Palmeiras arena naming-rights deal resets market and could lift rivals | OneFootball

The new naming-rights contract for Palmeiras' arena, agreed between WTorre and Nubank on Friday, has jolted Brazil's sports marketing market. Valued at about $10 million a year, roughly R$ 50 million, it is the biggest deal of its kind and runs to 2044.

According to Globo.com, agencies, club officials and brand executives believe the agreement could influence other Brazilian clubs and venues. Two factors stand out, the sums and the switch from Allianz, in place since 2013, to a new name chosen by open vote with three options.

Until now, Pacaembu's Arena Mercado Livre led the market at roughly R$ 33.3 million per year. Specialist Anderson Nunes sees the deal as a step up that could spur renegotiations and fresh revenue.

Corinthians and São Paulo have been working for months to upgrade their stadium naming rights. They make about R$ 21 million with Hypera Pharma's Neo Química and believe returns could triple. São Paulo receive about R$ 25 million from Mondelēz and are also in talks with BYD.

Marketing professor Ivan Martinho says the sector is maturing after early missteps, such as Athletico-PR's Kyocera Arena, and that successes are shifting assumptions. The more successes emerge, the more brands are drawn to invest.

Experts say the market is at its strongest in two decades, still behind the United States, yet Palmeiras and Nubank's numbers match many American arenas. Palmeiras' location, structure and access make it a unique multi-use case, so this sum is unlikely to be surpassed soon.

Source: Globo.com