In Portland they 'put a bird on it'. In San Jose let's 'put a corporate logo on it.'

Early morning crew removes
the HP Pavilion sign from
the new SAP Center @ San Jose

This week work crews have been busy taking down the last remnants of the HP Pavilion era and began putting up new signage that will highlight the SAP Center at San Jose. All this week and last, arena management has been cleaning house, inside and out. Crews have been cleaning the shiny steel exterior and painting the white lattice work on the building corners. Inside the arena Shark management has been cleaning house as well (see the Silicon Valley Business Journal's Lauren Hepler series of articles on the changes), one of which was installing a new Chief Operating Officer. Interestingly enough the majority owner of the San Jose Sharks franchise, Hasso Plattner, is a co-founder of SAP.

SAP signed the five year deal valued at $8.4 million or $1.7 million per year with the proceeds being split up equally between the team and the City of San Jose. To put this in comparison the deal on the new Forty-Niner stadium in Santa Clara is valued at $220 million for 20 years (third largest deal ever) and the deal for ATT ballpark is valued at $50 million for 24 years. Yahoo also just signed signed a 10 year deal that will make that company the "exclusive online sports content, social networking, and photo and video sharing partner" for the  Forty-Niners.

In a post on his blog, San Jose City Council member Sam Liccardo highlighted a recent independent study which showed that bring the Oakland A's to the city would benefit downtown business by about $83 million annually. Additionally the sale of the future ballpark's naming rights would also bring additional and much needed cash to the city. I'm not sure how naming rights funnel into city coffers. Do they get diluted into the city's general fund? Does it go for maintenance of the arena, or other city assets, such as downtown museums or parks?

But given that the naming rights game is somewhat new (except in the St. Louis area) and limited to mostly sports facilities how else could an innovative city such as San Jose expand the concept. In Japan they even extended it to the teams themselves such as the Seibu (Department Store) Lions which play in the Seibu Dome, the Nippon Ham (meat products) Fighters, and Yakult (Yogurt) Swallows baseball teams. I'll discuss more in my next post but until then; "put a bird on it".