News: Pacific Life out of tourney
August 7, 2008
Pacific Life out of tourney
New title sponsor sought for tennis event at Indian Wells
Leighton Ginn
The Desert Sun
The tennis tournament at Indian Wells has walked away from a proposed two-year deal with title sponsor Pacific Life, thus ending a seven-year partnership with the insurance company.
With tremendous growth the past two years, tournament director Steve Simon said they are banking on securing a new partner to increase their international profile.
“Based on our strategic terms, we decided to enter the marketplace to pursue a new title sponsor,” Simon said Wednesday. “This is a strategic decision. We're looking to continue our aggressive growth strategy.”
Simon pointed out that tennis is second in popularity internationally, trailing only soccer.
Simon said the tournament has been in talks with several companies, but did not have a timetable as to when they would secure a title sponsor.
The tournament will have eight months to do so before the event, which runs March 9-22 at the Indian Wells Tennis Garden.
Simon would not discuss specifics, saying they are looking for at least seven figures per year over three to five years.
If need be, Simon said the tournament is prepared to go without a title sponsor, even though the event is committed to increase prize money by $3.2 million. The event also has 22 smaller sponsors.
The tournament, which regularly features Grand Slam champions Roger Federer, Rafael Nadal, Andy Roddick, Lindsay Davenport and Maria Sharapova, has shattered attendance records the past two years, attracting 331,860 fans last year.
The tournament attracts a majority of its fans from Southern California. And that fits in perfectly with Pacific Life, which is based in Newport Beach.
However, the next stage of growth will go beyond the United States, and Simon said they need a partner with a broader reach.
“Pacific Life is clearly a U.S.-based company with a U.S. focus,” Simon said. “This is an international event. Our focus is the U.S., but we also have an international reach, so it's important to have a strategic strategy that's all aligned. Pacific Life fit half that plan.”
The Indian Wells tournament begins its search in a difficult economy, which will make it imperative the event proves its value, according to a leading sports marketing expert.
“This is definitely a challenging time for sponsorship and daunting for properties that can't demonstrate a return,” said David Carter, principal of the Sports Business Group in Los Angeles. “It comes down to a sports league or an event telling a compelling story as to a return on a sponsor's investment. If they can't do that, they'll be in deep trouble.”
However, Indian Wells City Manager Greg Johnson, who played an integral part in keeping the tournament from moving in 2005, said corporations still need to market their products.
“As far as risk, I think corporations are always looking for sponsorship opportunities,” Johnson said. “And I think it becomes even more important in a down economy some can't stop marketing during times like this because they need their name out there.”
Making a case
Corporations will discriminate more with their money, but the tournament will make a strong case.
Indian Wells' 331,860 fans make it one of the world's most attended tennis tournaments, trailing only the four majors. Simon also pointed out that ticket sales are already ahead of last year's pace at this point.
Next year's tournament will have mandatory entry for the world's top 75 male and female players, making its field comparable to the majors.
It is one of the richest tournaments, offering $9million in total prize money.
The tournament was televised worldwide with about 2,500 hours of coverage, Simon said.
One constant challenge for the tournament has been domestic television coverage. Indian Wells falls on a crowded sports calendar in March. Dominating that calendar is the NCAA men's basketball tournament.
This past year, the tournament moved from the ESPN networks, which were squeezing their live coverage, to the Fox Sports networks.
Tournament CEO Charlie Pasarell said the value for tennis is there. The sport just needs to make its case better.
“Between Indian Wells and Miami (which follows the Indian Wells tournament), which is about 24 days of tennis, we will draw in excess of 600,000 fans,” Pasarell said in March. “How many college basketball games have to be sold out to bring 600,000 live spectators?
“I don't know too many other sports that are really kind of doing that today outside of college basketball in the month of March. I just think that we have to toot our horn a little louder and better.”
Pacific Life impact
The last time the tournament searched for a title sponsor was 2001.
In 2000, the men's ATP Tour had signed a $1.2 billion marketing deal with international marketing firm ISL that guaranteed the Indian Wells tournament $12million a year for 10 years.
