bank of america naming rights package

Bank of America Naming Rights Package

Joshua KolodziejskiDavid DiChiara

Keren Hu

Bank of America Naming Rights Table of Contents

Section 1: Background of Bank of America

Section2: Background of Madison Square Garden

Section 3: Background and Demographics of New York City, NY

Section 4: 2016 Sports and Entertainment Events at Madison Square Garden

Section 5: Marketing Elements

Section 6: Community Outreach and Pricing

Section 7: Power Point Slides

Section 1: Background on Bank of America Corporation

Bank of America is one of the largest banks by assets and is also the second largest

commercial bank by deposits and market capitalization in the USA. Bank of America is a

member of the FDIC, which stands for Federal Deposit Insurance Corporation.

In the beginning before they changed their name to Bank of America they were known as

NationsBank and before that they were know as North Carolina National Bank or abbreviated to

“NCNB”. It was branched out of Charlotte, North Carolina. In the 1998 the bank acquired a San

Francisco-based BankAmerica it was called until the company renamed it “Bank of America”. In

the beginning of 2001, the CEO of Bank of America and Chairman Hugh McCool decided to

step down in his position and they named Ken Lewis as his successor. Ken Lewis mainly wants

to focus on the financial discipline and efficiency.

Bank of America was named by American Banker Magazine the top team for excellence

in female leadership. They were also named one of the National Veteran-Owned Business

Association list of the Top 25 Military-Friendly Supplier Diversity Program in 2015. For the

fourth year in a row the company was one of the names of the top 10 companies in

DiversityMBA magazine. It has also been recognized in the Top 10 Best-in-Class Category for

representation. To end the year for Bank of America, it was named winner of eight wards for

many different things by the financial trade publication.

Key numbers for fiscal year ending December 2015:

Sales: $4.2 Billion

One-year growth: (-4.30%)

Net income: $1.3 Billion

Income growth: (19.70%)

Current Bank of America Corporate Officers:

Chairman of the Board and Chief Executive Officer: Brian Moynihan

President of Preferred and Small Business Banking: Dean Athanasia

Chief Operations and Technology Officer: Catherine Bessant

Global Human Resources: Sheri Bronstein

Chief Financial Officer: Paul Donofrio

Vice Chairman: Anne Finucane

Corporate General Auditor: Christine Katziff

Chief Operating Officer: Thomas Montag

Section 2: History of Madison Square Garden

Madison Square Garden or often called MSG or The Garden is an indoor arena located in

the borough of Manhattan just above Pennsylvania Station. The current MSG is the fourth venue

to have the name “Madison Square Garden”. The venue was named after fourth president James

Madison. The first MSG was from 1879-1890 and was leased to a guy by the name of P.T.

Barnum. The Garden had no roof on it at the time and was inconvenient for the use that they

wanted to use it for, so it got demolished after it being in use for eleven years. The second MSG

was built for seating for 8,000 people. The second one cost about three million dollars to build

and like its counterpart it was unsuccessful. It got tore down in 1952 to make room for a

headquarters building that was needed.

The third Madison Square Garden opened from 1925-1968 on January 9, 1925. The

building cost $4.75 million to build. This arena had a capacity of 18,496 spectators. In 1968

demolition commenced and was finished by early 1969. The third Garden was where One

Worldwide Plaza is now.

February 11, 1968 is when the current Garden opened with the owner of Irving Felt. In

1972 the New York Knicks and New York Rangers moved into the arena along with the New

York Raiders/New York Golden Blades of the World Hockey Association. After a few years in

1991 the Garden got a $200 million dollar renovation and it will spend $830 million in 2016 to

renovate again.

The arena has the following capacities:

Basketball: 19,812 (NBA or NCAA)

Ice Hockey: 18,006 (NHL or AHL)

Pro Wrestling: 18,500

Concerts: 20,000

Boxing: 20,789

Outside of regular seating, the Garden offers 89 suites along with a few restaurants. The

sky bridge was just built into the arena to give a new style and seating area for patrons of

the arena.

Madison Square Garden is home to the New York Rangers since 1968, New York

Knicks since 1968, St. John’s Red Storm since 1969 and the New York Liberty since

2014. Besides sporting events, the Garden hosts other events like the National Invitation

Tournament, Billy Joel, the circus, and many concerts.

