This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Kulikowski: Boston Bombing Tests Corporate Sponsorships

Stocks in this article: SAM T ELNK PEP JBLU ING

NEW YORK ( TheStreet) -- Are corporate sponsorships of big sporting events still worth it?

While federal authorities and the city of Boston still figure out exactly what happened at the Boston Marathon on Monday in which two explosions left three people dead and more than 100 injured, one has to wonder -- even in the early days -- is it worth it to be a backer of a big event when a major tragedy like this hits?

The bombing, which is now officially being treated as an "act of terrorism" by the Obama Administration, isn't exactly the kind of press a corporate sponsor wants at an event it's backing.

Major sponsors of the Boston Marathon include: John Hancock Financial, the event's longtime main sponsor and a division of Manulife Financial (MFC), AT&T (T - Get Report), JetBlue (JBLU ), Samuel Adams (its parent company is Boston Beer Co. (SAM - Get Report)), Gatorade, a division of PepsiCo (PEP - Get Report), EarthLink (ELNK - Get Report), Nissan Motor Corp. (NTANY) and Adidas.

So far there isn't much talk about corporate sponsors backing out - the corporate line from several companies was mainly of support, condolences and making sure their own employees at the event were accounted for and safe.


In fact, the high-profile marathon is likely to attract even more sponsors next year, if only to show their "support" to the city and the event itself, experts say.

"Will people come back next year for sponsorships ? Probably more so," says Dr. George Belch, marketing professor and department chair at San Diego State University. "In many ways it will probably be a more valuable sponsorship opportunity. I don't think you will see anyone dropping out. The publicity from dropping out could be even more negative ... at least in the short term."

Longer term, without the proper security controls and contingency plans in place, companies are likely to take a closer look at the percentage of their ad budgets spent on major sponsorships, experts say.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,678.70 +6.10 0.03%
S&P 500 2,057.09 +5.27 0.26%
NASDAQ 4,771.7630 +13.8840 0.29%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs