What are the financial issues present?

The article presents an account for the uprising monetization of naming rights in sports and
gaming. The need to increase on revenues for both the corporate sponsors and sports management
companies is attributed to this phenomenon. Naming stadiums after people, companies and
products is a way of advertisement and brand promotion to the public. On the other hand, the
money for consideration is used to renovate the stadia and other areas within the stadium. By
naming the stadium as Gillette Stadium, Proctor and Gamble had to pay $240 million to the New
England Patriots for a 15-year contract. Stephen Ross, the owner of Miami Dolphins, has been
financing the team with over $500 million makeover but the deal that involved bringing Hard Rock
international (with a $250 million agreement) gives him a great sigh of relief. This 18-year deal is
beneficial to the two parties in terms of revenue. This implies constant inflow of money into the
NFL.

Gambling is another sector that has gained popularity over the recent past. Though restricted in
countries like US, gambling companies are on a rise following their considerable revenue. The
writer of the article describe gambling as a taboo. With a $25 billion revenue set by 2027, the
Dolphins’ stadium and Hard Rock International partnership is seemingly promising and cannot be
overlooked.

Another important concern elucidated by the writer is preference to partnership franchise as

opposed to individual franchise. This is a powerful weapon of networking and growing financial
strengths.

Recommendation regarding the financing

Choosing the right partnership is essential for million-dollar franchise. This applies in line with
partnership franchise as opposed to individual franchise. Getting the right partner means a
partnership with economic and social rights and consideration for both parties. These elements are
statement are envisaged in the contractual clauses.

The consumer or fan perception is one on the major aspect that need to be considered in naming
rights. This public relations and fan base is a major considerations in making naming rights
agreements (Christian & Kraske, 2004). In their document, Christian and Kraske recommends
that financing sports facilities in naming rights should envisage contractual provisions and general
perception of the targeted clientele.

Gambling brings about considerable revenue, however, there is need to regulate the gambling
sector since it is attributed to addiction and vices. There should be regulations controlling gambling
and these regulations should be enforced. This infers that the sector should not bring money while
compromising the social fabric.

What can be improved?

Though gaining popularity, naming rights is yet to reach its peak. There is need for more
sensitization and networking of the corporate world on the need to embrace monetization of
naming rights.

Another key element that need to be improved is mitigation of fan resistance. This is mostly
brought about when the sponsoring party take full control of the stadium and aims at pulling most
of the benefits to themselves. Recognition of the fan expectations reduces such resistance
(Woisetschlager, et al., 2014).

How would you go about improving it?

There should be a campaign on encouraging sponsors to invest in sporting facilities through

naming rights sponsorship. Reasonable regulations and incentives can help towards achieving this.
Also, mitigation of fan resistance can be achieved by ensuring that the fans expectations are met
by offering them incentives and involving them id making decisions regarding such naming rights.

References
Christian, M. & Kraske, H., 2004. " What's Really in the Package of a Naming Rights Deal?"
Service Mark Rights and the Naming Rightsof Professional Sports Stadiums. Journal of
Intellectual Property Law, 11(2), pp. 1-29.

Woisetschlager, M., Haselhof, J. & Backhous, C., 2014. Fans’ resistance to naming right
sponsorships. European Journal of Marketing, 48(7/8), pp. PP 1487-1510.