What Are Naming Rights?

Naming rights are the right to use an existing name for a particular property, business or event. The entity whose brand name is being used is financially compensated. Naming rights are primarily to take advantage of the goodwill and loyalty that an existing brand has built. In ventures of charity the donor often makes the donation on the condition that the organization or trust will be named after him or someone endorsed by him. Thus naming rights play a role in the continuation of ones legacy.

Ray Kroc paid the McDonald brothers for their restaurant but more importantly he also bought over the naming rights. He has full ownership of the brand name McDonalds. Baseball stadiums in America are generally named after the primary sponsor of the team. In England, the Bolton Wanderers play at the Reebok stadium. Arsenal's stadium will be called the Emirates Stadium. There are other teams who do not bother with naming rights such as Sunderland who have named their stadium ~ 'Stadium of Light.'