Cashing out. A lucrative in-stadium naming rights
deal between Bank of America and the Yankees is
off due to the banking giant's financial woes.
In September of last year, Bank of America was said to have been on the verge of a major in-stadium naming rights sponsorship deal for new Yankee Stadium. BofA (NYSE: BAC) was supposedly to have beaten out JP Morgan Chase (NYSE: JPM) for the chance to have their corporate presence displayed prominently throughout the new stadium. With the Yankees not offering up naming rights to the new stadium, it was believed to be the best corporate sponsorship deal that the Yankees would offer. As reported by the SportsBusiness Journal at the time, the deal was to includes a comprehensive financial relationship between the Yankees and Bank of America. It also was to offer the company a vast array of inventory within the new ballpark, including prime signage in and around the park, large signs on the highways around the stadium, prominent exposure on Gate 4, the stadium’s main entrance, several fixed signs on top of the stadium affording an aerial view, a large sign atop the right-field scoreboard, even bigger signage on the back of the scoreboard that will face a new subway stop, signs on interior gates leading to the field, fixed and LED signs inside the stadium and the stadium bowl, permanent dugout branding and behind-the-plate signage and a logo on all Yankees tickets.
Also included in the deal was media on Yankees rights holder YES and flagship radio WCBS radio and access to some of the front-row Legends seats in the new stadium, which the Yankees will price at $500 to $2,500 a seat.
The duration of the agreement was said to have been structured for 20 years.
Now, that deal is off with Bank of America saying that due to their financial struggles, as well as requests for federal bailout money.
According to The AP, Yankees spokesperson Alice McGillion said Thursday that with the downturn in the economy, “we have determined that it is better to enter into a traditional business arrangement with a financial institution.”
Maury Brown is the Founder and President of the Business of Sports Network, which includes The Biz of Baseball, The Biz of Football, The Biz of Basketball and The Biz of Hockey. He is contributor to Baseball Prospectus, and is available as a freelance writer. Brown's full bio is here. He looks forward to your comments via email and can be contacted through the Business of Sports Network.
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