Stadium name for sale!
9 September 1998The naming rights to Sydney's Olympic Stadium will be sold to one of the key sponsors of the Games under a deal believed to be worth around $30 million.
Telstra and Westpac are understood to be locked in a bidding war after Stadium Australia, the stadium's owner/operator, confirmed yesterday that the successful bidder's name will become part of the stadium's title.
But Stadium Australia guaranteed the stadium will not carry the sponsor's name during the Olympics in September 2000, even if a deal is finalised before it opens next March.
Stadium Australia is seeking a "long-term tenant" for between 10 and 15 years. "More than two" sponsors were considering the bid, Stadium Australia's chief executive, Mr Chris Chapman, said.
It is understood the deal is valued between $3 million and $7 million a year, the final figure depending on the length of the contract.
"It's a lot of money," Mr Chapman said. "But there would be commensurate value for the amount paid. It's really quite extraordinary value."
Last month Stadium Australia placed the multi-million-dollar, multi-year deal before the top echelon of Olympics sponsors, who have paid up to $60 million for the right to be linked to the Games.
Under a deal struck with SOCOG, the Team Millennium Partners have first right of refusal.
Telstra and Westpac yesterday confirmed their interest.
"Telstra is very keen to leverage its Olympic Games sponsorship," Mr Adam Jeffrey, Telstra's group manager, sponsorship and Olympics, said. "The stadium is the key Olympic venue, though the package itself doesn't provide naming rights during the Games.
"We are very interested in the business benefits we may be able to get out of it."
Westpac's marketing head, retail banking, Mr Richard Harper, said: "I think we have to be interested. If you look around the world and even Australia, some names have just stuck, but it's all a matter of what's included in the package."
