Event Recap: Susan Schroeder '86 & Tom Cerasoli '00

On April 18^th, the ILR Sports Management Club had the opportunity to Skype with fellow Cornellians Susan Schroeder ’86, Senior Vice President of Marketing Partnerships at Madison Square Garden, and her colleague, Tom Cerasoli ’00, the Director of Strategic Partnerships at Madison Square Garden. Club members were fortunate enough to get career advice and an in-depth perspective from two industry leaders. Schroeder and Cerasoli are part of a marketing team that oversees brand relations between Madison Square Garden and its corporate partners, including Delta Air Lines, JPMorgan Chase, and Coca-Cola. Read about the question and answer session after the jump.

How their differing professional experiences led and prepared them for marketing at Madison Square Garden

Though the two currently work together at MSG, the career paths they each took to get there were actually quite different. Cerasoli took the seemingly more common route upon graduating from the ILR School. He worked at United Talent Agency for nearly two years before deciding that the field was not fit for him. He then decided to get his MBA at the Isenberg School of Management at UMass, which he planned to use to enter the sports industry. After finishing school, his first job was at Velocity Sports & Entertainment where his quick ascension was a result of his passion, hard work, and savvy.  After nearly five years, he became the Senior Manager where he worked in corporate consulting for commercial brands such as Visa, AT&T, and FedEx while also managing relations with the NFL, NBA, NCAA, and Olympics. The value he added to Velocity prepared him to serve as the Director of Partnership Strategy for the World’s Most Famous Arena, where he has been for the past year.

Schroeder’s route, on the other hand, involved an extensive background in corporate marketing that was eventually molded into a sports-oriented position. After graduating with a degree in Agricultural Economics (now the Charles H. Dyson School at Cornell), Schroeder found work in an unconventional way. She admitted,

“You’re going to laugh when I tell you this, but the way I found my job was a bit unusual—I found an ad for a position with Mercedes Benz in the New York Times and I reached out to them.” 

She gave a dramatic pause for students to digest this for a second. The Ivy Leaguers in the room who couldn’t imagine job-hunting without their beloved LinkedIn profiles were in shock! At Mercedes, she worked in brand management creating merchandise, accessories, and e-catalogs. It was there where Schroeder started gaining her initial experiences in marketing and brand management. After her time at Mercedes, she began working in public relations for Formula One. Despite her lack of PR experience, her writing skills were helpful and she managed the affiliation with Mercedes, a brand she was already quite familiar with. After working a series of executive marketing positions at Porsche, Clear Channel Worldwide, and AMCI, she parlayed her skills and knowledge to impact Madison Square Garden and the sports industry.

Inside the deal of a Madison Square Garden corporate partnership

Both Schroeder and Cerasoli stressed that the most essential facet of their business approach is to “encourage and foster partnerships.” The Madison Square Garden Company has three subdivisions - MSG Sports, MSG Media, and MSG Entertainment. They are all composed of a long list of corporate partners, all of whom The Garden conducts business with in the same way. Not only is MSG looking to generate revenue, but they also want to form lasting relationships with these brands. Schroeder describes,

“We like to think around here that these partnerships are like marriages; we are looking for a relationship that can sustain itself long-term. Think about Coca-Cola, who has been an MSG partner for over 100 years.”

MSG is among the elite brands in sports and has the luxury of doing business with whomever they consider fit. Cerasoli described that any company inquiring about potential business must understand that,

“We’re not looking at our business in terms of transactions, like I said—we are trying to build relationships. The first thing we do is ask potential partners what the goals of their brand are and say, "okay, where is the fit for us?" We then find a middle ground that benefits both parties.”

Schroeder added,

“Take Delta, for example, one of our signature partners. How do we find ways for our New York Knicks fans to become Delta frequent fliers, and for Delta’s consumers to enjoy the benefits of the Garden?” 

Schroeder, Cerasoli, and the rest of the marketing team must use creative platforms that engage consumers such that they associate two brands with each other positively.

While the marketing team constantly works hard to create and cultivate these relationships, it does its due diligence before it ever enters such ventures. According to Cerasoli,

“Sometimes you have to just say no. Partnerships just don’t work best when your brands do not share the same values.”

