Int. J. Sport Management and Marketing, Vol. 19, Nos. 3/4, 2019 233
Copyright © 2019 Inderscience Enterprises Ltd.
Marketing investments in sport venue naming rights
and the market value of the firm
David M. Goldberg*, Jason K. Deane,
Terry R. Rakes and Loren Paul Rees
Department of Business Information Technology,
R.B. Pamplin College of Business,
Virginia Polytechnic Institute and State University,
Pamplin Hall Suite 1007, 880 West Campus Drive,
CAMPUS 0235, Virginia Tech, Blacksburg, VA 24061, USA
Email: goldberg@vt.edu
Email: jdeane1@vt.edu
Email: trakes@vt.edu
Email: lrees@vt.edu
*Corresponding author
Abstract: Sport venue naming rights agreements represent monumental long-
term marketing investments to increase brand awareness and improve a firm’s
image. These agreements require enormous expenditures, highlighting the
importance of understanding their impact on the firm’s market value. Questions
of the wisdom of such investments today, which types of sport venues are most
appropriate, and whether full corporate names or truncated ones are equally
successful are of more than academic interest. Prior research has presented only
a limited window into the efficacy of these deals. Results from the well-known
event study methodology show improved stock market returns based on
122 announcements of naming rights deals, although it is found that market
reactions have soured since 2001, when several firms investing in naming
rights experienced insolvency. Investments in naming major league baseball or
multi-sport venues have been particularly wise. Somewhat surprisingly, we
observe that longer sport venue names are preferred to other name lengths.
Keywords: event study; sponsorship; sports; investments; advertising.
Reference to this paper should be made as follows: Goldberg, D.M.,
Deane, J.K., Rakes, T.R. and Rees, L.P. (2019) ‘Marketing investments in sport
venue naming rights and the market value of the firm’, Int. J. Sport
Management and Marketing, Vol. 19, Nos. 3/4, pp.233–252.
Biographical notes: David M. Goldberg is a PhD student in the Department of
Business Information Technology at the Pamplin College of Business at
Virginia Tech. He received his BS in Business Information Technology and his
BA in Geography at Virginia Tech. He has previously worked in the
commercial real estate industry, where he developed spatial tools to augment
market analyses. His current research interests include text and data mining,
business intelligence and analytics, geographic information systems (GIS) and
spatial analytics, and disaster planning and logistics.