UCF Athletics looks to extend naming rights deal for 12 years, $20 million
The UCF Athletics Association wants to extend its naming rights deal with Addition Financial for the school’s basketball venue, according to a Board of Trustees agenda.
Recently, UCFAA and Addition Financial began to negotiate terms of a new deal after the credit union acquired the naming rights to UCF Arena in 2013.
UCFAA is seeking approval for a 12-year deal worth $20 million with Addition Financial that would go into effect on Jan. 1, 2023, according to the agenda.
The board is scheduled to meet Thursday morning. Black and Gold Banneret first reported the proposed deal.
The deal not only extends UCF’s partnership with Addition Financial, formerly known as CFE Federal Credit Union, but it includes a pay increase for the arena’s naming rights compared to the original deal.
When the credit union first obtained the naming rights for the arena, the company paid UCF $3.95 million over seven years, according to a 2013 press release.
The extension includes an annual pay increase of just more than $1.1 million on average.
A lot has changed at UCF since the initial deal was completed.
The extra value comes a year prior to UCF officially joining the Big 12 Conference, which is considered one of the best basketball conferences in the country.
The past two national champions in men’s basketball, Kansas (2022) and Baylor (’21), compete in the Big 12.
The deal also comes on the heels of multiple naming rights partnerships brokered by UCF athletics director Terry Mohajir.
It joins:
A 13-year multimedia-rights agreement worth up to $125 million in guaranteed rights revenue between the UCFAA and Playfly
A 10-year, $19.5 million deal between the UCFAA and FBC Mortgage that renames the on-campus football venue FBC Mortgage Stadium.
And a 5-year, $1.75 million agreement between UCFAA and 3MG Roofing that renames the third-floor premium seating area of the football stadium, previously known as the Tower Club, the 3MG Club.
The four deals are all part of a larger effort by Mohajir to increase UCF’s budget as the Knights move to the Big 12.
Through these partnerships, Mohajir has locked up more than $166 million over the next 13 years for UCF Athletics in various naming rights.
Email Jason Beede at jbeede@orlandosentinel.com or follow him on Twitter at @therealBeede.
