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Madison Square Garden and New York sports sponsorship | Madison Square Garden and New York sports sponsorship |
(4 days later) | |
By Bill Wilson Business reporter, BBC News | By Bill Wilson Business reporter, BBC News |
When it comes to iconic sporting venues, Madison Square Garden is up there with the likes of Wembley stadium in London. | When it comes to iconic sporting venues, Madison Square Garden is up there with the likes of Wembley stadium in London. |
The multi-purpose indoor arena in Manhattan, New York has played host to NBA basketball finals, Stanley Cup ice hockey finals, and world heavyweight boxing title fights. | The multi-purpose indoor arena in Manhattan, New York has played host to NBA basketball finals, Stanley Cup ice hockey finals, and world heavyweight boxing title fights. |
It is currently home to the New York Rangers of the NHL ice hockey, the New York Knicks of the NBA, and the New York Liberty of the Women's NBA. | It is currently home to the New York Rangers of the NHL ice hockey, the New York Knicks of the NBA, and the New York Liberty of the Women's NBA. |
As well as owning these clubs and the famous arena, the company Madison Square Garden (MSG) also owns the Hartford Wolf Pack professional ice hockey team based in Hartford, Connecticut. | As well as owning these clubs and the famous arena, the company Madison Square Garden (MSG) also owns the Hartford Wolf Pack professional ice hockey team based in Hartford, Connecticut. |
'Transformation' | 'Transformation' |
In the past, such a range of sports names offered numerous opportunities for sponsorship, but MSG felt the picture was getting too cluttered. | In the past, such a range of sports names offered numerous opportunities for sponsorship, but MSG felt the picture was getting too cluttered. |
So it brought in Scott O'Neil from the National Basketball Association as president of Madison Square Garden Sports. | So it brought in Scott O'Neil from the National Basketball Association as president of Madison Square Garden Sports. |
His task was to draw up a definitive group of high-profile sponsors, or partners. | His task was to draw up a definitive group of high-profile sponsors, or partners. |
"The Garden has been undergoing a comprehensive top-to-bottom transformation," says Mr O'Neil. | "The Garden has been undergoing a comprehensive top-to-bottom transformation," says Mr O'Neil. |
"I came in around two years ago, and one of my first challenges was to develop the right partnerships." | "I came in around two years ago, and one of my first challenges was to develop the right partnerships." |
Unlike many other US sports arenas, the Garden receives no public money, so it was essential to maximise sponsorships and get the correct big names, he says. | Unlike many other US sports arenas, the Garden receives no public money, so it was essential to maximise sponsorships and get the correct big names, he says. |
'Part of history' | 'Part of history' |
To achieve this goal he initially plundered other sports clubs and associations and also big name corporations for their best talent. | To achieve this goal he initially plundered other sports clubs and associations and also big name corporations for their best talent. |
Mr O'Neil recalls that such was the venue's lure that in many cases all he had to say was "come and be part of history" to get the person he wanted. | Mr O'Neil recalls that such was the venue's lure that in many cases all he had to say was "come and be part of history" to get the person he wanted. |
Before the new marketing strategy emerged, each different sport strand would look for its own sponsors. | Before the new marketing strategy emerged, each different sport strand would look for its own sponsors. |
"That had meant we had, for example, two or three airlines, or two or three insurance firms on board," he says. | "That had meant we had, for example, two or three airlines, or two or three insurance firms on board," he says. |
"We had all these disparate markets, so we said 'lets bring them together as an all-inclusive sports platform'." | "We had all these disparate markets, so we said 'lets bring them together as an all-inclusive sports platform'." |
After extensive negotiations by Mr O'Neil and his new team, Coca-Cola, Delta Airlines and Budweiser beer-maker Anheuser Busch came on board as "signature partners". | After extensive negotiations by Mr O'Neil and his new team, Coca-Cola, Delta Airlines and Budweiser beer-maker Anheuser Busch came on board as "signature partners". |
Meanwhile, the bank JP Morgan Chase signed up as top "marquee" partner. | Meanwhile, the bank JP Morgan Chase signed up as top "marquee" partner. |
As part of the new strategy, MSG also decided not to sign any long-term deals, apart from the one with with JP Morgan, worth a reported $300m (£189m) over its 10-year span. | As part of the new strategy, MSG also decided not to sign any long-term deals, apart from the one with with JP Morgan, worth a reported $300m (£189m) over its 10-year span. |
That deal took 18 months to put together, and the financial institution now has full-time staff working on the Garden relationships. | That deal took 18 months to put together, and the financial institution now has full-time staff working on the Garden relationships. |
Yet even JP Morgan, as the "first-ever marquee partner" paying such a large sum, does not own the naming rights to the venue. | Yet even JP Morgan, as the "first-ever marquee partner" paying such a large sum, does not own the naming rights to the venue. |
Indeed, with such a famous name it is unlikely ever to be sold off. | Indeed, with such a famous name it is unlikely ever to be sold off. |
'Global economy' | 'Global economy' |
Mr O'Neil says that although there were no difficulties in setting up meetings with potential sponsors, some questioned the wisdom of doing so during an economic downturn. | Mr O'Neil says that although there were no difficulties in setting up meetings with potential sponsors, some questioned the wisdom of doing so during an economic downturn. |
