Sports Sponsorship Is Good For Business

SPORTING prowess has never been as high a priority in Singapore as academic success or financial achievement. Nevertheless, the republic does host a few world-class sporting events, and has aspirations to be on the global sporting map. Golf has been the most visible venture, with the US$1 million prize-purse Singapore Masters and the US$4 million Singapore Open being held at the beginning and end of each year. There are also several other smaller niche events like the Rugby-7s and cricket tournaments held here. But not much more.

The next big thing to descend on Singapore will be motorsport's Formula One, starting next year. Enthusiastic though the government and public may be about attracting world-class sports events and making Singapore a sports and tourism hub, this eagerness has not quite caught on with Singapore corporations.

This lack of enthusiasm was starkly illustrated in the lead-up to the Singapore Masters Golf gathering earlier this year. After sponsoring the event for five years, multinational oil company Caltex decided not to extend its lead sponsorship contract after 2005. Massage-chair maker OSIM took over for 2006, then dropped out. That left the organisers scrambling for a new sponsor for 2007. After several months, at the 11th hour, newly established international Swiss private banking group Clariden Leu signed up as lead sponsor of the event. But the Swiss bank has yet to commit itself to backing the event - which is co-sanctioned by both the PGA European Tour and the Asian Tour - next year and beyond.

Meanwhile, Asia's richest national golf Open Tournament grew richer this year, thanks to the backing of one of the world's most prominent financial groups, Barclays. The Barclays Singapore Open will boast a prize of US$4 million this year, which will grow to US$5 million next year as it targets big names like Tiger Woods, Phil Mickelson and Ernie Els. In fact, if not for Barclays, the Singapore Open - Asia's oldest open - would have remained in hibernation. And if not for Clariden Leu, there would have been no 2007 Singapore Masters. Other multinational companies have also backed sports here. Conspicuous by their absence are Singapore's homegrown multinationals. Could it be that local corporates do not see value in backing sporting events because they can't see a direct link to top-line revenue or profit growth? Or is it because they don't know how to leverage on sponsorship?

Either way, it's a shame, because sports sponsorship often makes good business sense. Sponsorship goes beyond brand awareness and corporate image. It also stamps a company's credentials as a good corporate citizen. For example, a four-day international golf championship is actually a 10-day celebration of the sport, parading a huge cast, crew, stage and action involving star international players, local heroes, fans, fringe events, Pro-Ams and celebrity tee-offs, coaching clinics, charity auctions, gala dinners featuring international entertainers, merchandising, and more. In other words, there are huge spin-offs of different kinds.