Stanford's troubles mean polo may lose big backer

CHICAGO (Reuters) - The rarefied, glamorous world of polo, the so-called sport of kings, is at risk of losing one of its major U.S. benefactors.

Texas billionaire Allen Stanford, whose financial group sponsors numerous polo clubs and events, has been charged by the U.S. Securities and Exchange Commission with an $8 billion securities fraud.

The jet-setting 58-year-old tycoon, who has denied any wrongdoing, was served civil papers in Virginia on Thursday by FBI agents. The flamboyant financier's fortune was estimated at $2.2 billion last year by Forbes magazine.

He has donated millions of dollars to U.S. politicians, and has secured endorsements from such sports stars as golfer Vijay Singh and soccer player Michael Owen. His sports endorsement deals also likely total in the millions.

While Stanford Financial Group backs many sports, including cricket, golf and tennis, polo is unique because it is so niche and beyond the understanding of most Americans. Stanford is also involved with a series of polo teams and venues in the United States, and one major event in the UK.

On the company's website, the sport is described glowingly as combining "the techniques of 'riding like a Comanche, thinking like a chess player and hitting like a golf pro while four players try to break your kneecaps.'"

Polo was first played in the United States in 1876, coming over from England. Many early polo matches attracted as many as 20,000 spectators, and coverage in the sports pages equal to other major sports. Major events still draw as many as 10,000.

Each polo match consists of six chukkers, or periods, lasting 7-1/2 minutes, during which two teams of four ride horses that can be worth up to $200,000. Teams try to score by driving a small white ball into the opponent's goal using a long-handled mallet.

"Some people compare it to field hockey on horseback, or soccer," said John Wash, president of operations for the International Polo Club in Palm Beach, Florida. Stanford serves as title sponsor for one of the club's nine fields.

Halfway through a match, fans come out on the field for the ceremonial stomping of the divots, where they replace mounds of earth torn up by the horses while also socializing.

"Polo is not only a fascinating sport, it is a fascinating society, and for many, the parties and people-watching are as much fun as the game," the Houston Polo Club website said.

The sport is expensive, however, as a team owner, or patron, can spend up to $2 million a year, Wash said.

Companies spend up to $1 million or more on sponsorships, although most winning teams walk away with nothing more than a trophy or plaque at what are mostly charity events, industry executives said.

Nevertheless, polo officials said no single sponsor is so large that his absence would severely hurt the sport.

"The sport's been played for thousands of years. It's one of the oldest sports in the world," Wash said.

"We have different sponsors that approach us in different categories like any other professional sport," he added. "As we watch this thing play out, it may open the doors for somebody else."

Besides, Stanford Financial Group has already paid "a couple hundred thousand dollars" to remain a sponsor this year at the Palm Beach club, whose season runs through April 26 when it hosts the U.S. Open polo championship, Wash said.

Stanford Financial has long looked at sports marketing as critical to its growth.

"We look to partner with national and international sports organizations that offer a consistently high-quality event experience and premium branding opportunities," Stanford Financial Executive Director Jay Comeaux said in a statement in 2006 announcing a sponsorship deal with a basketball team.

The company also has a venue deal with the Houston Polo Club, and sponsors the U.S. Polo Association's U.S. Open and Governor's Cup events, as well as various local and regional U.S. polo matches, according to the company website.

It also has been the title sponsor the last four years of the Stanford Charity Polo Day, which is hosted by Prince Charles in aid of the British Forces Foundation.

Polo, with 4,000 registered players and almost 300 U.S. clubs, will not fade simply because of the possible loss of one sponsor, said Peter Rizzo, executive director of the U.S. Polo Association. The recession worries him more.

"With or without Stanford's sponsorship, the U.S. Open will be played," he said. "Obviously, anything like this (recession) affects our country and the financial well-being of this country is going to affect sports."

(Additional reporting by Kylie MacLellan in London, editing by Matthew Lewis)