If two brands do not have similar values and philosophies, it is difficult to create an efficient and successful partnership

On the impact of a Madison Square Garden corporate partnership

We all know that partnerships are made to result in economic gains for both parties. According to Schroeder, a product associated with MSG will reach up to 30-40% higher affinity for both brands in the eyes of the consumer. True, having so many partners is good for the Garden’s business. Nonetheless, Schroeder emphasized that the marketing team is always looking to “find that balance.” Tom added,

“Our content is very partner-driven, but we’re always trying to ‘thread the needle’ between branding and entertaining for our fans. You need to find that median, and it’s not always easy.”

The joint efforts between MSG and its partners can pay high dividends for both sides when such a balance is reached. Schroeder brought up a recent example in which Kia gave away a car to a Knicks fan after hitting a half court shot during halftime. However, this moment had deeper implications than the typical fan realizes. Schroeder explained,

“This was a moment -- a special moment -- where nearly 20,000 people are out of their seats screaming for a fan they’ve never seen or heard of. He hits that shot, he’s running around the court, celebrating and is even hugging Spike Lee! That was a special moment viewed by millions on YouTube and SportsCenter…and Kia owned that moment.” 

On the business behind "Linsanity"

Club members were eager to hear about the financial, off-the-court impact that fellow Ivy Leaguer Jeremy Lin had on MSG. Lin averaged only 12.9 points per game against Cornell in his collegiate days, went undrafted, got cut by two NBA rosters, and frequently went back and forth between the NBA and the D-League. While playing for the Knicks, he was repeatedly mistaken for their trainer and was nearly cut around midseason. Lin got his opportunity and ran away with it; he scored 109 points over his first four career starts which was the most by any player since the NBA/ABA merger. I then asked, “What changes did you see to your prospective roles in the midst of Linsanity?” You could immediately tell they had gotten that question a million times by the faces they made. Cerasoli joked, “Oh, I taught him everything he knows!”

“But seriously,” he continued, “Jeremy has had a tremendous impact – our ratings and brand affinity have both shot up, and existing partners certainly have recognized the value in this. ”

Schroeder added,

“And not to mention, it also gives us another face for the franchise. Last season adding Amar’e and Carmelo at a time where social media was taking off was huge for us. The New York Knicks have over 2.3 million likes on Facebook and have more team video views that all other 29 NBA teams combined.”

During, and ever since Linsanity, the MSG marketing team has been working closely with global companies. Since Lin is the first Taiwanese-American NBA player, his international influence from the Garden hardwood is immense. Though they were unable to get into specific details, they assured us that their lines were constantly ringing during the Lin craze. Not only were companies inquiring about opportunities with the Madison Square Garden Company, but they were also just looking for any channel through which to get in touch with Lin. “We’d get phone calls,” Schroeder smiled as she recalled, “with people just begging us, ‘how do we get in touch with Jeremy’s agent?’ Everything about Linsanity was just… incredible.” Club members are fully aware of how Linsane MSG’s executives were after having witnessed MSG Sports President Scott O’Neil present Rockets GM Daryl Morey with a signed Jeremy Lin jersey at the MIT Sloan Sports Analytics Conference as a “thank you” for cutting Lin in late December.

On the role of partnerships in the transformation of Madison Square Garden

The plans for the renovations of The Garden intrigued many club members. Over the years, many of us have seen some iconic moments happen live at MSG, yet the building has remained unchanged for the most part. Schroeder and Cerasoli together listed reasons why change was necessary: “Yankee Stadium, Citi Field, MetLife Stadium, Red Bull Arena…” and then the 800 pound gorilla in the room was acknowledged, “not to mention the new Barclay’s Center in Brooklyn…” The World’s Most Famous Arena has been getting a run for its money on its own turf, and they are working diligently to hold that title true.

So how can partnerships provide a solution to this issue at the new MSG? She continued,

“Anybody want to guess how the new Garden is being paid for? $900 million was purely funded by our corporate partners - no public tax funds.”

