WHAT'S THE GOING PRICE OF LIBERTY?

19 October 2005

Bosses at Swansea's £27 million super-stadium are refusing to say exactly how much they have sold the naming rights for. The Post yesterday exclusively revealed the showpiece ground at Landore will be known as The Liberty Stadium. But bosses are refusing to put a precise figure on the deal.

Instead they have given what they say is a ballpark figure of around £500,000. Swansea-based property developer Liberty Properties has signed a five-year deal for the rights to have its name emblazoned on the new 20,000-seat stadium.

With the stadium home to division one high-fliers Swansea City and the Ospreys regional rugby team, The Liberty Stadium will receive extensive media coverage.

Head of stadium management firm StadCo, Councillor Gerald Clement, and Liberty Properties director Philip Morris were asked to put an exact figure on the deal at a press conference held to announce the deal.

But they refused to do so, citing commercial confidentiality." £500,000 is a ballpark figure," said Councillor Clement. Mr Morris also declined to put a precise figure on the deal, saying it was "in excess of £500,000".

He would give no details. The stadium is the first in Wales to be sponsored.The deal follows months of wrangling over what it should be called. During construction it was known as White Rock. Then it took on the bland-sounding title of The New Stadium Swansea.

Now it will carry the name The Liberty Stadium.But the £500,000 figure falls far short of the £800,000 deal that was talked about earlier in the year. In March a council spokesman said: "The £800,000 is a total budget for the naming rights sale, not an annual figure. "So it is entirely consistent with the quoted estimate of £250,000 per annum being our targeted value."

Yesterday's press conference was told the £800,000 figure had included items such as the sponsorship of individual stands and hospitality suites, not just the naming of the stadium. A £500,000, five-year-deal would net StadCo £100,000 per year, which Councillor Clement said was in line with the stadium's business plan. Earlier this year the council loaned StadCo £2 million. Councillor Clement said the £100,000 per year income was what was expected when the loan was made. Both parties declared themselves happy with the deal.

Several companies were thought to be in the running for the deal and Councillor Clement confirmed that Liberty had offered the most cash."It was the best net offer," he said.

The deal will run for the next five years. During the final 12 months of the arrangement negotiations will start on extending the deal.

"It was an initial bid of five years," said Mr Morris. "We expect the five years to become 10 years."

Council leader Chris Holley said a five-year-deal was the right one for the stadium because its value might increase during that period and StadCo could get a better deal in future."It is quite right that both parties have the right to renegotiate the deal," he said.

"I think StadCo are quite right to have gone for a short-term deal that they can renegotiate later."

It was also confirmed at the press conference that StadCo is still in negotiation with various organisations about the sponsorship of other elements within the stadium.

"We are still talking to interested parties," said Councillor Clement.

Mr Morris added: "Our sponsorship is for the naming of the stadium and does not impinge on the stadium seeking other sponsors."

Sports fans yesterday gave the thumbs up to the name.

Geraint Clark, of Stanley Terrace, Mount Pleasant, said: "It sounds impressive. I think it's something people will remember.''

Huw Jones, of Drumau Park, Skewen, said: "The main thing is, it is a name that will last.''

Stadium sponsorship has become a regular feature of football in recent years. Clubs eager for funds to plough into the transfer market have looked to businesses to boost their bank accounts, in return for a big plug sponsoring a stadium box stand or the ground's name itself.

In 1997 the Britannia Building Society paid £1.3 million up front to sponsor Stoke City for 10 years. The cash was used to help build the club's new £14.7 million stadium. The deal has recently been renewed between the building society and the team, for a reported similar sum. Current Coca-Cola Division One leaders Huddersfield Town played at the McAlpine Stadium for 10 years after a deal was struck between the club and construction company Alfred McAlpine over the building of the new ground.

Pharmaceutical firm Galpharm has become the latest company to sponsor the ground, a deal thought to be worth around £100,000 a year.