Copyright ©2005. Border Zero All rights reserved.
In order to spread naming rights in Japan
-From a U.S. naming rights introduction survey-
July/2005
Border Zero
- 1 -Copyright ©2005. Border Zero All rights reserved.
Introduction
�On the baseball, the Kintetsu Buffaloes and the Orix Blue Wave merged and Rakuten golden eagles are
newly born, sports management is facing the huge turning point. Meanwhile, "naming rights" is being
anew observed in Japan as one of the policies which mitigate a management burden.
�Naming rights are structure with which an institution management person receives price from a company
instead of granting the right by which a company name, a goods brand, etc. are entitled to a public
facility, it is introduced for the first time in the U.S. in 1973 [1], and the contract number of cases is
increasing gradually from the 1980s after that[2]. In Japan, it was introduced into the Ajinomoto stadium
for the first time in 2002. As the home of Hamburger SV which Japanese striker belongs to declaress
themselves AOL arena, naming rights is not the structure introduced only into the U.S. and Japan but but
globaly.
� In this paper we will compare naming rights of the major U.S. four pro sport (MLB, NBA, NFL, NHL)
with the major two pro sport of Japan(Professional baseball, J.League). We will also consider conditions
for the naming rights which came to capture the spotlight again from the viewpoint of the improvement
of sport management of Japan.
� In the survey about U.S. , it is based on information of major four pro sport each team, stadiums,
sponsors, newspapers, and books, etc. (data is as of May, 2005). Moreover, about the amount of money,
it has calculated by having converted into principle of 1 dollar = 105 yen.
[1] In 1973, Rich Foods contracted 25years, total amount $1.5million for home of Buffaloe Bills.
[2] According to an interview with Bonham Group of The New York Times (30 May 2004) -- the time of 1988 -- the naming
rights contract of three affairs, the total amount $25 million.
- 2 -Copyright ©2005. Border Zero All rights reserved.
History of stadium naming rights in Japan
�Stadium naming rights in Japan has only three yearsthat naming rights.
�But a motion came to be completely looked at by introduction of naming rights from around 2004 when
the management crisis of professional baseball will surface and the concern about sport management
began to increase.
� Seibu Lions annouced to introduce team naming rights of their
minor team with Invoice for 3 years, total 600 million yen2004/12
� Miyagi Pref annouced to introduce naming rights to Miyagi
Stadium.
� Oita Pref announceds to introduce naming rights to Oita Stadium
Big Eye(still no deal).2004/11
� Nassan Motor acquired the naming rights of the International
Stadium Yokohama.
5 years, total 2.35 billion yen
2004/10
� City of Chiba announces to introduce naming rights to citizen ball
game place (tentative name) in “Soga specification area”.2004/3
� Fukuoka dome announced to introduce naming rights.
� Osaka Kintetsu buffaloes announced to sell team naming rights
(still no deal)2004/2
� Yokohama sity announced to introduce naming rights to
International Stadium Yokohama.
2003/5
� YahooBB contracted naming rights of Green stadium Kobe as
Yahoo!BB stadium.
2 yearsm total 200million yen
Contract expired in Mar 2005
2003/3
� Ajinomoto dealt naming rights of Tokyo stadium
5 years, total 1.2billion yen2002/12
� Tokyo stadium announced to introduce naming rights.2001/11
EventsYyyy/mm
� Yahoo! Japan acquired the naming rights of Fukuoka Dome
5 years, total 2.5 billion yen
� Chiba Marine Stadium annouced to examine introduction of
naming rights.
� Skymark Airlines acquired the naming rights of former Yahoo!BB
stadium
3 years, total 200 million yen
� Kobe wing stadium introduced naming rights to its stand.
Main stand for Rakuten
Back stand for Kawasaki Heavy Industries
� City of Kobe announced to reintroduce naming rights to
Greenstadium Kobe.
2005/2
� Fullcast acquired naming rights of Miyagi stadium as Fullcast
Stadium
3 years, total 600 million yen
� Yahoo! Japan announced the move towards acquisition of the
naming rights of the Fukuoka dome stadium.
� Rakuten annouced to introduce team naming rights of their minor
team.
