Levi Strauss & Co. Renews Commitment to the Bay Area With Proposed 10-Year Extension of Levi’s® Stadium Naming Rights and 49ers Partnership
Levi Strauss & Co. and the San Francisco 49ers proposed a 10-year extension to the naming rights for Levi’s Stadium and team sponsorship worth $170 million. This secures LS&Co. the naming rights through the 2043 NFL season, reaffirming the parties’ commitment to the Bay Area as a world-renowned destination for sports and entertainment. The extension also includes digital content and merchandise collaborations. Levi’s Stadium has hosted world-class events, and LS&Co. will continue to invest in long-term, sustainable growth and community engagement. The extension solidifies the partnership between LS&Co. and the San Francisco 49ers, emphasizing their shared commitment to making a positive impact on the community. The stadium will host the 2026 FIFA World Cup and Super Bowl 60, generating significant economic impact for the region and City of Santa Clara.
The proposed extension of the naming rights for Levi's® Stadium and team sponsorship with the San Francisco 49ers, valued at $170 million, represents a significant investment in brand marketing and customer engagement for Levi Strauss & Co. This move could potentially strengthen LS&Co.'s brand visibility, leveraging the cultural and economic influence of a major NFL team. The extension through the 2043 NFL season indicates a long-term strategy aimed at maintaining a prominent presence in the sports and entertainment industry.
From a market research perspective, this partnership aligns with trends where companies seek to capitalize on the emotional connection that sports teams have with their fans. The association with high-profile events like the Super Bowl and FIFA World Cup, both of which are set to take place at Levi's® Stadium, is likely to enhance LS&Co.'s brand equity. Such events can provide a global platform for brand exposure, potentially leading to increased sales and market share.
It is also worth noting that the commitment to community engagement and sustainability initiatives as part of the agreement aligns with the growing consumer demand for corporate social responsibility. This could further endear the brand to consumers who prioritize ethical and sustainable practices in their purchasing decisions.
The financial implications of the naming rights extension can be analyzed by considering the cost-benefit ratio over the long term. A $170 million investment spread over a period extending to 2043 needs to be weighed against the projected incremental revenue generated from brand exposure and merchandise sales. The annual $200,000 commitment from the 49ers to community projects, while relatively small in comparison, also contributes to the overall value proposition of the partnership.
Investors and stakeholders should consider the potential for revenue growth against the backdrop of the sports apparel market's competitive landscape. The direct association with NFL viewership and attendance at Levi's® Stadium could provide a competitive advantage and justify the investment. Moreover, the planned renovations and technological advancements at the stadium are likely to enhance the fan experience, potentially leading to increased attendance and revenue.
However, the financial success of this agreement depends on the sustained popularity of the NFL and the San Francisco 49ers, as well as the continued relevance of Levi's® brand in the evolving fashion industry. Economic impacts from hosting major events like the FIFA World Cup and Super Bowl 60 should also be factored into the long-term financial projections.
Levi's® Stadium's LEED Gold Certification underscores the venue's commitment to environmental sustainability, a factor that is increasingly important to stakeholders and consumers alike. The mention of initiatives focused on water conservation and extending the life of clothing through the 'Field of Jeans' installation indicates a strategic alignment with sustainability goals, potentially boosting the corporate image of LS&Co.
As sustainability becomes a more critical component of corporate strategy, LS&Co.'s continued investment in green initiatives at the stadium could serve as a model for other companies. This approach not only addresses the environmental impact of the company's operations but also resonates with a consumer base that is more environmentally conscious. The positive reception of such initiatives can contribute to customer loyalty and brand differentiation in a crowded marketplace.
It is essential to monitor the effectiveness of these sustainability projects in terms of actual environmental impact and public perception. The success of these initiatives can influence the long-term sustainability strategy of LS&Co. and its alignment with broader industry trends towards eco-friendly practices.
01/25/2024 - 09:00 AM
The extension is worth $170 million
SANTA CLARA, Calif. & SAN FRANCISCO --(BUSINESS WIRE)--
Levi Strauss & Co. (LS&Co.; NYSE: LEVI) and the San Francisco 49ers announced today a proposed 10-year extension to the naming rights for Levi’s® Stadium with the Santa Clara Stadium Authority and team sponsorship with the San Francisco 49ers, worth a combined $170 million ® Stadium through the 2043 NFL season, reaffirming the parties’ commitment to the Bay Area as a world-renowned destination for sports and entertainment. LS&Co. will also be extending their sponsorship of the team, which includes digital content and merchandise collaborations, continuing this successful partnership.
Levi’s® Stadium has earned its status and reputation as a world-class, multi-use, publicly owned venue since opening in 2014, with events that have brought millions of visitors through its doors while also breaking NFL and sports viewership records. In addition to San Francisco 49ers football games, Levi’s® Stadium has hosted many of the world’s most attended live events, including Super Bowl 50, the College Football Playoff, Wrestlemania, NHL Stadium Series and concerts featuring artists such as Taylor Swift, Beyoncé and The Rolling Stones.
“Since first announcing the naming rights to Levi’s® Stadium in May of 2013, under the leadership of LS&Co. CEO, Chip Bergh, we have seen our partnership with the San Francisco 49ers deliver value to our Levi’s® brand, furthering its place at the center of culture, helping us to connect with new generations of fans through the unifying power of sport and music, and building on our legacy of community engagement with like-minded partners,” said Michelle Gass, president and incoming CEO at LS&Co. “Our brands are our greatest asset, and we will continue to invest in drivers of our long-term, sustainable growth. Today’s announcement underscores our confidence in this strategy, as well as in the continued opportunity to make an impact alongside values-led partners like the San Francisco 49ers organization and the City of Santa Clara.”
