O2 Secures Landmark Deal for London Venue Naming Rights

O2 has signed a record contract, reportedly worth around £200 million, to keep its name on the London venue. This renewal marks the largest of its kind in UK history.

The 10-year agreement will extend O2's association with the venue until at least 2038. This sponsorship now ranks as the second longest-running stadium naming rights deal in the UK, following Arsenal's naming rights for their London stadium.

Under the agreement with Anschutz Entertainment Group (AEG), O2 is estimated to be paying approximately £20 million annually. This represents a nearly 50% increase from the previous annual amount, which was set to expire at the end of next year. The initial 10-year deal saw O2 pay £6 million a year, at a time when the venue's future success was uncertain.

"Everyone thought it wouldn't work, that building on the Millennium Dome site was madness; it was seen as the biggest white elephant," said Paul Samuels, president of global partnerships at AEG International. "In the first deal, we discussed clauses for if The O2 couldn't host 100 shows a year – last year we had 239. We opened in June 2007 with Bon Jovi, and the rest is history."

The O2 experienced its most successful year in its 19-year history in 2025. Pre-tax profits rose by 18% to £76.5 million, while revenues increased by 14% to £148.6 million. This growth occurred as music fans prioritized spending on live acts like Lady Gaga, Katy Perry, Radiohead, and Usher, despite cost-of-living pressures.

This record year resulted in a substantial £27.5 million dividend paid to its parent company in the US.

"People will cut back on other expenses but still want to go out and spend on live entertainment," Samuels noted. "And while technological advancements like AI can change the world, they won't diminish the desire for live experiences like music and sports."

Samuels mentioned that he receives significant interest from brands eager to acquire the naming rights each time the sponsorship deal approaches renewal.

However, Gareth Griffiths, director of partnerships and sponsorships at Virgin Media O2, O2's parent company, stated that the existing deal had been so successful that it was renewed within an exclusivity period.

A significant part of the new agreement involves a 50% increase in the number of priority tickets offered to O2 customers, providing them access to event tickets 48 hours before the general public sale.

Through its Priority Tickets program, O2 distributes over 1.7 million tickets annually for events across 20 music venues it sponsors in the UK.

"The O2 has been an incredible brand asset for us," Griffiths said. "Two and a half million people attend the [main] arena each year, and 7.5 million visit other attractions on the site. Music is fundamental to our brand's identity. Customer retention is vital, and driving loyalty through entertainment is a key focus for the business."

Last year, O2 saw a decline of over 100,000 customers following public reaction to significant price increases.

Recently, it was reported that VMO2's joint owners, Liberty Global and Telefonica, are aiming to reduce costs by £600 million to address investor concerns regarding a £22 billion debt burden.

"We spend every pound very carefully," Griffiths commented. "This has been a major success for the brand. Churn remains one of the most critical metrics in the business; it's about retaining valuable customers. Both of our shareholders are fully committed to this. This represents a 10-year investment in the UK – a strong indication of our intentions. It's long been evident that brand investment drives growth."

Original Text Translated:

O2 has entered into a record agreement, reportedly around £200 million, to retain the naming rights for the London venue The O2. This renewal is the largest of its kind in UK history.

The 10-year contract extends O2's involvement until at least 2038, establishing this sponsorship as the second-longest running stadium naming rights deal in the UK, after Arsenal's deal for their London ground.

Under the agreement with Anschutz Entertainment Group (AEG), O2 is expected to pay approximately £20 million annually for the comprehensive partnership. This is nearly a 50% increase on the annual fee from the previous deal, which was due to end next year. It more than triples the £6 million annual payment from O2's initial 10-year contract when the success of The O2 and its surrounding area was far from guaranteed.

Paul Samuels, president of global partnerships at AEG International, told the Guardian, "Everyone thought it wouldn't succeed, that building on the Millennium Dome site was a mistake; it was considered the biggest white elephant. In the first deal, we discussed clauses for if The O2 couldn't hit 100 shows a year – last year we had 239. We opened in June 2007 with Bon Jovi, and the rest is history."

Newly released financial statements show that The O2 had its best year in 2025, in its 19-year history. Pre-tax profits surged by 18% to £76.5 million, and revenues climbed 14% to £148.6 million, as music fans overlooked cost-of-living concerns to attend performances by artists such as Lady Gaga, Katy Perry, Radiohead, and Usher.

This record year led to a healthy £27.5 million dividend being paid to its US parent company.

Samuels commented, "People will choose to save money elsewhere but still want to go out and spend on live entertainment. And while technological advancements like AI can reshape the world, they won't alter the fundamental desire for live experiences, such as music and sports."

Samuels noted that each time the sponsorship deal nears its conclusion, he receives considerable interest from brands looking to acquire the naming rights.

However, Gareth Griffiths, director of partnerships and sponsorships at Virgin Media O2, the mobile operator's parent company, stated that the deal had been so effective that it was agreed upon during an exclusivity period.

A key element of the new agreement is a 50% increase in the number of priority tickets made available to O2 customers, granting them access to event tickets 48 hours before general sale.

O2 distributes over 1.7 million tickets annually through its Priority Tickets program, covering 20 music venues it sponsors across the UK.

"The O2 has been a remarkable brand asset for us," said Griffiths. "Two and a half million people visit the [main] arena each year, and 7.5 million come for all the other offerings. Music is integral to our brand's core. Customer retention is absolutely critical, and fostering loyalty through entertainment is a sweet spot for the business."

Last year, O2 lost over 100,000 customers following a negative reaction to substantial price increases.

Last month, reports indicated that VMO2's joint owners, Liberty Global and Telefonica, intend to cut £600 million in costs to alleviate investor concerns about a £22 billion debt load.

"Every pound we spend is done so very carefully," said Griffiths. "This has been such a significant success for the brand. Churn remains one of the most important metrics in the business; it's about retaining valuable customers. Both of our shareholders are fully committed to this. This is a 10-year investment in the UK – a substantial sign of intent. It has long been proven that growth stems from investment in your brand."