Target has been the sole naming-rights holder of Target Center since the venue opened in 1990. Target Center, which is owned by the city but operated by AEG, is the home of the NBA’s Timberwolves, WNBA’s Lynx and other local sports franchises.
Financial terms of the three-year extension were not disclosed. The original deal, which expired in August ,was for $30 million, about $1.5 million per year, according to industry analysts.
The pact is the latest in a recent series of naming rights deals, including MetLife Stadium in New Jersey, Sports Authority Field at Mile High Stadium in Denver and Overstock.com Stadium (O.com) in Oakland.
Minneapolis-based Target also has naming rights to Target Field, home of the Twins.
“Target is pleased to continue our sponsorship of the Target Center and help provide our hometown with a facility where guests can experience exciting sports, entertainment and events,” Shawn Gensch, vp-marketing for Target, said in a statement. “Target Center is important to the vibrancy of downtown Minneapolis, and we look forward to carrying on our great relationship with the Timberwolves.”
Although naming rights deals generally are much longer in duration, the three-year deal was by design,” according to Timberwolves president Chris Wright, as Target Center is about to undergo a $155 million renovation.
“This short-term extension allows both Target and the Timberwolves to fully understand the future renovation plan to Target Center,” Wright said in a statement. “Target has been a tremendous partner for our franchise and this agreement demonstrates Target’s continued commitment to the building, downtown Minneapolis and the Timberwolves.”