WHAT NAMING TRAINS ARE WORTH TODAY

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A NAME IS NOT A TRAIN
FOR
CHICAGO'S
KATHY POSNER
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Metra Train Station Crystal Lake

Anita Ponder, a partner with Drinker Biddle brought to my attention that Metra is thinking of selling the naming rights for train lines and train stations. The last time I wrote a blog about selling resources was on October, 23, 2009 (What Assets Could The City Sell?) when I recommended the City of Chicago find people who had almost the same name as a landmark and offer them an opportunity to memorialize or honor themselves. I suggested that Chicago sell the name of the city’s parks to Drinker Biddle attorney Cindy Park; and it would then be known as “The Cindy Park District.” Selling the name to something is smart. Selling the physical asset is stupid! The City of Chicago has been selling tangible items (The Skyway, parking meters, etc.) that we cannot recover for 99 years; so Metra is being very smart to investigate this option of non-fare revenue. Metra spokeswoman Judy Pardonnet did not know what Metra would charge for naming rights and said they are just exploring the idea of selling naming rights for train lines and train stations, as part of their ongoing pursuit to find new income sources during harsh economic times. So I wondered; what are naming rights worth? The record for the highest amount paid for naming rights belongs to Citi Field (opened in 2009) and Barclays Center (scheduled to open in 2011), both located in New York City. Each deal is for $20 million per year for at least 20 years, totaling $400 million. Companies pay massive amounts for the naming rights of a stadium because of the publicity that accompanies it. When it comes to transit; not the same interest. While Barclay’s is paying $20 million/year for the name of the stadium, they are only paying $200,000/year for the subway stop located near the still uncompleted sports arena. This nexus of subway stops at Atlantic Avenue, Pacific Street and Flatbush Avenue in Downtown Brooklyn is the oldest and busiest station in the borough; yet the naming rights are 99% cheaper. In Miami the Miami-Dade Transit is investigating sell naming rights to its downtown Metromover stations. A July report by Philadelphia-based Front Row Marketing Services, a company hired to study the market and explore selling naming rights to stations or the whole downtown mover system, suggests the county could charge rates ranging from $2,500 a year for Third Street Station to $48,000 a year for the stop at Bayfront Park. Not a lot of revenue. I tried selling the naming rights to the license plate of my Ferrari a number of years ago. I figured that everyone always looks when they see and hear a Ferrari coming down the street and maybe I could recover a few bucks for the costs of maintenance. Crain’s Chicago Business did a story on my quest; but I did not get a single company interested in paying me. So while stadiums command big bucks, we discover that there is not a lot of money involved when it comes to the naming rights for transit. The Metra trains are long and straight; maybe if they set up rollerblading tracks inside the cars they could also become sports arenas! Then we could be talking real money!
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