Kevin H. Kelley and Robert Turner were quoted in a Law360 Real Estate Authority article titled “Sports Facility Financing Gets Creative,” about the evolving ways professional sports teams and governments are funding new stadiums, arenas, practice facilities, and mixed-use sports districts.
Kelley discussed the importance of creating vibrant, mixed-use districts that extend activity beyond game days, noting that just developing dining and nightlife without office and residential projects may cause the bars and restaurants to struggle because there will be very little traffic on non-game days. He also highlighted continued public investment in certain projects and pointed to emerging financing structures, including a Denver Summit FC project backed by sponsorship revenue, saying, “that will be a big feature going forward” because “naming rights are a great source of revenue for teams.”
Turner discussed the growing use of naming-rights sponsorships and other revenue-generating strategies tied to new sports venues in the UK, noting that clubs and other rightsholders are pursuing these opportunities, although results have seen mixed success to date. Turner explained that while clubs often control significant real estate assets, many supporters remain attached to existing stadium names, adding that when a club develops a new venue without brand equity in the stadium name, the naming rights can become a significant sponsorship asset.
LINKS
Read “Sports Facility Financing Gets Creative.” (subscription)