Omniscient

https://www.google.com/amp/s/www.reviewjournal.com/business/stadium/allegiant-stadium-official-name-for-raiders-las-vegas-stadium-1819259/amp/

$20-$25 mil a year for naming rights.

TransWorld

It’s a marketing cost. Just like ads on TV, the internet, and in magazines.

One may not like it, but apparently lots of other companies, as well, must think it is a worthwhile expenditure of advertising money. Look at all the named stadiums.

KC135

If you read the article that amount is just a guess. The actual deal is undisclosed. Seems unlikely to be that much since the most recent stadium naming deals have been 5-13 million a year. Money well spent.

SSlow

I'm sure it will drum up lots of business for people wanting to fly on Allegiant from Vegas to places like Fort Stockton, TX and BFE Montana.

Seriously though, the end result cannot be that good when a ULCC starts dumping loads of cash into something like this.

Omniscient

I don’t think naming rights are meant as an advertising tool, more so as branding. Do you really think someone is more likely to buy a ticket on Allegiant because the stadium name is Allegiant? Does Oracle plan to sell more “whatever” because they have the naming rights to the new Warriors arena and the Giants ballpark? I would bet not.

How much targeting advertising could this have bought vs a name on a stadium?

Not my money but I hope you guys get some more cash next contract since it seems either

a) the company has so much extra cash, they can buy a name on a stadium

B) the “investment” in the naming rights will drum up so much extra business, they will have money to spare for its pilots

Omniscient

The specific terms were not made public, but experts that spoke with the Review-Journal speculated similar deals say Allegiant is "likely paying between $20-$25 million in cash and in-kind services a year to put its name on the building

But you say less. Did you pull your number straight from your rump or from then air? There is zero chance a new big time stadium like this is selling its rights for its first year at a bargain.

“Money well spent” haha. I hope you guys get discounted parking for games

akulahunter

Ehh... I think you guys should be focusing on how many Game Charters we will be flying for the away teams (fans)... KC playing in LAS? We'll offer a full package including airfare, hotel, shuttle, etc... We fly to a ton of NFL cities, if it works out, I bet we fly to (or close to) the rest within a couple of years.

Not the plan I would have made, but I'm willing to give them the benefit of the doubt and see how it works out. Uncle M doesn't like throwing money away, so they at least "think" they will get a decent margin from this spend.

TransWorld

Guess American Airlines naming of the American Airlines Center (Home of the Dallas Stars and Dallas Mavericks) is foolish as well, in your book. Similarly United (Airlines) Center in Chicago, etc.

Omniscient

It’s not even comparable.

American and United are worldwide brands. They spend the money for naming rights to keep their brand strong, an established brand.

Allegiant needs to establish a brand before they could even begin to maximize the brand.

This isn’t a knock, I work for Spirit and our brand is still crap because of how it has been run in the past.

KC135

Yes, that range isn't accurate. I can't say much else about it. I'll explain why it's money well spent and not just naming rights. Take for example the company's largest base which is in Orlando, most people who live in that city have absolutely no idea who ALGT is. Why, because they have all flown out of MCO, where there is no company presence, but never out of the satellite airport SFB. The same goes for TPA/PIE, CMH/LCK, PHX/IWA, CLT/JQF and the list goes on. Also, the name isn't listed on any travel site such as priceline, travelocity, etc. The only way to buy a ticket online is through the company's own website. This is how people end up living in a city for years but have never even heard the company's name before.

Getting the airline's name out there on a national scale within the countries most popular sport is a great marketing tool. While financially aggressive for the airline's size, the cost is less than 25% of the annual marketing budget. Other advertising areas will be decreased so this will have minimum impact to the income statement going forward.