Polo Spectators in Buenos Aires

Savvy marketing and global events are boosting polo's appeal with the masses. (Photo: Fabiano Goldoni)

It may be winter here in Argentina, but the world’s polo elite continue the 2010 tour on the Northern Hemisphere fields of the U.S. and England. And if there’s a common theme we’re seeing on this year’s circuit, it’s the continued marketing maturation and well-coordinated attempts to broaden the game’s appeal to a much wider audience. First it was the Polo World Cup on South Beach, then Nacho Figueras joined forces with Moet Hennessey for New York’s Veuve Clicquot Polo Classic, and finally tens of thousands turned out for London’s second annual Polo in the Park in June. The Financial Times says these events clearly demonstrate polo’s marketing evolution from game for the elite to sport for the masses. “Initiatives are under way to make polo more accessible and to create a more compelling business proposition, but at the same time,” FT adds, “there are signs that the game is healthier than ever at the grassroots.” David Woodd, the CEO of the Hurlingham Polo Association says shaking up polo’s traditional patron-based funding system could open the door to expanded global TV coverage and greater fan loyalty. The creation of a true Polo World Cup would also be a dream event for fans and marketers alike, says Woodd, even though the outcome may be somewhat predetermined. “We need a World Cup for polo,” Mr Woodd says, “and to just accept that Argentina would win it.” (Full Article)

World Cup Round of 16

Argentina and Uruguay are both four wins away from getting a third star for their jerseys.

“Europe in Decline While Latin America Shines” was the headline three days ago, as France, Italy and Greece were on the verge of elimination from the 2010 World Cup. Meanwhile local favorites Argentina and Uruguay took care of business in unselfish, workmanlike fashion, as did other Latin American teams: Brazil, Chile, Mexico and Paraguay will all make the cut. Now Argentina and Uruguay find themselves in Round of 16 brackets that couldn’t be more dissimilar: Argentina’s reads like the Pantheon of Futbol Legends (England, Mexico & Germany) while Uruguay’s reads like a random seating chart at a Model U.N. conference (Ghana, Korea & U.S.A.). One group has tallied 56 World Cup appearances, 17 Top 4 finishes and 6 World Cup victories; the other group’s stats are padded by Uruguay’s World Cup appearances (10) and wins (2). Since InvestBA focuses on investment opportunities in Argentina and Uruguay, we find the level of local fan confidence going into this weekend intriguing to say the least. Despite their Pantheon positioning, confidence runneth over among the Argentine press and fan base. Pictures of Maradona sporting shades, headlines like “Vote of Confidence” and stories of fans of the Albicelestes already pushing back their return flights abound. In stark contrast, the Uruguayan fan base seems more reserved and respectful of their future foes. In fact, you can’t find a single story about the Selección Uruguaya today on the sports page of El País. While Argentina speaks with the swagger of the ‘Canes, Uruguay settles for the occasional tweet from Forlán. Two different teams. Two different approaches. Two different chances to make history. We wish them both well and offer our predictions for this weekend of all weekends.

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Jose Ignacio Uruguay

U.S. investors are assembling large parcels in beautiful areas of Uruguay like José Ignacio (above) & Garzón.

Today’s headlines in Uruguay tell a familiar story: large, undeveloped parcels changing hands for record prices. The twist these days is who’s doing the buying. For fifteen years, Argentine investors held the record for the most expensive parcel acquisition in Uruguay:  over $9 million for a 10-acre beachfront parcel in Punta del Este in 1990, the current site of Hilton’s Conrad Resort & Casino. Now an American can lay claim to the title of Uruguay’s priciest land deal and, speaking of Punta casinos, it seems he doubled down. The U.S. investor in question just bought a prime, 37-acre parcel in the beach-side oasis of José Ignacio for $15 million, or approximately $400,000 per acre. That deal comes on the heels of the $12 million paid for a similar sized, adjacent parcel in José Ignacio. Now do the math and put it in historical perspective. Almost 75 prime coastal acres for $27 million or $360,000 per acre or roughly 70% less than the Argentines paid for the Conrad parcel 15 years ago. The deals are even sweeter when you realize the smart money in Uruguay is moving north of Punta del Este up the Uruguayan coast and further inland where population densities are lower and exclusivity reigns. After some glowing reviews and photo essays by the Wall Street Journal and New York Times, U.S. investors are now buying in trendy Garzón. The Journal sums up the rural chic attraction of Uruguay’s interior perfectly: “El Garzón has a dirt road, stray dogs and a $48 ravioli.” For more information about Uruguay real estate, download InvestBA Privada or contact us directly.

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Foreign investment in Uruguay rose over 400% from 2004 to 2008. Much of it came from the U.S.

Foreign investment in Uruguay rose over 400% from 2004 to 2008. Much of it came from the U.S.

That’s how Josh Spero describes Uruguay for readers of Spear’s Wealth Management Survey. In the current Tax & Trust section, Spero offers one of the most sophisticated and accurate depictions of  the “Switzerland of South America” and “Argentina’s kid brother.” The narrative begins with a description of Uruguay and Switzerland’s shared advantages for foreign investors: Banking secrecy laws? Check. Favorable tax regime? Check. But the present-day similarities end there considering that Switzerland is knee-deep in recession while Uruguay emerged relatively unscathed having already beefed up its banking system and capital ratios almost a decade ago. Proof of confidence is evident in the country’s direct foreign investment numbers: From $397 million in 2004 to $2.2 billion in 2008 with Spain, Argentina and the United States accounting for the bulk of the funds flowing in. “Part of what has been driving this foreign investment,” Spero says, “is Uruguay’s seductive taxation rules, both for individuals and corporations.” And after spending time in the capital city of Montevideo, the financial reporter is left with one undeniable takeaway: “There are opportunities for entrepreneurs everywhere you turn in Uruguay.” Spero lists commercial real estate development, telecoms and land for “property, pleasure and space” as three of the most attractive investment opportunities. For more information about Uruguay and investment opportunities along this portion of The Tango Coast, visit our archives or download the latest edition of InvestBA Privada.

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