11-06-2016, 06:25 PM
Quote:U.S. Cellular paid $13 million to get out of White Sox ballpark naming deal
Nov 6, 2016, 10:49am CST
Anne Stych
Correspondent
Chicago Business Journal
U.S. Cellular paid $13 million to get out of its baseball field naming rights deal with the Chicago White Sox early, freeing up resources it can use in other markets, the company reported in a call with analysts.
The communications company stopped serving the Chicago market in 2013 but is still headquartered here.
U.S. Cellular said in the call that despite the $13 million loss, it still earned $17 million in the recent quarter, the Chicago Tribune reported. An $11 million, non-cash write-off of prepaid expenses made up most of the charge.
U.S. Cellular bought the naming rights for the new Comiskey Park in 2003 for $68 million in a deal that was to run through 2028.
When Guaranteed Rate, a private residential mortgage company, bought the rights earlier this year, the Tribune reported that U.S. Cellular would pay a portion of the $20.4 million still owed on the company's 2003 agreement.
The White Sox will not receive any additional income from the $25.1 million, 13-year deal with Guaranteed Rate to rename the ballpark. The team's lease says any additional money received for naming rights after the U.S. Cellular deal "shall be used in the stadium in a manner agreed upon between the team and the authority." The Illinois Sports Facilities Authority will receive $4.7 million.
The team will earn additional funds from the sponsorships affiliated with the relationship; Guaranteed Rate is designated as "the official mortgage and title company of the White Sox."
