Bidding for naming rights at the new Rams stadium has begun, and word is that no less than $30 million a year for a minimum 20-year deal will do. The forthcoming $2.6 billion stadium, currently being built in Inglewood will eventually house the Rams and the Chargers. Both teams have relocated respectively from St. Louis and San Diego.
The price is hefty, for sure, but still comes in less than the deal signed with Metropolitan Life Insurance for the MetLife Stadium, home of the New York Giants and Jets. That deal averages an annual value of $17-$20 million over 25 years for a total value of $425-$625 million.
So far, AT&T is the only known company seriously considering the offer, although it already has naming rights to the home arenas of the San Antonio Spurs, San Francisco Giants and Dallas Cowboys, and a top-level sponsorship at the new Mercedes-Benz Stadium in Atlanta.
The telecommunications leader is apparently motivated by hyper competitiveness within the mobile service industry, and the fact that it is considering relocating to El Segundo. This would put their offices within 5 miles of the new Inglewood stadium.
The Inglewood stadium will seat 80,000 sports fans, and is part of a 300-acre mixed-used complex, scheduled to open for the 2019 NFL season and serve as host for Super Bowl LV in 2021.
The $600 million minimum price tag as the title sponsor is not entirely unreasonable, insiders say because, like New York, Inglewood will have two teams playing at the same venue. This ensures a home game every week of the NFL season.
Since the Rams own the stadium, privately financed by owner Stan Kroenke, the Chargers won’t be getting any of the revenue from the stadium naming rights. Actually, the former San Diego team will be leasing the stadium from the Rams for their home games.