Below is a map of Madison Square Garden and a few aerial views:

Section 3: Background and Demographics of New York City

New York City is the largest city in the United States. It is located in the state of New

York in the southern part of the state. It is at the mouth of the Hudson River. New York is

leading the world in finance, the arts, and communication. The ports in New York are ranked as

the largest complex on the East Coast. The city is home to the famous United Nations and also

home to some of the worlds largest corporations headquarters. New York as has a booming

advertising, fashion, publishing, and broadcasting industries in the United States. New York is

ranked number one in the most populated city in America.

New York City has a main population is 44.66% white, 26.59% black, and 26.98%

Hispanic. There are many other ethnicities in the city since it is the city that people come too to

try and make it in any industry. It is also the city of new beginnings. New York also has many

areas in it, like china town and little India. Most people in New York live with more then just

their immediate family. 61.33% of people live with extended family and 69.81% rent their

current living area. The average household size is 2.59 and the average family size is 3.32.

The current population in New York City is 8,008,278 people. Out of the population

about 47% are male and 53% are female. The following demographics go as follows: under 5

years of age 6.75%, 5-9 years old 7.01%, 10-14 years old 6.63%, 15-19 years old 6.5%, 20-24

years old 7.37%, 25-34 years old 17.08%, 35-44 years old 15.77%, 45-54 years old 12.64%, 55-

59 years old 4.61%, 60-64 years old 3.93%, 65-74 years old 6.18%, 75-84 years old 4.01%, and

85 years old-over 1.52%. The average age in the city is around 34 years old. About 45% of the

city is Caucasian, 27% are African American, while only 10% are Asian.

Bank of America is the largest bank by assets and second by deposits and market

capitalism in the USA and is also a member of the Federal Deposit Insurance Corporation. The

demographics of this popular bank will fit perfectly within the cities demographics due to the

fact that Bank of America is known for giving back to many diverse cultures within cities.

Section 4: Sports and Entertainment Events at Madison Square Garden

Madison Square Garden hosts about 320 events per year. If you are a fan of anything

from sports to concerts to ice shows and back to the circus. They host them all. Madison Square

Garden is home to the New York Rangers of the National Hockey League, New York Knicks of

the National Basketball Association, and the New York Liberty of the Women’s National

Basketball Association. At one time it was home to the New York Knights of the AFL, New

York Titans of the NLL and also the New York CityHawks of the AFL. Those teams are no

longer part of the arena. They also have a college team called the St. John’s Red Storm who

plays there to.

The top two grossing sports teams are the New York Rangers and New York Knicks.

The Rangers have a total of 45 home games that can bring in about 18,006 per game if the arena

is fully filled. The Knicks have a total of 41 home games that can draw 19,812 if the place fills

up to max per game. Together that is 86 games just from sports alone and with a combine max

capacity of 37,818 people that will subject into seeing the Bank of America logo all over the

place. It gives Bank of America 86 more times the exposer just from these two team and not

even counting the other two sports teams. The New York Ranger have a high turn out rate for

almost ever game since their fans are very dedicated. The New York Liberty play about 40

home games which adds more views of Bank of America advertisements. There are many other

sporting events held there as well like monster truck rallies, skate competitions, motocross

competitions, and even figure skating competitions. It is also home to a few cheerleading

competitions. When all these thousands of people attend any of these events at Madison Square

Garden they are not just only going to be getting exposer to the building, but also to the

organization that owns the building, the Bank of America. This is a huge amount of exposer,

which is the prime reason why Bank of America should buy the naming rights for Madison

Square Garden and find a new place to call home in “The Big Apple” or New York City.

Besides sporting events at Madison Square Garden, there are also a variety of concerts,

family shows, and special events like the circus or different shows on ice. This year Madison

Square Garden will be home to many big name stars putting on concerts like the Dixie Chicks,

Billy Joel, The Cure, 5 Seconds of Summer, Justin Bieber, and Drake just to name a few.

