Jetsfan1015 Posted June 27, 2011 Share Posted June 27, 2011 http://www.sportsbusinessdaily.com/Journal/Issues/2011/06/27/Marketing-and-Sponsorship/MetLife.aspx MetLife eyes the Meadowlands In talks for stadium naming rights worth $17M annually By Terry Lefton, Staff Writer Published June 27, 2011, Page 1 Font Size Resize Small Resize Normal Resize Large | Print | Share .MetLife is in advanced discussions with New Meadowlands Stadium to upgrade its corner sponsorship at the year-old facility to a full naming-rights deal. A source close to the deal described the negotiations as “very advanced, but not complete.” GETTY IMAGES If the deal is completed at New Meadowlands Stadium, MetLife would join Progressive (Cleveland) and Farmers (planned for L.A.) as insurance brands with naming rights at sports venues. Other sources familiar with the matter emphasized that while a deal to name the home of the New York Jets and Giants, and the site of the 2014 Super Bowl, MetLife Stadium was not finalized, discussions have progressed enough that those inquiring about naming rights in the last month have been told that they were not available, though a cornerstone sponsorship could be. Several sources said MetLife is paying about $7 million a year for its cornerstone deal, and that the naming-rights package being considered would average between $17 million and $18 million a year. For New Meadowlands Stadium, the deal would be a significant statement, as well as the NEWSCOM ultimate up-sell. National attention has focused on the inability to land a naming-rights partner at high-profile venues like New Meadowlands and Cowboys Stadium. Executives with New Meadowlands, the Jets and Giants, and Wasserman Media Group have been in the market for years pitching the deal, which initially had a sticker price of more than $30 million a year. Wasserman sales chief John Brody said, “There is no deal.” He would not comment further. For MetLife, putting its name on the building would bring it full circle. It bought the first cornerstone partnership at the stadium three years ago, gaining with it the Jets and Giants’ insurance category rights. Later that year, German insurer Allianz was close to a naming-rights deal that would have meant MetLife’s exit from the building, as was mandated by a clause in its cornerstone contract. Subsequent fallout and pressure from media reports about Allianz’s tie with Nazi Germany scuttled the deal, and now Met Life finds itself in position to take over naming rights. While the deal is not complete, the level of anxiety surrounding the negotiations is high, for a number of reasons. Sources point to the failure of the Allianz deal, which represented the same category, as well as continued questioning of all marketing expenditures by financial services companies in the post-recession environment. Additionally, there is some concern within MetLife as to how such a large marketing expenditure on an NFL stadium would look during a time when the league is locking out its players. “New York is a big fishbowl, [MetLife] is a public company, so there are nerves there, and the Allianz thing makes everyone doubly sensitive,” an industry source said. While MetLife does not compete in the auto and home insurance categories, the deal would intensify an already escalating battle among insurance brands seeking to break through the ad clutter in a category where the marketing noise has gone from loud to deafening. According to Nielsen Co. data, insurance companies spent $528 million last year on sports ad spending, a 30 percent increase from 2009. “It’s become a tougher category to make noise in than wireless, because there are more competitors with really big budgets spending there,” said Tom McGovern, Optimum Sports managing director. “You have Geico, one of the top spenders per se, along with Progressive, Farmers, Allstate and our client [state Farm], vying for consumers’ attention.” If the deal is completed, MetLife would join Progressive (Cleveland) and Farmers (planned for L.A.) as insurance brands with naming rights at sports venues. In addition to its deal at New Meadowlands, MetLife is a PGA Tour sponsor and its blimps, airborne since 1987, appear at PGA Tour stops and other sporting events. But this stadium deal would be by far its biggest nonmedia sports expenditure. While it is already in the building, taking over naming rights would allow for even more opportunities, observers said. As a New York-based firm, it would allow the insurer to wave its corporate flag locally and in the financial capital of the world. Being tied to a future Super Bowl, both for marketing and hospitality, only enhances the deal. “To some degree, there would be less of an internal sell-in, because they are already sold on the stadium as a marketing vehicle and they love what it has done for them already,” said Rob Prazmark of 21 Marketing, Greenwich, Conn., who had no knowledge of the negotiations. “It’s given MetLife an identity beyond Snoopy.” 21 Marketing’s proprietary naming-rights valuation system estimates the exposure value of a 20-year naming-rights deal with New Meadowlands at between $64.2 million and $68.1 million annually. While the original asking price for the Meadowlands was upward of $30 million a year, many in the field said that the lower price, and the ability for the stadium to gain incremental revenue by selling MetLife’s corner, made MetLife’s bid an attractive offer for the property. During SportsBusiness Journal/Daily’s recent Sports Facilities and Franchises conference in New Jersey, Giants CMO Mike Stevens was asked whether the naming-rights market is more vibrant now after a tough period economically, Stevens joked, “Vibrant? It only takes one.” He added, “People are talking again. Marketing is back. It’s reflective of the economy.” Stevens also was asked what the value of the Farmers Field deal for the expected NFL stadium in Los Angeles means for the market, and he said, “Every deal is great for the industry, but they are all very, very market-specific.” Industry executives acknowledge this deal could have large implications on other big-market naming-rights opportunities available. “I’m interested to see if this resets the market, since you’ve still got the Cowboys and Marlins and 49ers facilities in the market,” said Rob Yowell of Gemini Sports, who executed the deal for Honda on the Southern California home rink of the Anaheim Ducks. Link to comment Share on other sites More sharing options...
