By Ray Birch
SACRAMENTO, Calif.—With no desire to remain “the best kept secret” in its markets, SAFE FCU is investing $23 million over 25 years to obtain the naming rights to a number of high-profile venues as part of a downtown revitalization effort here.
“Not unlike other credit unions, we feel like we're the best kept secret in the area, and that’s not what we aspire to be,” said EVP COO Jim Allen. “We want more people to understand the value of the cooperative business model, and this provided us with a major platform to talk about the unique value we offer. This is the most attractive advertising opportunity we have ever had—this is far better than any series of TV commercials or billboards…”
Noting it is a major commitment over a long period, the credit union believes it’s the type of investment that needs to be made if CUs are to remain top of mind with consumers. It’s critical, SAFE believes, to leverage big and different awareness opportunities when they come along.
“It's a significant investment in a significant opportunity, and there aren't that many of them in Sacramento. These big opportunities don’t come along often,” said Allen. “SAFE is playing a significant role as an integral partner in reshaping Sacramento into a top-tier U.S. city. The investment and 25-year commitment will help strengthen the Greater Sacramento region by creating jobs, expanding business opportunities, and growing California's capital into a cultural gem.”
Multiple Facilities
The $3-billion SAFE, headquartered in Folsom, Calif., has bought the naming rights to the city’s convention center, Center Theater, and the outdoor plaza that is part of the revitalization project. The entire complex will be known as the SAFE Credit Union Convention and Performing Arts District. The Convention Center will be called the SAFE Credit Union Convention Center. The theater will be renamed SAFE Credit Union Performing Arts Center, while the new outdoor plaza will be called SAFE Credit Union Plaza.
The convention center is expected to reopen in November 2020, and the performing arts center two months earlier.
SAFE Credit Union’s naming rights deal means most of the major venues in the city’s downtown are named after a credit union. The team’s NBA franchise, the Kings, play in The Golden 1 Center, to which The Golden 1 Credit Union bought naming rights in 2015. In that case, the credit union is paying $120 million over 20 years.
The Hub Of Market
“Sacramento is the hub of our market. We are investing in the core of the city. This project is over a $300-million renovation. We don't know when the next big opportunity will come by that would be even comparable to this,” Allen said.
Allen said the opportunity was presented to the credit union after the city hired an agency to research and determine a short list of candidates for the naming rights. The short list was made up of companies considered to have the right image for the project.
“Our outstanding reputation and our investment in the health and wellness of the community put us on that short list and ultimately got us the sponsorship,” said Allen. “Next year we are celebrating our 80th anniversary, and for many years we have made philanthropic investments in the business community here, provided a great deal of financial education, and have been an active participant in the local chamber of commerce. This opportunity arose as a result of our commitment to Sacramento.”
The Need to ‘Play Big’
Allen stressed credit unions have to “play big” when opportunities are presented to make consumers aware there is an alternative to banks. The deal not only includes naming rights outside and inside the major facilities in the renovation project, the credit union is also permitted to use the outdoor plaza, a central gathering space in the center of the project.
“They're creating a platform, a new quadrant in the middle of this project that's intended to be a gathering place for the community,” Allen explained. “It will be a place for local markets, for concerts, events and other things. We intend to be very active in utilizing the space to promote the credit union and what we can do to help improve financial lives.”
More Than Just Naming Rights
The deal also will have SAFE offering credit union membership to all new City of Sacramento employees, and the CU will provide financial health training through its SAFE@Work program to all city staff, as well. SAFE and the City of Sacramento will also enter into a long-term treasury relationship supporting the city’s cash flow and liquidity needs.
“This is not just naming rights, it’s a comprehensive partnership with the city,” said Allen. “It's about a partnership with the city for the economic development and financial health and wellbeing of the region. This agreement takes what we do at SAFE today—our advertising and our community outreach—and actually multiplies it by a factor of 10. I believe that. This is really going to bring us value over the years, far greater than any advertising campaign we could have introduced. When these types of opportunities come along, and they align with the mission of the credit union, they should be seriously considered.”