As part of LS&Co.’s commitment to giving back, the company will continue to partner with the 49ers and nonprofit organizations on initiatives that benefit the Bay Area community and build on the shared commitment to sustainability, with projects such as the 49ers EDU program , focused on water conservation, and the “Field of Jeans ” installation, which demonstrated the importance of extending the life of the clothes we wear. Additionally, the 49ers organization is committing $200,000 Santa Clara community and residents.
“Levi Strauss & Co. has deep roots in the San Francisco Bay Area , and we know the value that this iconic name brings to a world-class stadium that attracts hundreds of thousands of people annually,” said Santa Clara Mayor Lisa Gillmor. “This extension would solidify our partnership with LS&Co., showing that we have a shared commitment to make a positive impact on our community.”
“We’re thrilled to be extending our stadium and team partnerships with the Levi’s® brand. This season we’re proud to celebrate the success of our first 10 years as partners, and we look forward to our next 20 years together,” said Al Guido, President of the San Francisco 49ers. “The 49ers and Levi’s® are both iconic brands that are synonymous with the Bay Area, driven by a desire to serve this community. Levi’s® Stadium has been featured on the world stage numerous times and will continue to be the premier venue in the Bay Area for the coming decades. The success of the stadium is proof of how special the Bay Area is and the power of major events to bring positive economic impact, excitement and opportunity to this community.”
At the heart of Silicon Valley, Levi’s® Stadium represents the best and latest in major venue technologies that enhance the fan experience. Sustainability lay at the center of the design and construction of the stadium, which became the first NFL venue to earn a LEED Gold Certification that it still maintains today. Its state-of-the-art technology infrastructure gives visitors impeccable connectivity in every corner of the venue and enabled Levi’s® Stadium to be one of the first NFL venues to transition to entirely cashless concessions using modern point-of-sale systems. In an effort to continuously evolve as a premier venue, the stadium will undergo substantial additional renovations and re-investment in the coming years, beginning with an extensive suite remodel process following the current NFL season.
In 2026 Levi’s® Stadium will be a host venue for the 2026 FIFA World Cup, in addition to Super Bowl 60, which will be the second installment hosted at the stadium since its opening. Both events are expected to generate hundreds of millions of dollars in economic impact for the region and City of Santa Clara , as well as leave a lasting positive legacy for Bay Area sports fans.
Fans looking for more Levi's® Stadium content and news can visit levisstadium.com .
About Levi's® Stadium
Named Sports Facility of the Year for 2015 by Sports Business Journal, Levi's® Stadium is home to the San Francisco 49ers and serves as one of the world’s most technologically advanced and sustainable sports and entertainment venue. The $1.2 billion City of Santa Clara . For more information, go to LevisStadium.com.
About the San Francisco 49ers
The San Francisco 49ers, owned by Denise and John York, currently play in the NFC West division and have won five Super Bowl trophies, including Super Bowl XVI, XIX, XXIII, XXIV and XXIX. The franchise also has seven conference championships and 22 divisional championships and was the first major league professional sports team to be based in San Francisco over 75 years ago. Please visit 49ers.com and follow the 49ers on Facebook and Twitter @49ers.
About Levi Strauss & Co.
Levi Strauss & Co. is one of the world's largest brand-name apparel companies and a global leader in jeanswear. The company designs and markets jeans, casual wear and related accessories for men, women and children under the Levi's®, Dockers®, Signature by Levi Strauss & Co.™, Denizen® and Beyond Yoga® brands. Its products are sold in more than 110 countries worldwide through a combination of chain retailers, department stores, online sites and a global footprint of approximately 3,200 brand-dedicated stores and shop-in-shops. Levi Strauss & Co.'s reported 2022 net revenues were $6.2 billion levistrauss.com/ , and for financial news and announcements go to https://investors.levistrauss.com .
About the Santa Clara Stadium Authority
The Santa Clara Stadium Authority exists as a public body, separate and distinct from the City of Santa Clara , and was established to provide for the development and operation of Levi's® Stadium. The elected members of the City Council serve as the governing board for the Authority, with the Mayor serving as chair, the City Manager as the Executive Director, and the City Attorney as the Authority’s General Counsel. Levi’s® Stadium, the region’s premier sports and entertainment venue, is home to the San Francisco 49ers and future host site of Super Bowl LX and FIFA World Cup in 2026. For more information, visit SantaClaraCA.gov/StadiumAuthority
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View source version on businesswire.com: https://www.businesswire.com/news/home/20240125695603/en/
Josh Stephens – Josh.Stephens@49ers.com – 650-644-5818
newsmediarequests@levi.com - (415) 501-7777
Source: Levi Strauss & Co.
What is the proposed extension for Levi’s Stadium and team sponsorship worth?
The proposed extension is worth $170 million for the Santa Clara Stadium Authority and the San Francisco 49ers.
How long will the extension secure the naming rights for Levi’s Stadium?
The extension secures LS&Co. the naming rights through the 2043 NFL season.
What major events has Levi’s Stadium hosted?
Levi’s Stadium has hosted events such as Super Bowl 50, the College Football Playoff, Wrestlemania, NHL Stadium Series, and concerts featuring artists such as Taylor Swift, Beyoncé, and The Rolling Stones.
What future events will Levi’s Stadium host?
Levi’s Stadium will host the 2026 FIFA World Cup and Super Bowl 60.
What is the focus of Levi Strauss & Co.’s commitment to giving back?
The focus is on partnering with the 49ers and nonprofit organizations on initiatives that benefit the Bay Area community and build on the shared commitment to sustainability.
What is the significance of Levi’s Stadium's technology infrastructure?
Levi’s Stadium represents the best and latest in major venue technologies that enhance the fan experience.
