minnesota Vikings.  Now, I personally don’t know the Vikings financial situation, but I do know that you’d be hard pressed to find a team thriving in today’s economic climate.  That being said, the money generated from selling the naming rights to their stadium would probably benefit the team.  Of course, its not an easy sell, if no one is willing to spend any money,

While the Dallas Cowboys and New York’s Jets and Giants remain unsuccessful in their efforts to sell naming rights to their new stadiums, the Vikings for the first time are looking to sell field rights at their stadium (so, Company X Field at the Hubert H. Humphrey Metrodome) as well as three gate sponsorships at the venue.

The team expects a low-seven-figure annual sum for the field rights and less for the gate sponsorships. The team is handling the sales efforts internally.

In marketing materials, the team describes the field-rights opportunity as a naming-rights deal and shows renderings that would have the company name on top of the Metrodome along with other exterior placements.

Compare that low seven figure to the $20 million being asked for the Giants/Jets and Dallas Cowboys stadium naming rights.  The Vikings do at least realize that they aren’t the biggest draw in the NFL and that we’re in the middle of a down market.  So they make themselves much more attractive with the lower price tag.  There may be a much bigger issue thought with the Metrodome; namely that the team may not be there in 2 years.

The problem for a company looking at the Metrodome, Narcise added, beyond the distressed economy, is the uncertainty of the Vikings’ stadium situation. The team wants a new venue; its lease in the Metrodome expires at the end of 2011. Narcise said he would advise any company to demand a right of first negotiation for naming rights at any new stadium.

A right of first negotation? definitely.  Nothing would be sadder if a team was paying the Vikings every year for naming rights when the Vikings don’t play in that particular arena and the arena that they do play at has someone else’s name on it.  Or if they had set out for long term naming rights but only had them for two years.  Of course, before you get to that point…somebody still has to be willing to purchase the naming rights in the first place.

That may be the larger problem.

Minnesota Business Journal — Vikings market naming rights for field at Metrodome

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