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Mavs-Heat worth millions to American Airlines

Posted on: May 26, 2011 5:25 pm
Edited on: May 27, 2011 5:30 am
 
An NBA Finals match-up between the Miami Heat and the Dallas Mavericks would be worth millions of dollars to American Airlines. Posted by Benmiami-heat-fan Golliver.

The Western Conference champions -- the Dallas Mavericks -- play in the American Airlines Center. The Eastern Conference champions -- the Miami Heat -- play in the American Airlines Arena. Guess who stands to make boatloads of cash when the two teams meet in the 2011 NBA Finals? That's right: American Airlines.

CNBC.com reportsthat the airline company could gain as much as $95.9 million of exposure if a Mavericks-Heat Finals went seven games.

Front Row Marketing's Eric Smallwood took into account the placement of the signs inside each arena and told CNBC that every game in Dallas would be worth $10,515,000 to American Airlines and every game in Miami would be worth $10,729,500, thanks in part to a larger "AA" logo on the center scoreboard. 

Perhaps the most incredible part of this financial calculation is that CNBC reports that American Airlines paid $42 million for the naming rights to the Heat's arena for 20 years back in 2000. That breaks down to a little more than $2 million per season, far less than the company paid for Dallas' naming rights ($6.5 million per year for thirty years). CNBC runs the numbers to note... 
If the finals is a sweep, the airline would get $42 million in equivalent advertising time, the exact amount the American Airlines paid for 20 years of rights to the Miami arena. If the series goes seven games, Smallwood calculates that American will get $95.9 million in exposure.

To earn back a full return on a 20-year investment in one series -- in its worst case scenario -- is a phenomenal financial situation.

But let's not stop there: consider the future possibilities. If the Heat continue to make the Finals -- and they'll be the odds on favorite every season over the next three to five years -- the company would stand to gain something like $20 million per appearance in exposure, even if Dallas doesn't advance make it ever again.

Realistically, what's stopping Miami from making five Finals appearances in the next decade? Nothing. And that could turn into $100 million, or far more (depending on how long each series lasts), in exposure.

LeBron James, Dwyane Wade and Chris Bosh have been lauded for putting together a modern superteam. Heat president Pat Riley has been hailed as an amazing executive for putting it all together to land Big 3.

But isn't the clear winner in this entire situation is whoever was able to negotiate that naming rights deal on behalf of American Airlines? What a ridiculous return. For a company that operates high in the sky, American was smart to get in on the ground floor.


Comments

Since: Feb 13, 2010
Posted on: May 28, 2011 1:15 am
 

Mavs-Heat worth millions to American Airlines

You're propably right, it will all go in the pocket of the rich people because airlines have been making all the money lately.  Those damn airline always making so much money, I hate them.



Since: Oct 14, 2006
Posted on: May 27, 2011 9:04 pm
 

Mavs-Heat worth millions to American Airlines

There seats suck, their people are surly, and the charge you of the waaaazoo for extras....extra pub reminds you who NOT to fly...go JET BLUE!



Since: Jul 1, 2009
Posted on: May 27, 2011 2:07 pm
 

Mavs-Heat worth millions to American Airlines

does this mean they will be replacing a few planes so they don't crash?  or is all pocket money for rich people?



Since: Apr 6, 2007
Posted on: May 27, 2011 12:11 am
 

Mavs-Heat worth millions to American Airlines

If AA is getting such a large return of value for the naming rights to the arena, one has to ask why on earth the arena negotiated such a bad deal.  I mean...if what you are saying is correct, the received the value of the naming rights in 1 playoff series for a 20 year investment.  That doesn't count the regular season, rest of playoffs, or perhaps the Mavs-Heat finals that went 6 games a few years ago.

If those valuation numbers are correct, the arena should have charged 10x as much for the naming rights. 



Since: Sep 25, 2007
Posted on: May 26, 2011 10:54 pm
This comment has been removed.

Post Deleted by Administrator




Since: May 5, 2009
Posted on: May 26, 2011 8:24 pm
 

Mavs-Heat worth millions to American Airlines

So why do passengers still have to pay extra for luggage ? 



Since: Jan 2, 2010
Posted on: May 26, 2011 8:08 pm
 

Mavs-Heat worth millions to American Airlines

THE FIX IS IN!!!


The views expressed in this blog are solely those of the author and do not reflect the views of CBS Sports or CBSSports.com