Quote:
Originally Posted by icarus
That's it?! Man it would be cool if a local business and long time Flames supporter had sponsored the Saddledome instead of a faceless conglomerate:
Japanese Village Saddledome
Saddledomes by Avi
Tom's Saddledome of Pizza
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Pengrowth got in on their naming contract for one reason...they wanted a private box in the lower bowl didn’t want to wait. Flames said you can get a box if you put your name on the arena (was Canadian Airlines at the time, and was expiring).
There are a number of factors at play.
1) The consistent and repeated brand recognition in Canada’s largest market,and in Canada as a whole with a strategy of having multiple venues across the country (and sponsoring things like Hockey Day in Canada, and Hometown Hockey weekly etc) to associate Scotiabank with hockey as much as they can, and wrap the company up in the cozy blanket of Canadiana like Tim Horton’s tries to do.
Companies pay probably millions in a market like Toronto to have a couple rink board ads each year, which cost that much as they are seen on national tv broadcasts every week and 41 times at least in local markets and on highlight shows nightly and digital content etc. And NBA too. And the smaller sponsorships like branding a lounge in the arena or sponsoring the intermissions etc etc. It’s justified at that level by various corporations, though smaller deals like that are almost harder to quantify the value gained out of that, corporately, than this.
This is a larger scale. Every ticket to any event on tickmaster or things such as a stubhub website your company name on it, every video game will have your name associated with the arena, every announcer, host, tv reporter in North America will be saying your company name in relation to the event (hockey game,basketball game, concert) at the arena. Your company name is getting direct and indirect exposure world wide, continually reinforcing its name into people’s brains...looks at how many people talk about the ACC rolling of the younger after this many years of hearing it, and associating Air Canada indirectly each time. Whether that changes people’s decision making habits or not is entirely subjective, as it could be a bad connotation or a positive one, but it’s in front of people at the very least, which is obviously an important factor in messaging/marketing to people, target audiences or not.
2) There is also the more basic element of outbidding competitors. I am sure Rogers and the other banks, Air Canada, probably Molson and Labatt all were bidding on this. So definitely some ego involved. And my guess is that companies would bid more if they didn’t reach a limit where they know they would feel shareholder or board backlash for spending money.
3)Like above, now Scotiabank and their executives get treated like royalty at the arena itself, to schmooze Bay Street clients and other corporations with automatically getting probably a couple top end suites and a bunch of top end tickets. Suites are probably worth 4$million a year in Toronto. So take that off the overall cost, and the justification at some level is, if Scotisbank execs or their brokerage arm can secure a couple investor deals due to the prestige of having a their name on the building and entertaining their top clients in the best seats in the facility, that $40m per year investment could pay for itself with a couple of deals they gained out of this. Again, this plays into the ego thing at a corporate and executive level to outlay that amount of money...but really is $40 million a year is a drop in the buckets for banks.
And given how the market for this is escalating, probably not a bad deal in a decade or so. Staples got a pretty good deal as it looks now with the LA arena, but that was consider way too high at the time, for a building that is used for 3 pro teams and higher profile events that in Toronto.