Naming rights for an upcoming Las Vegas stadium could yield benefits for Allegiant Air, as the company sees big potential to increase brand awareness.
Currently under construction, the new Allegiant Stadium will open for the relocating Raiders and UNLV football in 2020. Last week brought one of the biggest announcements yet regarding the upcoming facility, as it was revealed that the Raiders and Allegiant had struck a partnership that included stadium naming rights.
Now that the agreement has been announced, executives from the Las Vegas-based airline are touting the brand exposure that they feel will come from the partnership. The fact that the $1.9 billion stadium will be home to an NFL franchise means that it will provide a big platform for Allegiant, but with the venue expected to host other major events, Allegiant executives want to seize the opportunity to boost the company’s brand. More from the Las Vegas Sun:
“If we didn’t step up and do it, someone else puts their name up there and (the opportunity) is gone,” Allegiant CEO Maury Gallagher said. “This is all about brand, brand, brand and how do you get your name out there faster with one expenditure than what we’re doing with the Raiders? That’s the strategic statement we’re making here.”…
Although terms weren’t disclosed, the agreement is likely in line with other NFL stadium naming rights deals. Mercedes-Benz reportedly pays $12 million annually over 30 years for the naming rights of the Atlanta Falcons stadium, which opened in 2017.
Regardless, it’s a gigantic step for Allegiant, a budget airline that has only been around for a little more than two decades.
“The No. 1 motivation for us to do this was to enhance our national brand and awareness,” Gallagher said. “We don’t distribute through traditional methods — we don’t use Expedia or Priceline. For us, more than 90% of our tickets get sold through our website. American, United and Delta are probably selling 30% (through their websites).”
Allegiant had made other inroads in sports marketing before the Allegiant Stadium naming rights deal was announced. Those included a multi-year partnership that was announced last September to become the “Official Domestic Airline Partner” of the NHL’s Vegas Golden Knights, as well as an agreement to become the official airline of Minor League Baseball.
In addition to hosting the Raiders and UNLV, Allegiant Stadium is also slated to be the site of the annual Las Vegas Bowl and the Pac-12 Championship Game in 2020 and 2021. It is also likely to be positioned as a draw for other major events, including concerts, potential Super Bowl and Pro Bowls, and more.
Rendering courtesy Allegiant Stadium.
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