automotive

Mercedes Sponsorship Good Deal At The Right Time

Louisiana Superdoem

In a first-ever naming rights deal for Mercedes-Benz USA, and the first time the Louisiana Superdome has had a title sponsor, the luxury automaker will have its name on the New Orleans stadium that is home to the NFL's New Orleans Saints. The deal is a coup for the automaker (not the kind with two doors) for several reasons, not the least of which is the $340 million renovation the venue has just undergone.

The fact that the stadium was renovated, not torn down and rebuilt (which would have cost a lot more) means the Mercedes-Benz Superdome, as it is now called, will still be the one people around the world remember -- for better or worse -- as the home for thousands of people during the hurricane. It also helps Mercedes-Benz that the brand will be associated with the city's renaissance, such as it is.

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The 10-year deal gives the company naming rights, and the status of Official and Exclusive vehicle of the Saints. Mercedes-Benz also gets branding and signage throughout. In addition, the Saints print and online publications will feature Mercedes-Benz content and advertising and the company will have access to Saints coaches and players for special events and promotions. Mercedes-Benz says it plans to leverage its access to many of the events to create unique programs such as customer and fan appreciation activities.

The timing is also good for the automaker, as the venue will be hosting both the 2012 Men's Final Four and BCS Championship Game in addition to the 2013 Super Bowl. While the company has not disclosed spend, Barry Janoff, editor at The Big Lead, said it is not unreasonable to assume that it would be along the lines of MetLife's $20 million-per-year deal at Giants Stadium in the Meadowlands.

The deal is good for the Saints, since it probably pays for a big chunk of the renovation up front. Janoff adds that the deal is great for Mercedes because the Superdome is a frequent venue for big games. The Superdome has been home to a record six Super Bowls, including Super Bowl XII (1978), XV (1981), XX (1986), XXIV (1990), XXXI (1997), XXXVI (2002), plus another, XLVII, coming in 2013.

"It's not just about the Superdome. It's giving them national and even global exposure because of the Super Bowl. They have a lot of college football and the New Orleans Saints are the main tenant, so it gives Mercedes a strong tie into national NFL exposure," says Janoff. "Even before Katrina, the Superdome hosted a lot of Super Bowl games."

Said Louisiana Gov. Bobby Jindal in a statement: "I know for many years there have been attempts to sell this sponsorship, and I think the restructured deal and the new Superdome are two of the reasons this is actually happening. So I think this is great for the Saints and great for the state."

Janoff says the stadium attracts a lot of big events because it has indoor capability, and, well, it is New Orleans. "People come to New Orleans to party. Over the course of 20 years they might get three Super Bowls."

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