American Airlines hopes NBA finals provide lift

— -- DALLAS -- American Airlines has the home-court advantage throughout the NBA finals. After all, the company's name adorns the arenas for both the Dallas Mavericks and the Miami Heat. It's believed to be the first time the same company's name has been attached to both stadiums in a major pro sports championship in North America. The best-of-seven series will test the theory that naming rights have value beyond feeding corporate egos. It might even influence bidding to name new stadiums and arenas. "For American Airlines, this is the perfect storm," says Bill Glenn, a vice president at The Marketing Arm, a Dallas firm that advises companies that buy naming rights. "You have two teams that epitomize success, with figures who represent strong leadership. Those are images any brand wants to be associated with." According to published reports that American Airlines officials wouldn't confirm or deny, the company agreed to pay $195 million over 30 years for the American Airlines Center in Dallas, which is also home to hockey's Dallas Stars, and $42 million over 20 years for Miami's AmericanAirlines Arena. American struck both deals in 1999-00. That was before the Sept. 11 terror attacks, high fuel prices and tough competition. Since the beginning of 2001, parent AMR Corp. has lost more than $8 billion. AMR, which nearly went bankrupt in 2003, considered giving up the arena deals. "But we had (long-term) contracts in place, and when you're trying to compete, you need to continue to advertise and promote your business," said Tim Wagner, a spokesman for Fort Worth-based American. The naming-rights business boomed in the 1990s as an alternative to traditional advertising. Some deals didn't work out so well. Dot-coms that bought rights failed when the tech bubble burst, and Houston's Enron Field had to be renamed Minute Maid Park after the hometown energy company collapsed in scandal. The naming business has scored something of a comeback in recent years, as companies spent millions a year to christen new NFL stadiums FedEx Field in Washington, Lincoln Financial Field in Philadelphia and Reliant Stadium in Houston. "It's a great way to build brand identity," said The Marketing Arm's Glenn, whose firm doesn't work for American but helped negotiate AT&T Inc.'s deals at AT&T Park for the San Francisco Giants and the AT&T Center, where the NBA's San Antonio Spurs play. Front Row Marketing Services, which advises buyers and sellers of naming rights, calculated that the NBA finals will be worth $9 million a game for American. Eric Smallwood, a Front Row vice president, said his firm estimated that American's name will be shown or mentioned for more than 11 minutes of each national broadcast on ABC-TV, and multiplied that by $400,000 for each 30-second commercial spot. Most of that 11 minutes will consist of brief flashes of American's logo on the floor of each court. "We call it unaided awareness," Smallwood said. "It's not thrown at you, but it's there, and the repetition makes you remember the brand." Andrew Zimbalist, a sports economist at Smith College in Northampton, Mass., doesn't have faith in such measures for naming rights. He said the deals work for companies with good products but don't help others. "The most important thing is that companies continue to do it, and the price seems to be holding steady, if not increasing," Zimbalist said. He said naming rights for the future stadium of the NFL's New York Jets and Giants could command a record $15 million a year. Colleges, minor leagues and even high schools are getting in the act. Texas Tech's United Spirit Arena is named for a supermarket chain. The Texas Rangers Class AA team in Frisco, Texas, plays at Dr Pepper Ballpark. American plans promotions to highlight its support for the teams in Dallas, its biggest hub, and Miami, its No. 3 hub behind Chicago. Neither team has played for the championship before. "We can't root for either side," said Wagner, the airline spokesman. "But we're hoping the series goes seven games."