Some of the partners that will have a heavy influence on the new MSG include JPMorgan Chase, Delta, Coca-Cola, and Anheuser-Busch. Cerasoli said,

“Each of these partners have a different role, trying to target a specific consumer. For example, there will be the Delta SKY360° Club for a group of season ticket holders and features inclusive food and beverage. Delta wanted to find an intimate way to connect with our HVC’s [high value customers] who are affluent and are thus likely to travel more. By delivering high end, premium hospitality, we provide a forum for Delta to reach this market of HVCs.”

Other partner-driven initiatives include the Budweiser Fan Deck, the Chase Bridges, and Chase Square. In September 2010, Chase became Madison Square Garden’s first-ever Marquee Partner. The company will become MSG’s “preeminent, multi-platform, multi-venue, multi-media partnership,” according to the MSG Transformation website. The suspension bridges are going to be above the action at MSG, and will give consumers a one-of-a-kind view of their favorite events. Most of the plans for the Chase Bridges have been somewhat finalized; yet, the design for Chase Square is still being perfected. Schroeder said, “this is something that we are still working tirelessly on. Chase Square is going to be the entrance to MSG; how do we give fans that satisfaction and enjoyment that welcomes them to their experience? And not only that, but how can Chase help us provide that while promoting their services? That is something we will continue to figure out over the next 8 months.”

On how MSG’s wide range of events create partnerships

The Madison Square Garden brand is rivaled by few in terms of its prestige in sports, entertainment, and history. As Schroeder explains,

“I can guarantee to you that Madison Square Garden will never sell its naming rights-- it will never have to.” 

However, what makes the MSG brand so valuable is its versatility. Not only does it host the Knicks, Rangers, and Liberty home games, but also a wide range of entertainment events. Cerasoli said of their list of over 70 partners,

“They naturally will get varying exposure…we strategize our promotions as a way to reach our partners’ desired markets and demographics…we can provide that since we have a wide range of events, which means a wide ranged consumer base.”

The MSG brand is so strong that when companies look to do business with The Garden, the marketing team asks, “okay, what are you trying to do?” Schroeder followed up,

“Our signature partnership with Delta Air Lines is targeting our HVC’s that can be at any of our events, whether it be for basketball, hockey, boxing, or other entertainment. However, look at a company like Foot Locker. The target consumer base is much more specific, and so their influence is mostly felt at New York Knicks games.”

Cerasoli continued, “We have the opportunity to talk to anybody. What makes MSG more powerful is that we don’t have one voice.” To exhibit the team’s diverse success, the two recounted a recent Sesame Street show at MSG in which they hosted a milk and cookies party afterwards. The goal was to provide young kids with a “Garden moment” to hopefully remember forever, while also giving increased parents associated contentment with the Garden.

On the best career advice they have for students pursuing sports-related careers

 “I don’t think my advice is relevant considering I got a job through the New York Times,” Schroeder joked. “But, one thing I can tell you is that networking is a priority, it is absolutely key.” She encourages students to use resources such as Linkedin and sports conferences as opportunities to meet new people and expand your network. By doing so, “you never know what they can do for you down the road.” Susan also encourages students to

“Look for internships where the staff wants to help you… you want to work where people want to help you…My first boss was always a bit tough with me, and would always quiz me with these specific questions. I didn’t appreciate it at the time, but you need to take the good from your experiences; I know she was requiring me to be prepared and know extensively about what exactly I was doing.”

Cerasoli’s advice for sports business students was to take any experience you can get. “You don’t have to work at the NFL in order to work with the NFL. The NFL is great, don’t take that the wrong way, but there are many ways you can wind up working in sports, or working with the NFL. Don’t focus on one company or one position.” Tom told students not to be discouraged if our career goals get postponed. “You shouldn’t be concerned about the titles you hold, rather, it’s all about the lesson you learn from your experiences.”

We are so grateful that two industry leaders like Schroeder and Cerasoli were able to speak with the Cornell ILR Sports Management Club. Though students were drawn to this event for varying interests, their focus on the business of partnerships provided us with new perspective. We all look forward to applying this new insight the next time we watch MSG or go to the new Garden. We thank them for taking the time out of their schedules to speak with us, and we hope to stay connected with them in the future!