SACRAMENTO, Calif.–Golden 1 Credit Union has secured naming rights to the arena being built here that is to be home to the NBA’s Sacramento Kings.
In a statement on its website, the $9-billion Golden 1 declined to say what it is paying for the naming rights, but the Sacramento Bee reported the figure is $120 million over 20 years. In a FAQ section on its website, Golden 1 said, in response to the question “How much did Golden 1 pay for the naming rights, “Golden 1 operates in an open and transparent fashion. Revenues and expenditures are disclosed annually, and this investment will be included in filings we make for 2015 and into the future. Golden 1 will make the appropriate financial disclosures as a chartered credit union. Beyond that, we are not disclosing specific terms associated with this partnership.”
The credit union did confirm on its website that the deal is for the next two decades.
“We are more than just a name on a building,” said CEO Donna Bland. “This an investment in the future of Sacramento.”
Also on hand for the ceremony was Sacramento Mayor Kevin Johnson, who previously played in the NBA, although not for the Kings.
$477-Million Facility
The $477-million facility, which will seat 17,500 people, is under construction and is scheduled to open in October 2016. In addition to Kings’ basketball games, it will also host concerts and other events. According to the credit union, Golden 1 Credit Union members will be allowed to tour the arena prior to its opening, will be able attend private events in the facility, will be able to buy tickets discounts up to 50%, will be offered early access to the arena for events, and will get to use “fast pass” lines at concessions.
In the Q&A on its website, which can be found here, Golden 1 says, in response to a question about why it is making the $6-million-a-year expense, “While our local community knows about our superior service and commitment to serving members, the Golden 1 brand has the potential to help people across the state learn more about the financial benefits of being a credit union member. We believe the partnership with the Sacramento Kings and visibility Golden 1 will earn as the naming rights partner for Golden 1 Center, will allow us to grow and pass along the benefits to current and future members.”
Makes Financial Sense?
In response to the question, “Does this deal make financial sense for the credit union,” Golden 1 answered, “Yes. Golden 1 Center is a big win for Sacramento and its future. The project reflects a $477-million investment in downtown Sacramento. It is sustaining thousands of jobs during construction and will support hundreds of permanent new quality jobs. Additionally, the development will deliver new sales, utility and property taxes that help support critical municipal services. It not only makes sense for Golden 1, it makes sense for the region.”
The Kings for many years played inside what was known as Arco Arena, before it was renamed the Power Balance Pavilion, and then the Sleep Train Arena.