ISL went bankrupt and the tournament ended up without a sponsor. Things got worse with the Sept. 11, 2001, terrorist attacks.
However, Pacific Life came into the picture and signed on as the title sponsor.
Simon was quick to point out that despite the dire circumstances, the tournament was able to secure a title sponsor. And in the past seven years, the tournament has seen tremendous growth.
But the tournament also saw some difficult times. In 2005, the tournament faced a financial dilemma, during which it was possible the event would move to either Shanghai or Dubai. However, Pacific Life remained as sponsor and, providing that security, helped the tournament attract investors to keep the event in Indian Wells.
While 2005 threatened the tournament's existence in Indian Wells, Simon said the lack of a title sponsor will be no factor. They are on firm financial ground with strong investors, including the city of Indian Wells.
Sponsorship pros, cons
Growing attendance: The Indian Wells tournament has shattered attendance records the past two years, drawing 331,860 fans over the 12-day event, making it the fifth-most attended tennis tournament in the world behind the four majors. The 20 sessions drew an average of 16,564, up from 2007’s average of 15,1700.
Elite status: Indian Wells will be one of four elite tournaments on the men’s ATP and women’s Sony Ericsson WTA tours, where participation is mandatory for the world’s top 75 players on each tour. Total prize money is expected to be at $9 million, making it one of the richest in the world.
International appeal: The Pacific Life Open has a big appeal across the world, attracting media from Europe, Australia, Asia and South America. And tennis is considered the second most popular sport internationally behind soccer.
Cons
Domestic television: In America at least, the Pacific Life Open must contend with the NCAA men’s basketball tournament, or March Madness. Because of the suffocating coverage, ESPN had reduced its coverage so much that the tournament left the network to join Fox’s cable networks.
Struggling economy: In difficult times, the sponsorship dollars will dry up. Indian Wells is guaranteeing $9million in prize money for 2009, which could make companies apprehensive.
By Leighton Ginn
Staff writer Mariecar Mendoza contributed to this report
http://www.mydesert.com/apps/pbcs.dll/article?AID=/20080807/EVENTS1...
Pacific Life out of tourney
New title sponsor sought for tennis event at Indian Wells
Leighton Ginn
The Desert Sun
The tennis tournament at Indian Wells has walked away from a proposed two-year deal with title sponsor Pacific Life, thus ending a seven-year partnership with the insurance company.
With tremendous growth the past two years, tournament director Steve Simon said they are banking on securing a new partner to increase their international profile.
“Based on our strategic terms, we decided to enter the marketplace to pursue a new title sponsor,” Simon said Wednesday. “This is a strategic decision. We're looking to continue our aggressive growth strategy.”
Simon pointed out that tennis is second in popularity internationally, trailing only soccer.
Simon said the tournament has been in talks with several companies, but did not have a timetable as to when they would secure a title sponsor.
The tournament will have eight months to do so before the event, which runs March 9-22 at the Indian Wells Tennis Garden.
Simon would not discuss specifics, saying they are looking for at least seven figures per year over three to five years.
If need be, Simon said the tournament is prepared to go without a title sponsor, even though the event is committed to increase prize money by $3.2 million. The event also has 22 smaller sponsors.
The tournament, which regularly features Grand Slam champions Roger Federer, Rafael Nadal, Andy Roddick, Lindsay Davenport and Maria Sharapova, has shattered attendance records the past two years, attracting 331,860 fans last year.
The tournament attracts a majority of its fans from Southern California. And that fits in perfectly with Pacific Life, which is based in Newport Beach.
However, the next stage of growth will go beyond the United States, and Simon said they need a partner with a broader reach.
“Pacific Life is clearly a U.S.-based company with a U.S. focus,” Simon said. “This is an international event. Our focus is the U.S., but we also have an international reach, so it's important to have a strategic strategy that's all aligned. Pacific Life fit half that plan.”
The Indian Wells tournament begins its search in a difficult economy, which will make it imperative the event proves its value, according to a leading sports marketing expert.
