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THE RIGHTS RELATIONSHIP

BRL defines “branding rights” as a spectrum or bundle of rights associated with a particular property. A branding rights program leverages tangible and intangible attributes of a property and delivers definable benefits to the property owner and to the brand owners who purchase rights in the program. For property owners, benefits include new revenue streams, increased traffic and enhanced asset value. For brand owners, benefits can include specific deliverables, increased brand equity, increased shareholder value, predictable ROI and expanded brand awareness. While naming or sponsorship rights may be key elements in a marketing plan, the “branding rights” approach created by BRL allows for greater flexibility and wider integration with a company’s strategic plan for its consumer or industrial brands, or for the corporate brand.

TYPES OF BRANDING RIGHTS

While the nature of rights developed for any given program will differ, opportunities for exploitation will usually be identified within the following categories:

• Naming: office towers, stadiums, land areas, transportation facilities
• Sponsorship: events, causes, attractions
• Endorsement: celebrities such as sports stars, entertainers
• Content: concerts, theme songs
• Media: broadcast, Internet, wireless
• Signage: interior, exterior, fixed, moving
• Entitlements: hospitality, business opportunities, tickets
• New Intellectual Property: customized for certain programs

Rights may be offered with or without category exclusivity and/or may be accompanied by the designation of "official" as related to a provider of products or services within a given category. Brand categories are subject to subdivision into sub-categories (e.g. beverages may be divided into soft drinks, isotonic/performance, water). Geographic area(s) or specific location(s) may be used to define the scope of rights conveyed. Some deals may involve bundled locations or individuals. Certain programs will lend themselves to creation of new intellectual assets such as entertainment properties, trademarks or service marks.

PRICING OF BRANDING RIGHTS

Pricing of rights will depend upon the nature of the property, the scope of the target audience or market, the term of the deal, category exclusivity and other relevant factors such as:

• Media Exposure
• Overall Visibility
• Ticket Sales
• Pedestrian Traffic
• Vehicle Traffic
• Tourist traffic
• Sales Volume
• Advertising Budget
• Planned Developments
• Upcoming Events
• Web Traffic
• Tenant composition



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