HSBC bank on rugby and golf to reach out to new markets

Tuesday, 2 November 2010 06:05 - - {{hitsCtrl.values.hits}}

MUMBAI, Nov 1 (Reuters) - It clearly pays to be part of the Olympics and golf and Rugby sevens have already started counting the cash.

The two sports will be readmitted to the Games in 2016 in Rio de Janeiro -- 112 years after golf’s last appearance in St Louis in 1904 and 92 years after Rugby last featured, in its 15-a-side format.

The impending Olympic inclusion has not gone unnoticed and HSBC has already signed deals to drive maximum mileage from it.

The bank recently signed a sponsorship deal with the International Rugby Board’s (IRB) global sevens tournaments, renewed its backing for the British Lions -- the Rugby union touring side -- and inked a partnership agreement with the Royal and Ancient golf Club of St Andrews, golf’s governing body.

“Not only do they have the heritage which is attractive but both sports have a huge opportunity due to the Olympic Games.

“It’s sort of an ancient-modern piece going on here,” Giles Morgan, HSBC group head of sponsorship, told Reuters in an interview.

About 60 percent of the bank’s sponsorship budget is spent towards the emerging markets, the executive said.

“Emerging markets is certainly one of the areas that HSBC is known for and within our sports portfolio a lot of what you see is that we are investing in sports that have to reach out to new markets,” according to Morgan.

“The Olympics mean both Rugby sevens and golf have to reach out to brand new countries and communities all over the world.”

Morgan said the bank does not focus their investments on individuals as they pose a “big element of risk”.

“One of the reasons we don’t look at individuals is that there is a big element of risk involved with individuals. They can stray from their paths,” he said.

“We prefer to do tournaments and events and leagues which are less prone, perhaps, to reputation risks.”