2005/1
EventsYyyy/mm
- 3 -Copyright ©2005. Border Zero All rights reserved.
Stadium naming rights in Japan:1
Information Technology ServicesAutomobileFoodIndustry
TokyoTokyoTokyoHeadquarters
InvoiceNissan MotorAjinomotoContract woth
450 million yen(150 million yen a year)2.35 billion yen(470 million yen a year)1.2 billion yen(240 million yen a year)Contract total fee
3 years5 years5 yearsContract term
200520052002Contract from
Seibu Lions(Professional Baseball)Yokohama FMarinos(JLeague)Tokyo Verdy 1969(JLeague)FC Tokyo(JLeague)
Team
Seibu DomeInternational Stadium YokohamaTokyo StadiumFormer Name
City of Tokorozawa, Saitama PrefCity of Yokohama, Kanagawa PrefCity of Chofu, TokyoLocation
Invoice Seibu dome*Nissan StadiumAjinomoto Stadium
Information Technology servicesAir Delivery & Fleight ServicesServicesIndustry
TokyoTokyoTokyoHeadquarters
Yahoo!JapanSkymark AirlinesFullcastContract with
2.5 billion yen(5oo million yen a year)200 million yen(66.67 million yen a year)600 million yen(200 million yen ar year)Contract total fee
5 years3 years3 yearsContract term
200520052005Contract from
Fukuoka Softbank Hawks(Professional Baseball)Orix Buffaloes(Professional Baseball)Rakuten Golden Eagles(Professional Baseball)Team
Fukuoka DomeYahoo!BB StadiumMiyagi StadiumFormer Name
City of Hakata, Hukuoka PrefCity of Kobe, Hyogo PrefCity of Sendai, Miyagi PrefLocation
Fukuoka Yahoo!JAPAN DomeSkymark StadiumFullcast Stadium Miyagi
*A case of Invoice Seibu Domu includes team naming rights
- 4 -Copyright ©2005. Border Zero All rights reserved.
Stadium naming rights in Japan:2
MinimumMaximumAverage
200 million yen2.5 billion yen1,217 million yenContract total fee
66.667 thousand yen500 million yen271.120 thousand yenContract fee a year
3 years5 years4 yearsContract term
- 5 -Copyright ©2005. Border Zero All rights reserved.
Number of stadium naming rights in both Japan and U.S.
� In U.S., approximately 70 % of major four professional sports stadiums introduced naming rights; about
90 % arenas of NHL introduce naming rights.
�Only 6 stadiums introduce naming rights in Japan and the rate is a little more than only 10% of the
whole.
6(12%)42TOTAL
2(7%)30JLeague(football)
4(33%)12NPB(baseball)Japan
84(69%)122TOTAL
26(87%)30NHL
18(56%)32NFL
23(77%)30NBA
17(57%)30MLBU.S.
Number of stadiums introduce
naming rights(rate)TeamSportsCountry
- 6 -Copyright ©2005. Border Zero All rights reserved.
Average total income of team in Japan and U.S.
�The big difference exists in the total income in Japan and the U.S.(based on data year 2002).
� In Japan, although there is little income, since a player's annual salary is soaring, professional team
management is stuck and the motion of selling off a team is arising.
� Even the most success example of baseball team
management, Daiei’s(recent Softbank) average total
income are not attaind to NFL. Jleague’s average total
income is only 1/3 of that of Daiei.
(Mill yen)
Source:Street & Smith’s Sports Business Journal. “By the Numbers”
Daiei’s official report / Jleague Official website
2,724
8,200
11,327
14,701
14,850
16,179
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000
Average total income of team
MLB
NHL
NBA
NFL
NPB
JLeague
- 7 -Copyright ©2005. Border Zero All rights reserved.
Position of naming rights in income
�Naming rights can be expected to soften change factor of attendances and stabilize income for stadium.
Fans
Team Stadium
Eating-and-
drinkingexpense
Ticket fee
� Eating-and-drinking cost increase while the number of visitors increases by improvement in
popular of a team (= admission fee income increase).
� The charm as an investment outlet improves by increasing number of attendances, and
stadium can offer advantegeous condition for themselves with naming rights contract.