"At the time it seemed ludicrous, given the state of the global economy, that we were looking for such major new deals," he says. | "At the time it seemed ludicrous, given the state of the global economy, that we were looking for such major new deals," he says. |
"But in this whole process we only looked for top-tier names, and ones that fitted with what we wanted to achieve. | "But in this whole process we only looked for top-tier names, and ones that fitted with what we wanted to achieve. |
"For example, we went to all major airlines, had good conservations with them all, and eventually signed with Delta." | "For example, we went to all major airlines, had good conservations with them all, and eventually signed with Delta." |
He says that the lure for Delta was that it was looking to compete with Continental and American in the New York area, and a tie-up with the Garden gave it a massive sales platform. | He says that the lure for Delta was that it was looking to compete with Continental and American in the New York area, and a tie-up with the Garden gave it a massive sales platform. |
"And for us, with Delta we appear on their screens, in their magazines, and in their rewards programme," he says. | "And for us, with Delta we appear on their screens, in their magazines, and in their rewards programme," he says. |
In return, the airline, which has a hub at New York's John F. Kennedy International Airport, has a bigger presence in the highly-competitive New York market. | In return, the airline, which has a hub at New York's John F. Kennedy International Airport, has a bigger presence in the highly-competitive New York market. |
With regard to the JP Morgan deal, it allows MSG to have a presence in the bank's branches and to feature in their rewards programme. | With regard to the JP Morgan deal, it allows MSG to have a presence in the bank's branches and to feature in their rewards programme. |
"I don't think we could have a better partner in New York, one dealing with wealth management in the city," he says. | "I don't think we could have a better partner in New York, one dealing with wealth management in the city," he says. |
'New visuals' | 'New visuals' |
As well as its big name partnerships, the Garden has also undergone $100m of renovations so far as part of a bigger transformation programme costing between $775m and $850m. | |
"We had to show ourselves off as a new arena, even though we were built in 1968," he says. | "We had to show ourselves off as a new arena, even though we were built in 1968," he says. |
"We needed new visuals, so we built up the new suites and the theatre." | "We needed new visuals, so we built up the new suites and the theatre." |
The sponsorship programme, and renovation and modernisation of the Garden, has taken place at a time when other major stadiums have been built in the New York area. | The sponsorship programme, and renovation and modernisation of the Garden, has taken place at a time when other major stadiums have been built in the New York area. |
Over the past few years, City Field, the new Yankee Stadium, and New Meadowlands have all sprung up. | Over the past few years, City Field, the new Yankee Stadium, and New Meadowlands have all sprung up. |
It means that the MSG sport offering is competing with the New York Giants and New York Jets, two of the biggest names in NFL American football, playing in a new stadium. | It means that the MSG sport offering is competing with the New York Giants and New York Jets, two of the biggest names in NFL American football, playing in a new stadium. |
"The Dallas Cowboys are also a massive brand in New York, so we realise we are in elite competition with some big fish." | "The Dallas Cowboys are also a massive brand in New York, so we realise we are in elite competition with some big fish." |
'Launching pad' | 'Launching pad' |
Mr O'Neil also manages other areas of MSG Sports business, which includes college basketball, boxing, tennis, and mixed martial arts, as well as other venues. | Mr O'Neil also manages other areas of MSG Sports business, which includes college basketball, boxing, tennis, and mixed martial arts, as well as other venues. |
At the moment he is in Europe attending sport conference Leaders in Football in London, and watching the New York Knicks play friendly games in Paris and Milan. | At the moment he is in Europe attending sport conference Leaders in Football in London, and watching the New York Knicks play friendly games in Paris and Milan. |
"We hope to be a launching pad for Asian or European or South American firms wanting to be big in New York or to amplify their presence there," he says. | "We hope to be a launching pad for Asian or European or South American firms wanting to be big in New York or to amplify their presence there," he says. |
"We have not had that yet, but I am constantly visiting London, Milan, Paris, where I am meeting firms to discuss possible tie-ups." | "We have not had that yet, but I am constantly visiting London, Milan, Paris, where I am meeting firms to discuss possible tie-ups." |
'Tremendous venue' | 'Tremendous venue' |
Meanwhile he has no doubts that the Madison Square Garden venue can continue to flourish. | Meanwhile he has no doubts that the Madison Square Garden venue can continue to flourish. |
Mr O'Neil has fond memories of his first visit to the Garden, being taken there by his father to watch a New York Knicks v New Jersey Nets basketball game there in 1978. | Mr O'Neil has fond memories of his first visit to the Garden, being taken there by his father to watch a New York Knicks v New Jersey Nets basketball game there in 1978. |
"If you are a New Yorker then the place to go is Madison Square Garden, and I remember that first visit well," he says. | "If you are a New Yorker then the place to go is Madison Square Garden, and I remember that first visit well," he says. |
"We have been around for 130 years and we are going to be here for another 130 years." | "We have been around for 130 years and we are going to be here for another 130 years." |
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