Coal Bowl naming rights deal was not bid
George Hohmann
Daily Mail business editor
Friday June 30, 2006
The right to name the series of West Virginia University-Marshall University football games was awarded to the West Virginia Coal Association for $1 million without taking bids, WVU associate athletic director Mike Parsons said.
Asked how he knows the schools didn't leave money on the table, Parsons said: "I think we know the marketplace pretty well. We deal with this every day. We feel like we have a pretty good feel for the product."
The deal with the coal association to name the series the "Friends of Coal Bowl" was announced last week. Parsons said no one has approached him since to say they wish they had been given an opportunity to bid on naming rights.
"We spoke with one other party before we solidified the deal with the coal association and they couldn't come close to that number," he said.
The coal association will pay $1,029,700 for naming rights, which the schools will split. The first game will be Sept. 2 in Morgantown. At least two of the seven games that are scheduled will be played in Huntington.
Parsons said the association will pay $140,000 each of the first two years, then 5 percent more -- $147,000 -- during years three through five, and an additional 5 percent, or $154,350, in years six and seven.
Parsons was asked if WVU and MU started with higher numbers and the coal association started with lower numbers and the agreed-to numbers were the result.
"I'm not going to go into the exact details of it all, but that ($1 million) is basically what we negotiated the price to be," he said.
For its money, Parsons said the coal association will receive tickets to the games; exposure inside the stadiums with signage, banners and advertising on the video boards throughout the games; a pre-game hospitality tent; participation in the coin toss; the trophy presentation and the trophy itself; development of the logo; and advertising on the radio networks of both schools.
"When we initially did the game contract between the two schools, we identified other marketing dollars out there to promote the institutions," Parsons said. "We wrote in the contract that anything we would do, we would share those proceeds.
"Later we decided to look for a game sponsor who would be there the whole seven years and not infringe on any marketing opportunities the two schools already had," Parsons said.
Shortly after Gov. Joe Manchin announced in May 2005 that the schools would play the series, the coal association called to express interest in naming rights, Parsons said.
"They are the ideal sponsor," Parsons said. "They represent one of the leading industries in the state. Many of their members are supporters of both schools already. It is an opportunity to enhance their image in the state."
Asked if there are similar deals, Parsons said, "In theory we do it with the basketball game in Charleston."
The annual WVU-Marshall basketball game at the Civic Center is named the "Toyota Capital Classic."
Parsons was asked what would happen if the Friends of Coal decided to use its advertising opportunities to mount an industry lobbying campaign about a specific issue rather than promote the industry's image.
"In their advertising, they have all rights," he said. "During the advertising itself they are within their rights to run their particular message."
"It was not bid," he added. "We are selling something. We are not buying something. We are selling basically an advertising package. That's what it really amounts to. Advertising is not traditionally a bid product."
As for the other party that couldn't come close to the coal association's offer, Parsons wouldn't name the business. He would only say it is located in West Virginia.
At least two companies -- Appalachian Power and United Bankshares Inc. --have promoted themselves heavily in the West Virginia sports realm. But officials with both said they were not approached about the football series and were not interested.
Appalachian Power won the naming rights to Charleston's $23 million minor league baseball park last year. The utility is paying about $125,000 a year for the right to have its name on the ballpark for 10 years.
"We were not approached" about the football series naming rights, said Appalachian Power spokeswoman Jeri Matheney. "And that's OK with us because we're satisfied with what we're doing with Appalachian Power Park. That's probably enough with us."
United Bankshares advertises its United Bank as "West Virginia's Bank." United is the official sponsor of Mountaineer sports and runs advertising on both WVU and Marshall sports broadcasts.
"I can tell you we did not talk to them (the schools) about this," said Rick Adams, United Bankshares' senior vice president.
"I'd say we are comfortable with our present relationship with both universities in terms of sponsoring athletics," Adams said. "We are comfortable where we are."
Adams said United already has many of the benefits the coal association gets in its deal. "We're involved with TV and radio," he said. "A lot of the stuff there would be overlap. We have boxes in both places, we have tickets, signage."
Contact writer George Hohmann at 348-4836.
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