The San Francisco 49ers have found their naming rights sponsor for the Santa Clara Stadium scheduled to open in 2014. The $1.2 billion dollar stadium will now be referred to as Levi’s Stadium joining two prominent, iconic Bay Area brands together as one. Clothing outfit Levi Strauss & Co. announced today at their headquarters that they will pay $220.3 million over the next two decades, with an option of extending the deal for another five years for an additional $75 million. With the addition of a corporate sponsor for the naming rights, the stage is set as the 49ers have secured all the finances for the new state of the art stadium. The others components included luxury boxes, seat licenses (near complete sellout) and other corporate sponsorships to help alleviate the costs. But wait there’s more, the Bay Area Super Bowl Committee also has formally submitted their bid to host the Super Bowl, either in 2016 or 2017. The NBA Golden State Warriors had future plans of their own to reveal as the $1 billion dollar proposed arena designs were made public. A truly monumental week in sports for the Bay Area.
But back to the naming rights deal, I would have to say that Levi Staruss made it out with one helluva deal! The 49er organization had been expecting more than $100 million than what they eventually settled for. Likewise, many experts had been predicting a Silicon Valley technology company to pair with the highly successful NFL franchise. Contemporary comparisons illustrate the somewhat confusing deal made, as Met Life paid $450 million to slap its moniker on the new home of the New York Giants and New York Jets for 25 years. Granted the New Jersey stadium gets more exposure for the number of games played, but it still feels as though the 49ers sold themselves short pairing with an industry that makes you think harder than you really should.
49ers CEO Jed York, would say quite the contrary, as he reassures the critics that with all the other contractual obligations the team was secure in the financing of the stadium and may very well go over $1.3 billion with the naming rights secured. He also mentioned that it was more about the fit than the money. It was also reported by the 49ers organization that Levi Strauss “beat out 31 other interested companies from around the world mostly by offering the most money” (MercuryNews, 5/8). Hmmm…..in either case, I look forward to the opening of Levi’s Stadium in 2014. Who knows, maybe it will be where I experience my first NFL game!
- Phil Matier: Levi Strauss To Pay For Naming Rights On 49ers Stadium (sanfrancisco.cbslocal.com)
- The 49ers and Levi Strauss announce naming rights agreement for Santa Clara stadium (photos.mercurynews.com)
- New Home of 49ers: Levi’s Stadium (fox40.com)
- Warriors Arena Designs Bring San Francisco Skyline Waterfront (sports.yahoo.com)
- Field of Jeans: Are Sports Sponsorships Always a Good Fit? (dcfriedlandwordpress.com)