Bridgestone sees opportunity in arena naming deal

2/24/2010

As Metro tries to get its hands around the financial health of the Nashville Predators, Bridgestone Americas Inc. is making a major investment in the hockey team's future.

 

The Nashville-based tiremaker has agreed to a five-year arena naming rights deal with the Predators, despite an unresolved $3.3 million federal tax lien against lead owner David Freeman.

 

"Our deal is with the Predators, with the team, not David Freeman," Christine Karbowiak, Bridgestone's executive vice president for community and corporate relations, said in an interview. "Based on our conversations with people like Mayor (Karl) Dean and the NHL, Nashville and hockey are going to continue to be a pair for a long time to come."

 

Karbowiak, Dean and Predators executives formally announced the naming-rights deal Tuesday. They declined to say what Bridgestone will pay the Predators for the opportunity to turn the National Hockey League team's home base at 501 Broadway, known as Sommet Center since 2007, into Bridgestone Arena.

 

Signs heralding the new name could be up in time for the Predators' next home game, March 2 against the Edmonton Oilers. Chris Parker, the franchise's executive vice president of sales, said the top of the arena could feature a large "B" at some point, adding another distinctive mark to Nashville's skyline.

 

"Putting the Bridgestone brand on this Nashville landmark is a great opportunity for us to continue to strengthen our brand identity," Karbowiak said at a news conference to formally announce the deal.

 

Bridgestone and the Predators also have added five years to their previously existing marketing partnership, which includes a Bridgestone hospitality suite at the arena and advertising during games.

 

Ed Lang, the Predators' president for business operations, called Bridgestone "an iconic blue-chip brand" and a "marketing powerhouse." He declined to answer questions about the Predators' arena lease, which has come under new scrutiny because of Freeman's tax issues, but he said Bridgestone's investment was a good sign.

 

"This further reinforces that our organization is on the right track and moving in a very positive direction," Lang said.

 

The Metro Sports Authority has asked Freeman to resolve the tax lien by March 5 and guarantee that he can cover his obligations to the city in the event of a team bankruptcy. If he's unable to do that, the other owners must increase their guarantees to cover Freeman's obligations.

 

In either case, the sports authority wants the Predators to waive the team's early termination rights for this year and next year.

 

Dean said the Bridgestone deal is good news for Nashville and the hockey club. "This is support for the team and the city and the arena from one of our most important corporate citizens," the mayor said after the announcement. "The other issues will be resolved through the Sports Authority. That's kind of unrelated.

 

"This is good news for the city that Bridgestone has confidence to do a five-year agreement with the Predators."

 

Talk began in December

 

Bridgestone Americas, part of an international corporation based in Japan, moved to Nashville from Akron, Ohio, in 1992. It has 800 employees, or "team members," working out of its headquarters at Briley Parkway and Elm Hill Pike.

 

The Predators and Bridgestone started talking about a deal in mid-December, Karbowiak said. Bridgestone had never bought naming rights before, but the opportunity quickly made sense.

 

"This was uncharted territory for us," she said.

 

Sports marketing, on the other hand, is "what we do," Karbowiak said. Bridgestone Americas sponsored the Super Bowl halftime show this month. The Bridgestone tire brand sponsors the NHL, the National Football League, the PGA Tour and the Formula 1 racing series. The Firestone brand sponsors major league baseball, the IndyCar racing series and the Indianapolis 500.

 

Don Roy, associate professor of marketing at Middle Tennessee State University, said most sports facility naming-rights deals in recent years have involved companies with a strong local presence. The new agreement will allow Bridgestone to be seen as giving back to the community, he said.

 

"Bridgestone is an ideal partner because of its standing in Nashville's business market," Roy said. "It's a plus for Nashville."

 

He said the lack of a long-standing name on the arena could help the company.

 

"Bridgestone now has an opportunity to brand the building and do it well and have an impact. At the same time, there are going to be people who are wary of yet another name. It's a challenge, but I believe it's a challenge a brand like Bridgestone can overcome."