Comedians will be here as well like Amy Schumer for example. Some of the family shows that

are coming to MSG are Disney on Ice, Avengers on Ice, Batman and Robin Spectacular, and

Wizard of Oz on Ice just to name a few. With Madison Square Garden having such a layout of

diverse entertainment you have the ability to reach different markets and get your name or brand

out there to everyone. It also allows Bank of America to reach people with different

demographics. This can also allow for the company to reach people they have not been able to

and maybe even create new bonds with other markets.

Section 5: Marketing Elements

The way that we should sell ourselves to Bank of America is to explain to them where we

would place their logos so that people can recognize them. What I have stated below are the

important places where every person will see the logo of Bank of America.

Our first step in our plan is to put the logo in the center of both the basketball court and

the ice rink. Also it will be put on the left and right sides of the basketball courts. This is so that

people can see it from anywhere in the arena and also at home when the camera views it. We

will also have one or two boards of the outer edge of the hockey rink saying Bank of America for

when it is hockey season. We will also have the jumbo tron projecting the logo when it is in use

or during the half time breaks.

Besides having the logo visible to the camera and in plain sight, we will also

incorporating the logo in little ways. We will brand all of the cups, napkins, popcorn bags, cotton

candy bags, and programs with the Bank of America logo. This will seem like we are getting

more personal with our market by brining them the logo in ways that they will physically have it

in their hands.

Besides having all the little things with the logo on it, the best way is to bring the

company fully into the business. What I mean is that now a days people don’t normally carry

cash with them. Our generation is dependent on a piece of plastic to have all they need on it. For

people that want to take out money instead of using their cards we will bring in Bank of America

ATM machines for them to use. What better way to market a company then to physically bring

in the company to be put to use. We would have them spread out throughout the arena for

anybody to use. We will even way any fees that would be charged if you don’t have the bank.

The signage on the arena now says Madison Square Garden, but once acquired it will say

Bank of America Arena if the company decides to go with this option. The signage will be part

of our naming rights package. When there is a big game and there are cameras outside of the

building the sign will be lit up in blue and red, which are Bank of America colors. With that the

name will be implanted into their brains. With Bank of America having their name on a building,

especially the size of Madison Square Garden, will generate big publicity for the company.

Below is a list of locations the we will be placing the Bank of America logo:

Cups Logo on tickets Napkins In-Ice logoATMS Jumbo TronBack of team chairs Penalty BoxScoreboard signage Dash BoardsConcourse signage ZamboniOn the court logo LED fascia

Section 6: Community Outreach

Bank of America Arena will hold a number of events throughout the year that will help

benefit the community. The first one will be on certain game days, we would offer a free t-shirt

to anyone who brings in a can food item for a food drive that would be held a week before each

holiday season. It would draw a lot of food if so many fans do show up to donate and not to

mention, who doesn’t love a free t-shirt.

The second opportunity would be a school take over by your favorite New York team.

The team of the schools choice would spend a few hours taking over their school by being their

teachers, doing activities, playing sports and it would end with a staff vs. pro basketball game or

doge ball game. Also the Bank of America Arena would donate money to the school to help

with buying supplies or new equipment or to help fun the arts and athletics.

The final opportunity is a charity game with one of the pro teams and all the profits

would get donated to a local organization and that organization would get to come to the game

for free. They would get to experience the VIP treatment as well for the day and at the game.

Section 6: Price of Naming Rights Package

The current contract with Madison Square Garden and they pay $40 million for a 21 year

contract. For this reason, we are offering Bank of America a 15 year contract for only $35

million. The specifics of the old contract that is being currently used makes them come a little

under $2 million a year. With the cost of everything we are putting into the naming rights

packages, which is including the cost of sponsorship and naming rights and the reputation of our

tenants, we as a company feel that a little over $2.33 million a year is a great price for Bank of

America.

Our payment schedule is shown as follows:

Year $ Balance

1 $7million $28million

2 $2 million $26 million













15 $2 million 0

Bank of America Naming Rights Package Bibliography

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<http://www.businessinsider.com/bank-of-america-q3-earnings-2015-2015-10>.

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<http://www.themadisonsquaregardencompany.com/our-company/history.html>.

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<http://newsroom.bankofamerica.com/custom-page/2015-awards-and-recognition>.

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<http://www.factmonster.com/ipka/A0108570.html>.

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