LAFC – Sponsorship Valuation

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BACKGROUND

As part of a long-term engagement with Los Angeles Football Club (LAFC), CSL International was tasked with providing a valuation study for the club as it built out a soccer-specific stadium. The 22,00 capacity stadium is located adjacent to the Los Angeles Memorial Coliseum and opened in 2018.

PROJECT

In this analysis, CSL analyzed sponsorship opportunities for stadium naming rights, shirt partnership, founding partners and other sponsorships associated with the club. CSL’s valuation metrics include a comparative analysis of similar venues, as well as an analysis of the quantitative and qualitative benefits. CSL provided a thorough list of exposures a sponsor would receive, including exterior, on-site, television, radio, editorial media coverage, collateral materials, advertising, online, hospitality and qualitative benefits. CSL delivered its initial findings to LAFC in July of 2015 and continues to work with the Sponsorship team on various valuations, inventory packaging and modifications to the sales plan.

RESULTS

In August 2016, LAFC and Legends announced a 15-year, $100million dollar naming rights agreement with Banc of California, making it the largest naming rights partnership ever secured in the MLS.

CSL delivered a comprehensive strategic sponsorship plan for the entire development, including the following:

  • Developed a three-tiered sponsorship platform
  • Creation and identification of potential iconic landmarks
  • Recommended the proposed locations for static and LED signage to maximize revenue and the visitor experience
  • Identified other ancillary assets which could be incorporated into sponsorship packages
  • Revenue and cost summary for all assets and platforms
  • Developed restrictive covenants for on-site retail partners to protect sponsors
  • Strategic sponsorship approach for existing Magic sponsors, as well as new sponsors8. Definition of third-party promoter rights