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1 – 10 of over 85000Despite the growing number of corporate-sponsored sport facilities, public resistance to naming rights sometimes arises. In line with other supporter-based financial instruments…
Abstract
Purpose
Despite the growing number of corporate-sponsored sport facilities, public resistance to naming rights sometimes arises. In line with other supporter-based financial instruments such as fan bonds or shares, the possibility arises that a sport club’s supporters could invest in the stadium naming rights to secure a traditional name, possibly by initiating a crowdfunding project. The purpose of this paper is to evaluate the factors separating potential capital providers from non-participants and to determine which factors influence the investment decision.
Design/methodology/approach
The authors used an online questionnaire to evaluate respondents’ willingness to participate in a crowdfunding project. The data were analyzed by logit and probit regressions. The link was posted to selected online fan forums as well as to clubs’ fan group caretakers in Germany. In total, 708 respondents fully completed the questionnaires. Additionally, the authors provided the initial results of a proposal for a hypothetical reward-based crowdfunding project that was also part of the questionnaire.
Findings
The findings indicate that the most involved participants who support traditional values in sports are the most willing to participate in a crowdfunding project. Thus, crowdfunding can actually be seen as a supporter-based instrument that is an alternative to existing sport facility naming rights models. However, the analysis also indicates that the sums that can be generated through crowdfunding are limited.
Originality/value
Insight into a relatively new financial instrument is provided, and an alternative approach to sport facility naming rights management is offered. Ultimately, a combination of a crowdfunding project with financing by a certain number of sponsors supporting a traditional name is proposed, which may be a possible future solution that sport facility naming rights management groups can pursue.
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Brett Centracchio, Nels Popp and Jonathan A. Jensen
Most college athletics department have not sold corporate naming rights to their athletics facilities. Popp et al. (2016) suggests two primary reasons: (1) difficulty in…
Abstract
Purpose
Most college athletics department have not sold corporate naming rights to their athletics facilities. Popp et al. (2016) suggests two primary reasons: (1) difficulty in determining proper valuation and (2) fear of stakeholder backlash. The purpose of the current study is to address both concerns by utilizing a hedonic pricing model predicting collegiate naming rights values and utilizing fixed-effects models to determine if consumer behavior (event attendance and donations) is impacted by a corporate name change.
Design/methodology/approach
Data from 110 naming rights agreements among NCAA Division I programs were examined, alongside market-related variables, institution-related variables and venue-related variables. Utilizing hierarchical model building to reduce independent variables and OLS regression modeling, significant relationships with annual value of naming rights agreements were uncovered. Fixed effects models were utilized to determine if naming rights impacted attendance and donations.
Findings
A final model explained more than 53% of the variance in average annual value of naming rights agreements, with three significant factors: (1) attendance, (2) all-time winning percentage and (3) venue construction cost. Fixed-effects models revealed no significant differences in attendance or donations after a naming rights deal was signed.
Originality/value
Corporate naming rights agreements for college athletics facilities are a recent phenomenon. While a similar study examining drivers of collegiate sport naming rights was previously conducted, the current study revealed a shifting marketplace. In addition, no prior study has examined the impact of a corporate naming rights agreement on future attendance and donations.
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Stadium naming rights programs have proliferated over the past decade, yet we have no direct evidence that these types of sponsorship programs help companies develop their…
Abstract
Stadium naming rights programs have proliferated over the past decade, yet we have no direct evidence that these types of sponsorship programs help companies develop their long-term brand equity or even provide a short-term boost to corporate value. This paper examines the impact that naming rights programs have had on the stock values of the corporate sponsors. Using event study analysis, it is found that there are mixed responses to these types of programs. A discussion is provided which helps to explain the mixed results and provides communications mangers with some suggestions on creating more effective naming rights programs.
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Jonathan A. Jensen, David Head and Christopher Mergy
Naming rights sponsorships of sport facilities are among the most highly visible marketing agreements in the world. However, factors that may lead one sponsorship to persist for…
Abstract
Purpose
Naming rights sponsorships of sport facilities are among the most highly visible marketing agreements in the world. However, factors that may lead one sponsorship to persist for decades, while others end after just a few years, have yet to be investigated. Thus, this study examines the decision-making of brand marketers by investigating the predictors of a sponsoring brand's decision to either continue or dissolve such agreements.