Fans
Team Stadium
Sponsor
Increasing eating-and-
drinking expence
Increasing ticket incom Naming rights fee
【【【【Income of team and stadium】】】】
【【【【Income structure of popular team】】】】
In case of popular team・・・・
�The income of a team is roughly divided and consists of an
"admission fee", "a sponsor and an advertising rate", a
"broadcasting license expense", “merchandise", etc. When
there is no popularity of a team, there are few visitors. And
when there are few visitors, it is difficult to earn the eating-
and-drinking expense made into the source of a profit for a
stadium.
�Popular inactivation has great influence on the management
of a stadium. Naming rights introduce the risk of the eating-
and-drinking expense changed to the number of visitors
which receives influence in "the popularity of a team" as a
stadium into the basis of the intention of mitigating.
�The eating-and-drinking expense which a stadium obtains
goes into the category of a change income, and since it is the
thing of the character added up to it as an income for which
naming rights do not depend on the number of visitors etc., it
is regarded as fixed income.
- 8 -Copyright ©2005. Border Zero All rights reserved.
Single year contract fee of naming rights
� In the U.S., approximately 40% of the naming rights cases contract 210-420 million yen with single year,
the amount of an average single year contract of Japan is about 270 million yen, and shows the almost
same (about 300 million yen) as the U.S..
Alltel StadiumReliant Stadium-Stadium
65million yen ($620
thousand)105 million yen($10 mill)300 million yen
($2.82 mill)Fee
U.S.
Skymark StadiumFukuokaYahoo! JapanDome-Stadium
66.67 million yen500 million yen270 million yenFeeJapan
MinimumMaximumAverage
�The fact that existence of 10 stadiums (approximately 16 %) contracts less than 105 million yen a year in U.S. indicates naming rights single year contract in Japan is not so cheap.
10
1
11
2
271
122
2
0 5 10 15 20 25 30
Number of stadiums
Less than 105 mill yen
105-210 mill yen
210-420 mill yen
420-840 mill yen
More than 840 mill yen
U.S. Japan
- 9 -Copyright ©2005. Border Zero All rights reserved.
Total years contract fee of naming rights
� In U.S., total average contract fee of naming rights, whose range is 2.1-5.25 billion yen can be seen most
many cases, 21 cases. These price range seem to be appropriate for both stadium managers and sponsors.
� In Japan, less than 2.100 billion yen stadiums have most amount of contracts fewer than the U.S..
Monster ParkReliant Stadium-Stadium
630 million yen($6 million)31.5 billion yen
($300 million)6.427 million yen
($61.21 million)Fee
U.S.
Skymark StadiumFukuokaYahoo! Japan Dome-Stadium
200 million yen2.5 billion yen1.216 million yenFeeJapan
MinimumMaximumAverage
� In Japan, there is no conract worth 5.25 billion yen which
shares more than 40 % in U.S. naming rights. The average
total contract fee in Japan is 1.2 billion yen, only 1/5 of
that in U.S., 6.5 billion yen.
154
21
2
18
8
2
0 5 10 15 20 25
Number of stadiums
Less than 2.1 bill yen
2.1-5.25 bill yen
5.25-10.5 bill yen
10.5-21 bill yen
21 bill yen
U.S. Japan
- 10 -Copyright ©2005. Border Zero All rights reserved.
Contract term of naming rights
� In the U.S., the stadium which contracts naming rights for less than 20-25 years is the most many cases
(31 stadiums). In the longest, 40 years or more of contract is also seen. On the other hand, the contract
exceeding ten years is not made in Japan, even the five year contract is the longest.
Monster ParkFord Field-Stadium
4 years40 yearsAbout 20 yearsTermU.S.
Invoice Seibu Dome
Fullcast Stadium Miyagi
Skymark Stadium
Ajinomoto Stadium
Nissan Stadium
FukuokaYahoo! JapanDome
-
Stadium
3 years5 years4 yearsTermJapan
MinimumMaximumAverage
� Although average contract term of naming rights in U.S. is
approximately 20 years, average contract term of it is only
4 years. As there is only one case which contract term is
no longer than 5 years,shortness of contract term of Japan
in conspicuous.
