What Is Naming Rights Agreement

Naming rights are a financial transaction and a form of publicity in which a company or other entity acquires the right to designate an institution or event, usually for a defined period of time. For properties such as multi-purpose arenas, performing arts venues or sports fields, the term ranges from three to 20 years. Longer run times are more common for high-level venues such as professional sports facilities. [1] Eponymous companies often use their private label to identify a location for the purposes of a naming rights agreement. Trademarks are complex parts of intellectual property. The place`s use of the company`s trademark raises a variety of issues. The most important of these is what the right places have for the brand of the name company. Most naming agreements include a trademark license from the naming company for the location. While some terms are quite simple – a license in a naming rights agreement will almost certainly not be exclusive – most parts of a license are complex and interconnected, which requires a holistic assessment. An important issue that needs to be addressed is a quality control obligation imposed on the site. Naming rights involve much more than attaching a company`s name to an arena.

For example, the Giants` home in AT&T Park uses AT&T Wi-Fi in its cavernous expanses. JP Morgan Chase plans to use the naming rights agreement with the Warriors to showcase all aspects of the bank`s business, from consumer credit cards to mortgage financing to private money management. If you`ve only gone through the information in this guide (which you really should take the time to read everything), then spend at least some time on this section. This is a summary of all the steps necessary for successful sponsorship of naming rights. In December 2016, the Los Angeles County Metropolitan Transportation Authority approved a naming rights policy for its facilities and routes, but repealed the policy two months later due to possible lawsuits for ignoring sponsors. [17] [18] You will be the one who will present the terms of the sponsorship naming rights agreement, so think about it for a moment. If you can only afford three years of naming rights, that`s fine, because it`s better than nothing. Be aware of this in your referral package. It`s also not acceptable if you can`t give the target sponsor the naming rights to an arena with a capacity of more than 65,000 people like Gillette Stadium. In summary, naming rights agreements are a complex and at the same time extremely useful tool for both parties in various contexts. In NRAs, it is very important to regulate all aspects of cooperation, as this is a contract which, although it mainly concerns intellectual property law, also covers other areas of law as well as various aspects of advertising and marketing.

It will undoubtedly be very interesting to see the development of this type of contract in the virtual world, because it offers a unique opportunity for companies and companies that want to improve their reputation and image in an innovative way with the most « digital » generations. Irwin A. Kishner is Chairman of the Corporate Division and a member of the Executive Committee of Herrick, Feinstein LLP. Irwin represents a number of professional sports franchises and has acted as an advisor on various sophisticated transactions in the United States. and overseas, including numerous stadium and arena naming rights and sponsorship agreements, stadium financing, media, advertising and licensing agreements, joint ventures, franchise transfers and financings, and major event tournament promotions. I must also talk about the legality of sponsorship rights. In your contract, you must offer exclusivity provisions to the sponsor to further soften the agreement. These terms prevent local competitors from sponsoring and/or advertising in a manner that interferes with the sponsor`s naming rights. Sports teams are also exploring new brand opportunities, such as Dodgers and Lakers branded water distributed by Branded Bottle and sold in the Los Angeles area.9 When creating such new opportunities, teams and sponsors should be aware that league approval may be required, and whether the stadium or arena is owned by the public rather than the team, Local government approval may also be required for any right to name the stadium. Although major league teams have some degree of autonomy, certain rules and rights are reserved by the leagues. League rules vary; For example, the NFL prohibits corporate logos of any kind on the field, while the NHL allows teams to sell four advertising spots on the ice.10 Leagues also have different rules for licensing the team logo or other intellectual property rights; As a general rule, the league has the right to enter into national agreements on behalf of all its member teams, and the teams retain various local licensing rights. To illustrate the differences between sponsorship and philanthropy, consider the example of park naming rights.

If a park received a donation of $100,000 to name it, that asset would be removed from the inventory of sponsored assets. Alternatively, if a sponsorship to name the park has been sold for $25,000 per year, within four years, the sponsorship fee will be equal to or greater than the value of the one-time donation. If you are honest about what you can offer a sponsor, sooner or later someone will bite. However, if you promise too much, gain a reputable sponsor, and then don`t respect the naming rights you promised, you lose that sponsor. .