Red Bulls in talks with betting companies

The team has been seeking a naming-rights deal for Red Bull Arena, in New Jersey, for the past three years. Photo: Getty Images The team has been seeking a naming-rights deal for Red Bull Arena, in New Jersey, for the past three years. Photo: Getty Images The team has been seeking a naming-rights deal for Red Bull Arena, in New Jersey, for the past three years. Photo: Getty Images

The New York Red Bulls are in conversation with sports betting companies regarding sponsorship deals that could include their stadium naming rights, as the club looks to capitalize on what has become a hot category for its fellow New Jersey-based teams.

“If we can find a partner or partners that can help us enhance our fan experience through gambling, we’re willing to have a conversation,” said general manager Marc de Grandpre, who declined to comment on which companies the club has talked with.

In October 2015 the Red Bulls started shopping the naming rights to their 25,000-seat stadium in Harrison, N.J. It has been called Red Bull Arena since it opened in 2010. In February 2017, it retained both Leverage Agency and MP & Silva to sell the rights. However, that agreement has since ended, and the club now works with Fenway Sports Management on selling the naming rights, a relationship that began this season. The club is not disclosing the details of its deal with Fenway.

While MLS has stated that sponsorships with companies within the sports betting industry are currently prohibited, the league is reviewing its policies with the expectation that such deals will be allowed starting with the 2019 season. The league’s board of governors and committees have discussed the topic in recent meetings, and there is an expectation that there will be an official ratification of a policy change at its next meeting, slated for Dec. 13 in New York City. The league is also looking at modifying its policies as it relates to league-level partnerships with sports betting companies, which could open the door for deals akin to what the NBA and NHL have recently signed. The Red Bulls are the only MLS team that operates in a state that has legalized sports betting.

The league is supportive of all conversations the club is having with sports betting companies regarding sponsorships, de Grandpre said. In addition to potentially doing a deal that could include naming rights to their stadium, the Red Bulls also may consider club branding within the stadium, as the New Jersey Devils have agreed to do with their new partners Caesars Entertainment and William Hill. Last week the Devils secured their third such deal in the category with FanDuel, while the New York Jets have signed deals with both MGM and gambling company 888.com. The New York Giants do not yet have a partner in the sports betting category.

While de Grandpre said a deal also could include branding on the sleeve of the team’s jersey, an asset that MLS recently approved for testing by teams in 2020, the Red Bulls would not consider a jersey front sponsorship, which has featured the energy drink company since it acquired the team in 2006.

Industry sources said the naming rights to Red Bull Arena could be worth more than $4 million per year, which would put it in the upper third across MLS. De Grandpre declined to comment on the financial terms that the club is seeking but said, “We think there is a lot of value for a brand that wants to raise awareness.”