Saturday, November 18, 2006

Own a Luxury Box or Sponsor the Team?

If I worked in the marketing department for a large corporation who wanted to sponsor a sports team, there are many ways to secure measurable ROI through the investment. The organization can buy ad space in the arena, sponsor an event during halftime or a plethora of other activities. Another way to sponsor a team, since it costs the same, is to purchase a luxury box.

From Friday’s Boston Globe:

"Starting with the 2007 season, suites will cost between $250,000 and $350,000 per year depending on where in Fenway Park they're located, compared with an average of $215,000 last season. The team also is requiring suite owners to commit to them for at least a decade, seven years longer than the current three-year minimum. The capacity in the renovated boxes will increase from 16 to 22."

Considering most sponsorships can be upwards of $300,000 a year, I would recommend purchasing a luxury box instead or ad space in the park. Here’s why:

· The luxury box is a great place for the senior execs to schmooze with prospective clients, city officials or important people in the industry. Who doesn’t want to go see a game from the luxury box?

· The PR department can invite media to attend a game and chat with a senior exec.
· Having an opportunity to go to the luxury box would be a great incentive to the sales team.
· What about company morale overall? You can let different departments attend a game during the year.

Sponsorships with teams can definitely be beneficial to generate exposure for an organization. Sometimes though, companies can be more strategic by meeting with higher-profile people in smaller settings and the company can generate an impressive "word of mouth" campaign for the future.

This is a different way to market a business in the future.


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