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This weekend I had the pleasure of attending the England – Panama match at MetLife Stad….er, “New York/New Jersey Stadium.” As you may have noticed while watching the FIFA World Cup matches, all of the stadiums across the US, Canada, and Mexico are using the generic name of their location - even though they nearly all have naming rights deals with major brands. FIFA, like many other major sports properties, requires “clean” stadiums, such that all advertising and branding elements in-venue must be removed or covered up. (Two of my own clients’ brand logos were covered up at "New York/New Jersey Stadium")
While disappointing for brands that have paid tens to hundreds of millions of dollars for their name to be associated with a particular stadium, they were most likely aware of the “clean” stadium requirement when negotiating the naming rights deal. The properties will typically include a clause like the following in their naming rights/sponsorship agreements: “Sponsor acknowledges and agrees that in the event that Stadium or any part thereof is selected as a venue for the Olympic Games, a World Cup qualifying event, a National Collegiate Athletic Association championship event, or other major event of similar (or greater) quality or stature (each a “Major Event”), determined in Licensor’s reasonable discretion, Licensor may be restricted in its ability to deliver some of the benefits (e.g., tickets or signage) described in Exhibit A during such Major Event.”
If your brand is expecting to have a presence at “Major Events,” it will have to sign a separate sponsorship agreement with the rightsholder for such events. And if the value the brand thought it was receiving with its naming rights/major sponsorship deal is severely diminished, consider seeking make-goods or fee reductions when negotiating that original deal.
A few brands have had some fun with the FIFA restrictions though – Levi’s covered up its name/logo at “San Francisco Bay Area Stadium” with a tarp in the shape of its famous tab logo and Gillette distributed images of its logo being covered up with shaving cream. At least there is some viral value coming out of this!
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