SBD/July 23, 2013/Marketing and Sponsorship

Callaway Responds Quickly With Ads Celebrating Phil Mickelson's British Open Win

Callaway placed a full-page ad honoring Mickelson in the San Diego Union-Tribune
Following Phil Mickelson's British Open on Sunday, Callaway Golf Marketing Dir Jason Finley had an "eight-person team working at the company's San Diego-area offices to prepare an ad campaign capitalizing on his win," according to Michael McCarthy of AD AGE. Callaway "used social media to congratulate" Mickelson and "spread the word" about a variety of the company's products. A post on the Callaway Twitter account read, "One for the thumb. Congratulations on your 5th major championship, Lefty." The tweet included a "picture of Mickelson holding the Claret Jug trophy." The Callaway team then "went to work preparing a full-page ad congratulating the San Diego native" in yesterday's San Diego Union-Tribune. The company this week will "roll out more ads in GolfWeek and other publications emphasizing its sponsorship of Mickelson." Callaway "works with local ad agency Taco Truck Creative," but "victory ads are typically produced in-house due to the need for speed." However, Callaway Senior Manager of Global Communications Scott Goryl said that Taco Truck was "on-site working with Callaway's marketing department this weekend" (ADAGE.com, 7/22). In DC, Tracee Hamilton writes, "I don't know if a marketing team got hold of Mickelson and molded him into the anti-Tiger or if it happened organically, but the contrast [with Woods] is remarkable." Mickelson is "open and engaging with the media -- like it or not, that's how an image is made -- and he signs autographs until the pens run dry" (WASHINGTON POST, 7/23). Barclays today is running full-page ads in the Wall Street Journal and N.Y. Times congratulating Mickelson for winning the British Open. Mickelson also appears in congratulatory ads from KPMG in USA Today and Rolex in the N.Y. Times (THE DAILY).

TAXING SITUATION: CNBC's Larry Kudlow noted Mickelson earned $2.1M for winning the British Open, but it is "not a big financial windfall" after taxes are taken out. Scottish taxes take 44% "right off the top," though Michelson "does get a credit for that on his U.S. income tax form." However, the state of California, where he lives, "has no exemption so he owes another 13.3% and is left with about $842,000." Kudlow said the California tax rates and code was "part of the reason Mickelson talked earlier this year about leaving California to escape its ridiculously high income taxes" ("The Kudlow Report," CNBC, 7/22).
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