$5M bonus still in effect for 2005
LOUISVILLE, Ky. - Citing a revised marketing strategy, Visa announced Monday it will end its sponsorship of the Triple Crown in favor of a five-year deal to sponsor the Kentucky Derby.
"We've had an unbelievably successful partnership with the Visa Triple Crown, but we must always work to keep our approach fresh and relevant to our cardholders," said Visa senior vice president Michael Lynch.
The credit-card company has sponsored the Triple Crown since 1996 and offered a $5 million bonus for any horse who won the Derby, Preakness and Belmont Stakes. It has never had to pay it.
Since Visa started offering the bonus, six horses -- including Smarty Jones last year -- have won the Derby and Preakness, but lost in the 1 1/2-mile Belmont Stakes. No horse has won the Triple Crown since Affirmed in 1978.
Triple Crown Productions executive director Ed Seigenfeld said Visa's decision to end sponsorship after this year won't damage the series.
"We're sad to see them go, but Visa has been an unbelievable promoter of our product," Seigenfeld said. "Ten years is a pretty long time. Aside from the dollars they've put in, they've always given us tremendous support. We're delighted that Visa is staying in the game."
He said the series would immediately start looking for a new sponsor.
"We're not going to let the grass grow under our feet," he said. "We'll miss the people and the support, but this gives us an opportunity to go out there and reinvigorate the Triple Crown."
Visa and Churchill Downs, Inc. announced their new deal in statements issued Monday. It will begin in 2006. Financial terms weren't disclosed.
According to the deal, Visa will be the only credit-card company that's a Derby sponsor. Also, holders of Visa Signature cards will have exclusive access to Derby packages that include tickets, stable-area tours and invitation-only events leading up to the race.
The $5 million Triple Crown bonus is still in effect this year. The Derby begins the series Saturday.
Watch the Kentucky Derby on NBC (Saturday at 5 p.m. ET).
Copyright 2005 by The Associated Press
