Sports Sponsorships Gone Wrong
Sports tickets are never a problem…until they are. Companies face a number of risks when purchasing tickets for business use. These risks range from government backlash for fraudulent ticket use to the dreaded PR witch-hunt for misuse of corporate funds. When a company is not careful, they face fines, government scrutiny, and damaging negative press.
Below is a comprehensive list of major news sources reporting on the severe risks associated with corporate sports sponsorship and ticket investment.
GOVERNMENT ASSISTANCE
- AL.com: Alabama Ethics Fail: How elected officials get Iron Bowl tickets for face value
- ABC: Did AIG Spend Bailout Cash on Image Campaign?
- Associated Press: National Guard to Pull out of NASCAR and IndyCar
- NYdailynews.com: Are the Yankees a Tarnished Brand?
- Sportsbusinessdaily.com: Sports Marketing is the Recession’s New Whipping Boy
- Sportsbusinessdaily.com: Northern Trust CEO Defends Sponsorship of Golf Events
- Businessinsider.com: Citigroup, seven U.S. banks spend on stadium deals
- CNBC: Barney Frank Says ‘Marketing Should Change’
- CNBC: They Built This Citi…And They Should Keep It
- CNBC: How Bank of America Justifies Sports Spending
- CNN: Bailed-out bank enjoys concerts, dinners, parties
- Examiner.com: Wachovia Championship Golf Tournament has new name
- FinancialServices.gov: Financial Services Democrats Call on Northern Trust to Repay TARP Funds
- Forbes: Why The Mets Deal Is Right For Citi
- Metrocorpcounsel.com: Sports sponsorships: another bubble burst?
- Golf.com: At this tourney, you can’t name the title sponsor
- The Guardian: Manchester United may lose final £14m of AIG cash
- The Guardian: Losing their shirts: AIG pulls out of United sponsorship
- Huffington Post: Your bailout funds supporting Tiger Woods and Europe’s soccer stars
- The Independent: Sports and arts feel pinch from toxic brand backlash
- LA Times: Northern Trust says it plans to repay bailout fund as quickly as possible
- LakeshoreLaments.com: The PGA is Killing the GMO
- Metro: Man Utd sponsor AIG in fraud probe
- Minnesota Public Radio: Bank pushback and sports stadiums
- Wharton University of Pennsylvania: Despite a PR backlash, sports sponsorship remains a cost-effective marketing tool
- MSNBC: Northern Trust under pressure over parties
- National Golf Course Owners Association: Golf leaders to share industry’s economic message
- NBC: Oakland’s Ethics Commission Question City’s Use of Free Pro Sports Tickets
- New York Times: Yankees Try New Strategy to Market Premium Seats
- NorthernTrust.com: Northern Trust Responds to Members of Congress
- OsrShortBus.blogspot.com: TARP Recipients Squandering Funds
- Sports Business Daily: Wells Fargo goes big with rebranding at PGA Tour event
- SportsBusinessDaily.com: Beaten-up banks
- Townhall.com: Congress in a lynching mood
- TheStreet.com: When sports sponsorships go bad
- TalkingPointsMemo.com: Dems Tell Northern Trust To Repay Taxpayers For LA Spending Spree
- TMCnet.com: Northern Trust defends spending on PGA event, parties
- TMZ: Bailout Bank Blows Millions Partying in L.A.
- UTalkMarketing.com: Brands ending sponsorships face backlash from fans
- WordPress.com: Sports Marketing and it’s PC Problem
FCPA VIOLATIONS
- CapacitorIndustry.com: Maxwell implements corporate FCPA policy to reduce exposure
- InsideCounsel.com: Wal-Mart scrambles to address FCPA violation accusation
- FCPABlog.com: IBM pays $10 Million in SEC settlement
- FCPABlog.com: Fiat pays $178 Million for FCPA violations
- FCPAProfessor.blogspot.com: Tyson Foods Settles FCPA Enforcement
- Justice.gov: York International Corporation pays fine for violating the FCPA by paying bribes in Bahrain, Egypt, India, Turkey and the United Arab Emirates
- Justice.gov: Maxwell Technologies fined $8 Million due to violation of Foreign Corrupt Practices Act (FCPA)
- Justice.gov: Aon corporation agrees to pay a $1.76 Million criminal penalty to resolve violations of the Foreign Corrupt Practices Act
- Justice.gov: Johnson & Johnson agrees to pay $21.4 Million criminal penalty to resolve Foreign Corrupt Practices Act and Oil for Food investigations
- K&L Gates: Chevron pays $30 Million to settle foreign Corrupt Practices Act charges in Oil for Food case
- NYtimes.com: Johnson&Johnson to pay $70 Million to settle FCPA charges
- PropertyCasualty360.com: Aon Settles with DOJ, SEC for Over $16M on FCPA Violation Charge
- SEC: Chevron to pay $30 Million to settle charges for improper payments to Iraq under U.N. Oil for Food program
- SEC: SEC charges General Electric and two subsidiaries with FCPA violations
- SECWhistleBlowerProgram.org: United States vs. CNH Italia S.p.A
- Stltoday.com: Bond firm gave 2,000 sports tickets to local officials
- Smartinvestor.in: IBM reaches $10 Million settlement with SEC over FCPA violations in South Korea and China
- Wall Street Journal: Tyson foods settles FCPA probe, agrees to pay $5.2 Million
- Wall Street Journal: Wal-Mart FCPA probe focuses on Mexico amid report of cover-up
- Wall Street Journal: FCPA Inc: How lawyers are getting rich off of bribery law
FRAUD
- ESPN: Ex-Browns ticket manager pleads guilty in scam
- ESPN: IOC executive Patrick Hickey taken to hospital after scalping accusations in Rio
- FOX Business: Former A&P executive sentenced to jail for $1.2 million scam involving concert, sports tickets
- AzCapitolTimes.com: Ethics bills creep along after Fiesta Bowl scandal
- AZCentral.com: Fiesta Bowl scandal prompts senate ethics inquiry
- Bleacher Report: Fiesta Bowl Scandal: Why the BCS’ Punishment Simply Isn’t Strong Enough
- CBS: Enron — Not Very Sporting
- CarrollGardensPatch.com: Will the Barclays banking scandal drag down arena’s reputation?
