Thursday, September 14, 2006

Have Naming Rights Gone Too Far?

(From Cynopsis -- By Lynette Baker)

Naming rights is the term that is used when one, usually a corporation, is given or, more appropriately, sold the right to name a piece of property.

The practice has been around for decades, but has really picked up to a fever pitch in the last 10 years and doesn't show any signs of stopping.

When naming rights are sold, typically, the owners of the property receive an amount of cash to help them close a financial gap or to increase revenues.

The buyer receives the right to place their name on the property
and, many times, other marketing opportunities are included.

The concept is thought to have been started by churches, colleges, and hospitals who have accepted cash donations in exchange for placing the name of an individual or corporation on a building or other facility.

Sports stadiums have been the most popular places to name in recent years, but other facilities including convention centers, libraries, even metropolitan areas like TIMES SQUARE and sporting events have been named.

But a radio station?

The latest example of naming rights gone wild is a radio station in Rochester, New York.

WNVE is owned by CLEAR CHANNEL and has been known as THE NERVE. That is, until last Wednesday, when Clear Channel announced that they had sold the naming rights for the station to a local auto dealer who uses the tag line "HUGE" in his advertising.

And so was born HUGE 107.3.

The name and format officially changed on Wednesday,
August 30th but the call letters for the station remain WNVE.

The station, which had aired alternative rock, switched to a mix of all types of music and only aired commercials for FUCCILLO HYUNDAI, the auto dealer who purchased the naming rights.

Rochester joins it's Upstate NY brethren in breaking new ground in naming rights. Not surprisingly, as Upstate NY has been known for some of the firsts in naming rights transactions.

CORPORATE: Rich Stadium (Buffalo, 1972)
COLLEGE VENUE: The Carrier Dome (Syracuse, 1979)
MINOR LEAGUE SPORTS VENUE: Pilot Field (Buffalo, 1986)

Add to that list:
RADIO STATION: HUGE 107.3 (Rochester, 2006)

Luckily, in this case, the sponsor naming of 107.3 was a stunt to bring attention to the real format change to SNAP 107.3, an AC format featuring WAKE UP WITH WHOOPI.

But is it only a matter of time before we see a permanent sale of naming rights for a media outlet?

2 comments:

Anonymous said...

(From Cynopsis -- By Lynette Baker)

Rochester joins it's Upstate NY brethren in breaking new ground in naming rights. Not surprisingly, as Upstate NY has been known for some of the firsts in naming rights transactions.

CORPORATE: Rich Stadium (Buffalo, 1972)
COLLEGE VENUE: The Carrier Dome (Syracuse, 1979)
MINOR LEAGUE SPORTS VENUE: Pilot Field (Buffalo, 1986)


Maybe I am reading this wrong, but if the author was trying to say that Rich Stadium was the first NFL stadium to have its naming rights sold, then she is forgetting the Patriots first home; Schaefer Stadium in Foxboro which hosted its first game on Aug.15 1971. Not only did they get their name on the building, but Schaefer Beer was the only sold in the stadium.

RLabay said...

John,

I think you're reading it right, but the article does say that Upstate NY has been known for SOME of the firsts, not THE first.

I'd agree with you that Schaefer Stadium was THE first.

Man I miss Schaefer beer.

Rob