Banc of California Paid $20 Million to End L.A. Soccer Stadium Name Agreement (EXCLUSIVE) — Variety

Banc of California is paying a $20.1 million fee for the right to end its stadium-naming deal with professional soccer team Los Angeles Football Club 12 years early. The bank and Major League Soccer club on Tuesday said they were unwinding the 15-year, $100 million deal that began in 2018. By the time the agreement…

Banc of California Paid $20 Million to End L.A. Soccer Stadium Name Agreement (EXCLUSIVE) — Variety
Banc of California is paying a $20.1 million fee for the right to end its stadium-naming deal with professional soccer team Los Angeles Football Club 12 years early.
The bank and Major League Soccer club on Tuesday said they were unwinding the 15-year, $100 million deal that began in 2018. By the time the agreement expires at the end of the year, Banc of California will have paid more than $35 million for the right to have its name on the venue, the company said in an SEC filing.
Collecting the termination fee, akin to three years’ worth of the current payments, will help buoy the team as it seeks another naming rights partner amid the COVID-19 pandemic, which has halted play in the major U.S. sports leagues.
“The good news with naming rights is that those companies typically look at these deals as long-term investments,” LAFC president Tom Penn said.
LAFC negotiated the original naming rights deal as the $350 million stadium project was starting construction, pitching sponsors with renderings and projected metrics.




Penn said LAFC will have the advantage this time of negotiating with a fully operational stadium, which has sold out every MLS game and which will hold events during the 2028 Summer Olympics.



The team and league are also in a different place financially. LAFC owners, a group that includes Apollo Global Management senior partner Larry Berg and Riot Games co-founder Brandon Beck, recently bought back a share of the team at a league-record $700 million valuation.

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