February 11, 2008
Marquee Marketing (and Moolah) for Giants-Jets Stadium
Put any thoughts of the new Giants-Jets Stadium being named Mara Field (after the recently deceased and beloved Giants owner Wellington Mara) far from your heads. Sports marketing experts believe that the value of slapping a corporation's name on the arena, which is expected to be completed in 2010 and cost $1.3 billion, could generate revenues of $25 million to $30 million annually for the two teams. In comparison, the Mets are charging Citigroup $20 million annually for 20 years to name the team's new stadium in Queens Citi Field.
The high price tag the new East Rutherford stadium is expected to have attached to it is because the tri-state area is already the most expensive media market in the nation. In addition, the stadium will be home to two NFL teams - tada, no dark weekends at the stadium! Which means the corporation with its name on the structure will be mentioned hundreds of times every single week of the season.
In addition to naming the overall stadium, the owners are planning on divvying up its interior into four exclusive advertising quarters, which will be available to other corporations. Replacing the clutter of multiple billboards, these sponsors will be able to place their name and their's only over 1/4 of the interior, to maximize on-camera exposure.
|
When Citibank collapses I hope they rename the new Mets stadium after whichever Saudi prince comes to the rescue. How about Prince Alwaleed bin Talal Field?
As a Mets fan, I was disappointed, but not suprised, that their new park would have a corporate name. I was hoping that they would still weave in Shea (like CitiField at Shea Stadium).
As for the Giants/Jets new stadium, to me, it's a no brainer that this should have a corporate name. Shoudl be interesting to see what they come up with, but how bout:
Pepsi Field at GoldmanSachs Stadium, brought to you by TimeWarner.
I think Trenton legislators should float a $600 million bond and name the place New Jersey Stadium.
If any of you are interested in the economics behind these mega-stadium deals and how they screw the taxpayer, I can highly recommend "Free Lunch" by David Cay Johnston. He has a whole chapter on how stadium deals screw taxpayers out of millions of dollars and benefit the team owners and their players.
http://enlightennj.blogspot.com/2005/04/fine-print-of-giants-deal.html
They should rename the Mets park Sally Field.
I am waiting for Jon Corzine to pony up the money and name it after himself. He could claim it was a political expense, too!
If any of you are interested in the economics behind these mega-stadium deals and how they screw the taxpayer, I can highly recommend "Free Lunch" by David Cay Johnston. He has a whole chapter on how stadium deals screw taxpayers out of millions of dollars and benefit the team owners and their players.
I'm curious if the book you mention includes any estimates about how much in tax money the state takes in because of the stadium, because your link does not.
For example, I'm pretty sure every player that plays a game in the stadium has to pay some part of his income tax to New Jersey. Plus hotel taxes. Plus sales tax. It also doesn't mention what the base property tax and rent is.
If the Giants and Jets are paying for the stadium, why wouldn't they own it?
The book does not talk about the Giants and Jets stadium deal specifically, but it goes into some details about how Steinbrenner and Guiliani screwed us with the new Yankee stadium. Read the book, the guy won a Pulitzer Prize - he knows what he is talking about.
In many cases a state will give up it's right to collect sales tax at a stadium, the stadium will still charge sales tax, but they will pocket the money. Regarding the other taxes, they are negligible compared to the $$$ they earn in tax breaks and beneficial loans.
They're in Jersey now: when they move back they'll matter. And Stadia are are rip-offs, though I like games.
(That made me laugh, EastRiver.)
The Giants and Jets are paying to build a world-class facility in the middle of swampland. How does that hurt the Jersey taxpayer? Even with the "fine print" as detailed in that link, it's still a good deal for the state. A joint Giants/Jets stadium is probably as solid and risk-free a venture as there could be in professional sports, guaranteed to mint money for decades. And the teams will only be using it around 20 days a year. The rest of the time it's available for concerts, conventions, Rutgers games, etc. That's why businessman extraordinaire Mike Bloomberg wanted that stadium on the west side.
Hopefully they will find something significant to name for Wellington Mara though, something they won't sell out to corporate sponsors. Something more significant than a goalpost.