Batter up! Yankee stadium next for big bank sponsorship
Earlier this year, The Financial Brand reported on Citi’s record-setting $400 million sponsorship of the New York Mets stadium.
Now, not to be outdone, Bank of America is after an even bigger deal to sponsor the New York Yankees stadium. Any sponsorship of the highly-venerated New York Yankees stadium is expected to eclipse the Citi/Mets deal, worth $20 million a year for 20 years. That will likely place the B of A sponsorship at around half a billion dollars.
Such astronomical sponsorships are increasingly becoming the norm among financial institutions. Recently, Barclay’s also climbed into the stadium sponsorship stratosphere with its $400 million, 20-year deal for the New Jersey Nets stadium.
Key Fact: Citi and Barclay’s have lost billions of dollars in the last year. B of A, on the other hand, has continued posting positive net income into the billions over the last three consecutive quarters — arguably one of the toughest periods ever for financial institutions.
Even if you view such sponsorships as an unnecessary extravagance, at least B of A’s sponsorship of the Yankees would be on-brand for the bank. After years of floundering around with an implausible service promise, “Higher Standards,” Bank of America is now embracing its patriotic name and building a brand around all things American. Among the bank’s other sponsorships:
- The U.S. Olympic Team
- NASCAR
- Official sponsor of Major League Baseball
- MLB team sponsorships of the Yankees, Boston Red Sox and eight other teams
- Official sponsor of the National Football League
- NFL team sponsorships of the New England Patriots, Washington Redskins, Dallas Cowboys and Carolina Panthers (including the Panthers’ stadium).
The Panthers don’t really fit B of A’s portfolio, but the bank is “buying love” in its own backyard, Charolette, North Carolina, where the bank is based.
Reality Check: These sponsorships aren’t just about the branding and marketing opportunities they create. There’s also the personal motivations of executives who want luxury boxes at America’s prestige sports venues. Often, the rationalization goes something like this: “We can use those skyboxes to close big, important deals.”
At least in B of A’s case, they are maximizing their sponsorships through affinity products and services, such as debit cards featuring people’s favorite sport’s icons.
Previous related stories from The Financial Brand:
- What to do when you’ve got $400 million laying around
- BofA’s “how long can you touch it” promo
- B of A makes early grab at Olympic rings
Tags: Bank of America, BofA, sponsorships, stadium, Yankees
September 19th, 2008 at 7:57 am
Tough road to hoe for BOA on this one though…can’t imagine people are going to stop calling it “Yankee Stadium.”
Obviously there is much more involved (as you note), but it never hurts to have the corporate name become part of the sports vernacular. I think Citi will have an easier time with the Mets park.
Citizens Bank has done well with their name on the baseball stadium here in Philadelphia (as has Wachovia Bank with their name on the basketball/hockey arena). With these new stadiums came the opportunity to establish a “stadium brand name.” Few people have adopted the logical nicknames and the old park was such a dump that no one could confuse the two.
September 19th, 2008 at 8:03 am
Don’t forget that Barclays has long been in the sponsorship business. They must have quantified the value of high-level branding (or high altitude box seats), by paying £65.8 million in 2006 ($119 million in today’s dollars) for a four-year sponsorship of England’s FA Premier Football League.
$30 million a year for arguably the worl’d most popular sports league? Not bad …
October 22nd, 2008 at 9:47 am
[...] The Now Prove It challenge took place in the hometowns of the Carolina Panthers, Dallas Cowboys, New England Patriots and Washington Redskins. All four teams are sponsored by BofA. [...]