Sponsors a Mardi Gras first
Posted on Thursday, December 8, 2005
New Orleans officials think they have found a way to show that the devastated city still can throw a wild party : selling the rights to be “official sponsor” of the next Mardi Gras for $ 2 million.
For the first time since New Orleans began holding Mardi Gras parades 150 years ago, the city government is planning to aggressively solicit corporate sponsorship to help cover the costs of police overtime, street cleaning and other city services that make Mardi Gras possible, as well as help pay for a national advertising campaign. Within the next few days, New Orleans officials are expected to seek formal proposals, and the winner could be chosen as soon as a week later.
Members of the Mardi Gras krewes, or social clubs, pay for their own floats, costumes, bands and trinkets, and New Orleans has an ordinance that forbids corporate sponsorship of parade floats.
But the official Mardi Gras sponsor will get the exclusive right to Webcast from dozens of parades and parade-reviewing stands for eight days in late February, according to a “spon- sorship proposal” from New Orleans Mayor Ray Nagin’s Office of Economic Development. The perks also include spots for riders on parade floats, “inclusion in all press announcements” and “right of first refusal” to sponsor Mardi Gras again in 2007.
Smaller-scale sponsorships also will be for sale for $ 12, 500 to $ 250, 000 each.
New Orleans officials have ruled out offering a title sponsorship, in which a company’s name would appear before the words “Mardi Gras.” And corporate names won’t appear on floats.
“We plan to handle that in a discreet way that doesn’t compromise the cultural significance of Mardi Gras,” says Ernest Collins, the economic-development office’s executive director of arts and entertainment, who drafted the sponsorship proposal.
But opening Mardi Gras, long billed as the “greatest free show on earth,” to sponsors is likely to increase criticism from traditionalists who cherish its status as one of the few major U. S. sports or cultural events that are essentially devoid of advertising.
“Once you commercialize, then the fun leaves,” says A. Pete Sanchez, Carnival activities chairman for the Krewe of Zulu, the oldest and largest black Mardi Gras club. “The corporate sponsors will have all their rules and regulations, and before you know it, you have a three-ring circus, with all the hoops we’ll have to jump through.”
New Orleans officials say sponsorship revenue is essential to salvaging Mardi Gras. The financially destitute city, which has been forced to lay off workers after Hurricane Katrina, expects to spend roughly $ 4 million on city services during Mardi Gras. City officials say a successful Carnival season would demonstrate the resilience of New Orleans and prove that the city is prepared to again handle large events.
“This event drives our economy,” Collins says. “We need to send a message to rest of the world that we’re open for business.”
Mardi Gras drew an estimated 1. 4 million visitors and generated $ 220. 5 million for the hotels, caterers, restaurants and other cogs of the New Orleans economy in 2003, the latest year for which figures are available.
New Orleans hasn’t begun negotiations with any potential sponsors yet. Despite the flashing of exposed body parts and the excessive drinking that help give Mardi Gras its rollicking reputation, city officials are unlikely to court sponsors that might be objectionable, such as liquor companies.
Instead, they will target companies, such as technology and entertainment firms, with lots of customers from 20 to 35 years old, because that age range includes many Mardi Gras tourists.
The chance for even a limited association with the most famous party in the U. S. is expected to attract keen interest. And judging by current sponsorship costs, which can reach tens of millions of dollars or more, Mardi Gras could be a fruitful investment.
“The impression that a company is really doing something positive could really push the value of that package far beyond the tangible benefits,” says Jim Andrews, senior vice president of IEG Inc., a Chicago company that tracks corporate sponsorship.
One risk, he notes : Mardi Gras sponsors might be seen as having spent their money better by “going to the Red Cross or helping somebody rebuild their home, instead of paying for a party.”
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