Earl Mardle (![[info]](http://library.vu.edu.pk/cgi-bin/nph-proxy.cgi/000100A/http/web.archive.org/web/20050513235226im_/http:/=2fstat.livejournal.com/img/userinfo.gif){kind=small} rlmrdl) wrote,@ 2003-01-19 23:10:00 |
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The Higher the profile, the Worse the Business
CNN/Money Staff Writer Chris Isidore is a nasty person, he keeps records and builds charts. His latest effort is revealing because there is no way of knowing how the results come about, but the numbers are persuasive. His thesis is that companies that resort to naming rights for sports stadia, are either in financial trouble, or are about to get into it.
He noticed that "when financial services firm Conseco Inc. filed for bankruptcy protection last month, it joined WorldCom, United Airlines, Adelphia Communications and US Airways as the victims" of the stadium naming rights curse in the last year alone.
With "Enron, PSINet, Trans World Airlines and National Car Rental parent ANC, nine of 61 stadium sponsors, or 14 percent, have filed for bankruptcy in the last 19 months... Of the 45 non-bankrupt companies on the index for the full year, 16, or more than a third, saw their stocks fall 30 percent or more last year, with mobile phone equipment maker Ericsson, Reliant Resources, American Airlines and Continental Airlines all tumbling at least 70 percent during the year."
he's not sure why it is so consistent, maybe because failing CEO's and under performing marketing departments are locked into such conventional and rigid thinking models that they can't escape the idea that being associated with a sporting venue is a good idea. After all, Americans are sports mad so they must want to support the companies that support their addiction, right?
Unless you think about how a junkie feels about his pusher.
For the full chart, check this
CNN/Money Staff Writer Chris Isidore is a nasty person, he keeps records and builds charts. His latest effort is revealing because there is no way of knowing how the results come about, but the numbers are persuasive. His thesis is that companies that resort to naming rights for sports stadia, are either in financial trouble, or are about to get into it.
He noticed that "when financial services firm Conseco Inc. filed for bankruptcy protection last month, it joined WorldCom, United Airlines, Adelphia Communications and US Airways as the victims" of the stadium naming rights curse in the last year alone.
With "Enron, PSINet, Trans World Airlines and National Car Rental parent ANC, nine of 61 stadium sponsors, or 14 percent, have filed for bankruptcy in the last 19 months... Of the 45 non-bankrupt companies on the index for the full year, 16, or more than a third, saw their stocks fall 30 percent or more last year, with mobile phone equipment maker Ericsson, Reliant Resources, American Airlines and Continental Airlines all tumbling at least 70 percent during the year."
he's not sure why it is so consistent, maybe because failing CEO's and under performing marketing departments are locked into such conventional and rigid thinking models that they can't escape the idea that being associated with a sporting venue is a good idea. After all, Americans are sports mad so they must want to support the companies that support their addiction, right?
Unless you think about how a junkie feels about his pusher.
For the full chart, check this
