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By DANIEL TAUB

Staff Reporter

This week’s U.S. Senior Open golf championship in Pacific Palisades with be drawing some of the game’s greats, as well as a horde of L.A.-area business executives anxious to catch a glimpse of Palmer and Nicklaus.

All told, hundreds of thousands of dollars are being spent on hospitality suites by the likes of Atlantic Richfield Co., Pacific Bell, a partnership of Toyota Motor Sales U.S.A. Inc. and local Toyota dealers, Southern California Edison, PriceWaterhouseCoopers and Kennedy-Wilson Inc.

Is it all worth it? The companies buying the tents say yes, noting that the cost is reasonable for the goodwill it creates among clients, potential clients and employees.

“How many events like this come through Los Angeles? This is a very special event in that there are a number of our agents and brokers who are golfers, and they get to see a lot of the tour players they grew up with,” said Wayne Bailey, executive vice president and chief financial officer at Fremont General Corp.

The Santa Monica-based insurer is among several local companies paying $90,000 for a hospitality tent at the event, which is being held at the Riviera Country Club. It’s the first time the Open is being held in the Los Angeles area.

Each tent comes with 100 tickets for each day of the seven-day event, parking spaces at Riviera’s clubhouse and at a nearby lot, programs and the opportunity to buy additional tickets at a discount. Fremont bought an additional 100 tickets.

“We have tremendous demand for those tickets,” said Bailey. “With the seniors, you get Arnold Palmer, you get Jack Nicklaus everyone wants to see those guys. It’s a nice, easy social get-together, and the Riviera Country Club is a great setting.”

It’s also an expensive setting. With the addition of meals, drinks and other amenities, some companies are spending upwards of $200,000.

The event, Bailey said, will give agents and brokers a chance to meet with Fremont executives and with each other in a social setting something that could lead to new business relationships.

Bailey said that for a company like Fremont, with nearly $7 billion in assets, a couple hundred thousand dollars is not a lot to spend. “We think there’s a tremendous value here,” he said.

For Torrance-based Toyota Motor Sales, the Senior Open is an even more expensive proposition. In addition to purchasing a tent near the 18th hole, Toyota, in partnership with the Southern California Toyota Dealer Advertising Association, is lending 220 new Toyota sedans and minivans to be used by players and officials. The vehicles will then have to be sold as used, which will cost Toyota and its dealers around $300,000, said Joe David, national dealer programs manager for Toyota Motor Sales.

“It’s pretty expensive,” conceded David, but he said the investment is worthwhile since older car buyers those most likely to be interested in the Senior Open are the target market for the Avalons, Camrys and Siennas being driven at the tournament.

“It’s probably the marquee senior event all year. And we’re fortunate to have it in Los Angeles this year,” he said, because Toyota’s U.S. headquarters is in the L.A. area and it has a huge dealer network here.

Toyota has an additional investment, since it is paying golfer Chi Chi Rodriguez to wear the Toyota logo on his shirts when playing in televised games.

Though the tournament is being broadcast on NBC, the other companies purchasing tents have little chance of getting TV exposure. The United States Golf Association keeps banners and other advertising near the course to a minimum during its televised broadcasts.

Michael Kamins, an associate professor of marketing at USC’s Marshall School, said the amount being spent on the tents is justified only if the companies get their names on television.

“It’s a function of the exposure they get. And if they don’t get the exposure, it’s not really worth it. If it gets them on TV, or gets them some media exposure, it’s worth it,” Kamins said.

Walter Hickey, executive director of event marketing for Pacific Bell, said he does not expect much media exposure. Rather, he said, Pacific Bell is using the event to entertain some of its larger corporate clients.

“If I take a customer who’s been with Pacific Bell for a number of years, I think they appreciate that,” he said. “It speaks to the loyalty factor among customers. These days, with competition as fierce as it is, loyalty becomes an important factor.”

A spokeswoman for Arco which is issuing most of its tickets to contractors and retired Arco workers, as well as to young golfers who otherwise couldn’t afford to attend confessed that some of the company’s tickets will go to Arco executives hoping to meet Nicklaus, Palmer, Rodriguez or other stars.

“Of course everybody likes to see people like that,” said Arco’s Betsy Bartscherer.

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