The PGA Tour's 10-year extension with FedEx includes a "category exclusivity clause," which will "keep players from participating" in the season-long FedExCup race if they have endorsement deals with one of FedEx’ competitors, according to sources cited by Rex Hoggard of GOLFCHANNEL.com. PGA Tour Commissioner Jay Monahan said, "When you're in business with someone for 30 years, and you're about to commit to 10 more, you do some things to protect each other on a long-term basis." Hoggard noted Lee Westwood and Louis Oosthuizen "both have endorsement deals with UPS but have been grandfathered in and will not be impacted." Their agent, Int'l Sports Management Founder Chubby Chandler, said that he has "not received any official correspondence from the Tour regarding the sponsorship status of either player." Chandler: "I understand why they (the Tour has) done it, (but) what will they do if MasterCard wants to do the same thing? It opens up a bag of worms. Do you go on the amount of money they pay or what? Do you set aside one sponsor for another sponsor?" Hoggard noted the "bigger issue is how this precedent may impact future negotiations with tournament sponsors, and if the Tour will be able to enforce such a rule." Tour players are independent contractors, but there are "stipulations in the player handbook for certain types of sponsorships" (GOLFCHANNEL.com, 5/9).
SIGN OF THINGS TO COME: In Memphis, Mark Giannotto notes the FedEx extension was "seen as a good sign" for the city's PGA Tour stop, whose sponsorship deal with FedEx ends after next month's event. FedEx returned as title sponsor of the St. Jude Classic in '11, and talks were "already underway about continuing the arrangement" before yesterday's news. Tournament Dir Darrell Smith said, "It’s just encouraging that your title sponsor continues to believe in professional golf and professional golf on the PGA Tour as a way they want to do business and an important sports marketing asset in their portfolio." He added, "It makes you feel a little bit more comfortable that professional golf is important to your title sponsor and they’re going to continue to invest in the sport and hopefully continue to change the sport and play a big role in the growth of the game in the future.” Giannotto notes FedEx' sponsorship of the PGA Tour is "separate from its title sponsorship" of the Memphis event (Memphis COMMERCIAL APPEAL, 5/10).
OFF TO A NICE START: Monahan this morning said extending the FedEx deal had been a "priority for our entire team." He said, "It's a great signal for our sport and to know that, as I said, one of the best companies on the planet is committing to our sport through 2027 is pretty special.” Monahan notes it is nice to have "your largest partner secured for that length of time." He said, "We're here to grow playing and financial opportunities for our players, and that’s exactly what we’re going to do" ("Morning Drive," Golf Channel, 5/10). Golf Channel's Rich Lerner said the FedEx extension is "really a nice start to the Jay Monahan Era as the new commissioner." Lerner said, "You tip your cap to Tim Finchem for setting the table, but this is a big moment for the Tour to extend this by 10 years." Former European Tour Exec Dir Ken Schofield said, "It is superb news and a wonderful start for Jay's stewardship" ("Golf Central," Golf Channel, 5/9).
