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Venue Naming Rights

Background

After years of failed arena discussions and an unsuccessful attempt to relocate the franchise, the Sacramento Kings were sold to a new ownership group. This new group was tasked with creating a revitalized future for the city's beloved franchise. With a new venue under construction, the franchise faced significant challenges due to its location within the NBA’s smallest corporate market and enduring years of lackluster on-court performance. The spotlight was on Sacramento to see if it could deliver on the promise to thrive as California’s state capital.

Results

The key achievement was securing a landmark 20-year naming rights deal worth a reported $120 million with Golden 1 Credit Union. This partnership was notable for several reasons:


· Highest Price for a Single Team Venue: At the time, it was the highest price paid for naming rights to a single team venue within the NBA/NHL. 


· Fifth Overall in Average Annual Value: The deal was ranked fifth overall based on average annual value, setting new expectations and standards for the naming rights market.

Conclusion

This strategic move not only provided significant financial stability but also reinforced the franchise’s commitment to thriving in Sacramento. The naming rights with Golden 1 Credit Union played a crucial role in redefining the value and expectations of such agreements within the sports industry.

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