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Employees and E.ON

March 2nd, 2009 by admin · 3 Comments

Was anyone raising eyebrows last week when the Derby Festival announced that its list of sponsors included E.ON U.S.?

Remember, this is the public company that just absorbed the costs of two of the most expensive storms in history and had its request for a rate increase basically denied by the state’s Public Service Commission. Ratepayers will end up paying for the storm repairs, of course, over a period of at least five years.

The company could use some P.R., I suppose, but even its employees are questioning the money going to the sponsorship. Some wonder why the company spends so much on sponsorships and advertising when it doesn’t have any competition.It’s hard to imagine rate-payers, absorbing the cost of storm clean-up, getting a warm feeling about LG&E because it’s spending six figures sponsoring a fireworks show.

Dollar figures weren’t announced, but the KDF says Thunder costs $1 million, and it has four major sponsors. So let’s just say it’s a six-figure sponsorship.

In defending the expense, spokesperson Chris Whelan talked about full hotels and restaurants and $31 million coming in to the local economy.

As part of its sponsorship, the company gets a big hunk of space at the Belvedere, which it uses to reward employees, provided they make a run through a qualifying gauntlet, according to a staffer who sent along this e-mail:

But, like all suits, they make stupid decisions that leave us scratching our heads sometimes. Take for instance our sponsorship of Thunder. Now I know it stimulates our local economy and is “free” to the public. But did you know that once again we’re having a “private” viewing party on the Belvedere? Sure, it’s being billed as the kick-off to our own charity giving campaign, but there are so many strings attached to getting tickets that as an employee, it’s too damn frustrating to want to take part.

Company staffers say that while there hasn’t been any official call for cutting expenses and there have been no cost-related layoffs, everyone’s being careful about what they spend at the utility company.  That is, except for the sponsorship department.

Tags: Advertising · Festival · LG&E · Sponsorships

3 responses so far ↓

  • 1 JJMan // Mar 2, 2009 at 3:31 pm

    And what about Norton Healthcare — $10 million for portion of arena naming — this is a “non-profit corporation” that has a fulltime staff out raising millions for healthcare facilities and equipment under the Children’s Hospital Foundation. I understand the need to market, but this just doesn’t seem right somehow– Shouldn’t they use those funds for healthcare??

  • 2 R.C.A // Mar 2, 2009 at 3:34 pm

    Little off topic, but still has to do with the Festival: Is there any information on whether WHAS will be broadcasting Thunder over Louisville in HD. I know its really expensive to get all the equipment since they aren’t in HD yet, but I think if they work with local companies and get good commercials, that could help with the costs, not to mention help bring viewers.

  • 3 Bill // Mar 4, 2009 at 8:01 am

    I would like to know why EON since it takes an eon to get your power back needs to use the Belvedere for their beer garden. I got a laugh a couple of years ago at Thunder about their pay for admission beer garden when some Eon lady got all crappy when I asked her a question. To which I made sure to respond that I would rather have a beer at one of the local brew joints rather than their crappy beer garden they have.

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