With the Falcon’s new home ringing in a price tag of $1.4 billion, their sponsorships deals are falling nothing short of a record.
The Falcons organization has sold corporate sponsorships at Mercedes-Benz Stadium that total up to $900 million in contractually obligated long-term revenue. This puts the Falcons organization within $100 million of their $1 billion contracted sponsorship revenue goal.
There is a wide variety of sponsorship deal lengths, varying from the 27-year naming rights deal, to other deals ringing in at 10 years. This will provide the Falcons organization with hefty beginning revenue, also helping cover the cost of the major new stadium and the long-term debt that the Falcons have taken on. Greg Beadles, Falcons Executive Vice President and Chief Financial Officer, told the Atlanta Journal Constitution that “some contractually obligated revenue streams from naming rights, other sponsorship deals and suite sales were pledges toward re-paying the debt.” This came from a closing of $850 million in financing for the stadium in August.
Financing from Bank of America, SunTrust Banks, and 18 other institutional investors converts construction loans to long-term financing for the stadium.
Some of the companies that have agreed to sponsorship deals on Mercedes-Benz Stadium include: Coca-Cola, IBM, SunTrust Banks, Home Depot, American Family Insurance, Equifax, American Family Insurance, Novelis, and NCR.
The financing that the Falcons received in early August helped the organization reach a substantial milestone fairly early in the process.
According to the Atlanta Journal Constitution, “Officials with Falcons parent company AMB Group are confident of setting a record in sponsorship sales for a U.S. stadium, according to SportsBusiness Journal’s report, which noted the record should last at least until the Los Angeles Rams’ new stadium opens.”
So where does this put the Falcons organization? And where does this put Mercedes-Benz?
Above all, this gives the Falcon’s a huge advantage in exposure and gaining fandom. The new stadium alone will attract fans (both new and old) due to its fresh take on the football fans experience, and modern and millennial style, while still keeping the feel of true Atlanta fandom alive.
With a stadium of this caliber, sponsors are fighting tooth and nail to be apart of one of the most noteworthy stadium. And for the Falcons organization, and its current state of debt, this is only looking up an forward for the upcoming seasons.
Written by Grace Bowes
General Editor: Macy Marin