Money in Philly: Union Ink Stadium Deal

The Sports Business Journal is reporting that the Philadelphia Union are set to sign a ten year naming rights deal with energy firm PPL Corp. for the new $120 million stadium on the Chester Waterfront.  The agreement has been announced at $20 million dollars for the life of the deal and the new facility will be called PPL Park.  In addition to stadium naming rights, PPL will also get hospitality events and experiences at the stadium, TV and radio advertising, signage boards and sponsorship rights in the youth soccer programs in which the Union have a foothold.  Given Pennsylvania’s recent de-regulation of the power industry, PPL is making a calculated gamble that now is a great time to enter the world of sports marketing.

Despite economic conditions, the deal compares favorably with those of other MLS stadiums.  Dick’s Sporting Goods Park is a 20 year, $30 million dollar deal, BMO is 10 years and $23 million and Toyota Park is 10 years and $7.5 million.  The outlier is the 10 year $70 million dollar deal for the Home Depot Center.  According to the article, other suitors including Waste Management, Sony, Amway, Under Armour & Coke.  Coke will ultimately be announced as the team’s soft drink sponsor.