Overstock opts out of Coliseum naming rights pact
Since the A’s moved to Oakland, and the Raiders joined the NFL nearly 50 years ago, the Oakland Coliseum has held several corporate names.
Network Associates Coliseum, McAfee Coliseum, and in 2011, Overstock.com Coliseum, and starting 2012, O.co Coliseum.
The four-year run under the most recent moniker, though, has come to an end. Overstock has pulled out of the deal, allowed by a contractual provision built into the six-year, $7.2 million deal that now pales in comparison to other venues.
The county joint powers authority will lose approximately $2.4 million over 2016 and 2017, though they are also free to shop naming rights that could turn into a much more lucrative deal.
Overstock will continue a corporate sponsorship agreement for in-stadium signage and other assets.
There is no current timetable on other possible naming options for the home of the A’s and Raiders, though ridesharing company Uber, who recently took up headquarters in Oakland, seems like a viable option.
Just across the Bay, the Giants sold the naming rights for their park to SBC, a company that was eventually bought by AT&T, for a hefty $50 million over 24 years, about $2.1 million per year.
The annual value of stadium naming rights throughout major American sports is just under $3 million, according to the Sports Business Journal.
What makes Oakland’s Coliseum a particularly attractive value — and the former deal something of a steal for Overstock — is its role as a multi-sport facility in an era where they are nearly extinct.
The 49ers sold the naming rights to Levi’s Stadium for $220 million over 11 years, and the expectation for the Warriors’ soon-to-be-built Chase Center will come relatively close to those terms and exceed the previous high for a basketball arena set by Barclays Center.
There’s no telling whether the decrepit Oakland Coliseum will attract the level of corporate investment that newer and shinier construction does, but there is certainly room for optimism that a revenue increase become a reality.
And with that, the possibility that the city alter their position on a new building for the A’s and, or, the Raiders.