Ah, the words every property yearns to hear. Or not.
I have been struggling with what to think about the announcement this week that Staples has renewed its naming rights deal for the Staples Center “in perpetuity.”
My first thought was that since we’re talking about a venue in Los Angeles, maybe both parties expect “The Big One” to come along sometime soon—so the concept of perpetuity isn’t quite the same as it would be in less quake-prone parts of the world.
I’m trying to understand the rationale behind a “forever sponsorship” and who it benefits the most. The frustrating thing, as always, is that it is impossible to truly analyze a deal without knowing its particulars. But that won’t stop me from trying.
The local news in Chicago has brought another example of how the negatives associated with venue naming rights deals often outweigh the positives. The Daily Herald newspaper reports that the village of Hoffman Estates, Ill. is in talks to take over the struggling Sears Centre arena.
Other media outlets quickly jumped on the story, with many using the company’s association with a venue that is having trouble meeting its financial commitments as the latest example of how the once proud retail giant has fallen.