“This is definitely a challenging time for sponsorship and daunting for properties that can't demonstrate a return,” said David Carter, principal of the Sports Business Group in Los Angeles. “It comes down to a sports league or an event telling a compelling story as to a return on a sponsor's investment. If they can't do that, they'll be in deep trouble.”
However, Indian Wells City Manager Greg Johnson, who played an integral part in keeping the tournament from moving in 2005, said corporations still need to market their products.
“As far as risk, I think corporations are always looking for sponsorship opportunities,” Johnson said. “And I think it becomes even more important in a down economy some can't stop marketing during times like this because they need their name out there.”
Making a case
Corporations will discriminate more with their money, but the tournament will make a strong case.
Indian Wells' 331,860 fans make it one of the world's most attended tennis tournaments, trailing only the four majors. Simon also pointed out that ticket sales are already ahead of last year's pace at this point.
Next year's tournament will have mandatory entry for the world's top 75 male and female players, making its field comparable to the majors.
It is one of the richest tournaments, offering $9million in total prize money.
The tournament was televised worldwide with about 2,500 hours of coverage, Simon said.
One constant challenge for the tournament has been domestic television coverage. Indian Wells falls on a crowded sports calendar in March. Dominating that calendar is the NCAA men's basketball tournament.
This past year, the tournament moved from the ESPN networks, which were squeezing their live coverage, to the Fox Sports networks.
Tournament CEO Charlie Pasarell said the value for tennis is there. The sport just needs to make its case better.
“Between Indian Wells and Miami (which follows the Indian Wells tournament), which is about 24 days of tennis, we will draw in excess of 600,000 fans,” Pasarell said in March. “How many college basketball games have to be sold out to bring 600,000 live spectators?
“I don't know too many other sports that are really kind of doing that today outside of college basketball in the month of March. I just think that we have to toot our horn a little louder and better.”
Pacific Life impact
The last time the tournament searched for a title sponsor was 2001.
In 2000, the men's ATP Tour had signed a $1.2 billion marketing deal with international marketing firm ISL that guaranteed the Indian Wells tournament $12million a year for 10 years.
ISL went bankrupt and the tournament ended up without a sponsor. Things got worse with the Sept. 11, 2001, terrorist attacks.
However, Pacific Life came into the picture and signed on as the title sponsor.
Simon was quick to point out that despite the dire circumstances, the tournament was able to secure a title sponsor. And in the past seven years, the tournament has seen tremendous growth.
But the tournament also saw some difficult times. In 2005, the tournament faced a financial dilemma, during which it was possible the event would move to either Shanghai or Dubai. However, Pacific Life remained as sponsor and, providing that security, helped the tournament attract investors to keep the event in Indian Wells.
While 2005 threatened the tournament's existence in Indian Wells, Simon said the lack of a title sponsor will be no factor. They are on firm financial ground with strong investors, including the city of Indian Wells.
Sponsorship pros, cons
Growing attendance: The Indian Wells tournament has shattered attendance records the past two years, drawing 331,860 fans over the 12-day event, making it the fifth-most attended tennis tournament in the world behind the four majors. The 20 sessions drew an average of 16,564, up from 2007’s average of 15,1700.
Elite status: Indian Wells will be one of four elite tournaments on the men’s ATP and women’s Sony Ericsson WTA tours, where participation is mandatory for the world’s top 75 players on each tour. Total prize money is expected to be at $9 million, making it one of the richest in the world.
International appeal: The Pacific Life Open has a big appeal across the world, attracting media from Europe, Australia, Asia and South America. And tennis is considered the second most popular sport internationally behind soccer.
Cons
Domestic television: In America at least, the Pacific Life Open must contend with the NCAA men’s basketball tournament, or March Madness. Because of the suffocating coverage, ESPN had reduced its coverage so much that the tournament left the network to join Fox’s cable networks.
Struggling economy: In difficult times, the sponsorship dollars will dry up. Indian Wells is guaranteeing $9million in prize money for 2009, which could make companies apprehensive.
By Leighton Ginn
Staff writer Mariecar Mendoza contributed to this report
http://www.mydesert.com/apps/pbcs.dll/article?AID=/20080807/EVENTS1...
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