August 30 – Los Angeles’s new MLS franchise LAFC will kick off with a $100 million naming rights sponsor for its $350 million new stadium. The 15-year deal with Banc of California is a record naming rights deal for soccer in the US.
LAFC will begin play in the MLS in 2018, having acquired the old Chivas USA franchise from the league for $110 million in 2014. The league is said to want to increase its franchise fee to $200 million and is looking to grow to 28 teams quickly before following a divisional model not unlike the NBA.
The long wait for LAFC to start league play will be punctuated by the build of the club’s 22,000 capacity Banc of California stadium in South Los Angeles. A ground-breaking ceremony took place last week with Los Angeles Mayor Eric Garcetti.
Soccer-specific stadia are a key component in being granted an MLS franchise. The new stadium in LA will include an international food hall, conference and event centre, a retail store and are being called nightlife components. The build cost is being financed by debt in a loan syndicated by Goldman Sachs.
The $6.7 million a year deal is reckoned to be a good deal for the LA club. Avaya recently struck a 10-year $2 million per year naming rights deal with MLS’s San Jose Earthquakes.
“We saw an opportunity to continue building a foundation,” Banc of California Chief Executive Officer Steven Sugarman said. “A foundation that includes economic opportunity, jobs, access to capital and access to banking services.”
Banc of California was formed in 2013 with the merger of Pacific Trust Bank and the Private Bank of California. It has more than 100 branches. The bank is also a partner of the LA 2024 Olympic bid.
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