Virgin Mobile USA (NYSE: VM) is close to becoming the first title sponsor of the Arena Football League’s championship game, which will take place on July 27th in New Orleans and will be telecast on ABC, according to SportsBusinessJournal. The journal didn’t get confirmation from a league spokeswoman or Virgin Mobile, but said it confirmed through sources that preliminary approval has been given and that a one-year deal was undergoing final approval last week. Terms of the deal were not available, however, sources said Virgin Mobile will be able to include its brand in the AFL’s championship name and logo and in ads that will appear on ABC and on the field. The ArenaBowl XXII sponsorship sounds like it makes economic sense. The article said that second-tier sports events are being hit during these rough times, which make them a pretty good deal right now, which is appropriate given that Virgin Mobile is also feeling a hit as fewer people choose to add more minutes to their pre-paid phone. The article points out that it may just give Virgin Mobile a boost in its perceived stature or brand awareness as it seeks a deal with Helio or its partial owner SK Telecom (NYSE: SKM). All we have to say, is that it’s good the championship game is right around the corner—otherwise it may have to be rebranded as the Helio bowl at the last minute.

UPDATE: I asked a Virgin Mobile spokesperson if the report was true, and it turns out that it is true—the company is close to signing a deal with Arena Football. “This deal would be an exciting new opportunity for us to work with a like-minded brand in a new area for us, like-minded in that we both offer services of value at an affordable price. This relationship would give us multiple platforms including on-air, online, and in local markets.” They stressed they’ll still continue a heavy focus on sponsoring music events, such as the upcoming Virgin Mobile Festival, which includes its own branded Kyocera phone.