Thursday, March 9, 2006

Will Red Bull Give Corporate Nicknames Wings?

The MetroStars of Major League Soccer have been sold to Red Bull Co., Ltd., an Austrian company that makes the well-known energy drink of the same name (ESPN). Red Bull has also bought the naming rights to a proposed soccer stadium in New Jersey, but that is not the big news. What will make headlines is that henceforth, the team will be know as Red Bull New York.

I previously wondered why companies did not try to purchase the naming rights to teams, rather than just stadiums. (11/4/04). Why not the Detroit Cadillacs or the Atlanta Cokes? But an idea like this almost always has to start at a lower level and then work its way up to the big time. If Team Red Bull can work for MLS, it may not be much longer before we see corporate names in the big 4 leagues.

Is this bad for professional sports? Many fans protest the naming of arenas after companies, so you can imagine the uproar over naming an entire team. In my opinion, the idea has some merit, but leagues must take some control over the process to protect its image. A stadium named after a scandal is one thing -- but what fan in Houston would have cheered for the Enrons?. And while it is less problematic for a stadium to change names every few years because of mergers, bankruptcies, etc, no league wants a franchise to have a new nickname every 2 seasons. There is also the problem of cheering for the "Verizons" or the "Colgates" -- can fans really get into teams with names like that?

Red Bull New York presents an interesting test case. The product name is also a mascot name. The market is huge, presenting many possibilities for tie-ins and gimmicks. The league is on the smaller side, increasing the upside and minimizing the risk. If Red Bull New York works, perhaps other teams would have similar success. If it fails, however, team nicknames may be the one place in sports where corporate dollars remain unwelcome.

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