As we discussed through Twitter on Tuesday and was officially announced on Wednesday, the Dynamo’s new home will officially become BBVA Compass Stadium. The new sponsor is a strong banking presence in Houston, with 80 branches in the city area and its corporate headquarters also nearby. BBVA is also the official naming sponsor of Spain’s La Liga and has a long history of involvement with soccer on a global scale. The Houston Chronicle broke the news of the sponsorship and reported that the deal was for a reported $20 million over 10 years. According to the Sports Business Daily, the deal also includes branding rights within the stadium.
The two million dollars per year is in the typical range of MLS stadium deals. The Home Depot Center is an outlier, with the home improvement giant ponying up $7 million per year for rights to the stadium and adjacent center. That deal expires in 2012 and it will be interesting to see what AEG can earn in the next negotiation. Dicks Sporting Goods Park was also for $2 million per year. The PPL Park deal was also valued at $2 million per year. Toyota Park is one of the lowest naming rights deals at under $1 million per year while Pizza Hut Park was reported at $1.25 million. Last year Sporting Kansas City went a different route, partnering with LiveStrong to provide the charity with naming rights.
In a market where teams are searching for income opportunities and sometimes struggling to find naming rights partners (see Cowboys Stadium), it is impressive that Houston was able to secure a market rate deal with a prominent corporation months in advance of official opening. The deal guarantees revenue for 10 years and ensures a partnership with one of the primary lending institutions supporting construction.
BBVA acquired Alabama based Compass in 2007 and is now one of the larges financial institutions in the world.