That's unfortunate - public transit should of course seek to attract whatever funding it can, and naming rights are a pretty good way to offer commuters benefits at little cost for them. At least the MBTA tried.
No, it shouldn't. It should be appropriately funded by the public, and failing that, it should only seek to collect exactly as much funding as it needs to span the difference between what the public provides in operational funding and what the actual costs of operation are.
In this particular case, not only is the monetary "benefit" of naming rights effectively worthless, it's actively insulting. In the context of a $118 million shortfall, seeking $1.2 million for the rights to an entire line is downright insulting and accomplishes nothing; in the context of the MBTA's projected
$1.867 billion in FY2014 total revenue, the equivalent metaphor is pissing into the drinking water for all the good it does anybody.
Nobody likes to talk about just how little all that advertising actually pulls in. Nobody wants to admit that we're talking about a huge agency with a huge budget, and throwing out "$1.2 million for naming rights!" like it's a game-changer or anything but statistical dishonesty is a sick joke that we're made the punchline of, every single day.
Here's the figures that should be talked about:
- Projected FY14 Farebox Revenue: $569.2 million
- Projected Advertisement Revenue: $14.3 million (based on stated $1.8 million increase being "14.4% more" than FY13 Ad Revenue; even in the budget summary the MBTA doesn't want to make it easy to find out how little money the ad offensive makes for them)
- Projected Ad Revenue as a percentage of combined Ad + Farebox Revenue: 2.4507%
- FY13 Ridership: 391,902,586
- FY13 Advertisement Revenue ($12.5 million) per FY13 Rider: $0.0319
If every single T rider pays just a nickel more per ride, the MBTA can eliminate all advertising system wide and actually come out well ahead of where they are right now.
In fact, with margins this narrow, targeted fare hikes could cover the difference without constituting an undue impact against any given target of a fare hike.
Talking about how we can get more revenue out of the ad offensive is like trying to squeeze blood from a stone.