AT&T Nets Naming Rights

The War Memorial Stadium Commission last week agreed to sell naming rights for the playing field at the Little Rock stadium to AT&T.

The telecommunications company will pay $175,000 a year for five years for what will be AT&T Field when the football season opens this fall.

Under the plan, the revenue will be part of the stream supporting $4 million of revenue bonds sold through private placement in 2009 for a new press box and other improvements at the stadium, which opened in 1948.

Other revenue supporting the bonds include rent, stadium advertising, concessions, and parking fees.

Most of the revenue is generated from two University of Arkansas football games at the stadium each year. Area colleges and high schools also play football games there.

The work will include new turf and the addition of 278 seats to the stadium to bring the capacity to more than 54,000 fans. Other financing includes $1.5 million from the Arkansas Natural and Cultural Resources Council.

The money is generated from a tax on real estate transfers to fund various projects that involve historic structures, recreation, and preservation.

State financing also included $1.5 million from Gov. Mike Beebe’s general improvement fund, and $365,000 in state appropriations.

AT&T can renew its lease on the field after the initial five-year term expires with a 2.5% annual increase. The payments would go to $179,375 in year six of the agreement, topping at almost $200,000 in the 10th year.

For reprint and licensing requests for this article, click here.
MORE FROM BOND BUYER