"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.