mt relationship renewal...
TRANSCRIPT
Relationship Renewal
YOUR COMPANY
LOGOThe Memorial seeks to engage Morgan Stanley in dialogue specificto extending the Presenting Sponsorship Agreement for a period beginning in 2011.
Through this document a justification platform is offered which utilizes the most primary assets within the Memorial and the PGATOUR to deliver an acceptable business proposition. In developing the detail the Memorial applied focus to the following:
• Consideration of Morgan Stanley’s current business structure
• Acknowledgement of Morgan Stanley’s international investor partners.
• Recognition of the changing tide in public sentiment towards Financial Institution spending.
• Interest in leveraging the value of the Memorial’s considerable assets and that of Jack Nicklaus as an International icon to generate incremental value for Morgan Stanley.
Opening
YOUR COMPANY
LOGOIn an effort to deliver on the goals stated on the previous page this document will draw on the following to communicate the Memorial’s relevant value and to ultimately propose a going forward relationship structure :
• Golf & TOUR Fan Profile• TOUR Index = Audience Delivery• International Appeal – Valuable Extension• Financial Industry – Current State • Memorial Tournament - TOUR Leader• Benefit Review • Renewal Profile
Opening
YOUR COMPANY
LOGO
Golf & TOUR Fan ProfileStrong Brand Attributes
YOUR COMPANY
LOGO
• 110 Million Golf Fans• 180 Million TOUR TV Viewers in 2008• 45 Million Female Golf Fans• 28 Million Golf Participants• 8 Million TOUR Spectators
U.S. GOLF POPULATION
Source: TNS Intersearch ESPN Sports Poll; Nielsen Media Research; National Golf Foundation, 2008
Golf Fans
• Honesty, Integrity, Sportsmanship
• Players Viewed as Role Models
• Improving Communities & Volunteerism a Priority
IMAGE OF PGA TOUR PLAYERS & SPORT
(% FAVORABLE RESPONSES)
96.4%Enhances Local Community
97.4%Promotes Honest & Integrity
96.7%Encourages Volunteerism
97.8%Provides Good Role Models
97.3%Positive Overall Image
Source: Market Tools, 2008
TOUR HAS STRONGEST IMAGE IN SPORTS
Strategic Image
YOUR COMPANY
LOGO
$900$830
$720
$450$340$300
$580$680
1993 1995 1997 1999 2001 2002 2003 2004 2005 2006 2007 2008
Total Cumulative Charity Contributions - OVER $1.4 BILLION
$1.2B
$1B
$1.1B
$1.4B
Charitable ContributionsGROWING CHARTIABLE CONTRIBUTIONS
TOUR Index = Audience Delivery
Source: MRI Doublebase 2008
“Influentials” are the 10% of Americans that researchers have identified as those who influence the purchase decisions of all others
92
113116118
137
PGA TOUR MLB NBA NFL NASCAR
INDEX OF “INFLUENTIALS” IN AUDIENCE
Index v. US Avg. ( US Avg. = 100)
DELIVERING INFLUENTIALS
Influentials
147Decision Maker for Group Financial Products/Services
161Makes Purchasing Decisions: $500,000+
169Makes Purchasing Decisions: $1,000,000+
148Makes Purchasing Decisions: $100,000+
138Job Title: Chairman/Chief Executive Officer
146Job Title: Member of the Board
185Job Title: Chief Financial Officer
144Job Title: President
152Job Title: Top Management
Decision MakersBUSINESS DECISION MAKERS
Source: MRI Doublebase 2008
MRI Profile of PGA TOUR ViewersIndex vs. US Avg. (US Avg.=100)
237Personally Own Annuities: $150,000+
250Number of Investment Transactions in Last 12 Months: 50+
164Use Financial Planning or Money Management Counsel
222Personally Own Mutual Funds (Bonds): $150,000+
262Own any Stock: $100,000+
249Personally Own Mutual Funds (Stocks): $150,00+
266Personally Own Common Stock in Any Company: $150,000+
InvestorsINVESTORS
Source: MRI Doublebase 2008
MRI Profile of PGA TOUR ViewersIndex vs. US Avg. (US Avg.=100)
YOUR COMPANY
LOGO
74
127135
165
250
PGA TOUR MLB NFL NBA NASCAR
PGA TOUR vs. Other Leagues
Investors
Source: MRI, Doublebase 2008
119108
138127
146
250
PGA TOUR CNBC MCNBC CNN HistoryChannel
The WeatherChannel
PGA TOUR Audience vs.
