The mobile operator O2 has struck a deal thought to be worth about £125m to keep the naming rights to the London venue the O2 until at least 2027.

The 10-year deal, announced the day after the venue played host to the 2017 Brit awards, means the Telefonica-owned mobile operator’s relationship with what was once the ill-fated Millennium Dome will stretch to at least 20 years.



Under the agreement with Anschutz Entertainment Group (AEG) – the US company that purchased the site five years after it was shut after the millennium celebrations – O2 is thought to be paying between £10m and £15m a year in a wide-ranging partnership deal.



A key component of the deal is a doubling of the number of priority tickets that will be made available to O2 customers, giving them access to tickets to events 48 hours before they go on sale to the public. The number of tickets to be made available each year has not been disclosed.



“Our loyalty programme is about unforgettable live experiences and memories,” said Nina Bibby, chief marketing officer at O2 UK. “At the heart of that is our sponsorship assets and the O2.”



Since reopening in 2007 the O2 has hosted acts and events including Prince, One Direction, Iron Maiden, Beyoncé, the annual ATP World Tour tennis finals as well as NBA basketball matches and the Ultimate Fighting Championship.



Bibby said that despite the increased scale of the renewal deal – the company’s previous 10-year deal cost £6m a year – O2 would not look to cut its wider sponsorship programme. O2 also sponsors the England rugby union team and a string of music venues across the UK in a deal with Live Nation.



“This is absolutely a continuation of our sponsorship strategy,” she said. “They work very well together. We get huge returns in terms of media value.”



Paul Samuels, executive vice-president of AEG Europe, said AEG was approached by other brands looking to take over the naming rights deal, but the sponsorship opportunity was never put to the market.



“When it came to renewal time we got lots of calls,” he said. “We never even considered them and having to go out and sell this. We wanted to stay with the great partnership we already have.

“We are delighted O2 is committed to another 10 years. In this industry 10-year deals don’t come up very often. It shows the major commitment between both companies.”