June 17, 2017
CenturyLink extended its naming rights deal for the stadium shared by the Sounders and Seahawks for another 15 years at roughly $10M/yr, reportedly doubling the previous agreement. The value reflects a stadium in a growing, upper medium sized market that houses teams that consistently make the playoffs in their leagues.
The CLink is one of three facilities that serve as permanent homes for NFL/MLS teams in their markets, along with Gillette (New England) and Mercedes Benz (Atlanta). The Atlanta stadium’s opening has been delayed multiple times and now is expected to open in August. With both of these other stadiums being in larger markets, one can expect those naming rights deals to be larger, especially the new Atlanta stadium. But the newness of the stadium is just one of many factors considered when such agreements are signed, as the linked article notes.
This season, the Chargers will join the Galaxy at StubHub Center for a three season stay until the new NFL facility in Inglewood is completed. Additionally, Vancouver and Toronto both have MLS/CFL stadium sharing agreements. So the economics behind the naming rights deals for shared football stadiums will continue to be focused on the long term nature of the setups in Seattle, Atlanta and New England (Foxboro) for the foreseeable future. And in the case of Seattle, the agreement is more valuable than expected if based on market size alone.
Your turn, Mariners.
March 11, 2017
First & Goal Inc. announced the creation of First & Goal Hospitality (FGH), which took over the management and operations of all concessions at CenturyLink Field and related venues as of March 1st. FGH takes over from Delaware North, a big, long time player in the hospitality business.
It makes sense for Paul Allen’s F&G to do this as a way to increase incremental revenue at a facility the group already operates. FGH is also believed to be the first locally team owned organization to break into the hospitality sector. It’s a competitive sector nationally, from Delware North to Yankees and Cowboys’ owned Legends Hospitality to Centerplate (Safeco Field, Tacoma Dome), to Levy Restaurants (KeyArena, Moda Center), to the big heavyweight, Aramark (UW facilities), with over $14B a year in revenue and a market cap of $9B, dwarfing any sports franchise multiple times over. And these groups have long branched out from concessions, ranging from marketing and sponsorships to ticketing and consulting.
The local venues noted above serviced by the national players make obvious targets should FGH look to expand. None more so than Allen owned Moda Center in Portland. And just as the more established hospitality businesses broadened their product offerings, it wouldn’t be surprising to see FGH eventually go that route as well. So Seahawks and Sounders fans can look forward to new concession offerings this year, knowing that the genesis for those options are indeed, created close to home.
February 27, 2013
Two teams in tech oriented regions are taking two very different approaches to interior stadium infrastructure projects. The Mariners are installing MLB’s largest video board. Down the coast, the 49ers are taking a different path for their new stadium. They’re building an in stadium network that will include Wi-Fi. As mentioned by President Jed York, rather than build a large video screen, the 49ers are hoping their network is robust enough to give all stadium goers a personalized video experience.
Both efforts are bound to be crowd pleasing, with the 49ers plan a little more risky given how in stadium networks are relatively new, to say nothing of making sure the network is strong enough to handle the demands of 68K thousand people at the same time. Locally, both Safeco Field and CenturyLink Field are relatively lacking when it comes to network strength for mobile users of the various carriers. Neither stadium has publicly available Wi-Fi, though the NFL is encouraging teams to upgrade their stadiums to offer Wi-Fi in the future. With such heavy use of wireless devices in stadiums these days, and teams or leagues encouraging such activity with their apps, teams can probably expect fans to lobby for better team provided stadium coverage if the mobile operators are unable to do it themselves.