- ESPN: Fiesta Bowl scandal, nonprofit status
- Fox News: Astros Want to Drop Enron Name From Stadium
- Fraud Magazine: Fraud in Collegiate Athletics
- Golf Channel: Barclays’ scandal could threaten golf sponsorship
- USA Today: Rodney Jones, Former University Of Kansas Official, Gets Prison Term For Ticket Scam
- Inside Higher Ed: Bad Apples or More?
- LJWorld.com: KU ticket scandal puts focus on out-of-control athletics
- Politics.co.uk: Boris under pressure to scrap Barclays bike sponsorship
- SEC: SEC Charges Financial Executive in Minnesota with Diverting Company Dollars to Pay Unauthorized Entertainment Expenses
- Espn.com: Fiesta Bowl scandal results in Junker dismissal, casts pall over BCS
- Foxsports.com: Fiesta Bowl Scandal spurs gift ban proposal
- USA Today: Former Kansas official sentenced to 57 months in prison in ticket scam
- Wall Street Journal: What’s In a (Stadium) Name?
BRIBERY
- 10News: Free sports tickets for politicians in Tampa Bay
- Boston Business Journal: Proxy firm workers charged with bribing Boston adviser with sports tickets
- Chicago Tribune: Arizona lawmaker pleads guilty to sports ticket bribery
- The Economic Times: Financial services have a special relationship with sports sponsorship including cricket, football
- IMRPublications.com: Emirates statement on FIFA raises questions
- The Independent: Blatter faces backlash from sponsors over Fifa scandal
- Metro: Fifa sponsors Coca-Cola, Adidas and Emirates ‘distressed’ by bribery crisis
- NY Post: FIFA sponsors voice fears over bribe claims
- Phoenix New Times: DPS Honchos’ Ethics Are Questioned After Sports-Ticket Probe
- RTE News: FIFA sponsors concerned by bribery allegations
- SportsBusinessDaily.com: Fear Of U.K. Bribery Rules Leaves Companies Shunning London Games Hospitality Packages
- Telegraph.co.uk: London 2012 Olympics: companies refuse tickets amid Bribery Act fears
MILITARY
- Bay News 9: NASCAR narrowly avoids losing Armed Forces sponsorships
- TheHill.com: House votes to allow DoD to keep sponsoring NASCAR
- Politics365.com: House Votes to Give $26.5 Million More in Tax Money to Dale Earnhardt Jr., NASCAR
- Sporting News: National Guard wants to keep sponsoring NASCAR
- USA Today: Congress preserves military sponsorship of sports
- USA Today: U.S. Army to discontinue NASCAR sponsorship in 2013
- USA Today: NASCAR military sponsorships facing fight
FINANCIAL HARDSHIP
- Dallas Morning News: Sounds like Jerry Jones needs a temporary way to name his new stadium
- SportsBusinessDaily.com: NFL at revenue crossroads
- TheUKSportsNetwork.com: 4 reasons why companies have had to become more cautious of sponsorship
- USA Today: Economy hits corporate hospitality hard at U.S. Open
- Wall Street Journal: Are Pro Sports Too Big to Fail?
UNUSED TICKETS
- BBC News: London 2012: Sport Wales boss ejected despite empty seats
- FoxSports.com: Troops, students, teachers to fill Olympic seats
- FoxSports.com: Not sitting well
- FoxSports.com: Mizzou cracks down after audit
- Scottish Daily Record: London Olympics: Troops and students drafted in to fill empty seats
- Telegraph.co.uk: London 2012: Tessa Jowell tells Lord Coe to sort out ticket fiasco ‘today’
- Telegraph.co.uk: Olympic seats row: parents of athletes turned away from Aquatics Centre in …
- The Independent: London 2012: Thousands of VIP tickets go on sale in a bid to end ticket fiasco
- WalesOnline: Olympics: Sport Wales head denied access as tickets row deepens
- Washington Post: At London Olympics, empty seats have organizers scrambling, giving away tickets to children and soldiers