Livestrong Stadium Deal Sets Naming Rights On its Ear

In March Sporting Kansas City, a Major League Soccer (MLS) team announced that its new $200 million stadium, scheduled to open in June, would be named Livestrong Sporting Park, in honor of the Lance Armstrong Foundation.

Moreover, it appears that Livestrong did not pay for the naming rights and is instead guaranteed a donation of no less that $7.5 million over the next six years. The money will come from a portion of ticket and concession sales to both MLS matches and other events held in the stadium, including concerts.

This is the first time a nonprofit has received naming rights for a stadium in the United States. Normally, stadium naming rights go for millions of dollars, even for MLS stadiums. The MLS team in my modestly-sized market, Real Salt Lake, gets a reported $1.5 million to $2 million a year for naming rights from Rio Tinto, the global mining conglomerate headquarterd in London, but with a substantial presence in the Salt Lake Valley.

Soccer is no stranger to causes. My friend Jose Sanchez in his guest post on April 12, tells how Mexico’s Fundacion Cim*ab (a NGO dedicated to raising awareness about breast cancer) and Federacion Mexicana de Futbol did a 'Pink Futbol' campaign that spanned that league.

Futbol Club Barcelona’s jersey included a UNICEF logo, for which it reportedly paid UNICEF €1.5 million a year. That deal is apparently ending since FC Barcelona has agreed to a €4 million a year deal for jersey sponsorship with the country of Quatar.

But the Lifestrong deal is potentially more valuable than the FC Barcelona-UNICEF deal since it includes all events in the stadium.

I’d some to see the math on the Livestrong Sporting Park deal, since it is so different than anything other naming rights deal.

In the meantime, witness the power of the Livestrong brand when it comes to cause marketing.

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Chili’s and St. Jude Children’s Research Hospital

I was in Chili’s today and I ordered their “Triple-Dipper,” a three appetizer combo. While I waited for the food, I noticed another kind of combo. Chili’s is doing a full-featured cause-related marketing campaign for St. Jude Children’s Research Hospital. There was a four-sided laminated table tent outlining the campaign on the table. When the waitress brought the drinks she slapped down Chili’s trademark square paper beverage coasters and on them was a call to action for an element of the campaign called ‘Create-A-Pepper,’ a kind of paper icon campaign. The wait staff was all attired in black shirts co-branded with Chili’s and St. Jude. The Create-A-Pepper paper icon could be found in a stack behind the hostess area. The Peppers are outlines of Chili’s iconic logo meant to be colored. I paid $1 for mine, but they would have taken $5, $10, or more. The crayons, too, were co-branded with the ‘Create-A-Pepper’ and St. Jude’s logos. There’s also creatapepper.com, a microsite, but again wi...

Part 2: How Chili's Used Cause-Related Marketing to Raise $8.2 million for St. Jude

[Bloggers Note: In this second half of this post I discuss the nuts and bolts of how Chili's motivates support from its employees and managers and how St. Jude 'activates' support from Chili's. Read the first half here.] How does St. Jude motivate support from Chili’s front line employees and management alike? They call it ‘activation’ and they do so by the following: They share stories of St. Jude patients who were sick and got better thanks to the services they received at the hospital. Two stories in particular are personal for Chili’s staff. A Chili’s bartender in El Dorado Hills, California named Jeff Eagles has a younger brother who was treated at St. Jude. In both 2005 and 2006 Eagles was the campaign’s biggest individual fundraiser. John Griffin, a manager at the Chili’s in Conway, Arkansas had an infant daughter who was treated for retinoblastoma at St. Jude. They drew on the support Doug Brooks… the president and CEO of Brinker International, Chili’s parent co...

Cause-Related Marketing with Customer Receipts

Walgreens and JDRF Right now at Walgreens…the giant pharmacy and retail store chain with more than 5,800 stores in the United States and Puerto Rico… they’re selling $1 paper icons for the Juvenile Diabetes Research Foundation (JDRF). This is an annual campaign and I bought one to gauge how it’s changed over the years. (Short list… they don’t do the shoe as a die cut anymore; the paper icon is now an 8¾ x 4¼ rectangle. Another interesting change; one side is now in Spanish). The icon has a bar code and Jacob, the clerk, scanned it and handed me a receipt as we finished the transaction. At the bottom was an 800-number keyed to a customer satisfaction survey. Dial the number, answer some questions and you’re entered into a drawing for $10,000 between now and the end of September 2007. I don’t know what their response rate is, but the $10,000 amount suggests that it’s pretty low. Taco Bell’s survey gives out $1,000 per week. At a regional seafood restaurant they give me a code that garner...

Cause Marketing

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