As Newcastle United’s owner renames St James’ Park to attract naming rights partners, a branding expert tells Channel 4 News the opportunity might not be as attractive as the football club believes.
Newcastle United has announced plans to license the full naming rights to the club's stadium following consultation with international branding experts.
Until it can find a sponsor who will be granted full naming rights, it will rename St James’ Park the Sports Direct Arena after the sportswear retailer owned by club owner Mike Ashley. This move is intended to showcase the opportunity to interested partners.
Managing director Derek Llambias said stadium rebranding offers a lucrative way for clubs to secure significant additional income.
“Our aim for Newcastle United is to continue to deliver success for the fans and everyone associated with the club. We must make this club financially self-sufficient in order to deliver that success,” he said.
If you just wade in and acquire the naming rights to an established ground, that causes resentment rather than appreciation. Alex Brownsell
A previous naming rights proposal, launched in November 2009, invited sponsors to link their brand to St James’ Park, but the club said that this did not prove commercially attractive.
Mr Llambias added: “It has become clear that in order to make the proposition as commercially attractive as possible, a potential sponsor must be given the opportunity to fully rebrand the stadium.”
Mr Llambias also announced that the shirt sponsorship deal with Northern Rock will expire at the end of this season, to allow would-be sponsors the opportunity to acquire both the naming rights and shirt sponsorship deals.
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But Alex Brownsell, news editor of the specialist magazine Marketing, said brands usually see shirt sponsorship as a bigger deal than stadium naming rights.
“There is probably more interest in this from the football club than the sponsors. With shirt rights you get the photo or a bit of video when the player celebrates a goal and their brand is a large part of that,” he told Channel 4 News.
Why not rename the Tyne while you're at it: Read Alex Thomson's blog
Mr Brownsell added that naming rights are usually more attractive when a stadium is newly-built – particularly when the sponsor has had a role in financing the project like Reebok with Bolton Wanderers, and Britannia with Stoke City.
He said: “Then they can really take ownership of the whole stadium and get involved with the fans who are more appreciative than if you just wade in and acquire the naming rights to an established ground – that causes resentment rather than appreciation.”
He said the fact that name St James’ Park is so engrained in football fans’ minds may also deter potential sponsors.
But Dr Simon Chadwick professor of sport business strategy at Coventry University said some brands would see the appeal of having naming rights.
“Naming rights is a marketing device and one of the means to getting out messages to target audiences. The key thing is knowing your target market.”
He added: “You might p*** off a few hundred thousand Geordies, but if your target market is 200 million living rooms in China… then you do the maths.”
The news has not gone down well with most fans and sparked an online backlash. Ben Sellers, a former season ticket holder, called for a campaign for change targeting Mike Ashley’s commercial interests.
He said: “I think this shows Ashley’s disregard for the history & traditions of the club.”
Meanwhile, fellow fan @angelaforster tweeted that the decision has ruined her plans: “Our wedding was booked at SJP only to learn this morning about the re-branding GUTTED!”
Another tweeter, @gavinthecountry spoke for many fans when he said: “It’ll always be St. James’ Park.”
And the decision has also dismayed politicians. Newcastle City Council’s cabinet member for quality of life Henri Murison said: “The name of St James’ Park has been synonymous with Newcastle United football club and the city for more than 130 years.
“It is recognised around the world and the decision to change it, without consultation, will upset the overwhelming majority of fans who loyally support the team week in and week out.”
Mr Murison added that the city has no plans to change any existing wayfinding signs which bear the name St James’ Park.
“As far as the fans and Newcastle City Council are concerned, the home of Newcastle United will always be known as St James’ Park,” he said.
Barmy names, best of the rest
KitKat Crescent: Until 2005 York City played at Bootham Crescent. In 2005 it signed a deal with Nestle and became KitKat Crescent until 2010, although the ground was still commonly referred to by its old name.
Hunky Dorys Park: United Park in Drogheda, Ireland has been home to League of Ireland side Drogheda United since 1979. In 2010 the team signed a major sponsorship deal with a manufacturer of crinkle cut crisps.
Bargain Booze Stadium: Wincham Park, home of Northwich based non-league side Witton Albion, was briefly renamed after an off-licence chain.
KFC Yum! Center: Sponsored (and, some may say, silly) names are not confined to football grounds. Kentucky-based basketball team Louisville Cardinals play at an arena named after the makers of Kentucky Fried Chicken, who bought the naming rights in a multi million dollar deal.