What is "naming rights"

n. the right to name a piece of property, either tangible property or an event, usually granted in exchange for financial considerations.

In the private sector, naming rights are a financial transaction and form of advertising whereby a corporation or other entity purchases the right to name a facility or event, typically for a defined period of time. For properties like a multi-purpose arena, performing arts venue or an athletic field, the term ranges from three to 20 years. Longer terms are more common for higher profile venues such as a professional sports facility.

The distinctive characteristic for this type of naming rights is that the buyer gets a marketing property to promote products and services, promote customer retention and/or increase market share.

There are several forms of corporate sponsored names. A presenting sponsor attaches the name of the corporation or brand at the end (or, sometimes, beginning) of a generic, usually traditional, name (e.g. Mall of America Field at Hubert H. Humphrey Metrodome). A title sponsor replaces the original name of the property with a corporate-sponsored one, with no reference to the previous name.

In a few cases, naming rights contracts have been terminated prematurely. Such terminations may be the result of contractual options, sponsor bankruptcy, or scandals.