Cornerstone Community Federal Credit Union (Lockport, NY) has signed a 12-year naming rights deal with Lockport Ice Arena & Sports Center Inc.
The new 93,500 square foot arena will be called Cornerstone CFCU Arena. The agreement includes "exclusive exterior facility naming rights, interior and exterior signage, on-site ATM presence and use of the facility on select Cornerstone member nights."
The terms of the deal were not disclosed.
However, shouldn't credit unions be required to disclose the terms of the deal?
After all, credit unions are receiveing a valuable benefit from the American taxpayers in the form of their preferential tax treatment.
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Wells Fargo does not in its naming deals and gets federal tax deductions for such expenditures.
ReplyDeleteThe big difference is that credit unions are tax-exempt entities.
ReplyDeleteIf you want to compare yourself to Wells Fargo, then become a bank and you can play by the same rules.
BTW, information on Wells Fargo's naming rights is available.
ReplyDeletehttp://www.sportsbusinessdaily.com/Journal/Issues/2011/09/19/In-Depth/Naming-rights-deals.aspx
I am a credit union CEO and I would never endorse the purchase of naming rights because I do not think it is an effective use of marketing dollars. That being said, I struggle to understand your crusade against credit unions who do this as this is really just marketing and promotion activities. I have not seen you suggest credit unions be prohibited from all marketing and promotional activities, so why are you so focused on this versus other marketing channels?
ReplyDeleteI remember when Philadelphia FCU ran a marketing campaign (betterthanmybank.com), where they made fun of banks buying naming rights to stadiums stating that banks were spending their profits on naming rights instead of giving good rates and lower fees. It just irked me.
ReplyDeleteA refreshingly honest response to my question. I appreciate that.
DeletePerhaps it is not the credit union that chose not to disclose. Perhaps it was the ice rink group that wanted to keep things under wraps as they continue their fundraising efforts. Everyone is so quick to point the finger at credit unions for every little thing.
ReplyDeleteThe ice rink wants to keep it under wraps DURING a campaign.
ReplyDeleteYea, thats it.
Why is everybody picking on credit unions?
Lets start with they want everything but dont want to pay taxes.
ABA whines almost as much as credit unions.
You both are a living definition of insanity.
Keep paying congress and get nothing for it. Nothing.
Credit Unions should ride the tax exemption as far as congress and aba ineptness allows.
Naming rights.
Really?
Who cares?
Why dont you stop paying congress and donate the money to the children at the border. Now THATS an issue and we are embarrasing ourselves as a country.
Otherwise, do us all a favor and just throw your contributions to congress down the toilet. Itll be an upgrade.