BaumerJet Posted June 27, 2011 Share Posted June 27, 2011 http://www.sportsbus...ip/MetLife.aspx You know I did think that METLIFE was going to be the one. Especially with that giant clock in the center of the stadium... And the Color works - Our White with the Giants Blue... Link to comment Share on other sites More sharing options...
Mattyandthejets Posted June 27, 2011 Share Posted June 27, 2011 Let's just stick it to the Giant fans and call it Jetlife stadium, I'm cool with that. Link to comment Share on other sites More sharing options...
Jetsfan80 Posted June 27, 2011 Share Posted June 27, 2011 Let's just stick it to the Giant fans and call it Jetlife stadium, I'm cool with that. Jetblue Stadium would have been absolutely perfect. Link to comment Share on other sites More sharing options...
Jetkid94 Posted June 27, 2011 Share Posted June 27, 2011 Sony Field has a nice ring to it and there in the top 50 most admirable companies so they probably have 17 million a year to spend Link to comment Share on other sites More sharing options...
Larz Posted June 27, 2011 Share Posted June 27, 2011 as long as it isn't depends field or massengill park who gives a dang Link to comment Share on other sites More sharing options...
Integrity28 Posted June 27, 2011 Share Posted June 27, 2011 Jetblue Stadium would have been absolutely perfect. Yep. Totally agree... as an advertising professional, I feel it was meant to be. Link to comment Share on other sites More sharing options...
Larz Posted June 27, 2011 Share Posted June 27, 2011 Yep. Totally agree... as an advertising professional, I feel it was meant to be. from thier 2010 annual report We generated net income of $97 million in 2010. Had it not been for a severe winter storm in the Northeast during the holiday peak in December, one of our most profitable years would have been even more successful. Despite the $30 million in lost revenue due to the storm, the rising cost of energy and industry consolidation resulting in larger competitors, JetBlue achieved solid results. so one storm brings these guys to thier knees, and $17 mill a year is about 1/5 of thier profits. not a good gamble for either side I was thinking investment bank all along, but in light of recent horrible abuses of this nation by those greedy f*^s, I'll take an insurance co I kinda worked for (commission only sales rep) 20 years ago Link to comment Share on other sites More sharing options...
Integrity28 Posted June 28, 2011 Share Posted June 28, 2011 from thier 2010 annual report We generated net income of $97 million in 2010. Had it not been for a severe winter storm in the Northeast during the holiday peak in December, one of our most profitable years would have been even more successful. Despite the $30 million in lost revenue due to the storm, the rising cost of energy and industry consolidation resulting in larger competitors, JetBlue achieved solid results. so one storm brings these guys to thier knees, and $17 mill a year is about 1/5 of thier profits. not a good gamble for either side I was thinking investment bank all along, but in light of recent horrible abuses of this nation by those greedy f*^s, I'll take an insurance co I kinda worked for (commission only sales rep) 20 years ago Oh, I knew it wasn't realistic. Airlines, despite the cost of the planes and the size of the companies, are very much a nickel and dime business model. Its actually pretty shocking. I meant it was meant to be from a co-branding the New York football teams standpoint. Link to comment Share on other sites More sharing options...
73andMe Posted June 28, 2011 Share Posted June 28, 2011 Jet Blue Stadium would be ideal, but it doesn't really matter what the name is, as long as we win in it! Link to comment Share on other sites More sharing options...
faba Posted June 28, 2011 Share Posted June 28, 2011 Metlife Stadium -how about Snoopy Stadium Link to comment Share on other sites More sharing options...
bitonti Posted June 28, 2011 Share Posted June 28, 2011 Sony Field has a nice ring to it and there in the top 50 most admirable companies so they probably have 17 million a year to spend sony ps3 gets hacked by a stiff sneeze insurance companies are perfect for these deals they have tons of cash, low expenses and have to spend it. Link to comment Share on other sites More sharing options...
THE ILK Posted July 3, 2011 Share Posted July 3, 2011 Link to comment Share on other sites More sharing options...
T0mShane Posted July 3, 2011 Share Posted July 3, 2011 Frigidaire is really missing the boat on this one. Link to comment Share on other sites More sharing options...
Sperm Edwards Posted July 3, 2011 Share Posted July 3, 2011 Frigidaire is really missing the boat on this one. I knew eventually this week you'd write something that made me laugh. Link to comment Share on other sites More sharing options...
T0mShane Posted July 3, 2011 Share Posted July 3, 2011 I knew eventually this week you'd write something that made me laugh. I'm a junk-ball pitcher now. I am Jamie Moyer. Max is the new face of comedy on this site. Link to comment Share on other sites More sharing options...
Sperm Edwards Posted July 3, 2011 Share Posted July 3, 2011 I'm a junk-ball pitcher now. I am Jamie Moyer. Max is the new face of comedy on this site. Too bad you can't read all they mod lounge hysterics anymore. He's a regular Pauly Shore in there, I tell you. Link to comment Share on other sites More sharing options...
Apache 51 Posted July 9, 2011 Share Posted July 9, 2011 Link to comment Share on other sites More sharing options...
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