UH’s stadium naming-rights deal among colleges’ most lucrative

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The University of Houston and Texas Dow Employees Credit Union officially announced Tuesday a naming-rights partnership that over the next decade will be one of the most lucrative in college athletics.

The Lake Jackson-based financial cooperative will pay $15 million over 10 years to rebrand the Cougars' new 40,000-seat on-campus football stadium TDECU Stadium.

The $1.5 million annual value of the deal - which runs through June 16, 2024 - is the most for a Football Bowl Subdivision school. It's also the third highest among NCAA facilities, behind only Illinois' State Farm Center and Fresno State's Save Mart Center - which both receive $2 million per year - according to SportsBusiness Journal.

Discussions open door

"We certainly had a goal in mind that we looked at market value and what was happening across the country, what we really thought our value was worth not just in athletics but the university as a whole," said Mack Rhoades, UH's vice president for intercollegiate athletics.

"We think it's a really fair deal. Again, it was a number that we had set from the very beginning. It wasn't a number that we just threw darts at."

An artist rendering of TDECU Stadium, which will open in August. (Courtesy of the University of Houston) An artist rendering of TDECU Stadium, which will open in August. (Courtesy of the University of Houston) Image 1 of / 26 Caption Close UH’s stadium naming-rights deal among colleges’ most lucrative 1 / 26 Back to Gallery

Rhoades said he had "serious discussions" with a half dozen companies about putting their name on the Cougars' new stadium, which opens Aug. 29 for a game against UTSA.

TDECU is the fourth-largest credit union in Texas, with more than 190,000 members and excess of $2 billion in assets.

This will be the first major corporate sponsorship of a sports venue for TDECU, which has had smaller dealings with the Texas Bowl and independent baseball's Sugar Land Skeeters, said Stephanie Sherrodd, the company's president and CEO.

"We quickly realized the principles of the University of Houston resonated with our own," said Sherrodd, who was presented a No. 1 UH football jersey by head coach Tony Levine with "TDECU Stadium" on the back. "Toward the end of the UH mission statement, they state that they will engage in partnerships that serve the region and impact the world. Impacting the world is something we want to be a part of."

Sponsorship perks

As part of the agreement, TDECU will receive prominent signage on the exterior of the stadium, on the video board and on the artificial playing surface, strategically placed "to maximize TV exposure," Rhoades said.

TDECU will also receive a suite located on the 50-yard line, along with ticket discounts for employees and members. UH and TDECU have a mutual option of extending the deal for another five years for an additional $7.5 million.

UH president and system chancellor Renu Khator said she came away impressed from her first meeting with TDECU - down to the company's red colors.

"We were looking for a partner that brings a passion for academics and passion for the same values," Khator said. "I knew we had a great partner."