When the recession hit full-on last fall, one of the things I found interesting is in the area of sports marketing. Questions like, “Will golf tournaments close because of the lack of corporate sponsorship?” and “Should a bank that is in trouble pay for naming rights of a stadium?”
It’s hard to swallow the idea that the money I’ve “contributed” to these mega-corps is being spent on what many would say is unnecessary. “They should use that money to get back on their feet, not sponsor golf!” we say.
To be perfectly honest with you, that’s a very judgemental thing for us to say (I said it too). We don’t know the full story. I realized this yesterday when I heard Bank of America CEO Kenneth Lewis comment on sports marketing:
Chief Executive Kenneth Lewis, speaking to the Chief Executive Officers Club of Boston, said the multimillion-dollar sports marketing deals at Bank of America are worth the investment because they generate sales and profits.
“I was never inclined to pump big sums of money into sports marketing until I saw the facts and the numbers,” he said. “In general terms, for every dollar we spend on sports marketing, we get $10 in revenue and $3 in earnings. This is not wasted money.”
And isn’t that what we’ve asked them to do? To take the money and make it back as fast as possible to get back on their feet? And they found a way to get $10 on the dollar?
Okay, I don’t mind so much now.