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The fame of the Staples Center of Sports and entertainment was built and strengthened by the 10-year relationship between Staples Inc. and AEG. Today, the Stables Center has moved to the next level, as it lasts forever and ever.

According to Staples Inc. and AEG, the original naming-rights agreement of Staples with AEG has been “extended in perpetuity”. AEG insisted that this agreement remains to be the first lifetime naming rights extension for a main market arena.

In 1999, the office supply store chain promised to pay an amount of $120 million for the permission of putting its name on top of Staples Center for 20 years. Neither of the two groups was willing to reveal how much more Staples will pay to lock up the rights for good. Both groups stated that the amount Staples paid was only a fee previously agreed upon in their contract.

Dave Brooks, a senior writer at Venues Today magazine, stated that “The lifetime piece to this sets a new precedent”. He insisted on how AEG has been able to accomplish something very unique in pro sports.

In addition, Brooks hypothesized that Staples’ annual payment to AEG could change depending on how its name will be able to continue performing as an entertainment venue. For an example, if the Clippers basketball team is someday sold and relocated to another city, Staples would definitely gain less publicity. This decreasing exposure could cause Staples’ payments to go down.

However, Brooks believes that the Staples Center still remains a very prominent and outstanding building. It houses an average of 250 events annually, including famous games played by the world champion Los Angeles Lakers. In addition, the Grammy Awards and the Pac-10 basketball championships are also housed by the prestigious Staples Center.

Venues Today estimated that the Staples Center is the No. 3 concert venue of its size in the whole world. The Staples Center has been able to earn $43 million on 70 shows last year. Only Madison Square Garden and O2 arena in London, which is also owned by the AEG, has been able to earn more money than Staples earned.

Mike Miles, president of Staples Inc., stated that “A long list of sports champions, community leaders, and entertainers have had some of their greatest moments at the Staples Center, and we look forward to many more.”

Todd Goldstein, president of the AEG sponsorship division, claimed that the Framingham Mass.-based company is one of the 10 companies that pay large amounts of annual fees to AEG in order to maintain their naming rights. Other large sponsors who make annual payments to AEG include American Express, Nokia, and O2, a British mobile phone provider. He also stated that AEG expects to earn more than $250 million from selling naming rights this year.

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