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NETSUITE PUTS UP BUCKS FOR SPORTS
NetSuite's use of professional sports to markets its brand continues to grow as the company has expanded the number of players it engages with and the value of services involved. This started with a 2004 verbal agreement with Oracle Racing, whose primary funder, Larry Ellison, is NetSuite's majority share owner. It has swapped application services for logo placement on the team's sailboats.
The value of the applications in 2009 was about $250,000, while the logo placement on the boat was valued at $750,000 to $950,000, up from $350,000 in 2008, the increase probably reflecting the team’s winning the America’s Cup. In 2004, the company also established a relationship with the Oakland Athletics. In 2008, NetSuite entered an agreement to pay the baseball team $429,000 for certain sponsorship rights and last year expanded that agreement to pay another $50,000 a year for in-stadium signage. NetSuite paid the Athletics $385,000 in 2008 and $282,000 in 2009. Also in 2008, the company entered a similar agreement with the San Jose Earthquakes, which has a common ownership with the Athletics. In this case, NetSuite is swapping applications for sponsorship benefits with the value placed at about $112,000. The sports sponsorship information is part of a standard section of SEC reports called “Related Party Transactions” in which companies detail deals between their officers or directors and companies affiliated with the same. I don’t think I’ve ever seen any company, including much bigger ones, with as many as NetSuite.
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