Wings Clipped at Masters Tournament as Corporations Stay Home
Corporate jet travel, entertaining down; Banks, auto companies scale back.
April 13, 2009— -- A bad economy and bad press were major players on the corporate entertainment scene at this year's Masters golf tournament in Augusta, GA, as companies scaled back amid scrutiny and criticism of corporate spending.
"It appears to be the banks, the automotive industry and a lot of the investment companies," said Diane Starr, who runs the Augusta-based Masters rental agency Corporate Quarters. "Those are the ones we're not seeing as much as we used to."
Corporate jets, which have become the symbol of corporate excess for bailed-out firms receiving TARP money, were also feeling the pinch, with the Augusta Regional Airport reporting a 25 percent decrease in business jets arriving at the beginning of last week. Numbers for the second half of the week aren't in yet, but the airport's Director of Marketing, Diane Johnston, said it's safe to say that corporate jets are "down a considerable amount."
And Starr said that while there was definitely still a lot of entertaining to be had, companies renting out homes around Augusta were down by at least 20 percent, which meant that luxury rental homes were going for as little as 60 percent of the price they went for last year.
"I think that they're afraid," said Starr of the struggling firms that stayed away this year. "They know especially if they've had layoffs that people are watching what they're doing."
While marketing dollars may not be what they were a year ago, Jim McNulty, a finance executive in the pharmaceutical industry and co-author of the book "Business Golf: The Art of Building Relationships Through Golf," said it's a shame that companies like Northern Trust have been criticized for sponsoring golf tournaments.
"It's a very important aspect of corporate relationships," McNulty said of being out on the course, either watching or playing.
"At the tournament, the sponsors have their key executives go out and entertain and make sure guests have a good time," McNulty said. "When it comes to doing business later, they have a face, they have a memory, and that's how you build relationships. If you really want to build a good, significant relationship, you have to spend a little bit of money to make money."
Related Stories
ABC News Live