Design/methodology/approach
Utilizing a global data set of 219 naming rights agreements, an empirical approach is utilized to isolate whether a variety of factors increase or decrease the probability of sponsorship dissolution.
Findings
Results indicate that agreements entered into with new, as of yet-unnamed facilities lead to a reduction in the probability of dissolution, with a high level of brand equity also reducing the probability of dissolution. Agency conflicts may also play a role, as the sponsoring firm being headquartered in the same metropolitan area as the facility also contributes to the persistence of such agreements.
Originality/value
These results are intended to assist both sides of what is ideally a long-term relationship in better understanding the factors that may either contribute to or inhibit longer-term partnerships.
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Throughout sport, the incidence of commercial sponsorship is increasing and shows no signs of slowing. This case study examines the negative consequences that can arise when a…
Abstract
Throughout sport, the incidence of commercial sponsorship is increasing and shows no signs of slowing. This case study examines the negative consequences that can arise when a corporate stadium naming rights partner (Enron) becomes embroiled in financial and ethical controversies and how its collapse affected the team that uses the stadium for its home games (Major League Baseball's Houston Astros). It examines public relations strategies and tactics the Astros used to disassociate themselves from Enron and to recapture public support.
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Perry Haan and Matt Shank
This study assesses consumer awareness of National Football League (NFL) stadium names and examines consumers' familiarity with sponsoring companies' industries and products. It…
Abstract
This study assesses consumer awareness of National Football League (NFL) stadium names and examines consumers' familiarity with sponsoring companies' industries and products. It explores whether consumers are more likely to purchase from a company or switch to products offered by a company that has paid to put its name on an NFL stadium. It attempts to understand consumers' overall perceptions of companies that put their names on stadiums. The results show that the naming of an NFL stadium has a minimal effect on consumers' perceptions towards the companies that buy naming rights or the likelihood of buying products from these companies.
David M. Woisetschläger, Vanessa J. Haselhoff and Christof Backhaus
The aim of this article is to contribute to the literature by analyzing potential determinants of fan resistance to naming right sponsorships. Although sports sponsorships mostly…
Abstract
Purpose
The aim of this article is to contribute to the literature by analyzing potential determinants of fan resistance to naming right sponsorships. Although sports sponsorships mostly trigger neutral or positive reactions by fans, the authors find empirical support which provides evidence for fan boycott or resistance.
Design/methodology/approach
The authors empirically test a model using a sample of 798 soccer fans and thereby quantify structural relations between determinants and fan resistance. They use a logistic regression to assess potential determinants of fan resistance.
Findings
Results indicate that sponsee- and sports-related variables, such as fan/regional identification and attitude toward commercialization, contribute to higher fan resistance. Furthermore, fans see themselves as in-group members who discriminate out-group members. As the sponsoring company takes over control and imposes a “threat” (the change of a stadium’s name) on the group’s ritual place, this results in strong negative emotional reactions. These emotions tend to be repeated and affirmed in intra-group communications which intensify negative reactions unless the sponsor offers a positive contribution from the fans’ standpoints. Our findings confirm that sponsorship fit and perceived benefits of the sponsorship reduce fan resistance while the sponsor’s regional identification is unrelated to fan resistance.
Research limitations/implications
Little attention has been paid on negative reactions to sponsorships in the existing research. Therefore, future research could assess negative effects resulting from other sponsorship contexts, such as the sale of a club's naming right, promotion campaigns during the venue and to sponsorship deals in general. Moreover, research should be devoted to finding strategies that lead to a reduction of fan resistance to sponsorship actions.
Practical implications
Results show that sponsorship fit reduces fan resistance. Existing literature suggests that sponsorship fit can be improved by emphasis or creation of fit between sponsor and sponsee. Additionally, sponsors should try to build a bridge between sponsor and fans to gain acceptance of the in-group by raising awareness on the benefits that the sponsee receives from their partnership. Moreover, sponsors should actively strive to understand negative reactions of the fans and adapt their communication strategy to avoid resistance, e.g. due to fans’ feelings of overt commercialism.
