IPL to South Africa: Substitute Venues, a new hosting strategy

The decision to move the 2009 IPL season from India was the correct one, if the national authorities cannot ensure the safe delivery of an event or series and indeed deny permission, the discussion is a short one.

More interesting is the ability of the rights owner/organiser to relocate lock, stock and barrel to another country and the decison making process involved.

In the end the choice between England and South Africawas an easy and logical one, and one congratulates the IPL for moving so quickly to provide a reduced but very viable option for fans,teams, players, media and sponsors.

What this case raises is the issue of substitute venues for major events and championships/series....how many countries could have provided a serious option with stadia, transportation infrastructure, fanbase and most importantly the will to move soquickly to accommodate the problem and the opportunity?

There will undoubtedly be more examples of host cities or countries not being able to stage events for political, financial or security crises....the question is which cities/countries are geared up to provide an instant solution and is this a new strand in host city sports marketing strategies?

"This is not wasted money"

A further interesting and disturbing debate in the US about companies, largely banks and other financial institutions who have been bailed out by the Federal Government under the TARP (Troubled Asset Relief Programme) continuing to use sponsorship as a marketing tool.



Former Presidential candidate John Kerry was so moved with outrage after a rescued bank sponsored a golf tournament, under an existing long term contract, and activated with a hospitality programme and a free concert by a pop star, that he proposed a bill that would fine CEOs of companies that receive TARP for an "idiotic abuse of taxpayers' money" in their sponsorship marketing activity.



Supporters rolled out the usual cliches that we in the sports industry have faced forever....champagne, limousines, junkets, lavish , freebies......



Actually he's wrong.......Yes, blatant excessive extravagance is just silly in the current climate and few intelligent hosts or indeed guests will be comfortable with a clearly over the top offer BUT, it is pointless inviting a client or prospect who could agree a contract or a transaction that could make a significant contribution to a company's turnaround if he watches the golf with a lemonade and a bag of pretzels, having taken a bus from the airport



The reason companies spend so much money in this area is that IT WORKS....the better it works , the sooner the rescued companies can pay Uncle Sam back...



Hats off to Bank of America chief executive Ken Lewis who revealed that " for every $1 (70p) we spend on sports marketing, we get $10 (£7) in revenue and $3 (£2.10) in earnings. This is not wasted money."



Sports management and corporate hospitality are industries too, which employ hundreds of thousands of people , many of whom are in mid -to- low salary brackets and who pay tax , so they too are stakeholders in this game.



The smart people in our industry, sponsors and consultants will create events and hospitality programmes that are measured, realistic and tailored to the unique times in which we find ourselves.

Are Governments who now own banks starting to dictate marketing spending policy?

Governments who own banks now starting to dictate marketing spend policy?
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article5860950.ece this is inevitable as governments who have bailed out banks and other financial institutions baulk as much on sports marketing spend as they do on bankers bonuses...


two sides to every story, taken in isolation the numbers can look big and some of the spend can look fluffy especially the B2B focussed sports deals that engage with small ( but highly targeted groups of clients), but that's part of the mix of where and how business gets done

These industries also have a dynamic and a model that depends on incentives and rewards..eg insurance sales, I know from personal experience the massive revenue generation opportunities around incentivising an Asian sales force with a trip to an English Premier League football match, serious millions of dollars of brand new, identifiable and measurable revenues.

Governments need to monitor the taxpayers investment BUT they also have to allow businesses to engage with their stakeholdrs in ways that deliver results. The biggest impact going forward apart from cancellation and non renewal of current deals will be the need for rightsholders and agencies to have 100% cast iron cases in pitching to this sector.