The Louvre Sells Its Name

The Louvre Museum in Paris, France recently announced that it had sold the rights to use its famous name to a new art museum in the United Arab Emirates. The government of Abu Dhabi, the capital of the United Arab Emirates paid $525 million to be able to use the name for the next 30 years. The art museum is in the process of being built on an island in the Persian Gulf and will be known as The Louvre Abu Dhabi. New York's Guggenheim Museum made a similar deal with the Abu Dhabi government in 2006, yet the exact monetary amount that was exchanged has proven difficult to uncover.

The idea of selling a famous name for branding in advertising is nothing new. Herald Square and Times Square in New York City were named for city newspapers the New York Herald and the New York Times.

Many arenas and stadiums sold their naming rights in the 1990s to create athletic and cultural venues named for banks and other corporations. This brought rise to AT&T Park in San Francisco, Big Sandy Superstore Arena in Huntington, West Virginia, and the super-cumbersome Chevy Chase Bank Field at Byrd Stadium in College Park, Maryland.

There is also a tradition in art museums and other non-profit cultural venues for the added cache of naming rights. Naming rights are what a wealthy art patron may purchase to build a new wing, refurbish a room, or finance a whole new museum. So, for example, the National Civil Rights Museum in Memphis, Tennessee has a FedEx Legacy room that was initiated by (or purchased for) a $500,000 donation.

So whom does the selling of the naming rights of the Louvre benefit? It certainly benefits the wealthy nation of the United Arab Emirates, that can purchase culture from overseas to give street cred to their multi-billion-dollar art museum compound on an island in the Persian Gulf. This lucrative agreement also benefits The Louvre itself. Not only does The Louvre get $525 million out of the deal, this is great advertising for them that helps to solidify their brand, and does not detract from it in any way.

What are the possible negative ramifications of The Louvre selling naming rights? The Louvre needs to keep a close watch on the development of the The Louvre Abu Dhabi. The Louvre needs to protect their brand and insure their income by making sure that the new museum proceeds in a way that is worthy of the Louvre name. There will no doubt be much travel, consultation and constant communication about this massive undertaking in the Middle East between art museums in Paris and AbuDhabi.

Source: http://en.wikipedia.org/wiki/Naming_rights

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