Milwaukee Bucks seeking $4 million a year for rights to Deer District name

Milwaukee Bucks Deer District real estate project.

Source: Milwaukee Bucks.

The Milwaukee Bucks, in their quest to repeat the NBA title, will play the Boston Celtics in the Eastern Conference Semifinals this weekend. Off the court, the team is seeking $4 million a year for property rights to their space inside. Deer districta 30-acre site located outside of their arena.

In an interview with CNBC, Bucks president Peter Feigin described the naming rights asset as receiving the keys to “the city we created in Wisconsin.” Deer District is part of the team’s economic development plan, in which taxpayers have contributed $250 million. And the project also brought the Bucks their $500+ million arena, which opened in 2018.

Bucks owners include well-known investors Mark Lasry, Wes Edens and Jamie Dinan. The consortium purchased the franchise for $550 million in 2014. It is now worth $1.9 billion, up from $1.62 billion in 2020. Forbes.

The Bucks are counting on the Deer District to help boost revenue outside of the NBA.

“What pro teams are underestimating right now is that you create a mother ship and feed it to a successful NBA team, and then make waves around you,” said Feigin, who is also president of the team’s arena, Fiserv Forum.

Rendering of an apartment building in the Deer District of Milwaukee.

Source: Milwaukee Bucks.

Bucks – landowners

Over the years, more and more professional sports clubs have increased their real estate income to increase the visibility of their brands.

The Golden State Warriors operate the Chase Towers, commercial and residential buildings outside the Chase Center. This helped boost their valuation to $5.6 billion, up from over $3 billion before the pandemic. Los Angeles Clippers owner and former Microsoft CEO Steve Baller is moving his team to Inglewood and will use properties around the world. $1.2 billion Intuit Dome. It could add value to the Clippers.

In Major League Baseball, the Atlanta Braves created Battery Atlanta, entertainment and residential area. The Ricketts family, who own the Chicago Cubs, also owns property around the historic Wrigley Field. Created by NFL team owner Jerry Jones “Star” is a 91-acre mixed-use facility in Frisco, Texas where the Cowboys train.

Real Estate Team Projects are cities within cities where people “live, work and play,” said Jessie Sanchez, the company’s senior vice president of sports consulting and valuation. Playfly Premier Partnership. The company advised the Atlanta Falcons on naming rights to the Mercedes-Benz stadium.

Owners want to make more money from people who want to attend sporting events, even if they’re not in arenas, Sanchez said. “Now they are real estate developers,” he said. “They’re not just a sports team anymore.”

Sanchez compared the Deer District to the entertainment district of the Cubs. “Gallagher way”. The MLB team has sold the naming rights to Arthur J. Gallagher & Co., a global insurance company that is listed on the New York Stock Exchange.

Rendering of an apartment building in the Deer District of Milwaukee.

Source: Milwaukee Bucks.

Feigin, the Bucks chief executive, said his team is “seizing opportunities to generate more income” with tenants, including a supermarket, drugstore and gym. Upscale apartments are part of the plan, and Marriott has committed to opening the hotel in 2023.

“We are completely immersed in development,” Feigin said. “We have a hotel, which is implemented in a third way. We think of other principles. We’re going to have people work there and more people live there.”

What’s in it for business partners?

Sanchez said the price the Bucks are asking for naming rights could match the market, depending on the exposure package. The proposed timeframe for the deal should be at least 10 years, as he predicts it would take backers half that time to secure the rights.

Sanchez added that companies are getting “a lot of common ground” because mini-cities attract not only sports consumers, but also “health and wellness.” [consumer] for those who love entertainment,” he said.

Another argument in favor of the Bucks is how often they are shown on national television. The Deer District appeared on the Disney ABC network during the finale. This exposure “equates to an experience and a value,” Feygin said, noting that more than 60,000 people took to the Deer area to watch NBA games on the street.

Giannis Antetokounmpo #34 of the Milwaukee Bucks celebrates during Game 6 of the 2021 NBA Finals on July 20, 2021 at the Fiserv Forum in Milwaukee, Wisconsin. Copyright 2021 NBAE.

David Sherman | National Basketball Association | Getty Images

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