A general view of the arena as the LSU Lady Tigers play the South Carolina Gamecocks in the first quarter during the championship game of the SEC Women’s Basketball Tournament at Bon Secours Wellness Arena on March 10, 2024 in Greenville, South Carolina. (Photo: Eakin Howard/Getty Images)
Nonprofit hospital systems across the country are spending millions to display their names on stadiums and sports arenas, even as federal Medicaid cuts and economic uncertainty cloud your financial future.
Health systems and hospital groups have purchased naming rights to arenas and arenas in states such as California, Florida, Georgia, Indiana, New York, North Carolina, Pennsylvania AND Tennessee.
include WellSpan Park in York, Penn Medical Park in Lancasterand UPMC Park in Erie.
The health sector’s interest in contracting with sports teams has only increased in recent years, said Angeline Close Scheinbaum, a sports marketing professor at Clemson University.
Scheinbaum and his colleague, Xavier University marketing professor Russell Lacey, study stadium sponsorship investments.
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“One of the biggest themes we’ve seen in our research is creep into the healthcare space,” Scheinbaum said.
But naming rights deals, particularly for nonprofit hospitals, have raised eyebrows among local officials and the public.
Unlike their for-profit counterparts, nonprofit hospital systems you don’t have to pay most taxes. In return, they have a responsibility to give back to society by offering free or lower-cost care and focusing their resources on underserved areas. They usually assign less dollars for advertising and marketing.
Some local officials in states such as Tennessee and California have criticized stadium sponsorships by nonprofit systems as an inappropriate exploit of funds, arguing that the money would be better spent improving or expanding access to health care. Hospitals say they need to stay competitive in the marketplace and that sponsorship helps them become more deeply integrated into their communities.
However, some officials remain unconvinced.
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In May, the Erlanger Hospital Group in Chattanooga, Tennessee announced signed an agreement with the Chattanooga Lookouts, a minor league baseball team, to name their fresh stadium Erlanger Park. The Lookouts are the Double-A affiliate of the Cincinnati Reds.
The move frustrated Weston Wamp, the Republican mayor of Hamilton County, of which Chattanooga is the county seat.
“When the county supported the transformation of Erlanger into a nonprofit hospital, we did not anticipate multimillion-dollar stadium naming rights deals,” Wamp said in a May statement. Contacted by Stateline, he declined to comment further, citing his previous statement.
“I am very supportive of Erlanger Hospital and its current leadership, but at a time of severe nursing shortages and quality of care issues, it is difficult to explain this decision,” he said.
Although Erlanger and Lookouts did not disclose the sponsorship amount, Wamp said the securing hospital “will foot the bill for the $1 million annual lease fee.”
Erlanger President and CEO Jim Coleman told Stateline in a statement that the hospital is not experiencing a nursing shortage.
“We are proud of our decision to become the naming rights partner of the incredible new Lookouts Stadium because it gives our system an unparalleled opportunity to reach our community in new and exciting ways in a competitive marketplace,” he said.
“This partnership makes sense and we look forward to welcoming our entire region to Erlanger Park next year.”
Stadium or arena signage can improve name recognition for a hospital system and signal its commitment to the city, Scheinbaum said. She compared it to the clinic of a local doctor who sponsors Little League team jerseys.
“It’s an economic signal of strength, but also a way to strengthen your roots in the local community,” she told Stateline. “It becomes a fixture in these cities and part of the local lingo. In that sense it can be very powerful.”
But as with Erlanger, not all local officials want their cover hospitals to spend millions on this type of sponsorship, especially when the hospitals rely heavily on state or local funds and ask for public donations.
It is an economic signal of strength, but also a way to consolidate one’s roots in the local community.
– Angeline Close Scheinbaum, professor of sports marketing at Clemson University
After nonprofit Valley Children’s Healthcare of California finalized a 10-year, $10 million contract with Fresno State for naming rights to its football stadium in 2022, the deal generated reaction on social media. Some residents said the hospital was wasting funds, especially after holding public fundraisers to solicit donations.
Hospital leaders defended a move, claiming the money comes from the marketing budget, which is funded by hospital revenues rather than donations. The hospital said the naming rights agreement could improve its name recognition and its ability to recruit employees.
“Valley Children’s relationship with Fresno State is a partnership, not a naming rights agreement,” Zara Arboleda, spokeswoman for Valley Children’s Healthcare, said in a statement.
“While this partnership includes our naming rights to the stadium, it is primarily focused on improving health care for children, creating educational opportunities for Valley Children’s staff and Fresno State students, and providing job training and education – including paid internships – for students.”
But the partnership also came with perks for the CEO and hospital officials, including a catered skybox suite worth up to $1,500 for each home game, round-trip airfare for four on the team’s charter plane for away games and hundreds of tickets to home games, according to media reports.
The outrage prompted Fresno City Council members to ask California Democratic Attorney General Rob Bonta about it examine the hospital’s exploit of state funds.
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In 2023, Ohio-based nonprofit health system Bon Secours Mercy Health paid over $4 million Down renew naming rights to a sports arena in Greenville, South Carolina. But the system does submit to congressional control AND gained media attention for withdrawing immense reimbursements from a federal program designed to subsidize care for needy patients. Critics have scrutinized the system for money spent regarding stadium naming rights and management remuneration.
In Indiana, the nonprofit Parkview Health paid for the naming rights to a local minor league baseball stadium for yearsbut it also has attracted media attention because local hospitals are among the most pricey in the country. Owns naming rights was met with criticism With state leaders. The stadium is home to the Fort Wayne TinCaps, an affiliate of the top-flight San Diego Padres.
And in Louisiana, Our Lady of the Lake Regional Medical Center is in talks to pay $50 million over ten years for naming rights to a proposed fresh arena at Louisiana State University. The nonprofit Catholic Hospital, one of the largest health systems in the region, has not yet finalized details of its contract with the state’s flagship university.
Stadium naming rights could be a good exploit of a health system’s marketing budget if done wisely, Scheinbaum said.
“Sponsorship is more than just putting your name on something,” Scheinbaum said. “It should be part of an overall package where you give back to the community.”
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For example, it could enable hospital providers to offer more on-site educational events during games. In recent months, Erlanger has been a guest events during Lookouts games devoted to women’s health and stroke prevention.
And more broadly, sports sponsorship is not a fresh phenomenon in health care. Hospitals and medical groups have long partnered with sports teams at all levels as the “official” health care providers for team athletes.
“There is a natural, organic connection between health and sports,” she said. “People love sports. It’s a cultural thing.”
Stateline reporter Anna Claire Vollers can be reached at: avollers@stateline.org.
state line is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Stateline maintains editorial independence. If you have any questions, please contact editor Scott S. Greenberger: info@stateline.org.