Other Morgan Stanley Smith Barney Advertising Channels
Number of Investment Transactions in Last 12 Months: 50+
MRI Profile of PGA TOUR ViewersIndex vs. US Avg. (US Avg.=100)
INVESTORS
125130136149
266
PGA TOUR MLB NBA NFL NASCAR
Investors
Source: MRI, Doublebase 2008
129140
148160
186
264
PGA TOUR CNBC MCNBC CNN HistoryChannel
The WeatherChannel
Personally Own Common Stock in Any Company: $150,000+
MRI Profile of PGA TOUR ViewersIndex vs. US Avg. (US Avg.=100)
INVESTORS
PGA TOUR vs. Other Leagues PGA TOUR Audience vs.
Other Morgan Stanley Smith Barney Advertising Channels
171Acquired or Increased Investment in Any Mutual Funds in Last 12 Months
173Own Any Mutual Funds
181Own Morgan Stanley Mutual Funds
185Own Smith Barney Mutual Funds
124Acquired or Increased Investment in Smith Barney Mutual Funds inLast 12 Months
200Used Morgan Stanley Brokerage Firm
148Acquired or Increased Investment in Morgan Stanley Mutual Funds in Last 12 Months
203Used Smith Barney/Citigroup Brokerage Firm
ClientsMORGAN STANLEY SMITH BARNEY CLIENTS
Source: MRI Doublebase 2008
MRI Profile of PGA TOUR ViewersIndex vs. US Avg. (US Avg.=100)
Strategic ImageSYNERGISTIC BRANDS
• Positive Image
• One of the TOUR’s Most Prestigious Events
• Demographic Fit– Affluent/Educated Audience
– Business Decision Makers
– Influentials
– Investors
– Morgan Stanley Smith Barney Clients
International Distribution –Valuable Extension
• In 2009 The Memorial was Telecast Distributed to 220 Countries in Some Format (e.g., Live, Tape Delay, Full Broadcast, Highlights, etc.)
• Reached 488+ Million Households
International Television CoverageINTERNATIONAL TV COVERAGE
78144 160
197 216
350400
500
589
225 253
0
100
200
300
400
500
600
700
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2009
Pote
ntia
l TV
Hou
seho
lds
(Mill
ions
)
INTERNATIONAL DISTRIBUTION OF TELECASTS HAS STEADILY INCREASED
International Distribution
Broadcast Distribution in the Morgan Stanley’s primary international markets Morgan Stanley Offices
Australia Australia CanadaCanadaChina China
France France Germany Germany Greece Greece Hong Kong Hong Kong Hungary Hungary India India Ireland Ireland
IsrealIsrealItaly Italy JapanJapan
Latin America Latin America
Netherlands Netherlands Russia Russia SaudiaSaudia Arabia Arabia
Singapore Singapore South Africa South Africa
Spain Spain Sweden Sweden SwitzerlandSwitzerlandTaiwanTaiwanTurkey Turkey United Arab United Arab EmeritesEmerites
UntedUnted KingdomKingdom
PGA TOUR DistributionAustralia Australia -- Fox SportsFox SportsCanadaCanada –– TSN/Golf Channel TSN/Golf Channel China China –– Golf Golf Channel/Guangdong SatelliteChannel/Guangdong SatelliteFrance France –– Sport +Sport +GermanyGermany -- Sky DeutschlandSky DeutschlandGreeceGreece –– NovasportNovasportHong KongHong Kong –– ii--Cable Cable Hungary Hungary –– EurosportEurosportIndiaIndia –– Ten Sports, Neo SportsTen Sports, Neo SportsIrelandIreland –– British British EurosportEurosport, , FIVEFIVEIsrealIsreal –– Fox Sports/ESPNFox Sports/ESPNItaly Italy –– SportitalitaSportitalitaJapan Japan –– NHK, Jupiter Golf NHK, Jupiter Golf NetworkNetworkLatin AmericaLatin America –– ESPN, Golf ESPN, Golf Channel Channel NetherlandsNetherlands –– Sport 1 Sport 1 RussiaRussia –– EurosportEurosportSaudi ArabiaSaudi Arabia –– Fox Sports, Fox Sports, ESPNESPNSingaporeSingapore –– StarHubStarHub Golf Golf Channel/Sports Channel/Sports South AfricaSouth Africa –– SupersportSupersport, , ESPNESPNSpain Spain –– Golf+/Golf+/Canal+DeportesCanal+DeportesSweden Sweden –– ViasatViasat Sport Sport SwitzerlandSwitzerland –– EurosportEurosportTaiwanTaiwan –– VideolandVideoland SportsSportsTurkeyTurkey –– EurosportEurosportUnited Arab United Arab EmeritesEmerites –– Fox Fox SportsSportsUnited Kingdom United Kingdom –– British British EurosportEurosport, FIVE, FIVE