� Among U.S. business scene, where faces severe demand
of stockholders, it seems very weird because naming
rights is approved and more over contract term is
unexpectedly a long time. Probably, it is understood that
naming rights is the thing what evaluate it’s value just by
long run contract. And probably, the most manager
understands 20-25 years or more, is necessary in order to
find out the value.
133
39
6
31
5
9
0
1
0 5 10 15 20 25 30 35
Number of stadiums
Less than 5 years
5-9 years
10-14 years
15-19 years
20-24 years
25-29 years
30-34 years
35-39 years
Longer than 40 years
U.S. Japan
- 11 -Copyright ©2005. Border Zero All rights reserved.
Start year of naming rights contract
�Now, most stadiums which naming rights are introduced in the U.S. conclude a contract after the second
half of the 1990s, and the contract number of cases is increasing. Unless introductory effect, the naming
rights by which introduction was started from the 1980s in the U.S. would surely be buried beyond
memory as a past thing now, where since attitude toward investment is extraordinary severe.
�The history of naming rights in Japan delays 20 years to U.S.
1
11
26
296
0 5 10 15 20 25 30
Number of stadiums
1986-1990
1991-1995
1996-2000
2001-2005
U.S. Japan
- 12 -Copyright ©2005. Border Zero All rights reserved.
Naming rights introduction by industry
�The type of industry with most companies have introduced naming rights in the U.S. is Financial (about
30% of the number of effective data), and Services and Transportation.
� In Japan, 2 companies of Information and
Communication industry, Food industry, Transportation
industry, Service industry, Air transportation industry
contracts naming rights. Financial doesn’t contract
naming rights in Japan as U.S..
1
2
2
2
3
7
8
9
14
21
0 5 10 15 20 25
Number of stadiums
Financial
Services
Transportation
Consumer Non-Cyclical
Technologies
Consumer-Cyclical
Energies
Utilities
Construction Services
Conglomerates
- 13 -Copyright ©2005. Border Zero All rights reserved.
Relation between a type of industry and a contract start year
� Increase of the introductory number of cases of Services, recording the maximum contract number of
cases in 2001 to 2005, is conspicuous.
�Since the companies of Financial introduced most naming rights from 1996 to 2000 and a succeedingly
new contract is made also after that, it seems to be constantly positive to introduction.Fin
anci
al
Ser
vic
es
Tra
nsp
ortat
ion
Consu
mer
-non-
cycl
ical
Tec
hnolo
gy
Consu
mer
-
Cycl
ical
Ener
gy
Utilities
Constru
ctio
n
Ser
vic
esConglo
mer
ates
86-9091-9596-0001-05
0123
45
67
8
9
Industry
Contract from
N=60
Stadiums
- 14 -Copyright ©2005. Border Zero All rights reserved.
Naming rights in Financial
� In the U.S., large change took place in the financial industry at the first half of the 1990s. According to
"building the profiting bank [1]", change took place from the leading minor bank, it applied in the mid-
1990s, and the management model system applicable to the whole bank industry was completed. From
figure below, the thing for which the change is tackled positively -- Regional Banks has introduced
naming rights positively -- can be grasped. Moreover, Money Center Banks consequently positive to
naming rights introduction, and more than half of the naming rights introduction number of cases of
Financial is occupied by these 2 sectors.
[1] Shinji Yamamoto Moukaru Ginko wo Tukuru 2003, Toyokeizai
6
54
3
11 1
Regional Banks Money Center Banks Insurance (Life)
Investment Services S&Ls/Savings Banks Insurance (Prop. & Casualty)
Not sure
N=21
- 15 -Copyright ©2005. Border Zero All rights reserved.
Naming rights in Services:1
�Companies of Communications Services have introduced most naming rights in Services, and have
accounted for about 30 %.
5
1
1
1
2
13
Communications Services Retail (Specialty)
Telecommunication Retail (Drugs)
Retail (Department & Discount) Hotels & Motels
Not sure/Private
N=14
- 16 -Copyright ©2005. Border Zero All rights reserved.
Naming rights in Services:2
�Communications Services is a sector which has most positively introduced naming rights 1996-2005.
Considering the background through which IT had spread quickly, it will be thought that it is the rational
strategy to introduce naming rights as part of investing activities for Communications Services to gain a
customer.
