Chase Paid $30 Million And Didn’t Get Title? Smart Move
Posted: 9/10/2010 8:57:25 AM by
Jim Andrews | with 0 comments
The news that JPMorgan Chase signed a 10-year agreement with Madison Square Garden for a reported $30 million a year certainly raised many an eyebrow across the sponsorship industry earlier this week.
Isn’t that the same figure that the NFL Jets and Giants were said to be seeking for naming rights to their brand new state-of-the-art football palace in New Jersey?
Isn’t that amount $10 million a year more than rival Citi is paying for title of the MLB Mets stadium—a deal that has come under plenty of fire?
Why would Chase marketers pay what is believed to be the highest annual venue sponsorship fee in history and not even get their name on the building?
Because they are smart, that’s why.
Rather than spend that money to buy visibility and exposure an established brand like Chase doesn’t need, they made a deal with a property that has a wealth of year-round assets—physical, digital, media and otherwise—that the bank can use for B2C and B2B purposes.
Assuming the actual amount Chase is paying is close to what has been reported, it is still an astronomical fee that will require a massive amount of benefits and the proper activation efforts to pay off. But the chances of that happening are much higher than if the company has succumbed to the lure of the “Edifice Complex” and paid for naming rights it did not need.
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Filed under: naming rights, pro sports, spending, sports, trends, valuation, venues, financial services