The modern Medicis?
By : Anna Kocinska
This year's International Fryderyk Chopin Piano Competition, which started last week at Warsaw's Philharmonic Hall, is more than a treat for music lovers. Held every five years, the prestigious contest offers a chance for a little image building on the part of its sponsors, media patrons and sole Maecenas: Ryszard Krauze, president and majority shareholder of Prokom Software.
Krauze's Gdansk-based IT company has lately received bad press following accusations that it mishandled the computerization of the Social Insurance Agency (ZUS). Krauze decided to contribute to the 14th International Chopin Piano competition as a private rather than corporate donor.
"It's the first time in the history of the competition that an individual has made a contribution on such a scale," said Albert Grudzinski, the competition's director. He said Krauze is covering a significant part of the contest's costs, which amount to some zl. 5 million ($1.1 million). "He was the one who approached us," he said.
Grudzinski said this year the 73-year-old competition will be more glamorous than ever. Apart from at the judged rehearsals, participants and even jurors will perform in several other Warsaw theaters and concert halls. The contest is being covered online (http://www.chopin.pl) and advertised on street posters and in the media. Sponsors took care of the promotional expenses. "How much does the promotion cost?" Grudzinski asked. "We didn't calculate. It all comes from sponsors."
This year's principal sponsor is battery, audio and videotape distributor Maxell, with Telekomunikacja Polska (TPSA) running a close second. The Culture Ministry donated money for official prizes, Grudzinski said. The top five awards total $74,000.
And what do sponsors get in return?
Grudzinski said Maxell acquired the right to produce and distribute recordings of the competition in Asia, "mainly in Japan."
"We decided it's good advertising for us since it's an event on an international scale," said Krzysztof Swidrak, head of TPSA's press service.
The sponsors, who wouldn't reveal details of their agreements with the contest's organizers, are not likely to count on tax exemptions, though.
"There's no tax write-off for sponsorship because we usually deal with commercial agreements between sponsors and recipients, under which sponsors purchase specific services," said Michal Fereniec, associate attorney at Hunton & Williams, a Warsaw law firm. "That's why VAT is applied to most sponsorship agreements."
Krauze might be luckier if the tax office considers his involvement in the contest as purely altruistic.
"Under personal income-tax law, an individual can get a tax write-off of up to 15% of his yearly taxable income by giving a donation for a praiseworthy goal such as scientific, cultural or educational projects," Fereniec said.
Zbigniew Szachniewicz, Prokom's legal adviser, wouldn't provide details of Krauze's agreement with the contest's organizers.
But Krauze's involvement may be part of a longer-term strategy worthy of those Renaissance patrons, the Medicis. "Not only did he interest himself in the contest but he will also support the Chopin Society," Grudzinski said. According to Anna Stepien, head of Prokom's PR department, Krauze has also agreed to pay for renovations at Warsaw's Ostrogski Castle the headquarters of the Chopin Society and the upkeep of Chopin's birthplace in zelazowa Wola. Krauze is also a collector of old musical scores.
"What Krauze is doing is kind of new in Poland," said Michal Zarzycki, director of Warsaw-based Kreator Image-Building. "It might be the beginning of a new trend under which businessmen will start using their names as logos for such events."
According to Zarzycki, his company provides image-building services to many Polish tycoons who are trying to make their wealth and influence felt publicly. "It's very much in vogue today that presidents of big corporations start behaving like statesmen and try to build their personal image, under the assumption that this impacts their company's image," Zarzycki said. He added that his clients are now requesting information on the uses and policies of patronage and sponsorship for image building.
"It's no longer an era of white socks, (businessmen) have to start making their money visible at prestigious events," he said.#
