Money Question?

On 3/15/2003 10:08:54 PM KC tirechanger wrote:

Do'es A.A. still sponsore the A.A. dome in DALLAS? How much is this costing us? And WHY???

1. Yes
2. Lots
3. Until a Federal Judge gets involved with Chapter 11, we still have a contract to honor, no matter how brain dead the decision to sign it was.
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Why is it I still get a feeling that either uppper management doesn't have a clue on how to cut costs, or just don't give a damn?
It comes out to $6.5M per year for the arena in Dallas, and $2M per year in Miami. Considering the cost of advertising, this comes by pretty cheap.

Any time a Miami Heat, Dallas Stars or Dallas Mavericks game is televised, AA gets over an hour of free advertising. Compare that to the cost of other forms of advertising...

Combined, the naming rights cost about the same as running a black and white ad in USA Today once a week.
Instead of cutting out Advertising, lets just quit buying jet fuel. The price is simply ridiculous and we'd save a ton of cash!
Advertising always seems "cheap" to management, especially when they are seeking pay and benefit cuts from employees.
And if AA wasn't "advertising," the question would by "Why doesn't AA advertise more, especially in these times".
Let's just pull more seats out and create "mega-room" throughout coach.
KCtirechanger, I suggest you go back to school and learn to spell before worrying about what kind of money AA spends on advertising.
I remember another carrier who put their name on a dome in STL, but I can't remember their name. But as I remember, they went bankrupt also.
Is there still a "United Center"?
I think I would rather spend money in USA TODAY as opposed to the $200,000,000.00
contract for the AA Center in Dallas. How would that entice a flyer in TOL or BOS to fly AA. If anything I dislkie the Mavs and Stars and would boycott AA all other options being fairly equal. Finaly, Why did AA pay $200mil for an arena name... H**L the arena cost $425mil. They could have built there own. They paid for near have of it and don't own a thing. What a smart investment
You just can't resist can you? I will always think of it as the Trans World Dome. If TWA hadn't put its name on it it most likely would have been Southwest Airlines Dome. The publicity alone was well worth the money spent.TWA had little extra money to spare for much advertising. This was one smart move even you knew what it was called. Pretty good advertising I'd say.
On 3/17/2003 11:27:54 PM DFWCC wrote:

Is there still a "United Center"?


Yep. And there probably will be if they emerge from Bankruptcy.

And, for the record:

Delta Center in SLC, $1.3M per year thru 2011
Continental Airline Arena near EWR, $1.4M per year thru 2011
FedEx Field, DC, $7.6M per year thru 2025
FedEx Forum, MEM, $4.5M per year thru 2023
United Center, ORD, $1.8M per year thru 2014

Why did AA pay $200mil for an arena name... H**L the arena cost $425mil.

Because if had become the Southwest Arena back then, people would have said management f***ed up by not getting there first...

Also, don't overlook that in 1998 when the deal was struck, [a target=_espn href=]naming rights[/a] were the latest craze for companies. That doesn't make it right or wrong, but it was not something just airlines were doing.

Why would Fedex, clearly the most recognized name for express shipping, pay roughly $200M to get the naming rights to RFK's replacement in DC, or $100M to name the arena in their hometown of Memphis? Does it make more people send things via FedEx?

Why would Minute Maid (again, a leading brand name) fork out close to $200M to assume the naming rights from Enron Field in Houston? Will it make people buy more orange juice?.

Yep. It will. That's how advertising works, and it proves itself over and over again. You get the brand name in front of as many people so that it is the first thing they think of when you say juice or overnight shipping.

Ever wonder why Quaker sells more oatmeal than anyone else? Because for some reason, people believe that Quaker invented oatmeal. Dried oat flakes are dried oat flakes, regardless whose name is on the package. But, but continuing to advertise, they remain the leading seller of dried oat flakes....