What’s in a name?
Up to $4 million, the Shriners are hoping.
For somewhere between $2.5 million and $4 million, the Ancient Arabic Order of the Nobles of the Mystic Shrine is for the first time selling the naming rights to its venerable Shrine Auditorium and opening itself up to a myriad of other corporate sponsorships to get additional pocket money.
Executives, aware that such corporate sponsorship deals are more prevalent than ever, started contemplating the move last year.
“The timing is right,” said Duke Collister, general manager of the historic auditorium, which is located downtown at 665 West Jefferson Blvd.
But they want to be choosy. “We’re looking for a partner that makes sense for us. I just couldn’t see us as the Jiffy Lube Auditorium.”
The Moroccan-styled 6,300-seat auditorium was first built in 1906, though it burned down in 1920 and was rebuilt in 1926. Home to the country’s largest stage (194 feet wide and 69 feet deep), the Shrine is still the site of the American Music Awards and the Academy of Television Arts and Sciences’ Emmy Awards.
The Academy Awards, Grammy Awards and the NAACP Image Awards have been held there, too. The Oscar ceremonies were frequently held there in the 1980s and ’90s, until the Kodak Theater opened. The Staples Center has hosted the Grammys since 2000.
The Shrine Auditorium and Expo Center are operated by the for-profit arm of the fraternal organization.
The deal to sell the title probably would be a multi-year agreement with renewal options. If the Shrine could sell the rights for $4 million in a four-year deal, the $1 million-a-year take would approach some of the lucrative naming-rights deals for big sports arenas. The rights for San Francisco’s AT & T; Park, formerly SBC Park and Pacific Bell Park, sold a couple years ago for $50 million over 24 years, or a little more than $2 million a year.
Selling the naming rights is only part of the Shrine’s initiative to raise money. It plans to sell display advertisements for as little as $2,000 per show, but will sell packages ranging from $150,000 to $500,000 for all manner of signs, billboards, video displays and sales tie-ins.
Sunglasses-maker Oakley Inc. is already reviewing a contract to sponsor the green room, where celebrities and performers relax pre-show.
But since it hosts more nationally televised non-sports events than any other venue, the Shrine figures to have high naming value. The “broadcast from the world famous Shrine Auditorium” line used so often over the past decades will now present an opportunity for brand recognition.
“The value of the mentions on national television exceeds the cost of the sponsorship,” said Scott Cooper, executive vice president of the Shrine’s ad agency, MJA Advertising Associates Inc. “This is the Super Bowl of venues.”
Deciding carefully
On the other hand, naming rights deals aren’t always easy, especially for venues whose names are already well established.
Naming rights for the Louisiana Superdome never were sold. Would-be sponsors figured they could spend millions of dollars renaming the well-known facility, but people would still call it the “Superdome.”
And residents sometimes resent it. Twice since 1994, San Francisco’s citizenry rejected attempts to rebrand Candlestick Park stadium. Residents balked at calling it 3Com Park in 1995-96, and when it was renamed Monster Park in 2004 (a four-year deal worth $6 million), they voted to have the park’s name revert to Candlestick Park when the pact ran out.
Of course, any venue has to be choosy when it comes to picking a corporate sponsor. As Collister said, Jiffy Lube would not be a wise choice. He said that Shrine management would exercise discretion; the choice requires the approval of Collister and the Shrine’s five directors.
“It really has to make sense as a fit for us and the pride that’s in our history,” Collister said. “We have to maintain the integrity of the property and maintain the prestige.”
A decision should be made within the next 10 to 12 months, and telecomm and automotive-type companies are at the top of the list. The Shrine’s ad agency reps also said that a corporation headquartered in Los Angeles would have obvious appeal, giving a local outfit an edge over outside competition.
For the time being, the auditorium will make the bulk of its revenue from stage booking fees and ticket sales. Specific arrangements vary by performance. For the recent Miss Universe pageant, for example, the Shrine took a percentage on the seats sold for the much-watched event.
Technology upgrades
When a deal is cut, much of the extra money will pay for improvements and upkeep of the historic auditorium.
“With technology advancements, the building has to be upgraded with lights, sound, everything,” Collister said. “We’re always trying to make it more user-friendly.”
It last underwent large-scale renovation a $15 million undertaking in 2002. That work upgraded the auditorium’s stage with state-of-the-art lighting and rigging systems, included new roofing and air conditioning for both the Auditorium and Expo Center, modernized concession stands, added restrooms, repainted the Expo Center and added a performance plaza and parking garage.
Some of the extra sponsorship money will go toward the Shriners’ charitable causes. The Shrine of North America includes about 500,000 men who belong to nearly 200 Shrine Temples or chapters. The organization is known for its colorful parades, red fezzes, circuses and clowns, but more appreciated for its network of 22 specialized, no-cost hospitals that treat children with orthopedic problems, burns and spinal cord injuries.
According to the Shriners’ Web site, the non-profit organization’s budget for 2006 is $649 million, with $616 million earmarked for operating expenses, including $33 million for research and $33 million for buildings, maintenance and equipment expenditures.
The Shriners Hospital in Los Angeles is planning a move to a new, helicopter-accessible, 5-acre site near Los Angeles County-USC Medical Center.
