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| No Wall Street credit seizure at US Open Grand Client Slam |
| Bloomberg / London Sep 01, 2008, 23:46 IST |
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SPORTS: The US Tennis Association sells out its 84 luxury suites at an average price of $250,000 for the two-week event.
The US Open has one up on Wall Street. It’s escaping the credit crunch unscathed.
The US Tennis Association, organiser of New York's Grand Slam tournament, sold out its 84 luxury suites at an average price of $250,000 for the two-week event that ends Sept 7, even with a $5,000 increase over last year.
Companies including MassMutual Financial Group, International Business Machines Corp and JPMorgan Chase & Co pay a total of $50 million a year to sponsor the tournament, according to the USTA. The Open attracted a record 715,587 visitors last year.
“The Open is one of the best corporate events,” said Stephen Newman, 43, a director at the structured credit products group of Deutsche Bank AG in New York, at JPMorgan’s hospitality tent just outside the National Tennis Center. “You eat, talk and sit next to the person. It's kind of an ideal venue.”
The Open is faring better than the financial industry. Some 77,770 investment jobs are being eliminated in the Americas following the global credit crunch that started a year ago, according to data compiled by Bloomberg. About 33,300 finance positions in New York City, or 7.1 per cent of the 2007 peak, will be cut by June 2009, the Independent Budget Office, a non-partisan monitor of city finances, estimated in a May report.
Building Relationships: The US Open is a crucial way to build relationships with customers, said David Powell, senior consultant at London-based Redmandarin Ltd. The tournament is the world's best-attended annual sports event, according to the USTA.
“For companies like JPMorgan, who have got high net-worth clients, tennis offers one of the best corporate hospitality opportunities in sports,” said Powell, whose company has advised brands including Microsoft Corp and Carlsberg A/S on sponsorships. “The Grand Slams are multiple-day events, which gives companies the opportunity to use the facilities for a longer amount of time.”
JPMorgan, the second-biggest US bank, isn't missing the chance.
Its retail business will be targeting more than 700,000 spectators through its sponsorship, with the JPMorgan logo seen on the tennis courts and throughout the site, said Barbara Paddock, senior vice-president of sponsorships at JPMorgan. The wholesale division will entertain more than 6,000 corporate clients at its tent and in suites around the court.
Replica Yacht: JPMorgan unveiled a new logo for the wholesale business at the Open. In the tent, guests dined and drank wine served by waiters in waistcoats in the same shade of brown as the logo. A replica of J Pierpont Morgan's yacht, the Corsair, was on display at the entrance.
“The Open really is a place people want to be seen,” Paddock said. “Unlike Wimbledon, the Open isn't just tennis. It's a New York happening; they have great entertainment on the ground.”
Rhythm-and-blues band Earth, Wind & Fire performed on opening night Aug. 25, and Academy Award-winning actor Forest Whitaker hosted a ceremony where 25 previous winners, including Tracy Austin, Gabriela Sabatini and Roger Federer, showed up to be honored.
The face value of US Open tickets ranges from $22 in the promenade to as much as $800 for a front-row seat at the men's final. In the Champions and Aces restaurants, tennis fans can drink champagne from a $275 bottle of Dom Perignon or order a two-pound lobster for $68. Out on the grounds, more humble fare includes $8.50 half-pound hamburgers and French fries that cost $6.50 for a large serving.
‘Sports Spectacle’: “In spite of the poor economy, we expect sales to go up on food, beverage and merchandise,” said Dan Zausner, managing director of the National Tennis Center. “The event is fairly recession-proof. It's a once-a-year New York sports spectacle.”
Some regular fans say they are feeling the economy's pinch.
“The fries are too expensive,” said Burt Cohen, a 77-year-old retiree from New York, while watching Rafael Nadal of Spain beat German qualifier Bjorn Phau at Arthur Ashe Stadium.
“Apart from that, this tournament is great,” said Cohen, who has been attending for 30 years. “People come from all over the world.”
Even in the current economy, companies can't afford to skip an event like the Open, said Redmandarin's Powell.
“It's all about turning it into business at the end of the day,” he said. “Some companies might entertain a couple hundred people, but if you strike a few deals, it will all be worth it.”
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