Stadiums
Com
munic
atio
ns
Ser
vic
es
Ret
ail (S
pec
ialty)
Tel
ecom
munic
ati
on
Ret
ail (D
rugs)
Ret
ail
(Dep
artm
ent &
Disco
unt)
Hote
ls &
Mote
ls
Not su
re/P
rivat
e86-9091-9596-0001-05
0
1
2
3
Industry
Contract from
N=14
- 17 -Copyright ©2005. Border Zero All rights reserved.
Position relation between a stadium and the sponsor headquarters
�44 stadiums, more than 60 %, locate same town or state as sponser’s headquarters.
�Even if headquarters locate other states, sponser company has somewhat relation with stadiums, has
some branches in stadium located states etc.
(stadiums)
Same town/sity,
35, 50%
Different State,
26, 37%
Same state, 9,
13%
N=70
- 18 -Copyright ©2005. Border Zero All rights reserved.
Days of operation:1
�There are very many days of operation of the stadium in the U.S. as compared with Japan, such as
counting annual 200 days.
JLeague
NPB
NHL
NFL
NBA
MLB
DecNovOctSepAugJulJunMayAprMarFebJan
Kashima Stadium, home of the Kashima Antlers, works only 20 days a year [1]. On the other hand,
some stadiums in U.S. work more than 200 days and/or mobilize more than 3 million peopole.
[1] 8,Feb,2003, MJ
� Professional sports (WNBA: United States woman basket league etc.) exist besides the major four
professional sports, and the stadium is shared also with them.
� There are many artists as for whom big stadium and concert hall of a capacity are made to no vacancy.
� It has opened wide also to amateur athletics, such as a university.
� It is possible to use without being between games, and being absent from a stadium through one year, since
there are few overlaps of an on-season.
A reason with many days of operation of the stadium in the U.S.
- 19 -Copyright ©2005. Border Zero All rights reserved.
Days of operation:2
�The stadium whice is shared by multi-teams(including other than major four professional sports, WNBA,
NLL etc) amounted 32. One of them are shared by 6 teams.
� In Japan, most stadiums are not shared by prulal teams, only two stadiums, Ajinomoto Stadium and
Sapporo Dome.
(stadiums)
20
81 2 1
38
Only single team 2 teams 3 teams 4 teams 5 teams 6 teams
N=70
- 20 -Copyright ©2005. Border Zero All rights reserved.
Audience rating
�The audience rating of a Yomiuri Giant (the most popular baseball team in Japan)game has decreased in
about 1/3 to 14.3% (2004) with a peak of 21.4% (1996).
� It is said that the audience rating of a professional sport
program is in a downward tendency also in the U.S.. They
have taken not lack of policy but the strategy of the
domestic audience rating regarding as leveling off , aiming
at market expansion to overseas. They maintain and
increase of an exposure opportuniy by reporting Matsui or
Ichiro’s activity everyday.
(%)
(year)
12.2
14.316.2
15.1
18.520.319.7
20.821.419.8
0
5
10
15
20
25
2004200320022001200019991998199719961995
- 21 -Copyright ©2005. Border Zero All rights reserved.
The number of attendance
�MLB marked about 2.5 million attendances, the most attendances of U.S. four professional sports and
Japan two professional sports. NPB marked the second most attendances, about 2 million.
�Although the number of attendance of the stadium in the U.S.
tends to be thought that figure is not as much as expected, it is
clear that are holding amateur athletics, a concert, etc.
frequently besides a professional sport, and events other than a
sport have also mobilized many spectators. If it did not come
out, business itself in which it dropped off that some stadiums
announce 3 million annual spectator mobilization numbers on
a grand scale and which it plays and is called naming rights
just in it was not this much developed.
284,481
1,919,756
539,703
710,095
661,8282,432,298
0 500,000 1,000,000 1,500,000 2,000,000 2,500,000
Average yearly attendance per team
MLB
NHL
NBA
NFL
NPB
JLeague
(persons)
- 22 -Copyright ©2005. Border Zero All rights reserved.
