Shaun Clark and Joseph Ireland wrote for the May/June 2026 issue of LA Lawyer about the complex and high-stakes negotiations involved in naming rights and sponsorship agreements for stadiums and other venues.
Teams and their home venues may be seamlessly connected in the minds of fans, but for venue operators and brand marketers, stadium names are the result of negotiations involving significant financial commitments, strategic branding considerations and long-term partnerships between the brand sponsors and venue stakeholders.
Key takeaways
- Define “Stadium” with precision. Clarify whether naming rights cover only the main structure or also adjacent and ancillary areas, and address third-party controlled spaces up front.
- Treat signage and digital visibility as core deliverables. Specify placement, prominence, maintenance, illumination and protections against obstruction, including issues that arise during broadcasts and streaming.
- Draft exclusivity carefully. Product category definitions should account for evolving business lines, competitor workarounds and necessary carveouts for leagues, teams, events and existing sponsors.
- Document trademark licensing and approvals. Establish ownership of new venue-name marks, usage parameters, quality control and termination or wind-down obligations.
- Do not assume team marks or player NIL are included. Team and league IP may require separate rights, and player name, image and likeness use typically needs additional licensing.
- Disclose excluded events and superseding rights. Identify events where venue branding benefits may be covered or controlled by third parties, and address whether make-goods apply.
- Allocate long-term risks with clear remedies. Set objective triggers and processes for make-goods, credits, fee adjustments and termination tied to disruptions such as force majeure, lockouts, relocation or reputational harm.
- Plan for enforcement and measurement. Include reporting, audit rights and escalation procedures so disputes can be resolved quickly, especially during live event cycles.
Read the full article here.