Woonsocket-based CVS is "possibly interested" in taking over the naming rights to Boston's FleetCenter, a spokesman says.
CVS stands for “Consumer Value Stores,” but soon the “S” might stand for “sports.”
The FleetCenter, a high-profile name in the Boston sports and arts world, will likely adopt the name of a different corporate sponsor, as Fleet’s acquirer, Bank of America, gives signals that it wants out of the contract with the facility.
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One contender to replace the Fleet name is the giant Woonsocket-based drugstore chain, CVS.
Bank of America has informed the FleetCenter that it doesn’t want to put its name on the building, reversing its previous decision to change the name of the facility to the Bank of America Center, in the wake of its $48 billion acquisition of FleetBoston Financial Corp.
The bank has even suggested changing the name back to the venerable moniker “Boston Garden,” evoking Bobby Orr flying through the air, Larry Bird making jump shots and other hagiographic images of a bygone era.
The Boston Garden was demolished in 1995 after becoming decrepit and obsolete. In a time when some cultural touchstones get recycled, from movies to television shows to music, it’s perhaps fitting that the beloved and evocative name Boston Garden may live again.
However, despite the idea’s sentimental appeal, it has lost steam recently, because Bank of America would have to pony up a premium to make the name change.
Moreover, the move would present an obstacle for the FleetCenter’s owner, Delaware North Cos., to later sell the valuable naming rights.
According to the trade industry publication American Banker, financial services companies annually spend in excess of $200 million in marketing dollars on sports, more than on any other sector. Fleet pays about $2 million annually for the privilege of having its name on the FleetCenter.
Negotiations between the FleetCenter and Bank of America recently stalled, with the latter trying to engineer an early exit from its name contract, which expires in 2010. If the bank succeeds and wriggles free from its obligation, it would open the way for other companies to get an opportunity to slap their names on the building.
A CVS official confirmed that the company is interested in a deal, but refused
to reveal any details. “We’re possibly interested and that’s all I can say at this point,” said CVS spokesperson Todd Andrews.
Analysts contend that a CVS sponsorship would reap many marketing benefits for the company.
“Whether it makes sense for a company to put its name on a sports facility like the FleetCenter depends on the company and its marketing goals,” said William Chipps, senior editor, IEG Sponsorship Report, a Chicago-based newsletter that monitors corporate brand marketing and sponsorships. “The specific dollar value is hard to quantify, but there certainly are marketing advantages. A company can demonstrate its support of the community where it’s based, or it can be an ego-driven effort whereby the CEO wants to make his mark.”
In the case of CVS, he said the most logical rationale would be to use the sponsorship as a promotional platform for consumers and business-to-business customers.
“This tactic would appeal the most to CVS,” Chipps said. “CVS could run promotions at local outlets, offering a chance to, say, win tickets at upcoming games or concerts, or the company could use those tickets to entertain executives from
pharmaceutical companies that distribute drugs through CVS. For CVS, the cross-promotional aspects would be
the greatest opportunity. It would make sense for CVS, but any sponsor would want a healthy ROI. Just slapping your name on a sports center, as a form of advertising, is a losing proposition – it all depends on the marketing follow-through.”
CVS has another connection with
the naming of a sports facility. The University of Rhode Island’s Ryan Center,
an 8,000-seat arena on the college’s Kingston campus, is named for Thomas M. Ryan, the chairman and CEO of CVS, who was a key financial supporter of the new
arena.
