Although Barclays is one of the world's biggest banks, few in the US have heard of the company because it has little retail presence on the US high street. The naming rights deal is set to boost its profile in one of the largest market places in the world.
It is still unclear exactly how much Barclays has paid for the naming rights, however estimates are in the hundreds of millions of dollars over the next 20 years.
The deal could eclipse the $400m (£203m) Citigroup paid recently to name the New York Mets basketball stadium Citi Field. In basketball, the richest deal in place has been Phillips Electronics paying almost $10m a year for 20 years for Atlanta's Phillips Arena, home of the Atlanta Hawks.
The Barclays Center will feature a state-of-the-art sport and entertainment centre and seat 20,000 people. In addition to this agreement, Barclays has also agreed to partner the Nets in the Nets-Barclays Sports Alliance, a not-for-profit organisation whose goal is to promote athletics, education and personal development among young people on Brooklyn.
The alliance will renovate basketball courts and other sports facilities throughout the borough, as well as sponsor amateur athletic tournaments and clinics for Brooklyn's youth.
Robert Diamond, president of Barclays, said: "Barclays is thrilled to partner the Nets in this exciting endeavour. We are delighted to put our name to a development that will be visual and economic landmark in the renaissance of Brooklyn. This opportunity brings together economic prosperity for Brooklyn and the chance to participate, in a unique way, in the cultural and sporting life of New York."
This initiative mirrors the Barclays Spaces for Sports programme in the UK, which helps local communities transform neglected land into the sporting facilities they want, from skate parks to football pitches. Since the programme's inception, Barclays has opened more than 100 community sport sites across the UK.
Bruce Ratner, chairman of the Nets, said: "We are very proud to be a partner with Barclays, a prestigious company that exemplifies and shares our commitment to excellence, leadership and success. We believe this partnership marks an important moment in Brooklyn's history and its place on the international stage."
Sport is a major part of the Barclays worldwide sponsorship portfolio, which includes The Barclays, the PGA tour event at the Westchester Country Club scheduled for August this year. In addition, Barclays sponsors The Barclays Scottish Open golf tournament at Loch Lomond, the Barclays Singapore golf tournament and the English Barclays Premiership.
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