New Principality Stadium naming rights deal ‘challenging’, says former negotiator
The timing of a new deal for the naming rights of Cardiff’s Principality Stadium has been described as “challenging for Welsh rugby” given the state of the game across the River Severn.
The 73,931-capacity stadium on the banks of the Taff is the fourth largest in the UK and plays host to the Wales rugby team and regular high-profile concerts.
Principality Building Society signed a 10-year naming rights agreement in January 2016, reportedly worth £10m in total, but that deal is up in a couple of months.
Rival arenas in Ireland and England have recently announced new deals, with Dublin’s Aviva Stadium’s naming rights agreement worth £3.5m per season and insurance giant Allianz paying a reported £10m per year to rename London’s Twickenham.
But the man who negotiated the Principality agreement, Simon Rowe – who is now vice president of sports marketing at Canterbury and Speedo owner Pentland Brands – says it is a difficult time to go to market and favours an extension rather than a new deal.
Principality Stadium deal
“The timing of the renewal is quite challenging for Welsh rugby with what they’re going through, but nothing will ever take away from how fantastic that stadium is,” he told City PM.
“I would be confident for the powers that be in Welsh rugby that they will see a good extension – it would make sense to stay with a partner that’s already invested for the long term and building on what they’ve already done.”
He adds that there will be bigger brands “sneaking around” the stadium given its regular use outside of rugby matchdays, but insists one of the major challenges with Cardiff is its lack of major headquarter facilities for FTSE 100 businesses.
“Does proximity make a big impact on sponsors’ decision making? Yes,” he said. “Whether it should or shouldn’t is another matter.”
It comes as Canterbury have announced a new agreement with PWR – the top flight English women’s rugby competition – in a record deal for the firm and following a multi-year partnership between the league and insurer Gallagher.
They are the first brand to renew a commercial partnership with the PWR and will be offering every registered player in the league free rugby boots.
“Women’s rugby has fantastic momentum after the Red Roses’ summer success, and
Canterbury is committed to playing its part in that growth,” Rowe said.