Nonprofit Hospitals Spend Millions on Stadium Naming Rights Across Multiple States

Nonprofit hospital systems across the United States are investing millions of dollars in naming rights for sports stadiums and arenas amid federal Medicaid cuts and economic uncertainty. This trend has grown in recent years, with health care systems buying naming rights in multiple states including California, Florida, Georgia, Indiana, New York, North Carolina, Pennsylvania, and Tennessee. Experts like Clemson University’s Angeline Close Scheinbaum note a growing health care presence in sports sponsorships, which nonprofit hospitals argue helps them stay competitive and deepen community ties. However, critics, including some local officials, question whether these expenditures are appropriate given nonprofit hospitals’ tax-exempt status and their obligation to provide free or discounted care to underserved populations. They argue that funds spent on stadium deals could be better used to address critical needs such as expanding access to care and alleviating nursing shortages. A notable example is the Chattanooga-based Erlanger hospital group’s naming deal for the Chattanooga Lookouts’ new stadium, which has drawn public scrutiny and political criticism.