The Maracanã and the Itaquerão stadiums are the 2014 FIFA World Cup™ venues with the greatest potential of making money from naming rights. It is no coincidence that these two stadiums shall probably host the most important games of the 2014 FIFA World Cup™ as well as the opening and closing ceremonies.
According to a study prepared by the BDO/CRS consultancy firm, specialized in sports marketing, these two arenas could receive up to R$ 300 million in 20 years should some company show interest in naming these stadiums.
The value of the sponsorship could cover about one third of the total cost of the work which, so far, in these cases are the most expensive of the World Cup, with the refurbishment of the Maracanã costing R$ 932 million and the construction of the Itaquerão having a price tag in the region of R$ 920 million.
Taking the 12 arenas to be used in the World Cup all together, we see that the contracts involving naming rights could reach a total value of R$ 1.56 billion over two decades. If this forecast is confirmed, then these sums could mean that the sponsorship income of Brazilian clubs could soar by 21%.
Ranking
The study conducted by BDO/CRS brings a ranking of the possible income generated through naming rights, for the different Brazilian stadiums. After the arenas of Rio de Janeiro and São Paulo, we have the Mineirão Stadium in Belo Horizonte, Minas Gerais, whose sponsorship potential has been placed at R$ 220 million (33% of the total value of the work project).
From the fourth place down, the values of the contracts are much smaller. With the exception of the Fonte Nova, in Salvador, Bahia, which could make R$ 120 million over 20 years, the other stadiums could only negotiate contracts worth less than R$ 100 million.
The Mané Garrincha (Brasília), Beira-Rio (Porto Alegre, Rio Grande do Sul), Arena da Baixada (Curitiba, Paraná) and the Arena Pernambuco (Greater Recife, Pernambuco) could each make R$ 90 million over 20 years; the Arena Amazônia (Manaus, Amazonas) and the Castelão (Fortaleza, Ceará) could rake in R$ 70 million; and, competing for the booby prize, the Arena Pantanal (Cuiabá, Mato Grosso) and Arena das Dunas (Natal, Rio Grande do Norte) could only manage R$ 60 million, which is only 15% of what shall be spent on the construction thereof.
Despite the potential income through naming rights, the managers of the stadiums being constructed for the World Cup could be missing out on the best moment to hammer out a deal for these contracts.
The study shows that the best idea is to close the agreements during construction, so that the stadium may be inaugurated with one name only, thus avoiding the nicknames which are invented by supporters and also by the media. The advantage for the constructor is that the funds may then be used to pay for the construction work.
In the world
So far, none of the venues for the 2014 FIFA World Cup™ have announced naming rights contracts. This could be related to the fact that the Brazilian market is largely unaware of this marketing tool.
Last year, the global market of naming rights handled over US$ 4 billion. 70% of this value was invested in USA, which was able to get the biggest contracts of this type.
Citigroup shall pay US$ 400 million over 20 years to have its brand on the stadium used by the New York Mets baseball team, which is 50% of the total sum spent on construction. Similarly, Barclays has agreed on a comparable agreement with the NBA team, the New Jersey Nets.
In Europe, Germany is the country where naming rights are most popular. The Allianz Arena, in Munich, which hosted the opening of the 2006 World Cup, is the object of a naming rights contract worth US$ 115 million over a period of 15 years.
In England, the best known case is that of Arsenal’s Emirates Stadium. The Gunners shall receive US$ 178 million from the airline, with fifteen years of naming rights and also seven years as the club’s official sponsor.
highlights
04/05 | News