International Distribution
Financial Industry – Current State
Financial IndustryNew Landscape for Financial Institutions who remain within sport
• Unwarranted and uncontrollable scrutiny applied to Morgan Stanley and others in 1st quarter of 2009
• PGA TOUR and Financial sponsors reacted by communicating “true value”through economic impact in local markets and financial impact for benefiting charities
• Results included:– Reduction of scrutiny in 2nd and 3rd
quarter as TARP is repaid and “true value” message was released
– Commitment by President Obama to act as “Honorary Chair” of Presidents Cup. Strong show of support for TOUR and its mission.
– TOUR events less cluttered w/ financial sponsors. Strongest continue with relationships and gain benefit.
The Memorial Tournament -
TOUR Leader
Prestigious PropertyTHE MEMORIAL – ONE OF TOUR’S MOST PRESTIGIOUS EVENTS
• Jack Nicklaus, Memorial host and founder, game’s greatest player
• Annually in top 3 of strongest fields on TOUR – world’s best compete
• 16 of 25 past winners are major champions:
• Jack Nicklaus, Tom Watson, Greg Norman, Jim Furyk, Vijay Singh, Ernie Els, Fred Couples and Tiger Woods (defending winner)
• Strong regional support – annually one of the largest attended tournaments on TOUR.
• Dedicated to recognize the greats of the past while showcasing the best of today
Prestigious PropertyTHE MEMORIAL – EXCLUSIVE VALUE DELIVERY
• Uniquely organized to eliminate all corporate brand association with exception of presenting sponsor, Morgan Stanley - Exclusive stage for Morgan Stanley.
• Delivery of one of a kind Pro-Am experience exclusively for Morgan Stanley – no other like it on TOUR.
• Staging of exclusive events that lend to Memorial’s one of a kind style on TOUR – i.e. Honoree Ceremony, Jack Nicklaus Clinic.
Television
Online
Radio
Out of Home
Experiential
Mobile P.R.
THE MEMORIAL TOURNAMENT REACHES BROAD AUDIENCE
Broad Audience
YOUR COMPANY
LOGO
Extensive PromotionsNATIONAL PROMOTIONS
• Golf Channel– 282 Promo Units
– 35.3 GRP’s
• CBS– 15 Promo Units
– 33.6 GRP’s
• Tournament Collateral in 41 Airport Locations
• Coverage in Shoulder Programming:
– Inside the PGA TOUR
– Pre-Game & Post-Game
Extensive Television CoverageNEWS COVERAGE
• Local & National News Coverage: ESPN, CNN, FSN, GOLF Channel, etc.
• Print Coverage in Local Newspapers
• News Radio Across the Country
• Internet News Coverage:– PGATOUR.Com
– Golfchannel.com
– SportsIllustrated.com
– ESPN.com
PGATOUR.com
2009 Memorial Tournament
• 2.8 Million Uniques• 66 Million Page Views• 4.1 Million Visits
Extensive Internet CoverageLARGE DIGITAL FOOTPRINT
• Live Scoring• Over 2M Videos
Streamed Weekly• Shot Tracker: The Most
Advanced Golf Scoring Experience
PGA TOUR Content Partnerships and Official Extensions:• Yahoo! Golf: 4M+ Monthly Users• Yahoo! Behavior Targeting: Reaches 140M+ Monthly
Users• YouTube Official Page: Over 1 Million Video Views
Between January 1st and June 30th of 2009• Facebook Official Fan Page: 23,250 Fans• Twitter: 11,600 Followers• New Mobile Platform: 800K+ Monthly Users
Extensive Online CoverageLARGE DIGITAL FOOTPRINT
Benefit Review
Asset/Fee Share With the realization that Morgan Stanley’s business modelhas changed over the past 18 months the MemorialTournament suggests that the presenting sponsorship has become morevaluable, recognized through the following:
Morgan Stanley Smith Barney Morgan Stanley’s newly formed entity is perfectly structured to take advantage of all theMemorial Tournament’s assets. From broadcast commercial inventory and pre-eventpromotion to on-site entertainment benefits there exists the potential for measurable benefit.
