Jan. 12 (Bloomberg) -- Power Balance LLC has reached a five-year agreement to purchase the naming rights for the Sacramento Kings’ arena.
The venue, currently known as the Arco Arena, will become the Power Balance Pavilion on March 1, according to a joint news release from the sports-bracelet-maker and Maloof Sports & Entertainment, which owns the Kings and the building.
Financial terms of the deal weren’t disclosed. Arco, which is ending a 25-year relationship with the organization, has been paying about $750,000 a year for the naming rights, according to the Sacramento Bee newspaper in California’s capital city.
Bracelets made by Power Balance have been spotted on soccer player David Beckham, New York Yankees’ third baseman Alex Rodriguez and Hollywood celebrities Robert De Niro and Sean “Diddy” Combs.
The closely held Laguna Niguel, California, company, which also makes pendants, uses a secret hologram technology “designed to interact with your body’s natural energy,” co-founder Josh Rodarmel, 26, said in September telephone interview, adding that Power Balance hadn’t done any scientific research on its products.
This month, the company offered full refunds for its products after acknowledging “misleading conduct” following an investigation by the Australian Competition and Consumer Commission.
“In our advertising we stated that Power Balance wristbands improved your strength, balance and flexibility,” the company said in a statement. “We admit that there is no credible scientific evidence that supports our claims and therefore we engaged in misleading conduct.”
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