Missing the bulls-eye
Target in recent years has emerged as a viable competitor to Wal-Mart’s near-monopoly on the all-you-need retail provider, and simultaneously has become a bigger player in the sports world, with sponsorships of a Tiger Woods golf event and Scott Dixon’s IndyCar Series ride, among others. But with the announcement today that Target has signed a whopping 25-year deal to make the Twins’ new home Target Field, I can’t help but wonder if their home-town allegiances are a little too strong.
The Minneapolis-based retailer already owns the naming rights for the Target Center in its home city, which houses the pitiful T’Wolves, and this certainly makes the company’s name synonymous with sports in Minnesota. But it also begs the question: is that a good thing?
I’ve always been skeptical of the value of naming-rights sponsorships. Did Key Bank really get its money’s worth as the center-point of the city of Seattle’s ugly court battle with Clay Bennett? And do you think executives at Reliant Energy today are smiling as they survey the damage of the Texans’ Hurricane-ravaged home?
Yes, it’s hard to fault a company when the stadium that bears its name falls victim to Mother Nature’s wrath. And Key Bank brass, all the way across the country in Cleveland, could not have anticipated the Sonics’ exodus to Oklahoma City — not to mention their embarrassing on-court display. But partnering with a less-than-successful venture is always a possibility in the fickle world of professional sports.
It’s not that I expect companies to stop tying their names to major sporting venues. As a matter of fact, I fully anticipate the trend will continue to sprout bigger and bigger deals, as major corporations look to partner with the great brands in sports. But in this terribly troubling economic time, and with a torn ACL separating most sports franchises from Champion to oblivion, I can only sit back and question the value of naming-rights sponsorships.
