Global corporation American Express sees opportunity to help small business in the desert
When American Express announced a new partnership with global racing organization F1 in October of 2023, it became the latest step for the multinational bank holding company into the world of sports.
“Formula 1 is our first new sports vertical that we have got into in more than a decade,” said Shiz Suzuki, vice president, global brand sponsorships and experiential marketing for American Express. “We have to kind of stay ahead of what our customers, what our prospective customers want. Formula 1 is a really fast-growing sport here. Obviously abroad it is very popular. Being a global company it was just a perfect fit for us to offer that, too.”
From F1 to the U.S. Opens in both golf and tennis to television sponsorships of the NBA on TNT and more, American Express has become a presence throughout the world at major sporting events.
“We have sponsorships across 47 global venues and teams,” Suzuki said. “The NBA, the WNBA, U.S. Open tennis, Wimbledon, and music festivals such as the Coachella right here in the valley, U.S. Open golf, both men’s and women’s. But I have to say sponsoring The American Express is truly one of the most special events of the year, and one that I especially look forward to each year.”
How does that dedication to sports figure into American Express’ continued sponsorship of The American Express, the PGA Tour event played in La Quinta each January?
“I think ultimately, whenever we make some kind of investment like this, it’s for the local community,” Suzuki said. “I think (2022) when we actually did the renewal out through 2028, that’s out of commitment for the local community. Certainly in terms of opportunities like this, but also for the small business that are here as well.”
American Express is now in its fifth year of sponsoring the desert’s PGA Tour event, taking over in 2020 after the tournament had been without a title sponsor in 2019. By coming into the tournament late in 2019, American Express didn’t have a chance to truly imprint itself on the tournament in 2020. Then came the COVID-19 shutdown, and while the 2021 American Express was played in January as usual, it was played without galleries or the traditional pro-am portion of the event.
During the 2022 tournament, with American Express already contracted to sponsor in 2023, the company announced an extension of its agreement with the tournament and the PGA Tour through 2028.
More: American Express distributes $1 million in charity funds from golf tournament
“The world of golf is an ever-evolving space, but the consistency that American Express has brought and now with the extension through 2028, we feel like we are in a great place,” said Pat McCabe, executive director of the tournament.
American Express, of course, receives exposure through the tournament, both from branding during the live play from signage and imprints of the company names on leaderboards and other tournament venues, and also from commercials during the television broadcasts on Golf Channel.
But American Express also uses the event as a reward for its cardholders. Discounted tickets and access to venues such as concert seating for card members only are part of the way American Express reaches out to its members during the La Quinta tournament.
Golf and music
The American Express concert series is also part of the tournament, with the company having an increasing influence on which two acts will be featured annually in the Friday and Saturday concerts after play. Keith Urban will perform on Friday night and Train will play following Saturday’s third round.
“We envision this event to be more than just a golf tournament, but also a celebration of music and culture and continued source of pride and joy for the Coachella Valley and beyond,” Suzuki said.
Being in the desert might seem to run counter to American Express’ global reach, but Suzuki said an important part of American Express and its business model is small businesses like those found in communities like the Coachella Valley.
“The backing of small businesses in the Coachella Valley is also an important goal of ours,” she said. “Small businesses are the backbone of our economy and our society. They create jobs, foster innovations and enrich our culture.”
Part of American Express’ commitment to the desert comes from the tournament’s charity distributions each year. In November that included $1 million to 16 charities in the desert. That means through 64 years of the tournament, the event has given away $65 million. Suzuki said there were some changes to the distributions this year, with fewer organizations receiving money but some local organizations like the Boys and Girls Club of the Coachella Valley getting more money as part of two-year projects.
“It is exciting for us to come in and have an impact,” Suzuki said.
This article originally appeared on Palm Springs Desert Sun: American Express is global sports sponsor from F1 racing to golf in Palm Springs area
