L.A. Live has tipped its cap to a new business partner.
New Era Cap Co. has signed a multiyear deal with complex owner Anschutz Entertainment Group to become the official headwear provider for the downtown sports and entertainment campus.
Financial terms were not disclosed but sources close to the multiyear deal confirmed it will be worth seven figures a year.
“We have never had this type of relationship with a headwear company. It’s a new category for us,” said Nick Baker, senior vice president of AEG Global Partnerships.
As part of the deal, New Era will partner 50-50 with AEG to develop a 3,160-square-foot space inside Staples Center for its New Era D-Lab, where visitors can customize hats for New Era-licensed merchandise. The store is targeted to open on Dec. 1.
“The store is going to be co-owned and -operated with AEG. Athletes, fans, and entertainers will be able to design custom caps. We have our own flagship stores, but this is the first for us in this kind of space,” said Josh Feine, vice president of sports marketing and corporate partnerships for New Era.
The hat maker will receive signage on the 17 digital boards at L.A. Live and have six static signs in the area.
“It’s important that we make money, but from an event and tourism standpoint we will be able to showcase a variety of products,” Feine said.
The companies have had prior relationships, but nothing of this magnitude. Downtown-based AEG operates a store inside Staples Center that carries New Era merchandise and the companies collaborated for the past two years at the Coachella Valley Music and Arts Festival, which is run by AEG.
AEG executives first reached out to New Era to discuss the marketing of L.A. Live in February with an invitation to the Grammys.
New Era will become a “founding partner,” a sponsorship level set up by AEG as its highest for the entertainment complex. Other L.A. Live founding partners include Target Corp., American Express Co., and Coca-Cola Co.
As part of the deal, New Era will also become official headwear partner of the Los Angeles Kings. It’s planning a special collection of merchandise for the beginning of the upcoming National Hockey League season, which will be the Kings’ 50th anniversary season.
Now in its 17th year, Staples Center continues to host many of the largest sporting and entertainment events in the country. It will be home to the 2017 NHL All-Star and 2018 NBA All-Star games.
L.A. Live hosts 1,600 ticketed events annually, anchored by Staples Center; Microsoft Theater, which staged last week’s ESPY Awards; and the Novo by Microsoft, a 2,300-seat venue.
