Toyota Dealership Buys Public Park Naming Rights

Giving corporate sponsors naming rights for a sports arena or field is no longer news, as big names in the business have already done it. Take the Los Angeles Lakers for example: they have the Staples Center; The New York Mets have Citi Field and the Pittsburgh Steelers have Heinz Field, all named for large corporate sponsors.

A Dallas suburb now has a public park for amateur sports leagues named after an auto dealership: Toyota Lewisville Railroad Park. Dealer Rene Isip agreed to pay US $1.5 million over 10 years for the name and the right to post logos, signs and banners throughout the 268-acre (108 hectares) park. The first signs went up last month.

"I want to create a buzz about the dealership that gives us more name recognition," Isip said. "The park is a stable ground that anchors us to the city more so than any other dealership."

Isip said he is happy with his investment, although it was higher than originally intended, as his initial offer was $100,000 a year rather than $150,000. However, he hasn't estimated the potential return of his investment.

"I'm looking to be tied into the city of Lewisville," Isip said.

The fee comes out of the dealership's advertising budget, leaving $1.2 million for newspaper, radio, TV, Internet and direct-mail purchases.

Isip's dealership is in a competitive environment with four other Toyota dealerships in the vicinity of Lewisville. The store's new vehicle sales fell 17 percent in 2009 to 2,036. In addition to that, Toyota's series of safety recalls cut deeper into the dealership's sales early this year, Isip said.