Friday, January 5, 2007

Naming Rights Can Further Offset Public Costs

Current plans estimate the cost of the proposed ballpark to be $30 million.

Of this amount, Hardball Capital is expected to pay $5 million towards ballpark costs.

This leaves $25 million to be paid with public money generated by the Harrison Square project in the future.

Current plans also include building on Lincoln Financial parking space and allowing Lincoln employees to use the proposed parking areas during the day. (more)

To me, a partnership with Lincoln seems like a perfect match. The Harrison Square development would be their new neighbor, provide employee parking, restaurants, condos, and a potential PR/advertising opportunity.

Add to this the fact that Lincoln was interested in discussing the purchase of naming rights
for a proposed downtown arena seven years ago. (more)

"Other funding sources include $5 million for naming rights of the arena.
Joe Ruffolo, a former business partner of Mayor Graham Richard, read a letter from Lincoln Financial Services noting the company would be interested in discussing purchase of naming rights if the project moves forward." -News Sentinel 12/8/2000

Lincoln Financial already owns naming rights to an NFL Stadium, and owns Lincoln Financial Sports.

A similar $5 million deal for naming rights of the Harrison Square ballpark can further offset public costs and provide Lincoln with increased exposure and stronger ties to the Fort Wayne community.

4 comments:

Adam Welch said...

I could see numerous organizations/companies interested in naming rights. While I have no idea as to who, I immediately thought of Lincoln, Do It Best, Omnisource etc. AGAIN, this is another topic that people fail to ever think about. Once the naming rights are approved, more of the public cost that so many are worried about (even though they shouldnt be) will be cut.

ChadGramling said...

Fifth Thirds seems to be in the business of buying up naming rights to minor league parks. Just a thought.

brian said...

You're right Chad. According to http://www.namingrightsonline.com/minor_leagues.htm
Fifth Third Bank has purchased the following naming rights.

Fifth-Third Ballpark WestMichigan Whitecaps (length and amount not provided)

Fifth-Third Field Dayton Dragons 20 years $4,300,000

Fifth-Third Field Toledo Mud Hens 15 years $5,000,000

Dayton Dragons received 4.3 million and they are in the same league as the Wizards. (Single A Midwest League)

Anonymous said...

Best case scenario there is a naming rights deal worth 5 million. The public is still stuck with an exhorbanant amount of the risk (67%).

That figure is based on the touted 30 million price tag. Very very few public projects around here come out at or below budget. The risk exposed to the public will grow.