ESPN’s Wright Thompson released a controversial and thorough piece investigating the Legend’s Box seats at Yankee Stadium and their ties to Wall St. and the New York corporate culture. (Spotlight was contacted about the piece and is mentioned in the piece: “You can probably guess what happened next: a proposed SEC rule governing expenses that could forever alter the way Wall Street entertains. To get out front of the SEC, many firms have instituted their own internal controls requiring gifts worth more than $100 to be reported. A computer program has been purchased by more than 200 companies that, for the first time, allows statistics to be kept on ticket use, including how much business each one brings in.”)
The article does a terrific job in investigating the history of corporate spending on on-site sports marketing and sports tickets, delving deep into the connection between the Yankees and Wall St. and even deeper into just why teams have created the premium seating they are selling.
However, the article misses the most vital point when exploring the lack of attendance and the corporate responsibility involved in buying tickets for clients – ROI. The article is so focused on the lavish and extravagant spending of Fidelity and Citi, there is no mention of the return on those investments. There is little doubt the examples used were extravagant and not effective business decisions but there is no mention of the return, if any, on the Legends Suites. The first takeaway from the article is the tickets do not offer a return that justifies their purchase by any corporation and that is why they are empty. The price simply doesn’t match the return.
The decision to entertain a client at a sporting event comes down to one data point: will this investment gain return in the form of new or existing business or maintain efficiencies internally (happy & encouraged staff). If firms like Fidelity or Citi are not practicing effective sports ticket management, and not just for tickets already owned but those being purchased, than there is no accountability and no justification for the practice.
The amenities in the article create a “wow” factor and draw the everyday reader however the more important point for those in the business is: these tickets do not return enough business for Wall St (or Corporate America in general) to continue to invest in them. The proof is in the attendance and the examples of firms that opted out of purchasing tickets, even after decades of doing so.
