In order to spread naming rights in Japan · On the baseball, the Kintetsu Buffaloes and the Orix...

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.


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


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


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


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



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


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


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.


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


�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


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


� 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


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


� 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


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


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


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


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


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


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


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


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.


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


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


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)


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.


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.


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.

In order to spread naming rights in Japan · On the baseball, the Kintetsu Buffaloes and the Orix...

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