Selling names to government buildings may not be lucrative

The New Brunswick government's idea of selling naming rights to certain government-owned properties may not be as lucrative as some cabinet ministers may be hoping, one marketing expert says.

The selling of naming rights on buildings, roads, bridges and parks was floated on Wednesday by Victor Boudreau, the minister responsible for the strategic program review.

Boudreau is trying to chip away at the $600-million structural deficit that the province is carrying.

Marvin Ryder, a marketing professor at McMaster University in Hamilton, Ont., said the possible revenue from selling the names of certain government buildings and structures may not be as lucrative as the government is anticipating.

"The only place where this has worked well is in sports facilities where an organization might want to have the name as thousands of people walk into the building," Ryder said.

Ryder said he thinks the move could be more about optics, than economics.

The provincial government is considering selling the naming rights for new or renovated buildings, wings of buildings, parts of trails or highways, bridges, and parks.

Boudreau's statement said the initiative could also include advertising on government-owned ferries, roadways and common areas in government buildings, as well as sponsorship and exclusivity agreements.

However, there are many government buildings that will not be eligible. The government is not looking at selling naming rights for schools or hospitals.

Boudreau said on Thursday that certain criteria and conditions would be drawn up.

"You would have to do this within reason," Boudreau said.

The Liberal cabinet minister said this is one of the many options being studied by the strategic program review group. He said other governments have sold naming rights and have done so "very successfully."

"There is potential and it is an option. This is an option that we are putting out there for consideration," Boudreau said.

"If it raises $1 [million], $2 [million] or $3 million, that is money that we don't have to go ask New Brunswickers to put in the pot to help address the fiscal challenges that we are facing."

Social media response

The provincial government's trial balloon of selling naming rights for public buildings took off on social media as Twitter users, in particular, were not shy about offering their own suggestions.

It didn't take long before ideas for new names of two of New Brunswick's largest office buildings came in.

The possibility of renaming provincial parks and other provincial attractions prompted several suggestions.

The fact that naming rights cannot be sold to schools, hospitals or buildings not owned by the provincial government, didn't stop some creative individuals.