>> ASIAONE / NEWS / THE NEW PAPER / STORY
Decline in corporate spending
Sat, Jun 20, 2009
The New Paper

THE SUN was shining and the temperature was around 21 degrees Celsius at Bethpage State Park, perfect for watching golfers prepare for the US Open which teed off yesterday.

Indeed, tens of thousands of fans who paid US$40 ($58) were walking the course.

Few fans, though, seemed to be in the 50 or so hospitality tents, some of which cost US$230,000 to rent for the week.

Several tents lining the first fairway had signs on their doors that read: 'Tent Closed.'

Their absence, although early in the week, was another reminder that corporate spending on sports - even at premier events like the Open - is continuing to sag as the recession wears on.

Banks, carmakers and other companies that have accepted public bailouts have been chastened for their sponsorship deals and luxury suites at tournaments, arenas and stadiums.

Some have stayed away from the Open, while those that bought tents before the downturn hit full stride last September are keeping a lower profile this year.

'Everything has been dialled back a bit,' said Peter Bevacqua, the chief business officer at the US Golf Association, which earns about three-quarters of its annual revenue from the Open.

'Conspicuous consumption is not in vogue.'

Bevacqua said the days of selling 75 tents at a tournament were over and that the association sold about 50 to this year's Open. To compensate, the association sold more individual tickets to the three practice rounds.

Overall, Bevacqua expected revenue from hospitality tents, catering, tickets, merchandise sales and other items this year to be about 20 per cent lower than what the association had hoped to bring in when times were good, though he still expected the event to turn a profit.

The association reported total revenue of nearly US$156 million last fiscal year.

AP
 

 
STORY INDEX
 
  Muhyiddin: Malaysia can produce world No. 1 in golf
   
 
  Woods No. 1, but Phil's favourite
   
 
  Decline in corporate spending
   
 
  For the love of the game
   
 
  Real samba show
   
 
  Don't suffer in silence if you're hurt on board a bus
   
 
  How to drive safely in Genting
   
 
  They're flung screaming from one side to another
   
 
  This bad boy's our 'best boss'
   
 
  Let the referee control the game
   
We welcome contributions, comments and tips.
a1admin@sph.com.sg