The University of Minnesota could receive over $1 million annually for selling the naming rights to Williams Arena, according to Navigate, a data-driven consulting firm in sports and entertainment.
“Navigate expects average [Power Four] and Big East arena naming rights deals to command between $1.0M and $1.4M annually,” said Kellen Foster, a senior analyst at Navigate, in a statement to the Minnesota Star Tribune.
Typically, the value of a naming rights deal might be impacted by factors beyond prestige and brand value, such as the ability to host concerts or other non-sporting events, along with the ability to engage students or involve business operations, Foster said.
This follows a Thursday announcement that the Gophers are working with Independent Sports & Entertainment to secure a potential naming rights deal for Williams Arena. The 97-year-old venue, affectionately known as the Barn, has held the same name since 1950.
Court approval by a federal judge of the proposed settlement in the House v. NCAA, Hubbard v. NCAA and Carter v. NCAA cases, known as the House settlement, will allow schools in Power Five conferences to pay athletes from a pool of about $20.5 million in revenue sharing each year. Foster said the impending House settlement has increased pressure on universities to generate revenue, and he expects more universities to explore “increased commercialization” through naming rights, court naming, on-court branding and potentially introducing jersey patches at the collegiate level.
As for the potential corporations to enter into a naming rights deal with the university, Foster pointed toward the industries that contribute to more than 50% of all name venues in the pro sports environment: financial brands, insurance, telecommunications, auto/tires/car rentals and technology.
Financial companies own 35% of the current naming rights deals between MLB, NHL, NBA and NFL stadiums, and insurance companies own 11%, per Navigate. Known for its bevy of Fortune 500 companies, Minnesota is the headquarters for several financial and insurance corporations, including Minneapolis-based U.S. Bank, Ameriprise Financial and Thrivent, and health insurance giant UnitedHealth Group, which is based in Minnetonka.
Companies with relatively lower revenues often use naming rights as a way to jump-start brand awareness in a priority market, Foster said.
