Reading: Los Angeles Stadium sponsors face up to $134.8 million media loss in World Cup

Los Angeles Stadium sponsors face up to $134.8 million media loss in World Cup

Published
3 min read
Advertisement

’s order to strip commercial branding from World Cup venues is set to cost U.S. stadium naming-rights sponsors up to $134.8 million in global media value, with at least six brands expected to lose the equivalent of their average annual naming-rights payment. The biggest hit falls on , whose stadium will host eight matches, including the final, and whose sponsor is projected to give up nearly $20 million in worldwide exposure.

That makes the naming-rights math suddenly relevant now. MetLife Stadium could generate slightly more than 100 million U.S. television viewers from those eight matches, and said the World Cup inventory represents roughly one-third of the annual U.S. value tied to the current naming-rights package. In his view, that means the lost value is not mainly about whether a logo is visible on television.

Kane said the commercial payoff from a World Cup venue comes from where the brand shows up around the match, not just inside the stadium bowl. ’s work on past tournaments has focused on earned media, social media and broadcast exposure, and it found that much of the value during telecasts came from announcers’ verbal mentions. Stadium signage is usually not featured prominently in match broadcasts, he said, so the biggest loss comes from the disappearance of the naming-rights partner in on-air references, digital clips, news coverage, highlight packages and other earned media.

- Advertisement -

The scale of the loss extends beyond MetLife. Navigate projects brands with naming rights to U.S. World Cup stadiums will lose up to $53.5 million in domestic media value and $134.8 million globally. is set to forgo about $18 million, a figure that is close to the average annual cost of its naming-rights deal with the Dallas Cowboys, while is the only naming-rights partner whose main headquarters are outside the United States, even though its North American operations are just 15 miles from the Atlanta stadium that bears its name.

There is one wrinkle that helps explain why the numbers are so large. The logos will be covered during the tournament, but Navigate says the value loss is not driven by visible stadium signs on television. Instead, FIFA’s requirement that venues be free and clear of commercial branding shifts the venue names used on air, and broadcasters such as Fox and Telemundo will refer to the stadiums by FIFA’s city-specific names..com, by contrast, lists the venues with their branded names, underscoring the split between tournament presentation and the existing commercial deals beneath it.

That leaves sponsors with a temporary loss of a very visible asset and no public sign yet of how it will be reimbursed, if at all. Kane said FIFA data shows host countries typically see a 50% increase in viewer numbers, and Navigate expects 2022’s almost 26 million viewers to rise 30% to 40%, with finals viewership potentially reaching 50 million. For MetLife and the other sponsors, the World Cup will deliver the biggest stage in sports — and, for now, a naming-rights bill that does not stop just because the logo disappears.

Advertisement
Share This Article