Here’s one investment that’s unlikely to pay off for billionaire Steve Cohen: the Super Bowl.
Long before his hedge-fund empire was slapped with insider-trading charges, Cohen’s SAC Capital Advisors plunked down at least $1 million to become a host sponsor of the 2014 Super Bowl at MetLife Stadium in the Meadowlands.
As one of 28 vice chairs of the committee that helps with the logistical planning, SAC was in line to receive a number of perks with which to wine and dine its well-heeled clients, including prime seats and branding opportunities.
But a lot has changed for SAC since it inked the sponsorship in 2011, raising questions about its ability to capitalize on the nation’s most-watched sporting event.
For one thing, SAC may not have any investors left by the time the Feb. 2 game rolls around. The Stamford, Conn., firm, worth a whopping $15 billion at the start of the year, is facing an investor exodus that’s expected to leave it with $9 billion — mostly Cohen’s personal fortune — by year end.
What’s more, sports and marketing experts say the committee would be wise to wiggle out of the deal.
“Having SAC as a sponsor … would be the equivalent of having the Super Bowl be in Houston, Texas, and Enron being a sponsor,” said Mike Paul of public relations firm MGP and Associates, referring to the Texas energy giant that collapsed under the weight of an accounting scandal.
In July, SAC was charged criminally for insider trading “on a scale without precedent in the hedge fund industry,” prosecutors said.
“They remain a host sponsor and we expect no changes in our relationship,” Alice McGillion, a spokeswoman for host committee said.
She declined to comment on SAC’s branding rights but said it had “the right to promote their support of our efforts in the local marketplace.” A spokesman for SAC declined to comment.