For FBR, a Week of Golf and Schmoozing In Arizona: Priceless
TOOLBOX   Resize
 Save/Share +
COMMENT
 Discussion Policy
 CLOSE
Comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. Finally, we will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. Please review the full rules governing commentaries and discussions. You are fully responsible for the content that you post.
|
Friedman, Billings, Ramsey Group will keep its name atop one of the PGA Tour's richest and most boisterous events for four more years for about $5 million a year.
The Arlington investment bank's sponsorship of the FBR Open was set to expire in 2008, but last week the company signed a renewal agreement extending through 2012, according to Richard J. Hendrix, president of FBR's Capital Markets unit.
The FBR Open, played each winter in Scottsdale, Ariz., was formerly known as the Phoenix Open and is one of the oldest stops on the PGA Tour.
Spending millions to back a golf tournament might not sound like a top priority for a company that posted a $175 million loss in the first half of 2007. But Hendrix said the sponsorship is worth every penny.
"It extends our brand, which is more important than anybody recognizes," Hendrix said. "We compete with firms that are 150 years old and older, so their brand by definition are much more ever-present and well-known than ours."
In addition to the naming rights, FBR spends another big chunk of money on conferences, corporate entertaining and client recruitment during the week-long tournament.
"We don't do that much client entertainment throughout the year," Hendrix said. "This allows us to cover a thousand clients in one shot at a place where everyone likes to be in February."
Last year's FBR Open raised more than $7 million for charity, including a portion that comes back to Washington, Hendrix said. It also draws an average of around 100,000 fans a day, making it one of the best-attended sporting events in the world.
The 2008 FBR Open will share center stage in the Phoenix area with the 2008 Super Bowl, which will be held across town in Glendale, Ariz. They both conclude Feb. 3.
-- Thomas Heath
