Billionaire Kroenke Gets Record Naming Rights Fee From SoFi
(Bloomberg) -- Social Finance Inc., a financial technology startup, will pay more than $30 million annually over 20 years to put its name on a new stadium that will be the home of the Los Angeles Rams and the Chargers, a person familiar with the deal said.
The amount is a record for any naming rights for a sports venue, the person said, declining to be identified because the information is not public.
The National Football League stadium in Inglewood, California, which is developed by billionaire Stan Kroenke, will open next summer, according to a joint statement from SoFi, the venue and teams, which declined to disclose the financial terms of the agreement.
The $5 billion stadium will host the Super Bowl in 2022, as well as the opening and closing ceremonies of the 2028 Olympic Games. SoFi will also be an official partner of the Rams and Chargers, it said.
“This is a giant leap toward achieving our company’s mission of helping people get their money right by reaching our members where they are,” SoFi’s Chief Executive Officer Anthony Noto, a former NFL executive,said in the statement.
SoFi has a large marketing budget, which has surpassed $200 million annually for the last few years, as the firm launches new products and seeks to acquire new customers.
Last year, SoFi counted more than 500,000 members and made a larger push into mortgage lending as well as its checking and savings product, SoFi Money. Having its name on the stadium of some of the most high-profile teams in the NFL could help boost recognition outside of the financial world.
SoFi Stadium, which has more than 3 million square feet of space, can seat 70,000 -- and that could be expanded to 100,000, according to the statement.
Last month, American Airlines became the first official partner of the new stadium with an agreement to pay $90 million over 10 years. The airline will sponsor the 2.5-acre space that serves as main entrance to the stadium, a person with knowledge of the matter said at the time.
As part of the deal, Fort Worth, Texas-based American Airlines Group Inc. will become the official airline of the Rams and Chargers, and have prominent branding during games. American has been the Rams’ carrier since the team returned to Los Angeles from St. Louis in 2016.
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