Brand News: Saturday, March 26, 2005
Seattle Sonics Brand Worth $26.5 million?
by Brad Sarna
Seattle Times writer, Percy Allen, reported on March 25, 2008 that the ownership group of the NBA’s Seattle Sonics is so eager to leave Seattle and move the team to Oklahoma City that it is willing to sell the team’s brand, i.e., its name, logo, colors, and history as part of a settlement package with the city for $26.5 million.
It does bring to attention the issue of the value of an existing brand in relation to a sports team. This notion that the teams name, logo, colors, and history have significant value and are coveted by the city, and potential future owners of a team in that city, is not a new idea. The Cleveland Browns moved to Baltimore after the 1995 season and became the Baltimore Ravens, with part of the relocation deal worked out with the NFL forcing the team to relinquish the name, colors, and history of the Browns to next team that occupied Cleveland. It worked out well as Cleveland was awarded an expansion franchise 3 years later and remain the Cleveland Browns to this day.
The Sonics brand had significant value despite the fact that there is no NBA team lined up to come to Seattle in the near future. This exemplifies the strength of the brand and its worth to any team that may come to Seattle in the future. If the city of Seattle works out an agreement with the NBA to be the next city to be granted an expansion franchise or is chosen by a team to relocate then the Sonics brand value will increase. The existence of a successful brand for a new team to use is extremely valuable because it will already have an accepted and recognizable brand in place.
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