Chapter 981 - Naming Rights
Chapter 981 – Naming Rights
Feng Yu has no intention to enter a joint venture with Staples Inc. and is not interested in the office supplies sales. It might be profitable, but the profits will not be high. When his online shopping platform is up, stationery stores will be affected the most.
Feng Yu is only throwing a bait. When Smith is interested, he will mention his conditions and buy the naming rights.
Ralph pretended to be mad. “Smith, do take note of who you are going to work with. Your company might be doing well, but to my Boss, it is not worth mentioning. I am not rude, but if my Boss wants, he can stop your company from entering the Chinese market and even the rest of the Asian markets and the East Europe markets!”
“Mr. Ralph, our company’s brand, is well-established and is well known. We can make money if we work together.”
Smith is anxious. He had mentioned how well his company did in the North American market. But his company is not making much money in South American countries. Some of the South American countries are poorer than the countries in Asia.
If the company loses the Asian and East European markets, they can only focus on North America and West Europe. It will limit Staples Inc.’s growth, and there are many competitors in West Europe.
Staples Inc.’s target is to enter Fortune Top 500, and it will be hard for them if they only have two markets.
“Your company is well known? Stop kidding. It might be well known in North America, but do you dare to claim it is well known in Asia? I dare to say most people have not heard of your company in Asia. This will be starting from scratch, and do you think my Boss is going to handover the brand and management rights to you all and just invest money? What happens if there are losses? However, this is not impossible. You can let us invest in Staples Inc.”
“This… we are preparing to be listed and is currently not accepting investments.” Staples Inc. is trying to raise funds from the stock market for their expansion plans into the overseas markets. It will increase the company’s value and still not lower the shareholders’ power. If the company is allowing investments, an outsider might become the major shareholder.
Feng Yu crossed his leg and said. “Smith, I see that you have no intention to cooperate with us. Never mind then. I can don’t do office supplies business.”
“Boss, we can set up our own company. With your funds and connections in China, East Europe, and Asia, we can be established within three years.” Ralph said.
Smith is panicking. Not only the cooperation deal is off, he had indirectly created a formidable competitor for the company! He is also a shareholder of Staples Inc. If the company suffers losses, that means he will also suffer losses.
“Alright. Since the deal is off, contact LA Arena Company to talk about our intention of investing in the new arena.” Feng Yu said.
Smith overheard it. LA Arena Company and a new arena? Isn’t that Staples Arena? The arena where his company has the naming rights? Mr. Feng is going to invest in that arena?! I can help!
“Mr. Feng, are you going to invest in Staples Arena?”
“I think it is this name, right?” Feng Yu looks at Ralph.
Ralph nodded. “Yes. Staples sounds like a stapler and is easy to remember. What’s wrong?”
“Our company has the naming rights of that arena, and I know the owners well. If you all are going to invest, I can recommend you to them.” Smith said.
“Your company has naming rights? No wonder it is called Staples. This name is not nice. Are you all going to sell the naming rights?” Feng Yu asked casually.
Naming rights is only a form of long-term advertisement, and advertisements are to increase profits. If there is a better way of getting higher profits, they don’t mind selling the naming rights.
“Mr. Feng, you want to buy the naming rights of that arena? We have no intention of selling it.”
Feng Yu pretended to be impatient. “What do you mean you have no intention? Just sell it to me, and I will help you distribute your company’s products in China. Is this condition alright with you?”
“This… Mr. Feng, can you guarantee the sales of our products?”
“Smith, are you joking? Who can guarantee the sales of your products? If you all supplied some inferior products, you think consumers will buy?” Ralph interrupted.
“Huh… Can I consider this? I need to discuss with the rest of the shareholders.”
“You are so troublesome. Get back to me as soon as possible. If it takes too long, forget it. I heard there are plans to build a new indoor arena in Houston.”
After Smith left, Feng Yu asked Ralph. “Do you think they will agree? If they agree, what are their conditions?”
“They will agree. They are using the naming rights to exchange for a ticket to enter the Chinese market, and they can use the Chinese market as a stepping stone to enter the rest of Asia. More importantly, your status will help them a lot.”
Feng Yu noticed that the title of the World’s Second Billionaire is very useful.
At least, more people know who Feng Yu is, and his title can intimate the other party during negotiations.
“They might raise conditions like asking us to guarantee their products’ distribution in China or helping them to set up their retail stores. I think these conditions are not a problem for you, and can even earn some money.”
Feng Yu nodded. “That’s right. It will be a win-win situation for us.”
Feng Yu can just let them rent a space and set up retail stores in Tai Hua Hypermarkets. They can open more than 100 stores if they can afford it.
……
On the third day’s afternoon, Ralph received a call from Smith saying that their company had decided to sell the naming rights to Feng Yu, in exchange for Feng Yu’s support in China. They will send a representative over to negotiate the details.
Feng Yu smiled when Ralph told him about this. He has successfully gotten the naming rights.
In the future, this indoor Arena in LA will be called Wind and Rain Center. Everyone that goes there will notice it, and Wind and Rain brand will have a foothold in LA like Wind and Rain Empire State Building in New York!
Ralph will handle the remaining negotiations, and Feng Yu brought two men with him to San Francisco. Those two geniuses should have developed that search engine.