The other victim of less corporate spending.
The Two Sided Corporate Sponsorship
By Kickntrue on 3/9/09
There is a lot of backlash against companies spending big money on corporate outings but in the process of "saving money" they are continuing to hurt the economy by crippling the hospitality industry.

From they NY Post-
"At the end of the day, we are an industry of valets, caterers, florists, groomers and the like," said Shawn Sedlacek, whose VOX Group handled technical and marketing aspects of the Northern Trust event. "For every $100,000 that's spent on an event, $90,000 of that goes to human power. This backlash of 'don't do events' is going to hurt a lot of working-class people."

A rep for the National Business Travel Association said, "In this economy, businesses wouldn't be throwing money around if they didn't expect a return. This bill could really hurt a lot of the people the government is trying to help."
Of course the other big business hurt especially in golf is the charities event raise money for.

From the Dallas Morning News-
"The math still works beautifully here," Spradley says. "If you have one of our most expensive venues GÇô a villa around the 18th GÇô you're spending between $80 and $100 per customer per day, depending on how lavish your food and beverage is."

Want to appear austere? "Dial it back," he says. "Serve burgers and beer."

If the business proposition doesn't work for you, Spradley hopes helping a good cause will. "Every dollar that we net from this tournament goes to charity. That's why we work so hard. That's why I'm filled with angst," he says.
It's an interesting and perplexing mess that is easy to see from both sides, but without an easy answer. Even companies who have money are being forced to pull back money they'd normally spend because of fears they'll be targeted for wasteful spending if they ever face financial issues themselves.

GeoffShackelford.com
Dallas Morning News


[ comments ]
mmontanaro says:
YES! Short-sighted people only see the outlay of money and people participating in the event having a "good time" living in the "lap of luxury." Not only is the hospitality industry hurt by cancelling sponsorships, but the sponsor itself is hurt! Companies that sponsor sporting events can expect a 3-to-1 return on their investment- $3 back for every $1 spent. So, companies that get federal handouts ABSOLUTELY should sponsor sporting events- they are earning $3 for every $1 of taxpayer money they were given.

It is Marketing 101.
3/10/09
 
golfgirl says:
Quite frankly...and I addressed this before Golf Digest, Golf World or any other publication did...the fault lies with the PGA for not controlling the message.

They've got to realize that they're sponsored by many of the companies taking taxpayer money. And they must acknowledge that these companies have, over the years, become extremely out-of-touch with the average, Main Street American.

Thus there should be two logical steps: The first would be that in this time of extraordinary economic turmoil, they would be investing in the kind of PR that would assure that the public associates them with their many amazing and varied contributions...to laudable charities that serve... Main Street Americans.

Because, as you point out, that's what these tournaments do. However, if the PGA (practically) hides that fact... yes... the "short-sighted" people won't see it.
3/10/09
 
golfgirl says:
What the public (and some very vocal congress people) will see, is the bufoonery of some of their sponsors, who funnel bonuses to failed executives, or who arrive begging for money in luxury corporate jets. Yes. Lets face it. Many of their sponsors totally don't get it. FACT.

But the PGA should. And they should have a top notch, professional ORM person to handle the damage to their reputation that will inevitably ensue from association with such sponsors. But they clearly don't ... and as a result their benevolence has gone practically unnoticed. That was fine for during the boomtimes when flaunting one's lavish lifestyle was momentarily more admirable to many than giving was. But we're living in a new reality. Probably...in the end...a better one. The PGA just needs to be what it is. And what it has been. But now, they've got to make sure that everyone knows exactly what that is.
3/10/09
 
[ post comment ]
 
    New Products
    Stats
    Caption This
    World Am
    How Bizarre!
Most Popular:

Subscribe