STADIUM NAMING RIGHTS DEALS FAIL TO POSITIVELY IMPACT STOCK PRICE

Stadium naming rights deals have become a lucrative source of revenue for sports franchise owners, but shareholders should not expect these deals to positively impact the company’s stock price. Sports Economist Michael Leeds studied statement rights deals over a 25-year period and has been quoted as saying “we find little evidence that the purchase of naming rights had a statistically, significant impact on the value of the companies that bought them, even less evidence that the impact was positive, and no evidence at all that there was a permanent, positive impact.” Some marketing experts will go as far as to say companies investing in stadium rights lose value, pointing to several companies that experienced financial distress or bankruptcy shortly after the deal was signed (i.e. Citigroup, ProPlayer, Trans World Airlines, Adelphia Communications).

Howie Long-Short: Rams owner Sam Kroenke is looking to sign the most expensive naming rights deal in NFL history. It’s been reported that Kroenke is asking for $600 million over 20 years. To put that number in perspective, the last 2 NFL stadium rights deals combined equaled $554 million (Falcons/Mercedes Benz (DDAIF) – $324 million/27 years, Vikings/U.S. Bank (USB) – $220 million/25 years) and just prior to making the move to Los Angeles, the Rams signed a deal worth just $158 million over 20 years for a potential new stadium in St. Louis. I wouldn’t want to be a shareholder in the company that ends up lining Kroenke’s pockets.

Fan Marino: Molson-Coors (TAP) has the best stadium rights deal in all of sports. Not only do they not pay for the naming rights to the Rockies’ Denver home (Coors Field), they have naming rights in perpetuity; and it cost them just $15 million, back in 1990. In March, the Rockies signed a 30-year extension with the state division that owns Coors Field; meaning TAP brand awareness will continue for another generation of baseball fans, on the house.

NFL Is Draining These Massive Companies Dry for Stadium Naming Rights

CHICK FIL-A TO HAVE STAND IN FALCONS NEW STADIUM; STAND WILL BE CLOSED ON SUNDAYS

The highest grossing franchise in the U.S. ($4.4 million/store; $1.7 million more than #2 on list), Chick Fil-A, will in fact sponsor a stand in Atlanta’s new football stadium, despite being famously closed on Sundays. Company Founder, Truett Cathy, was a devout Christian who closed his restaurants on the 7th day to observe the Sabbath. Perhaps odd to some, no exceptions will be made for the location at Mercedes Benz (OTC: DDAIF) Stadium despite the Falcons hosting only one non-Sunday game in 2017. The sponsorship isn’t a total loss though for Chick Fil-A as the stadium is also home to MLS’ Atlanta United, concerts and college football games.

http://www.businesswire.com/news/home/20170824006084/en/Finish-Line-Migos-Join-Forces-Creative-Partnership

Howie Long-Short: Did you know that it only costs $10,000 to open a new Chick Fil-A franchise? Have that laying around? Don’t get too excited, only .4% of applicants are selected to become “operators”.

Fan Marino: Never understood the hype behind Chick Fil-A. Give me Wendy’s (WEN) spicy chicken sandwich all-day-long and twice on Sunday.