By Ray Birch
LOS ANGELES, Calif.—Wescom Credit Union says the $38 million it is spending on a 10-year deal to become the exclusive banking partner for UCLA—which includes putting the CU’s name on famed Pauley Pavilion and the iconic Rose Bowl—will drive many, young new members to the credit union in the coming years.
As CUToday.info reported earlier, the $3.9-billion CU spent the money for a deal that not only places its name on the university’s well-known sports venues, but also includes a comprehensive financial literacy platform for the broader UCLA community. The credit union will become a substantial provider of financial literacy resources for all UCLA student-athletes, faculty and staff, as well as sponsor the “Financial Wellness Program” for incoming students. Wescom will also get a branch on campus.
Wescom’s name is displayed on the scoreboard within the Rose Bowl and Gate F is named “Wescom Gate.” Also, anywhere the Edwin Pauley Pavilion or Pauley Pavilion name is displayed, “presented by Wescom” will follow, the CU said.
“This is not just advertising,” said Deena Otto, SVP of administration for Wescom. “This is an investment in future members. That $38 million includes so much more than just our name on the sports centers. This was a great opportunity for us to partner with the university, whose core values align with ours. It’s a very good fit.”
Much More Than Naming Rights
Otto noted may other CUs have also been entering into naming rights deals that have made a big splash in local and national media, such as the Sacramento, Calif.-based Golden 1 spending $120 million for the naming rights to the arena where the NBA’s Sacramento Kings play.
“Many credit unions are doing traditional naming rights deals,” said Otto. “But this is much more than that. We are able to market to UCLA alumni and talk with students, and we will have the branch on campus. Again, it was critical for us to have a partnership with the university and not just be a name on a building.”
Otto said Wescom believes strongly that the partnership will become a pipeline to young, new members in the coming years. She added the credit union is confident that the new student sign-ups will not become dormant accounts as soon as they graduate, citing data indicating data a significant percentage of the students who graduate from UCLA do not then head out of state.
Going Far—But Not Going Far
“We are a community based credit union, and many UCLA students stay within the Southern California area after they graduate,” Otto explained. “It is very likely that when many students graduate they will live within five to seven miles of a Wescom branch. That means many will continue their banking relationship with us at a time when they are becoming borrowers—needing car and home loans.”
And it isn’t just students Wescom will have access to: “We have the opportunity to market to UCLA alumni,” Otto noted.
Otto acknowledged that bankers may use the Wescom deal as more ammunition in their fight that credit unions no longer serve people of modest means and it’s time to eliminate the tax exemption. As CUToday.info has extensively reported, bankers often refer to big credit union naming rights deals, such as the Golden 1 sponsorship, in their arguments to Congress, saying credit unions are acting like banks and therefore should be taxed.
“Of course, the bankers will look for every opportunity to take away the credit union tax exemption,” said Otto. “They want to take away the choice consumers have of going with a credit union, a better banking option.”
The Focus of the Deal
But Otto said Wescom did not focus on that issue when striking the deal with UCLA.
“We focused instead on how our members—our owners—felt about us spending their money, and spending it wisely,” Otto said. “We spoke with our members about it and we explained this is a solid investment in the future of the credit union.”
Other elements of the UCLA deal include:
- Significant improvements to the Ackerman Student Union patio—to be recognized as the “Wescom Dining Terrace”—including expanded seating and shading
- A student-athlete endowment scholarship fund
- A float in the 2020 Rose Parade—Wescom’s relationship with UCLA Athletics and the Rose Bowl Stadium began in 2015, the current deal includes that arrangement