Banc of California announced they were going to wrap up their stadium naming rights deal with LAFC in June 2020, a somewhat surprising announcement considering the deal was originally supposed to run for 15 years and at a whopping $100 million.
While it was reported at the time that Banc of California would pay $20.1 million to LAFC to end the deal early, what appears to be a shareholder report which dropped this week from Banc of California details the financials surrounding their deal with the club and what was actually paid.
The report outlines that between Jan. 1, 2018, when the agreement kicked in, and it being wrapped up on May 22, 2020, Banc of California paid LAFC $15.9 million. In addition, the bank detailed miscellaneous annual expenses, “which have averaged approximately $500 thousand per year,” paid to LAFC as part of the deal.
The report also confirms the $20.1 million termination fee, which means LAFC ultimately received $36 million over three years, in adding the fees as outlined in the report. $12 million a year over three years is actually substantially better than what Banc of California had committed to LAFC over 15 years, which would have come out to $6.67 million/year. But the trade-off is that LAFC have been looking for a new stadium naming rights partner, in a pandemic, since the summer, and the relative certainty of the revenue stream is no longer there.
From the signs at present, the club continues to use the name “Banc of California Stadium” and they could continue to do so until a new stadium naming rights deal is made, which could be next week or years from now, time will tell. But while LAFC did get a good chunk of change for their first stadium naming rights contract, it may need to tide them over until the next one comes along. Stay tuned.
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