Investor PartnersUnderstanding that Morgan Stanley has taken on partners in Mitsubishi Financial and ChinaInvestment Corp. the Memorial provides an opportunity for the partners to potentiallyassume a portion of the sponsorship fee obligation and/or benefit from the delivery of assetssuch as Pro-Am, Broadcast commercial inventory, Jack Nicklaus appearance.
Firm Wide As in previous years the various Institutional divisions of MorganStanley can take advantage of the most valuable assets provided duringtournament week and throughout the year.
Delivered Benefit DistributionMemorial
Tournamentpresented by
Morgan Stanley
WEDPro-Am
Pre-Event/Tournament Promotion(TV, PrintInternet)
TournamentCoverage
Media Value(CBS, GC, Int’l)
Tournament Client
Entertainment Options
Tourn. WeekVenues
Tourn. WeekGolf Functions
Pre-Event &Sat. Series
Fall ClientEvent w/JWN
Asian ClientEvent w/JWN
GWMG
MSIM
ISG
GWMG
MSIM
ISG
GWMG IIG IIG
Firm Wide
(IIG Primary)GWMG
GWMG GWMG
GWMG
Investor Partners(Japan & China)
Investor Partners(Japan &China)
Investor
Partners (Japan &
China)
Investor Partners (Japan &
China)
Profiled AssetsDomestic & International Broadcasts
With the advent of Morgan Stanley Smith Barney the Memorial Tournament broadcast delivers measurable increased value in recognition of the targeted, upscale audience which PGA TOUR events appeal to.
Jack Nicklaus AppearancesJack Nicklaus is committed to continue the annual appearance at a Morgan Stanley client event within the U.S., as well, Jack is interested in further supporting Morgan Stanley by offering to appear on behalf of Morgan Stanley Investor Partners or client events in Asia and Europe based on mutual schedules.
Client ConnectionAdditional opportunity to utilize the Memorial Tournament as back drop to leverage value within the new entity – Morgan Stanley Smith Barney. From creation of a pre-Memorial national event and promotion programs to Tournament week on-site activation through hospitality venues, pro-am events (Wed and Sat) and hosted functions (w/ TOUR player appearances) there exists an integrated platform that will deliver significant benefit to those who participate and attend.
YOUR COMPANY
LOGO
Media Value
$3,300,000Television Ad Units
$1,000,000Local Media
$15,000,000 - $21,600,000International TV Coverage
$6,900,000News Coverage
$2,600,000National Promotions
$5,400,000In-Program Exposure
Estimated ValueElement
TOTAL ESTIMATED MEDIA VALUE FOR PRIMARY SPONSORSHIP
$34,500,000 - $40,800,000*
*Above & Beyond Ad Units*Presenting Sponsor Value is Lower but Still
SignificantSource: Joyce Julius, Cision Information, Repucom Intl -
Renewal Proposal Profile
• Memorial requests Morgan Stanley’s commitment to renew/extend the existing contract to include 2011 thru 2015.
• Memorial and Morgan Stanley maintain existing “Presenting Sponsor” status with Morgan Stanley brand name/logo incorporated in event name/logo.− Consider replacing “Morgan Stanley” name/logo with “Morgan Stanley Smith
Barney” within all publicly communicated materials and media outlets.
• Build on existing package of asset provision (i.e. Pro-Am, media benefits, entertainment venues, etc.) with enhanced assets – Jack Nicklaus appearances, Fall client events, Pre-Memorial FA event series, TOUR player interaction.
Agreement Extension