Other website sections

»Sports Market Reports

»Sports Jobs

»Tenders

»Directory

»Conferences

Corporate hospitality was hit at the U.S. Open and the U.S. Golf Association (USGA) is to look at ways of protecting its revenue stream.

"Corporate hospitality has not been immune to the economic slowdown," USGA chief business officer Pete Bevacqua told Reuters at Bethpage Black.

"The great challenge will be predicting what corporate hospitality will look like in the future.

"I think coming out of this it will need to be tweaked, it will need to be adjusted. We'll need to show some great flexibility."

With spending down during the global economic downturn and companies sensitive over the appearance of frivolous entertaining, only 50 corporate tents were sold at the Open compared to more than 70 when it was last at Bethpage in 2002.

Last year 70 were sold when the season's second major was held at Torrey Pines outside San Diego.

The fee for a 40-foot-by-40-foot tent can approach a quarter of a million dollars for the USGA, which gets more than 75 percent of its total revenue from U.S. Open proceeds.

"I think we're at one of those critical junctures where corporate hospitality in all sports and in golf has to take a look at itself and say how will corporations respond to this," said Bevacqua.

"What do we need to offer them to continue to make this work?"

Bevacqua said the USGA's projection for corporate revenue at the 2009 Open won by American Lucas Glover on Monday was down 20 percent but he was confident golf remained fertile ground.

"The undeniable fact is that corporate hospitality at golf events is powerful. It works for the corporations. It's a great marketing tool, it's a great way to conduct business," he said.

KEEP PACE

"But just as they (corporations) are changing we need to change to keep pace with those changing dynamics.

Brainstorming has already begun, Bevacqua said.

"If I had two guiding concepts they would have to be some smaller options and greater customisation," he said.

"Instead of offering limited models to fit multiple corporations, without driving everyone crazy I think we're going to have to figure out ways to meet the needs of individual corporations.

"Maybe it's smaller, maybe it's larger. We have to experiment."

Bevacqua said the USGA had succeeded with its Trophy Club, where individuals can buy tickets to sample the tournament tent experience and purchase food and drinks.

"We also have a Champions Pavilion option which is a large tented structure where corporations can purchase tables and get 12 tickets a day and a buffet-style food experience."

With fewer tents sold, the USGA recouped some revenue loss by selling more tournament tickets to the public.

More than 40,000 tickets were sold on each day of the event, which was hampered by heavy rain throughout the week.

"It's a financial monkey wrench and a psychological monkey wrench," Bevacqua said about the dreary weather that cut into concession and food sales at Bethpage and added an extra day to the competition.

"You don't want to have an umbrella in one hand and a hamburger in the other.

"It's a downer. It's disappointing but there are only so many things you can control and weather is not one of them."

(Source: Reuters)