Caesars Entertainment Forms Sponsorship Deal With New Orleans’ Superdome
The current Mercedes-Benz Superdome will be undergoing a name change moving forward. The existing contract for naming rights ends this July and the famous German car company has declined an extension.
Stepping up to the plate to fill that role is Caesars Entertainment. It has been reported by multiple sources that the Las Vegas-based gaming company will become the presenting sponsor of the Superdome through a 20-year naming rights partnership with the New Orleans Saints.
It was also reported that the annual fee paid by Caesars works out to be around $10 to $11 million a year. This is another example of a strategic partnership between the world of sports and the world of gambling.
Professional US sports leagues such as the NFL has always made a habit of avoiding every aspect of the gambling industry. A few of the biggest pro leagues took a hardline stance against legal sports betting outside of Nevada and lost that bet.
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In May of 2018, the US Supreme Court ruled against the federal government and certain US pro leagues in favor of an individual state’s right to govern legal sports betting within its borders. Since then, quite a bit has changed.
The original (and only state) with legal sports betting is now home to the NHL’s Vegas Golden Knights and the NFL’s Las Vegas Raiders. Gaming companies such as Caesars Entertainment have formed any number of strategic alliances with sports entities in an effort to expand its sports betting business.
For example, Caesars is the official casino partner of the NFL. The deal with the Superdome could help Caesars secure another lucrative NFL sponsorship deal as the official sports betting partner.
The naming rights deal with the New Orleans Superdome is reportedly on par with previous sponsorships that include naming rights. SoFi is a US-based financial services company. Its recent deal to become the naming sponsor of the new Los Angeles NFL stadium for the Rams and Chargers is $20 million for both teams.
The original Superdome was built 46 years ago. It received a major renovation following Hurricane Katrina in 2005. After the project was completed, Mercedes-Benz became the facilities first official naming sponsor. That deal was worth around $5 million annually.
All the top players in the emerging legal US sports betting industry are jockeying for position as more and more states open their borders to sportsbook operators. Many have strong ties to casino gambling such as Caesars, MGM, and Penn National.
Two of the biggest US books are DraftKings and FanDuel. Their origins can be traced to daily fantasy sports. William Hill capitalized on its history of success in the UK to expand into the US industry at its roots.
A major aspect of each of these operator’s expansion plans are strategic partnerships with sports leagues, individual sports teams and sports venues. Certain partnerships are being formed to offer legal sports betting at a specific sports venues during the actual games.
Beyond naming rights for the next 20 years, any specifics of the new partnership between Caesars Entertainment and the New Orleans Superdome have yet to be released.