Naming Rights Firm Folds

The Bonham Group, a Denver-based — but nationally and internationally known — sports marketing company has closed its doors, effective Tuesday, Jan. 6.

The name will continue under a new company, Bonham Sports Entertainment, led by Charles Costigan, former vice president of The Bonham Group’s market insight team, and Rob Vogel, the president and COO of The Bonham Group, Costigan said Thursday.

“I licensed them to use my name in the company, although I don’t own an interest in the company,” Dean Bonham said. “They’re continuing to provide services to our past and existing clients.”

But as for The Bonham Group, Bonham said, “we have closed our doors.”

The 20-year-old company was involved in about 137 discussions around the world involving naming rights on sports stadiums, such as the new, $321 million Consol Energy Center — still under construction — where the Pittsburgh Penguins expect to play their 2010-11 hockey season.

The 21-year naming rights deal between Consol Energy Inc. and the Pittsburgh Penguins was announced in December 2008.

“Dean Bonham is known as one of the forefathers of negotiating naming rights,” said Vic Gregovits, the senior vice president of sales and marketing for the Cleveland Indians.

The Indians signed a 16-year, nearly $58 million naming rights deal with car insurance company Progressive Corp. in January 2008. What was Jacobs Field is now called Progressive Field. The Bonham Group worked with Progressive on the deal.

The company was a victim of the economy’s financial meltdown, according to Bonham.

“We began experiencing problems one and a half years ago when Merrill Lynch, our financial institution, imposed changes,” Bonham said.

Merrill Lynch cut The Bonham Group’s credit lines by more than half and discontinued other credit business, Bonham said.

Merrill Lynch agreed to be bought by Bank of America in September 2008, the deal closed Jan. 1, 2009, after posting about $50 billion in losses and writedowns related to the collapse of the subprime mortgage market.

“After one and a half years of struggle, combined with the overall general conditions [of the economy] it was a result of our shutting our doors,” Bonham said.

“It’s quite a blow to me personally,” Bonham said. “My entire personal fortune is lost as well as the corporate assets.

“It’s a huge loss for all of is and it’s a shock, but that said, in these economic times, they don’t apply just to the GM’s of the world and the Chrysler’s of the world — it filters down to companies like us as well.”

The company had 16 employees when it closed this week, down from 23 or 24, including an office in London, when troubles started 18 months ago, Bonham said.

Bonham said he would pursue opportunities internationally, as he’s restricted by an employment agreement from doing business in the United States.

Members of Denver’s sports and sports marketing community were shocked and saddened by word of The Bonham Group’s demise.

Matt Yonan spent a decade at The Bonham Group, leaving in 2004 to form his own company, Tigris Marketing.

“They’re incredibly well known,” Yonan said of Bonham’s agency. “When I told people I’d been with The Bonham Group, people would nod, understanding my pedigree. It was a good selling point for me starting my own company.”

Source: Denver Business Journal