Episode about the positive posture to naming rights
Enron which applied for Chapter 11 in the end of 2001 by irregular accounting had
concluded the naming rights for 30 years after 1999 (a stadium name of those days is Enron
Field). However, when it became uncontinuable by bankruptcy, the contract was canceled
in February, 2002 by Houston Astros which is a franchise professional baseball team.
Although Enron Field was temporarily called Astros Field from a franchise professional
baseball team's name, it succeeded in conclusion of the naming rights with Minutes Maid
which is equivalent to the subsidiary of Coca-cola in June, 2002, and a total contract fee is
more than 17 billion yen for 28 years. Astros Field has named itself for only four months.
That the next sponsor was found immediately and resulted in the conclusion of a contract
can say Astros Field since the investment effect of naming rights is evaluated rather than
having been estimated as the stadium which deserves introducing naming rights. If it did
not come out, a large sum and a long-term contract cannot have concluded for a short
period of time.
Enron which applied for Chapter 11 in the end of 2001 by irregular accounting had
concluded the naming rights for 30 years after 1999 (a stadium name of those days is Enron
Field). However, when it became uncontinuable by bankruptcy, the contract was canceled
in February, 2002 by Houston Astros which is a franchise professional baseball team.
Although Enron Field was temporarily called Astros Field from a franchise professional
baseball team's name, it succeeded in conclusion of the naming rights with Minutes Maid
which is equivalent to the subsidiary of Coca-cola in June, 2002, and a total contract fee is
more than 17 billion yen for 28 years. Astros Field has named itself for only four months.
That the next sponsor was found immediately and resulted in the conclusion of a contract
can say Astros Field since the investment effect of naming rights is evaluated rather than
having been estimated as the stadium which deserves introducing naming rights. If it did
not come out, a large sum and a long-term contract cannot have concluded for a short
period of time.
- 23 -Copyright ©2005. Border Zero All rights reserved.
Conclusion of survey
�The feature of the U.S. naming rights introduction on which survey was based is as follows.
A) Naming rights is introduced approximately 70% of U.S. major four professional sports stadiums(is introduced a little less more than 10% in Japan).
B) The amount of a contract per single year in both Japan and U.S. is 300 million yen.
C) The total amount of a contract is about 6.5 billion yen, 5 times as much as cases in Japan.
D) The term of naming rights contract in U.S. is about 20 years and it is about 5 times as long as it in Japan.
E) Number of naming rights increases tendency.
F) Much introduction by Conpanies in Financial and Services.
G) High geographical correlation of sponsers and stadiums.
H) Most stadiums aore shared by Two or more teams.
I) Many events other than professional sports marked many attendances.
A) Naming rights is introduced approximately 70% of U.S. major four professional sports stadiums(is introduced a little less more than 10% in Japan).
B) The amount of a contract per single year in both Japan and U.S. is 300 million yen.
C) The total amount of a contract is about 6.5 billion yen, 5 times as much as cases in Japan.
D) The term of naming rights contract in U.S. is about 20 years and it is about 5 times as long as it in Japan.
E) Number of naming rights increases tendency.
F) Much introduction by Conpanies in Financial and Services.
G) High geographical correlation of sponsers and stadiums.
H) Most stadiums aore shared by Two or more teams.
I) Many events other than professional sports marked many attendances.
- 24 -Copyright ©2005. Border Zero All rights reserved.
In order to spread naming rights in Japan
�From the survey, stadium managers would notice following three points to introduce naming rights to
their stadiums in Japan.
① Raising charm of the stadium to maximum level as an investment issue.
Raising following 3 factors
Operating days
TV rating
Attendance
② Releasing the right information about the actual condition of an investment issue.
If the information on the right investment outlet cannot come to hand, there must be many investors
of refraining from investment.
③ Grasping an investor's needs properly and operating activities efficiently.
Carrying out why a sponsor will introduce naming rights what is ot be interested in the stadium.
① Raising charm of the stadium to maximum level as an investment issue.
Raising following 3 factors
Operating days
TV rating
Attendance
② Releasing the right information about the actual condition of an investment issue.
If the information on the right investment outlet cannot come to hand, there must be many investors
of refraining from investment.
③ Grasping an investor's needs properly and operating activities efficiently.
Carrying out why a sponsor will introduce naming rights what is ot be interested in the stadium.
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