How Met “Pays” For The Name Game…

September 2, 2011 by

The cynical will look at the announcement of the new stadium naming rights deal for the Meadowlands with Met Life and wonder when their premiums will go up. Competitors in the insurance field will look at it and wonder what it will cost them in exposure. Sports marketers will look at the name looming over the Meadowlands and smile. In the end, why does Met Life make sense for the brand and the tenants of the stadium? There are a few reasons.

Location. Unlike many stadiums in urban areas, or those in the distance off of major thoroughfares, the new Meadowlands complex sits in one of the busiest corners anywhere in the world. Not only on the ground, where the New Jersey Turnpike and various other roads bring commuters and travelers by, many of whom are sitting in traffic staring at the new stadium, but even from the air, where planes leaving and arriving at nearby Newark-Liberty Airport will see the name and a Snoopy of two splashed outside the Stadium. For a brand that spends millions in traditional advertising, that type of subliminal and constant exposure is a huge added perk.

Reinforcement. Met Life had already tried and enjoyed their first year experience as a cornerstone sponsor of the Stadium, which gave them access to some levels of fan engagement and hospitality for clients and consumers. Their initial experience showed that the two chief tenants, the Jets and the Giants, could deliver on promises as brand partners, and gave a look inside to Met Life as to what the possibilities would be for a longer term sponsorship. Testing the waters in a challenged environment is key. Now if the original proposed stadium name buyer, the German company Allianz would have come in, it would have been a different play as Allianz tries to grow in the American marketplace. First time in, lots of new experiences. With Met Life, the company knows what works, knows the teams and those responsible for brand decisions, and can grow a partnership much faster.

Investment for the long term. Unlike some of the early naming rights deals that have shifted with sales of company’s over time, especially banks and brands, met Life is a buyer of brands not a seller. The 25 year investment in the property sends a strong message to the consumer and the business world that Met Life is again invested in their business, long term financial growth, nit a hit and miss buy. Investments and growth for the consumer are what Met Life is all about, and this partnership reinforces that.

Unencumbered category. If a consumer brand, even one like wireless carrier Verizon, comes in and take the naming rights for the Stadium, a critical category in the marketplace for the teams and the stadium leaves the fold. Consumer goods, such as the Pepsi Center in Denver, become tricky with the media and can become conflicted when large scale events like the Super Bowl come to town. What if the league pours Coke, or the Jets have a deal with a snack food or a beer that is conflicted? Met Life, as insurance and some financial services, is a much more managable name category than a company which may be bought and sold and suffer a name change into the future.

First in. One of the great debates among media for years has been where and when to properly use the brand name of a stadium. The ever-changing world of sponsorships has made it quite an issue in places like Philly and Boston, where arenas have changed names constantly when banks that have had naming rights deals leave the marketplace. However by being first, and hopefully last, in the naming rights game for the Stadium, Met Life has a stickiness with the media that will make the transition very easy. That brand exposure in the media, like on the outside of the stadium, is invaluable in a deal such as this one.

So what does this all mean for the consumer? Not much on the negative side. if you are shopping for a new carrier, hopefully there is more brand recognition. if you already work with Met Life, maybe it means extra perks. If you are a casual fan, the amount of promotion Met Life already does with their sports sponsorships is staggering, so this will add to the potential pot. More importantly for New Jersey, it is a positive sign of investment by a major brand in the economy, which hopefully lead to better things in the future, regardless of how Big Blue or The Green and White do on the field. A nice win for all involved.

Filed Under: NFL Tagged With: , , , , , , , , ,

Racing To Find A Brand In The New York Area…

August 5, 2011 by

The history of auto racing in various forms in New Jersey is a long one. From road races that cross-crossed the state to Atlantic City to raceway park and the Marlboro Grand Prix at the Meadowlands, the Garden State has found its way, even without the power of NASCAR, to come up when organizers look to the New york metro area. The streets of New York are a nightmare, as was Staten island, where NASCAR’s ill-fated bid for a track came and went. Pocono Raceway, not that far from the state borders, and upstate New York Watkins glen remain the spots where racing fans outside of the funny car circuit or the dirt tracks at Wall Speedway need to go to satsify their racing jones.

However this week the trial balloon was again floated to bring big time racing back to the area, this time in the form of a road race in Weehawken and West New York for Formula One. A similar idea came and went last year for Jersey City, because of the lack of political backing and the issues effectively securing Liberty State Park. However this latest bid appears to have governmental support, which could actually make the idea viable at some point down the line.

Formula One, a billion dollar global business, has never taken hold in the United States, and the circuit, led by Bernie Ecclestone, is now making its latest play for the country in the form of a race in Austin, Texas with other markets also in the mix. The New Jersey idea, through the streets of Weehawken and West New York, with the New York skyline as a backdrop, is the best possible option for a road race in the area, although maybe not the best option for New Jersey towns that might be taxed for resources should the race come to fruition. F1 may also not be the only option, as New York based IZOD, has also made overtures to bring Indy Car back to the area as well. Could the open and clear roads of the Meadowlands, where the Grand Prix was last held, be a better spot?

F1 has traditionally found its way to the streets, from Toronto to Monaco, negotiating tight turns and bringing large crowds to a local economy through tourism. Those races have been built over time, and expansion, especially for one race abroad, has really been cost prohibitive in the recent years, as it takes millions to import teams, build tracks and infrastructure and then make sure all is running well. Having at least two races in the U.S. would take away the team sting, but what about the shutting down of roads, and how much of those dollars would go into the cash-strapped local economy, while tourists and teams and media stay across the river in Gotham?

The Meadowlands might make more sense. The roadways are open and have hosted such an event before. The hotel support and other infrastructure for big events exists, given the proximity of the stadium and the arena. Traffic for crowd egress is already addressed, and you do have that skyline in the distance. Now if a promoter is taking on the full nut, and the dollars help those cities just across the river, great. If it is a multi-year commitment, with the support of big brands, even better. Frankly if it was the U.S. based Indy Car circuit, whose parent company employs many folks already in the area, versus the import of F1, even better.

For racing to grow in the Untied States it needs a New York presence. NASCAR has never solved the issue. Indy has tried and failed in earlier efforts. F1 needs that boost to compliment their Texas race and could use the support of Madison Avenue. Can the road race work in such congestion? Do we need it? Only if the dollars make sense. Then, sure thing, start those engines. The pageantry would be amazing, the media sublime, but the infusion of dollars makes it even more interesting.

Filed Under: ESPN, ESPN/ABC, Indy Car, NASCAR Tagged With: , , , , , , , , , , , , , , , ,
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