Determining the Value of Naming a Building After a Celebrity
Client
Year
Challenge
An acclaimed sports celebrity wanted to donate several million dollars to a prominent healthcare provider in his community.
In exchange the provider would name their newly constructed orthopedic facility after him.
The provider also understood that naming the facility would remove a valuable asset which could entice other donations in the future.
What was the naming right worth and was the current celebrity donation the right one?
Since this was a prominent celebrity, did the naming carry endorsement value?
Identified Needs
Needed to understand the potential market value of naming the facility.
Needed to understand if the celebrity was the right fit for the providers brand. Needed to estimate the total value of the offer.
Aside from the monetary donation, the celebrity name also carried endorsement value.
Needed to estimate additional promotional and branding investments required, if the naming went forward.
Activities
Mined online news releases to benchmark against other naming donations.
Reverse engineered similar endorsement deals for celebrities at other companies to determine expected revenue lift.
Modeled data from previous history with celebrity endorsements to estimate lift in revenue and margin.
Conducted “fit” analysis to determine how celebrity brand would impact provider brand.
Created a high levelpromotion plan with estimated investments.
Impacts
Able to establish a narrow range of value for naming the new building.
Determined expected range of % revenue lift of other endorsement deals.
Determined the expected lift in revenue and margin from the endorsement value of naming the building.
Determined naming endorsement impact on provider brand and specific brand traits that would be positively or negatively affected.
Factored in additional costs to provide a full picture of the return on the naming.