Tomahawk, WI 11/19/2013 (BasicsMedia) – Brand recognition is something that every business big or small understands in this fast-paced world where the direction of competition cannot be predicted. This is why it came as good news that the software gorilla Microsoft Corporation (NASDAQ:MSFT) was entering into a stadium naming deal with Spanish football club Real Madrid. On the face value, the deal looked really sweet, but a closer look at its inside causes reason for investors to shudder. Well, at the moment, MSFT has cut ties over the stadium naming right with the club.

But what was Microsoft Corporation (NASDAQ:MSFT) looking for in courting the club to purchase a naming right to its stadium whose name was to be changed from Bernabeu Stadium to a name that MSFT was going to choose for it? As mentioned earlier, MSFT was seeking to grow its brand recognition by inscribing its identity in the stadiums entrance or terraces. Given that MSFT is also diversifying in services and products, the deal was going to give it the much needed publicity. Perhaps its music app Xbox would have been the main featured product given that MSFT is still struggling to get it tick.

More into MSFT stadium naming right

Real Madrid is a towering football club in Europe. But its name is known far beyond Europe. By associating with club, Microsoft Corporation (NASDAQ:MSFT) would have been mentioned in the same breath as the club and this makes a whole lot of business sense for a company that is seeking to become a household name in a red-hot business environment. However, MSFT would spend billions of dollars in the stadium naming right and here is where the concern comes in about whether renaming a famous stadium would add value to the company and its investors. Of course, it would, given the iconic profile of the club. But how were the club’s fans going to take the renaming of their famous stadium, would they continue referring to it with its old name or would they refer to it by the name that Microsoft Corporation (NASDAQ:MSFT) says it should be called? Apparently, it was not going to be easy because opposition to this move among the fans was sure to happen.

It should be remembered that in Kenya, the world’s soft drinks giant Coca-Cola had to withdraw from a stadium renaming deal after it had already put millions of dollars into the project as controversy ensued between the company and the local stadia management agency.

Canceling the ties with the club is plausible

Microsoft Corporation (NASDAQ:MSFT) is already a global name. Very few people don’t know MSFT especially given the popularity of its Windows Operating System for PC. Perhaps what most everyone might not know already is that the company is paying a fortune to buy Nokia’s mobile business, and also, that MSFT is expected to have a new CEO before the year end or early next year. Bringing these developments to the public knowledge would not warrant renaming a stadium.

As such, Microsoft Corporation (NASDAQ:MSFT) has just saved its shareholders and investors billions of dollars in a project whose impact would have been to hard to quantify.

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