“This is a watershed.”

Tod Leonard talks to the folks in San Diego about the inability to land a sponsor for the old Buick event, even though it's an almost guaranteed great rating and field. Apparently the inability to find sponsorship money has the tour's attention.

“I've seen it in the last 90 days. The PGA Tour is completely aware the world has changed,” said Tom Wornham, the chairman of the Century Club, who along with tournament director Tom Wilson has been entrusted with finding a new sponsor.

“This is a watershed.”

And now, the words every tour player dreads.

Over the next two years, the tour has around a dozen events that need to re-up with sponsors. If one of its premier events in San Diego is having so much trouble, what does that mean for everyone else?

It means the model will have to change. In a setup unique to major American sports, the golfers are their own bosses, and they're going to have to decide to take a pay cut, because the only way deals are going to get done is if the sponsors are paying less.

Wait Tod, the commissioner is talking growth. At least in September he was: "The increases have been slight, but we wanted to continue to grow. And our plan is to continue to grow. And that means purses and charity dollars."

Comments

[Average Golfer]

Brings to mind a story.....something about a goose, eggs, golden perhaps?

[Hawkeye]

Cut the purses for chrissakes. Even with a purse cut of 75%, the money is still huge - a winner's check would still be the equivalent of about four or five years' salary for a well-educated high school teacher. I cringe at the very notion of professional sports being "victims of the financial crisis". If the players don't like it, good luck landing a real job.

[chico]

You probably wouldnt expect to hear a golf pro say this but I agree with Hawkeye 100%.The Tour pros dont live in anything like the real world and it wouldnt do them any harm at all.
Brings to mind hearing Ian Poulter scream at the top of his voice at Loch Lomond "I'm never coming back to this poxy Mickey Mouse tournament-yes a tournament with a great purse,on a great course,with super practice facilities,a creche,physio trailers,players lounge with free food for the players and their families etc etc etc.And the event's crime?His courtesy Range Rover was 5 minutes late!Poor darling!

[JS]

I don't think cutting the purse is the answer...even if it were cut 50% the sponsor is saving $2.5 on an $8 - $10 million deal. The answer has to be more committment from the players to actually support the sponsors. I know there was talk on here a month or two ago about "why would a sponsor want to spend any more time with these guys?" but I think the reality is if the players compared the two options, a 50% purse cut or an extra 10 - 15 days worth of time doing clinics or pro-ams they would pick the extra time...just an opinion.

[Farmingdale]

Hawkeye, what you've described is the Nationwide Tour. I too believe high school teachers are woefully underpaid but it's not relevant to this discussion.

What is relevant is does the sponsor get an appropriate return on the investment?

It's not an opinion, but rather a fact, that more and more often companies are deciding that no, we do not get the necessary return.

Two ways to deal with that, (a) provide more "product", or (b) cut the price. I don't think a meet and greet between players and sponsors is going to close the gap -- that leaves (b), cutting the price.

There used to be a lot of big publicly traded companies that took on title sponsorships because the CEO liked golf and had a personal connection to an event, or region, or host. CEO's have less and less leeway to do that because (i) the financial commitment has skyrocketed and (ii) the economic/political environment is a 4-club headwind.

Just going to get uglier from here...wait until they delve into Finchem's comp plan and retirement benefits.

[Hawkeye]

Farmingdale, the comparison itself is not relevant, but I think it's obvious that there is a connection between the obscene purses and the "sense of entitlement" seen in far too many players, and that is partly what leads to sponsors not feeling that they are getting an appropriate return. It's an attitude thing.

Look at the PBA Tour (bowling). They play for pocket money in comparison, but the player-fan connection is vastly superior compared to the PGA Tour. The top players hardly skip any tournaments, oversleeping a pro-am start is unheard of, and you can frequently see Walter Ray Williams, Chris Barnes and Norm Duke in the actual gallery when they're not on the lanes, interacting with the fans. In other words, the smaller purses make it neccesary for the players to prove their worth.

[the q]

Hawkeye and farmingdale...I really enjoy your reading your thoughtful exchanges...both make good points.