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Marketing and Sponsorship

Golf Caddies Sue PGA Tour For $50M, Claim Loss Of Revenue Stream From Sponsored Bibs

More than 80 pro golf caddies have "filed a class-action, anti-trust lawsuit against the PGA Tour alleging improper use of the caddies' 'likenesses and images,'" according to Dennis Dodd of CBSSPORTS.com. The suit -- similar to the "landmark O'Bannon vs. NCAA action -- seeks access to what it says is a revenue stream" worth $50M annually from caddies' "wearing of traditional 'bibs' adorned with sponsors logos." The caddies are "required to display those sponsors' logos controlled by the Tour that derives revenue from them." The suit states that the Tour denied the caddies to "profit from sponsors' logos worn on bibs that are required" by the PGA Tour "without compensation." Dodd noted the suit "seeks unspecified actual damages and royalties attributable" to the Tour's use of the caddies. Joe LaCava and Jim Mackay, the caddies for Tiger Woods and Phil Mickelson, respectively, "are not included" in the lawsuit. A source said they "are supportive but didn't want to be included in the class to avoid distractions for their players." Dodd noted the plaintiffs allege that Tour players "have been contacted to determine if they would end their agreements with caddies who didn't wear the proper bibs." One top Tour official said any discussion regarding compensation from bibs "is off the table" (CBSSPORTS.com, 2/3).

SCARED OF ANY RETRIBUTION: Houston-based attorney Gene Egdorf, whose Lanier Law Firm is representing the plaintiffs, said that caddies have been “'a little reticent' about taking legal action for fear of retribution by the Tour, but that there was no alternative after caddies have historically been told, 'No, no, no.'” Egdorf added that more caddies "might have joined the suit but abstained for fear of losing their jobs." Egdorf said that it is "too early to know if settlement talks will be initiated" (N.Y. DAILY NEWS, 2/4). GOLF.com's Michael McCann reported the caddies "have petitioned the court to certify Hicks v. PGA Tour as a class action on behalf" of all caddies residing in the U.S. who, "without pay, wear or have worn bibs bearing the logos of the Tour’s sponsors during tournaments." This proposed class "would include about 1,000 caddies and potentially threaten the PGA Tour with hundreds of millions of dollars in damages" (GOLF.com, 2/3).

PART OF A BIGGER ISSUE: GOLFWEEK's Alex Miceli noted the dispute over the bibs is an "outgrowth of a much smaller financial rift regarding the caddies’ request for the Tour to provide access to caddies or compensate them for adequate health insurance and also provide a retirement plan." The caddies, like their players, "are not employees of the PGA Tour." For more than a year, the Tour and the caddies "have negotiated on bib compensation, health insurance and retirement." The caddies contend that the Tour "will not budge on its existing $2,000 annual stipend for health-care coverage for caddies" (GOLFWEEK.com, 2/3). GolfChannel.com's Rex Hoggard noted the issue "has been up for a while." Hoggard: "They were told right out of the get-go that, 'Look, the bib is off the table'" ("Golf Central," Golf Channel, 2/3). Caddie Ken Harms said, "This isn't where we want to be, but unfortunately this is where we are. It's not for the guys who are working for the superstars. It's for the guys who have been out here for years and years and they don't have health care and they can't afford to put money away for retirement" (USATODAY.com, 2/3).

PICK YOUR BATTLES: Golf Channel contributor John Feinstein said the health insurance issue is what the caddies "should be focusing on, not so much on the caddie bibs." Feinstein: "The caddie bibs are absolutely sacred to the sponsors. ...  Their focus should be on health insurance. I think they should try to work out a deal with the Tour so they don't go to court. If they want to wear advertising, frankly, they can wear it on a cap. They’ve done that in the past. I don't see the sponsors giving up the bib space without a fight” (“Golf Central,” Golf Channel, 2/3).

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