David Clough, faculty athletic representative and chemical and biological engineering professor, explained that there is financial gain in licensing. Not only does Frontier represent an asset that the university could take advantage of, but allowing a corporation to purchase the naming rights of Folsom Field could also relieve budget pressures.
The Sports Marketing Association stated, “Most NCAA Division I Athletic Programs operate within an annual budget deficit, so directors have increasingly relied on corporate sponsorships to obtain the funds necessary to operate their programs.”
This is certainly true for The University of Colorado. The athletic department is awarded about four percent of the university’s annual budget, or about 50 million dollars each year. Subtract the 10 million the athletic department owes the Board of Regents each year for athletic scholarships, which increases each time tuition is raised, and it becomes difficult to fund not only football, but the entire CU athletic program. Student fees do not cover athletic expenses. Compare this to other universities, some of which receive 70 to 80 percent of the school’s annual budget to fund athletics.
“If we don’t do it,” said Jon Major, sophomore outside linebacker and finance major, “we’ll be in a financial hole.”
Clough further explained that football funds more than just football.
“The reality is everything hangs by fingernails on the exposure and success of the football team,” said Clough. “It would be nice to build something where we could cover both the ups and downs of athletics. Naming rights could help with that.”
Selling the naming rights of Folsom Field would therefore benefit not only football, but the entirety of University of Colorado Athletics.
While the money would directly benefit the athletic program, selling the naming rights of Folsom Field would also benefit the community. A partnership with Frontier Airlines would create ample advertising opportunities.
“We are trying to monetize an asset that is currently not utilized,” said Bohn. “Frontier represents an asset we could take advantage of or not.”
Bohn explained that naming rights act as leverage to activate advertisement. For example, if the University of Colorado were to enter into a contract with the corporation, magazines in Frontier airplanes and televisions during flights would help in getting the word out as to what the university has to offer. CU athletics, outstanding programs in science and research and the newly built Center for Community are all parts of the university that could be featured on in-flight channels.
“People start to see that maybe they want to come here,” said Bohn.
In addition, while the money received as a result of the naming rights would go exclusively towards athletic scholarships, the school would figure out ways to monetize benefits to faculty and staff. However, any discounts received from Frontier Airlines would most likely show bias toward CU athletic supporters.
“I would anticipate that we would have an opportunity to reward our season ticket holders,” said Bohn.
Another nice bonus? Frontier already flies to all of the Pac 12 cities, the conference CU will be moving to for the 2011 Football Season.
In return, Frontier Airlines would have the right to use the University of Colorado mark and use signs inside the stadium, as well as access to charter groups, donors and alumni.
Despite these very commercial benefits both parties will receive as a result of the naming rights, Bohn insists that the athletic program will not be overly commercialized. No corporate mark will be associated with the football team or with Ralphie. Most importantly, Folsom Field will still remain part of the stadium name.
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