What if Bank of America Stadium was called something else? How naming rights work
Bank of America Stadium could potentially have a new name in the future.
The current contract for the uptown Charlotte stadium – home to the Carolina Panthers and Charlotte FC – is coming to a close after a 20-year agreement, The Charlotte Observer previously reported, though it’s unclear if Bank of America will renew the current deal.
Bank of America purchased the stadium naming rights in 2004 for $140 million, or $7 million per year.
Neither Bank of America nor Tepper Sports & Entertainment, the ownership group of the Panthers, has commented publicly on the status of the partnership.
Experts in sports business say there are a lot of factors that could be up for consideration for any naming rights deals.
“When they went into this 20 years ago, it was under a different ownership group. Charlotte was a different market 20 years ago. They had one team playing in the venue, not two” Chip Bowers, president of Elevate Sports Ventures, a sports and entertainment consulting firm, said. “There’s a lot they’ve been considering, I’m sure, leading up to this point to have them say, ‘Hey, let’s make sure that we do the right thing by our community and by our fanbase and by our organization to find the right partner for the next 10, 15, 20 years moving forward.’”
While naming rights contracts are common corporate partnerships for professional sports, Bowers explained that all deals vary and depend on the parties involved.
“Naming rights partnerships are extremely nuanced relationships. No two examples typically are alike.” Bowers said. “Sometimes naming rights deals may look different for an NFL stadium than they may for a Major League Baseball ballpark or an MLS stadium or NBA arena.”
Because no deal is the same, neither is the process, which Bowers said is extremely complicated. He said typically, there are a lot of internal discussions, from all parties involved, about how naming rights partners might impact different areas of business.
“There’s a lot of variables tied to these discussions,” Bowers explained. “There are many decision-makers, both on the team’s side and on the company side, whomever that brand may be. There are a lot of voices in that conversation so it does take time to assure that you have complete alignment with two parties to have that really impactful relationship that everyone is striving to create.”
‘Multiple factors’ play roles in naming rights deals
While each timeline is different for ownership teams considering naming rights contracts, it is common for some to be proactive and scope out potential businesses or brands to partner with, Bowers told the Observer.
“There will be a strategy that the property will have, in terms of who they identify as ideal partners, if not by name, certainly by category of business,” Bowers said. “It helps serve any number of organizational objectives, like help them build a brand of Charlotte FC and the Carolina Panthers, it may help them sell additional tickets, it may provide them a greater scope to articulate their brand values.”
For all naming rights contracts, there are multiple factors that play a large role in finding an ideal naming rights partner, specifically a shared value system for the foreseeable future.
“The term ‘partnership’ should not be taken lightly,” Bowers explained. “Ultimately, you want to make sure that you have two groups coming together with shared interests who ultimately are looking to build on each other’s business and ultimately understand the importance of evolution because your business today is going to change over the course of the life of that agreement.”
Aside from Panthers games and Charlotte FC matches, Bank of America Stadium also hosts a number of events, college championships and concerts every year, which is why Bowers said it could also draw the attention of other national and international brands too.
“These are global opportunities too. It’s not just a regional play,” he said. “When you’re talking about the power of the NFL and Major League Soccer and the fact that this venue will host international friendlies in soccer, this creates not just an opportunity for people in the Carolinas’ region, but this is great for a brand that’s looking for national and even maybe international exposure.”
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