Bank Naming Rights for The RAC ?

[Upstream]

We could call it "The Depot!"

It doesn't matter what the official name is. Everyone will call it the RAC.

Anyone buying naming rights is going to have to recognize that the building will always be called the RAC. No one will ever call it Louis Brown Athletic Center or Generic Bank Arena.

And Rutgers should really consider, especially with a full Big Ten share coming soon, whether the value of naming rights is better than the equity of a long-used and really good arena name.

 

[Jim_from_RU]

It doesn't matter what the official name is. Everyone will call it the RAC.

Anyone buying naming rights is going to have to recognize that the building will always be called the RAC. No one will ever call it Louis Brown Athletic Center or Generic Bank Arena.

And Rutgers should really consider, especially with a full Big Ten share coming soon, whether the value of naming rights is better than the equity of a long-used and really good arena name.

Full share isn’t coming for a while.

 

[flyrradio]

It doesn't matter what the official name is. Everyone will call it the RAC.

Anyone buying naming rights is going to have to recognize that the building will always be called the RAC. No one will ever call it Louis Brown Athletic Center or Generic Bank Arena.

And Rutgers should really consider, especially with a full Big Ten share coming soon, whether the value of naming rights is better than the equity of a long-used and really good arena name.

Here's the value: It's additional revenue. There's no way if the amount is right, a school in Rutgers' position is turning down naming rights. Only if you're a blue blood that doesn't struggle with breaking even or staying significantly in the black would you turn down. The Big Ten full share doesn't make Rutgers financially solvent. There are still facility improvements and equipment replacement needed even when appearing to be in the black.

 

[Upstream]

Full share isn’t coming for a while.

Full share starts next year (2020-2021 academic year).

True, Rutgers received loans from the Big Ten over the past few year, and once we get our full share next year we will have to start repaying those loans over the following 6 years. But repayment of debt doesn't mean we aren't a fully-vested member of the Big Ten getting a full share like any other member. It just means we have to pay back our debts, just like we have to pay back any debt.

Next year, our Big Ten distribution is projected to be $54.6MM. (After paying back ~$11 MM toward our loan, that leaves us with $43.7MM.)

 

[Upstream]

Here's the value: It's additional revenue. There's no way if the amount is right, a school in Rutgers' position is turning down naming rights. Only if you're a blue blood that doesn't struggle with breaking even or staying significantly in the black would you turn down. The Big Ten full share doesn't make Rutgers financially solvent. There are still facility improvements and equipment replacement needed even when appearing to be in the black.

I guess the key phrase in your response is "if the amount is right". My point is that there is value in keeping the name as the RAC. A ten-year deal worth $400K per year is probably not worth giving up the equity of the current name.

 

[Jim_from_RU]

I guess the key phrase in your response is "if the amount is right". My point is that there is value in keeping the name as the RAC. A ten-year deal worth $400K per year is probably not worth giving up the equity of the current name.

If the stadium can get $1 million a year, the RAC can certainly do the same.

 

[flyrradio]

I guess the key phrase in your response is "if the amount is right". My point is that there is value in keeping the name as the RAC. A ten-year deal worth $400K per year is probably not worth giving up the equity of the current name.

Agreed and I'm sure there are those in the business and development offices that have done true market value studies based on promotional mentions, activation with fans, and general awareness a company will get with being associated primarily with Rutgers basketball and wrestling programs. The Wawa Center at $200k a year is not enough (although imagine the hoagie gun at timeouts!).

 

[kcg88]

If the stadium can get $1 million a year, the RAC can certainly do the same.

Money in football is bigger than money in basketball. If memory serves, Illinois is getting about $500k a year for their arena to be the State Farm Center

 

[Jim_from_RU]

Money in football is bigger than money in basketball. If memory serves, Illinois is getting about $500k a year for their arena to be the State Farm Center

Ok, so getting the same amount of $ that a big time program like Illinois gets would suffice.

 

[Russ Wood]

I think Maryland got $800k per year for 25 years for naming rights when its arena opened in 2002.

If Rutgers got $500k per year that would be a very good deal.

 

[RUJMM78]

I think Maryland got $800k per year for 25 years for naming rights when its arena opened in 2002.

If Rutgers got $500k per year that would be a very good deal.

Especially with the RAC only holding 8000 seats.

 

[Russ Wood]

Especially with the RAC only holding 8000 seats.

That + not being brand new + Rutgers not coming off a national championship season.

 

[Upstream]

A ten-year deal worth $400K per year is probably not worth giving up the equity of the current name.

If memory serves, Illinois is getting about $500k a year for their arena to be the State Farm Center

Ok, so getting the same amount of $ that a big time program like Illinois gets would suffice.

If Rutgers got $500k per year that would be a very good deal.

I also don't think $500K per year is worth giving up the equity of the RAC name.

 

[hoquat63]

Especially with the RAC only holding 8000 seats.

Don’t think seating capacity is all that important, it’s the amount of times arena name is mentioned on tv.

 

[HeavenUniv.]

You have to figure schools like Michigan State, Kentucky, North Carolina, Kansas have had offers over the years. I wonder what amounts?

 

[Upstream]

Don’t think seating capacity is all that important, it’s the amount of times arena name is mentioned on tv.

Seating capacity (and more importantly, the number of people who actually attend) is also important.

 

[Jim_from_RU]

I also don't think $500K per year is worth giving up the equity of the RAC name.

Yes it is. We need the $.

 

[Upstream]

Yes it is. We need the $.

I don't believe an extra $500K is significant enough to give up the equity of the RAC name. This is especially true starting next year when Rutgers is a full-share member of the Big Ten.

As an analogy, I might be able to pay a high school kid $20 to spend a couple hours to move some junk out my yard. The high school kid needs the money. I'm wouldn't be able to pay my attorney $20 to haul the junk. The $20 isn't meaningful enough to my attorney.

 

[Russ Wood]

I also don't think $500K per year is worth giving up the equity of the RAC name.

As with most old arenas or stadiums that didn't have a corporate name attached to it, most fans will continue to call the building by its original name, either due to their emotional attachment to the original name or just out of habit.