Naming Giants, Jets stadium could set record

If the stadium brings in at least $25 million to $30 million annually as predicted, and with the four additional sponsorships, the teams could get more than double or even triple what the highest deal has brought in so far.

That belongs to the New York Mets, which will receive $20 million annually from Citigroup to name its new baseball stadium, or about $400 million over a 20-year contract. The New Jersey Nets got a similar deal from Barclays Bank PLC for their proposed new arena in Brooklyn, N.Y.

The Mets wanted a sponsor to extend the reach of its brand globally, and New York-based Citigroup was a perfect fit, said Dave Howard, the team's executive vice president of business operations. More than many teams, the Mets have drawn players from around the world.

"New York is the most international city, quite frankly in the world," he said. "It made a lot of sense to have a substantial New York presence as well as a global perspective."

For the sponsors, the reasons to enter into a long, expensive naming rights deal are varied, whether it's global expansion or hometown pride. Timing is also important.

Barclays wanted to expand its brand to the U.S., said Nets CEO and President Brett Yormark. The arena, part of a $4 billion project, has also earned cachet with star architect Frank Gehry and Brooklyn's reputation as an up-and-coming borough, he said.

"It's not about the team," he said. "It's about the building. This will be landmark building, a destination area."

For Prudential Financial Inc., the decision to buy the naming rights to a new hockey arena meant improving its hometown of Newark, N.J., said Arthur Ryan, Prudential's chairman who retired as CEO last month.

Since its October opening, the Prudential Center name is heard daily on radio, the Internet and in print as the new home of the New Jersey Devils. Prudential paid $105.3 million over 20 years.

And before the Nets and Mets deals, the Houston Texans had negotiated an annual $10 million from Reliant Energy for its stadium that opened in 2002. Team president Jamey Rootes said Reliant wanted to take advantage of a once-in-a-lifetime opportunity to bring a football franchise back to Houston.

Some teams hold out, however.

The Washington Nationals are still talking with potential candidates for a naming rights partner for their $631 million, publicly financed stadium, which opens this spring, said team president Stan Kasten.

"I don't know if anything will be done by opening day," he said. "There's not a particular deadline. We want partner to be correct and deal to be correct."

The New York Yankees balked at selling naming rights for a new stadium opening in 2009, potentially leaving hundreds of millions on the table.

Randy Levine, the team's president, said a naming rights deal would diminish the team's value.

"The Yankee Stadium name is sacred," he said. "Yankee Stadium is the cathedral of baseball and would be unseemly for a naming rights deal."

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