Texas Dow Employees Credit Union secured a 10-year naming rights deal for the new stadium at University of Houston. (Photo by University of Houston)
When ESPN opens up its Aug. 29 national broadcast of the college football matchup between the University of Houston and University of Texas at San Antonio, the first words will likely include UH’s new naming rights partner, Texas Dow Employees Credit Union.
The university and TDECU have agreed on a 10-year, $15-million deal, giving the financial company naming rights to UH’s brand-new $120-million football stadium. UH and TEDCU have a mutual option to extend the deal for five years for an additional $7.5 million.
“We wanted to work with a company that was committed to helping us grow and get better as an institution and in return we would do the same thing,” said University of Houston Vice President for Intercollegiate Athletics Mack Rhoades. “It had to be more than just a sign on the stadium. If that was all it was going to be for a company, it was not going to work for us.”
At $1.5-million annually, the deal is the highest ever for a Football Bowl Subdivision school and the third most lucrative among all NCAA facilities behind Illinois’ State Farm Center and Fresno State’s Save Mart Center, which receive $2 million per year.
Rhoades and university officials negotiated the deal without the help of a broker. They used the baseline set by previous deals to determine their asking price.
“One of the factors was looking at recent naming rights deals and specifically looking at college athletics,” Rhoades said. “You look at what has been relevant within your state and city. You factor in the conference that we are in and how much TV exposure there is. Every one of our home games was nationally televised last year – that was important.”
The Cougars’ new 40,000-capacity facility will include TDECU signage on the outside of the stadium as well as on the video board and the field – which is aimed at maximizing exposure to the TV audience.
Part of getting the most out of the deal was making sure it was done before opening night. The university and its partner did not want to miss an opportunity to show off the new stadium on ESPNU (part of ESPN’s family of networks) which reaches 75 million homes throughout the country.
“Because we were able to announce this ahead of the opener, all of our schedule cards and billboards and preadvertising things talking about the stadium and our upcoming season like radio, TV and other media – it all included TDECU’s name,” Rhoades said. “From that perspective it was extremely important to get done when it did. Also from a name recognition standpoint, to have it there before the season starts is important.”
A look from the end zone. (Photo by University of Houston)
UH football had previously played its games at NRG Stadium, home to the National Football League’s Houston Texans. Their highest attendance was 34,831 which would nearly fill the new venue.
TDECU will have more than their name present at Cougars’ games, they will also have clients, executives and employees. Part of the agreement includes a suite located on the 50-yard line and ticket discounts for clients and employees. The stadium has 26 total suites, 42 loge boxes and 766 club seats.
As for additional perks for the university, TDECU will sponsor the Cougar 100 Event, an initiative from the University of Houston Alumni Association that recognizes businesses owned or led by UH alumni.
“We are proud to have the TDECU name on the new stadium as a visible sign of our commitment to the University and the Houston community,” said Stephanie Sherrodd, TDECU President and CEO. “TDECU’s core values are shared by the University of Houston in improving the lives of those around us in order to build for the future.”
TDECU stadium will include a Legends Plaza, 5,000-square foot locker rooms and a club area for fans to watch players enter the field. It will also be utilized by area high school teams, the university’s band and other university events.
As the opener approaches, construction crews are still working toward putting the final touches on the new facility.
“I told my staff we all may be painting or putting up signs on that Thursday before we kick off that Friday night the 29th,” Rhoades said.
Interviewed for this story: Mack Rhoades, (713) 743-2255; Stephanie Sherrodd, (210) 236-5000