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Question:
1.How is hockey sponsorship recession – proof for Scotiabank inCanada?
Hockey Sponsorships Recession-Proof Scotiabank is very active in the sports sponsorship arena in Canada, but one might question the bank's strategy when it agreed to be the official bank of the Toronto Maple Leafs. Does the association risk alienat- ing customers who don't like the team? It may, but there are other factors to consider beyond what teams Canadian fans cheer for. From Scotiabank's perspective, all that matters is a good return on their sponsorship investment, and right now hockey is the best bet in sports, particularly in Canada. "Hockey is highly relevant to Canadians, and our love of hockey aligns with that of our customers and prospective customers," says Duncan Hannay, market- ing executive at Scotiabank. Hockey is the biggest sponsorship investment at Scotiabank; the bank is involved right up the ladder from youth hockey programs to sponsorship deals with the seven Canadian National Hockey League (NHL) teams. Sellout crowds in all Canadian cities make the relationship financially attractive for Scotiabank. Sponsorship revenue is very important to the teams as well. Ticket sales only account for about half of the rev- enue that Canadian NHL teams generate each year, and the costs of operating a team are very high. There is something about hockey that attracts cor- porate sponsors. If it were just patriotism, then sports like football and baseball would be doing better on the sponsorship front. According to Alan Middleton, profes- sor at York University, "When money gets tight, we focus on the big stuff. Hockey is protected, and it gives the sponsor coverage right across the country." It seems that a tried and true sport like hockey offers stronger appeal than a merely popular sport like UFC (Ultimate Fighting Championship). BMO recently extended its relationship with junior hockey in Canada. As part of the deal, BMO will have on-ice advertising at each of the Canadian Hockey League's 46 arenas and a presence in CHL telecasts, the CHL website, and each of the team's websites. According to Sandy Bourne, vice-president of sponsor- ships, advertising, and corporate events, "It's really important for us to be localized and show that we are part of the community, because that's important to our customers and our employees." He sees the CHL as a great fit, suggesting they will reach young families seek- ing a mortgage or older couples in the market for RRSPS or loans for home renovations. He says "the CHL rela- tionship shows our commitment to a good many com- munities across Canada." Part of the sponsorship deal includes a contest called "Score a Trip to the Memorial Cup," the annual Canadian junior championship tournament. Adapted from Morgan Campbell, "Why the Maple Leafs Remain a Safe Bet for Corporate Sponsors, Toronto Star, October 21, 2011, pp. Si, S4; and Chris Powell, "BMO Expands Partnership with CHL," Marketing, October 17, 2011, www.market- ingmag.ca. Saten P 4414 Source: Francis Vachon/CP Images.