Sponsorship Essentials: Featured Deal of the Week

By: Claire Lingley 

             The Los Angeles Memorial Coliseum is no longer! Instead, say hello to the United Airlines Memorial Coliseum, coming in August 2019.  In late January, the University of Southern California announced the exciting and unprecedented deal: United Airlines purchased the Naming Rights to the Coliseum for $69 million over 16 years.

             This deal is important for two reasons.  Firstly, the LA Memorial Coliseum is one of the sports world’s most beloved historic landmarks.  Built in 1921, it was originally commissioned as a memorial to WWI Veterans, and in 1923, the USC Trojans played, and won, their first game against Pomona College. It is an iconoclast structure, and LA embraces it as a part of its history and culture.  When it comes to naming rights, a structure with such history and such rich cultural relevance can be a challenge. Not only does USC have to ensure that this deal is right for their community, but it has the opinion of the entire city of LA, as well as arguably the entire sports world, to contend with. Let’s be honest, some people simply don’t like change, and this is a big one.

            Secondly, this is a big deal.  And I mean big as in, largest in college sports history.  At $69 million, this naming rights deal supports the stadium’s $270 million upgrade that is due to happen ahead of the 2028 Summer Olympics, hosted by LA.  That money will go a long way for these renovations, and USC is adamant that the changes will continue to honour the Coliseum’s original architectural integrity, (while also providing the customer with the most elevated experience possible). Supervisor Mark Ridley-Thomas, a member of the Coliseum Commission, says, "Through this restoration project, USC continues to demonstrate its responsible stewardship of the stadium. With support from United Airlines, USC is ushering in a modern era for this historic landmark and preserving its legacy for generations to come”. 

            This may be the first deal of this magnitude within the collegiate sports world, but it is certainly not the last. Here at BWA we want to know what you think.

·      What’s the best way for United Airlines to activate on this partnership and enhance their customer experience?

·      Do customers just need to learn to accept change, and stop with the complaining?  Or should properties respect the history that comes with them?

·      How can properties and companies, like USC and United Airlines in this case, work together in order to persuade the public that this partnership is beneficial for the students, the alumni, and the community as a whole?

·      Does this affect your opinion of United Airlines and/or USC and the Coliseum?

Comment below, or email us at lingley.claire@bonhamwills.com to get your thoughts published on our website!

Sponsorship Essentials: Q&A w/ Thomas Wills, CEO of BWA

By: Claire Lingley 

Thomas Wills is the President and CEO of Bonham/Wills & Associates.  By 30, he was heading up one of the bigger players in the sponsorship, valuation, and negotiating world.  Today, in part one in our series, "Sponsorship Essentials", he sits down with us and lends us valuable insight into the sponsorship and naming rights industry, (all done in 10 minutes or less).  

Q:  How did you get into this business?

A:  Out of university I had the unique opportunity to work with an industry professional, that being Dean Bonham, who has been a titan in the naming rights world for the last 30 years.   He brought me on to work on 2 projects, one of which being a project in Ottawa and the other with the University of Pittsburgh.  And really, it just grew organically from there.  Although my background was medical sciences, I was able to use a lot of the process information that I learnt during my studies in our valuation and analysis system.

Q:  Any advice for someone trying to enter the business?

A:  Know your market, and understand that it is a business and that it is not just sports.  A lot of people enter the sports industry with the idea they are going to be working in player personnel.  At the end of the day, that is not the case.  This is marketing, this is sales, this is a business.

Q:  BWA specializes in negotiations, any tips for when you’re entering the room?

A:  Listen.

Q:  Anything else?

A:  Keep listening!  Also, it is key to understand from the onset of any negotiation that the most successful negotiation is one in which both parties leave satisfied.  You will not have continued success in this industry if you try to have one over on the opposing party.  Finding the best, fair, and most creative solution is always the goal. 

Q:  Where do you see naming rights going in the next 5 years?

A:  In 2013, we predicted that naming rights were going to spike in 2018 through 2022.  We still believe this.  And now we have a prediction that naming rights are going to continue to move out of the traditional sports and entertainment venues, and into more cultural and municipal properties. Furthermore, collegiate naming rights are going to increase, with brands expanding their reach with full-bodied packages that interact with students, fans, alumni, etc., enhancing fan experience and further assisting corporations in growing their revenue.  The days of just throwing a corporation's name on the side of the building will soon be behind us.  

Q:  Any inside scoops on untapped markets?  You mentioned cultural and municipal properties, what’s one type of property that you think would be great for naming rights and hasn’t been discovered yet?

A:  I think transit systems are going to peak.  People use these systems every day, and there is a lot of room and potential for naming rights within that industry to grow and expand.  I think corporations are going to integrate their technology and enhance the experience of users on a day-to-day basis, which will in turn drive sales and revenue for that corporation.

Q:  What’s the best piece of advice you’ve ever received?

A:  There’s a saying out there, and I’m not sure how it goes, but I’m a true believer that success is 90% about luck.  The more I work, and the harder I work, the more luck I seem to have. 

Q:  Last question, statement tie or statement socks?

A:  Statement socks.