Rico's rants: World Trade Center name deal

07 October 2013

World Trade Center name deal

Dave Porter has a Time article about the price of a name:

New York State is expanding its probe nationwide into the 1980s sale of the rights to the name World Trade Center to a nonprofit for ten dollars, resulting in millions of dollars in fees for use of the name in 28 states, according to an official familiar with the investigation.
The official told The Associated Press that letters seeking information on the deals should arrive at 45 World Trade Center complexes, from Alaska to Florida. The official wasn't authorized to speak publicly about the probe, and talked on the condition of anonymity.
New York State Attorney General Eric Schneiderman is investigating a 1986 deal in which the Port Authority of New York and New Jersey sold the naming rights to one of its outgoing executives for use by a nonprofit organization called The World Trade Centers Association. The Port Authority owns the World Trade Center site, but is among hundreds of entities worldwide that pay to use the World Trade Center name.
"The attorney general is looking to find out how the WTCA got such a sweetheart deal on the naming rights, how much revenue the WTCA makes selling the name, and how that price is set," the official said. The Record newspaper reported in September of 2013 that the Port Authority of New York and New Jersey sold the naming rights to Guy Tozzoli in his role as head of the nonprofit WTCA. Tozzoli died in February of 2013.
A letter obtained by the AP sets a 25 October 2013 deadline for responses to the World Trade Centers in cities including Houston, New Orleans, Detroit, and Sacramento.
The letters seek the date in which each entity entered into an agreement with the World Trade Centers Association, the end date of any agreement, and the amount paid to the association, and names of principals involved and the license agreements.
New York Governor Andrew Cuomo referred the case to Schneiderman on 17 September 2013.
"Using the millions of dollars in annual revenue from licensing fees paid by companies around the globe for the use of the World Trade Center brand, Tozzoli received exorbitant annual compensation," Cuomo said.