Originality/value
Although naming right sponsorships are generally considered a powerful instrument for companies to gain high profile and market share, they seem not to be entirely free of risk. This article contributes to the literature by conceptualizing the phenomenon of fan resistance and assessing the determinants that contribute to fan resistance when naming rights are sold. Our findings extend the understanding of negative sponsorship effects in addition to the mechanisms and theoretical frameworks that are documented in the literature (Cornwell et al., 2005).
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Makoto Nakazawa, Masayuki Yoshida and Brian S. Gordon
Integrating several streams of theoretical reasoning such as social identity theory, congruity theory and the customer gratitude approach, the purpose of this paper is to develop…
Abstract
Purpose
Integrating several streams of theoretical reasoning such as social identity theory, congruity theory and the customer gratitude approach, the purpose of this paper is to develop a model of the antecedents and consequences of sponsor-stadium fit and examine the hypothesised relationships.
Design/methodology/approach
Data were collected from professional football spectators in a non-historic stadium context (n=342). Through a confirmatory factor analysis and structural equation modelling, the authors assessed the antecedents and consequences of sponsor-stadium fit.
Findings
Based on the results, team identification and prior sponsor attitude were found to be the dominant factors in enhancing sponsor-stadium fit. Furthermore, the indirect effects of team identification on purchase intentions through sponsor-stadium fit and gratitude towards the sponsor were positive and significant.
Research limitations/implications
When renaming non-historic stadiums of relatively new sport teams, sponsors that present a team-related brand identity can create a preference and image fit with stadiums. The findings serve to advance the literature on stadium sponsorship particularly at non-historic stadiums.
Originality/value
In its conceptualisation of sponsor-stadium fit, the current study extends previous research that has focused primarily on sponsor-event fit.
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Joseph Loersch and William Ross
The purpose of this paper is to describe a classroom negotiation exercise. A case involving controversy over the naming of a sports stadium containing a university football field…
Abstract
Purpose
The purpose of this paper is to describe a classroom negotiation exercise. A case involving controversy over the naming of a sports stadium containing a university football field and track is described. A local municipality, representing veterans groups, negotiates with university officials over a university plan to rename “Veteran's Memorial Stadium” after a recently‐retired football coach.
Design/methodology/approach
The negotiation activity is adapted from an actual case. It requires little advance preparation and can be used with either pairs or small groups of participants. “Teaching notes” provide instructions for using the activity.
Findings
The “Teaching Notes” examine how this controversy illustrates several concepts related to conflict, integrative bargaining, power and negotiating on behalf of constituents.
Originality/value
The case differs from many published cases in that one side's position is apparently rooted in values and matters of principle whereas the other side's position is interest‐based. The student must grapple with these dynamics, while seeking an integrative solution to the issues.
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Matt R. Huml and Alicia M. Cintron
The purpose of this study is to examine how athletic fundraising managers perceive status and seek to use status to identify, prioritize and manage stakeholders within college…
Abstract
Purpose
The purpose of this study is to examine how athletic fundraising managers perceive status and seek to use status to identify, prioritize and manage stakeholders within college athletics.
Design/methodology/approach
To test this purpose, the researchers use the Gioia methodology to interview 19 college athletic department fundraising officers within National Collegiate Athletics Association (NCAA) institutions. Following interviews, the data were analyzed by the researchers and structured within a first-order and second-order concept designation.
Findings
Interviews show that status is an effective concept for explaining how athletic fundraisers identify and prioritize donors. Officers relied on economic (capacity) and social (passion and interest) factors to rank order donors. The results also show that athletic departments use status to manage stakeholders by rewarding their giving and escalating their commitment. Status is used in four strategies to manage the donor hierarchy: benefits, recognition, membership and access. Each strategy highlighted exclusivity and rank order.
Originality/value
There is a need to empirically test the application of status within the stakeholder theory context. These findings also contribute to the evolution of stakeholder management beyond the use of social identity theory or stakeholder salience. It helps our understanding of the evolving relationship between fundraiser and donor by recognizing the importance of capacity, passion and interests when identifying and prioritizing donors. Further, status-markers such as exclusive benefits, recognition, membership and access can be used to manage donors toward the organization's goals.
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