1
Select the correct answer.
Which risk is a sponsor assuming when buying the naming rights to a stadium or arena?
OA.
Nobody will notice.
OB. The team may not perform well:
OC. The fans of the team may not like the idea.
OD.
People will dismiss the action as pretentious.
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Answer:

The team may not perform well:

Explanation:

The biggest risk with naming rights is negative news concerning the team. The sponsor's brand name will be associated with the team; any negative team news will impact the brand name.

If a team performs poorly, some customers may associate the team's dismal performance with the brand name. Customers may shy away from the sponsor's products as they distance themselves from dismal performances.