Heinz Field will exist no longer, but at least the name will not include the word “Kraft”

Heinz Field, which will no longer exist
Photo courtesy of Getty Images

… Steelers seeking new corporate sugar-daddy

Names change: In my lifetime, the Steelers have used a number of stadiums: Forbes Field, Pitt Stadium, Three Rivers Stadium, and now finally, Heinz Field. 

However, while the facility will not change, the name apparently will. According to Sports Business Daily, the merger of two giants, Heinz and Kraft that is now named Kraft Heinz, one which is also now suffering financially, means that the company that has provided the name to the current facility will no longer do so. 

Reporter Terry Lefton writes about the upcoming change, 

Heinz, founded in nearby Sharpsburg, Pa., has held title rights there since the building opened [in 2001]. Its current deal expires in 2021, and while we’re told Heinz is still at the table, the distance between buyer and (re)seller is vast, and no one across the naming-rights industry expects the Heinz name to be on the stadium after that date.

Sports Business Daily, July 29, 2019

This may occur for a number of reasons. The first is that Heinz is no longer located in Pittsburgh. That happened because of the merger that became reality a few years ago when Teresa Heinz Kerry, the heir for her first husband, the late John Heinz’s, fortune, decided to sell the company. She was not involved in its operation. 

In 2013, Heinz was sold to Berkshire Hathaway and 3G Capital and created the merger as Kraft Heinz. However, in February, the company disclosed major problems, according to CNN Business,

It seems that Kraft Heinz was so focused on cutting costs that it forgot the most important thing for a food company to do: Make tasty products that people actually want to buy and eat.

Kraft Heinz shocked investors Thursday when it posted a gigantic loss due to the writedown of its Kraft and Oscar Mayer brands, slashed its dividend and disclosed an SEC probe into its accounting.

Investors never like to find out the SEC is investigating a company's books. But the bigger problem for Kraft Heinz is that analysts are now questioning the company's strategy and are worried that it has lost its way in the highly competitive food business.

Kraft Heinz (KHC) was created nearly four years ago when Heinz, which was bought by Warren Buffett's Berkshire Hathaway (BRKB) and private equity firm 3G Capital in 2013, merged with Kraft. 3G installed one of its partners, Bernardo Hees, as Heinz CEO after that deal, and Hees is now the leader of Kraft Heinz.
Paul R. LaMonica, “What went wrong at Kraft Heinz,” Feb. 22, 2019

Below current standards

In addition, the current deal is far below current NFL standards for naming rights. That has complicated the issue,

Kraft Heinz is paying an average of $2.85 million for the deal — well below NFL standards. We’re told Kraft could be interested in a new deal in the mid-seven figures per annum. However, look at some recent comps: The Philadelphia Eagles recently renewed Lincoln Financial’s naming rights for an average of $12 million per year. SoFi will reportedly pay $20 million per annum for its pending 20-year hookup with the stadium that will house the Los Angeles Chargers and Rams. 

Lefton, Sports Business Daily, Feb. 22, 2019

Heinz Kraft may walk early

Lefton concludes his piece with this analysis,

So while the incumbent hasn’t officially walked, a renewal is highly unlikely. Sources tell us the food giant wouldn’t be averse to walking away early, should the Steelers land a new naming-rights sponsor. Various sales agencies have been pitching the team, but it is unclear if it has chosen one, or if it will use one at all to sell naming rights. 

When Kraft Heinz officially exits, we expect it to remain as a Steelers sponsor, along the lines of the “Official Ketchup” to keep the locals happy.

Sports Business Daily, Feb. 22, 2019

Corporate names stink

For me, I could care less. When names like Three Rivers Stadium, Riverfront Stadium, and Lambeau Field existed, and Lambeau still does, they had a relationship to the community. Now, they are just corporate ventures that do nothing for the community.

At one time, Heinz did, but no more. Just like, PNC, what does it really give back to the community?

The only good thing about this is that the stadium will not have the name "Kraft" on it, so we will not have to be remembering the owner of the woeful franchise to the north -- the guy who was arrested this year because he frequents nefarious "massage" parlors in Florida.

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