AQUARIUS SPORTS & ENTERTAINMENT IN THE IEG SPONSORSHIP REPORT

Aquarius Sports & Entertainment and its President, Marc Bluestein, was featured along with its client Modern Business Associates in an article in the March 1st edition of the IEG Sponsorship Report.

The Article highlghts the continued growth in the HR outsourcing industry and how it is translating into more sponsorship opportunities for Professional Employer Organizations such as Modern Business Associates.

HR Outsourcing Firms Employ More Sponsorships

3/1/10: Fueled by continued growth in the HR outsourcing industry, companies in the Professional Employer Organization category continue to increase their use of sponsorship to build brands and gain business from sponsored properties and related businesses.

For example, Modern Business Assocs. is gearing up its first sports marketing campaign, while Clearwater, Fla.-based FrankCrum late last year signed a multiyear deal with the NHL Tampa Bay Lightning.

The companies follow in the footsteps of Kingwood, Texas-based Administaff, Inc., a PEO that has made sponsorship a core component of its marketing mix.

Administaff—one of the country’s largest PEOs—focuses its sponsorship activity on Champions Tour golf tournaments. Deals include title of Houston’s Small Business Classic presented by UnitedHealthcare and presenting status of Boca Raton, Fla.’s Allianz Championship.

The company also cosponsors the Ace Group Classic in Naples, Fla. and the 3M Championship presented by Post-It Products in Blaine, Minn.

Administaff and other PEOs offer a variety of HR services—primarily to mid-size and small businesses—including benefits management, payroll administration, tax reporting and liability management. Clients enter into co-employment agreements with PEOs, meaning that workers become employees of both companies.

Revenues for PEOs grew 18 percent in ’08 and are expected to maintain their upward momentum in ’09, said Milan Yager, president and CEO of the National Assn. of Professional Employer Organizations.

MBA Outsources New Sponsorship Push
Like other sponsors in the category, Modern Business Assocs. plans to use sponsorship to gain business from sponsored teams and cosponsors.

The company markets both PEO services and HR outsourcing solutions that do not entail co-employment, plans, allowing it to tailor solutions to the needs of each client, said Mark Lettellier, MBA’s CEO.

MBA will not sign a deal unless it can provide services to the sponsored organization, said Marc Bluestein, president of Aquarius Sports & Entertainment, MBA’s agency of record.

Once a deal is signed, MBA plans to leverage its designation as the team’s official/exclusive payroll and/or HR provider to earn business from other sponsors and related companies. For example, MBA plans to use its team affiliations to invite local business executives to breakfast and luncheon meetings featuring talks by coaches, general managers and other key property personnel.

MBA also plans to host clients at games, on road trips and for other unique hospitality opportunities, Bluestein said.

The company is scouting deals in four markets: Chicago, Florida, Los Angeles, and New York City.

MBA has a verbal contract with an NHL team and is in active discussions with two other NHL teams and one MLB team, said Bluestein, who hopes to have four teams signed by the end of the year.

Bluestein initially reached out to roughly 40 teams to gauge their interest in working with MBA. Roughly 50 percent were definitely interested, 20 percent were somewhat interested and 30 percent were pleased with their existing HR and payroll solutions, he said.

In other PEO activity, FrankCrum also is using sponsorship as a B2B marketing platform.

The company’s three-year deal with the Lightning affords status as the exclusive payroll, HR and temporary staffing services provider of the team and St. Pete Times Forum. Among the services it will provide are employment tax expertise and unemployment claims management.

To reach business decision-makers, the company has gained title of one of two 50-person suites at the arena, now known as the FrankCrum Club. Other elements of the deal include signage, 30-second spots on the team’s over-the-air TV broadcasts and ads in the team’s game program. The partnership agreement expires in August 2012.