O2 extends The O2 arena naming rights in record £200m deal
O2 has signed a record £200m deal to retain naming rights to The O2 arena in London for another 10 years, extending their partnership until 2038. It is believed to be the largest such renewal in UK history and reflects the venue's remarkable transformation from a once-doubted site into a major entertainment destination.
Under the new deal, O2 will pay approximately £20m annually, a 50% increase from the previous agreement due to expire at the end of 2026. This represents a substantial rise from the £6m annual amount of the initial 10-year deal, signed when the venue's future was uncertain. The renewal comes as The O2 recorded its best year in 19 years, with pre-tax profits surging 18% to £76.5m and revenues climbing 14% to £148.6m in 2025, driven by major acts including Lady Gaga, Katy Perry, Radiohead and Usher. The venue hosted 239 shows last year and will now offer 50% more priority tickets to O2 customers.
- O2 signs record £200m deal to keep The O2 naming rights until 2038
- Annual payment rises 50% to £20m, reflecting venue's record profits
- Venue hosted 239 shows in 2025, surging pre-tax profits to £76.5m
New here? Start with this
The O2 is a major entertainment arena in London that hosts concerts, sporting events and other live performances. Naming rights are a form of commercial sponsorship where a company pays to have its brand name attached to a venue.
O2 is a telecommunications company that took on the naming rights to the arena at a time when the venue's future looked uncertain. The building was originally constructed as the Millennium Dome and has since developed into a significant entertainment destination.
Sponsorship renewal deals often reflect how the commercial value of venues changes over time. Rising investment in naming rights indicates that a venue has successfully built its audience and established itself as a profitable operation.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The O2's remarkable transformation from a once-doubted project into Europe's premier indoor venue justifies premium pricing for naming rights. O2's £20m annual commitment reflects genuine commercial value—the venue generates £148m in revenues and hosted 239 shows last year, making association with such a world-class destination genuinely valuable for the brand. The partnership directly benefits customers through expanded priority ticket access, demonstrating how corporate investment delivers public value. Competitive market pricing correctly reflects what this partnership is worth.
The case against
The steep escalation from £6m to £20m annually raises significant concerns about commercialising publicly-funded cultural infrastructure. The O2 was built with substantial public investment, yet now generates such substantial profits (£76.5m pre-tax) that expensive naming rights may be unnecessary and potentially drive up costs for consumers and artists. These enormous sums might better serve public interest through artist development, accessibility, or sustainability rather than corporate branding. This trend exemplifies concerning commercialisation of major public spaces.
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Originally published by The Guardian as “O2 signs record £200m deal to keep London venue’s naming rights”.