Philips Pays $100m for Naming Rights to Atlanta's Sporting Venue

Philips Electronics, the Dutch consumer electronics giant, has agreed to pay more than $100 million to have its name on Atlanta's new sporting venue, the Philips Arena. This deal is the most expensive corporate sponsorship of its kind in the US and will also lead to broader links with Turner Broadcasting, a subsidiary of Time Warner. The 20-year agreement is part of a strategic alliance between Philips and Turner, which may result in Philips becoming a preferred vendor for Time Warner.

Key Takeaways:

• Philips will pay over $100 million to name the Atlanta sporting venue for 20 years, making it the most expensive corporate sponsorship in the US.
• The deal is part of a strategic alliance between Philips and Turner Broadcasting, with potential benefits for Philips in becoming a preferred vendor for Time Warner.
• Philips aims to boost its brand name in the US, despite being little known, despite being the second-largest seller of televisions in the nation.
• Philips has dropped the Magnavox brand, which was used for most of its equipment since the 1970s, in favor of the Philips brand.
• Ted Turner, Atlanta's media mogul, said he would not have made the decision to drop his name from a Turner field without the recommendation of Gerald Levin, chairman of Time Warner.

Statistics:

• The Philips Arena deal is worth over $100 million.
• The agreement is for 20 years, making it a long-term investment for Philips.
• Philips is the second-largest seller of televisions in the US, behind Thomson Consumer Products of France.
• Philips has a significant presence in the US, despite being a foreign company.

Sources:

• Financial Times Limited, 1999. All Rights Reserved.