FedEx re-evaluated its PGA Tour umbrella sponsorship just the same as it would any new opportunity, and came away convinced that it’s spending its money in the right place.
“Even though this was a renewal discussion, we treated it as if we were starting from square one,” said Kevin Demsky, FedEx’s director of sponsorship marketing. “What we came away with is that this is a good investment and that it advances our business objectives. We took a step back … and what that revealed is that this decision has been a good one.”
FedEx announced last week that it has extended its seasonlong umbrella title sponsorship for five years through 2017. That’s a critical renewal for the tour because the deal represents the richest in its portfolio of sponsors.
Industry insiders estimate that FedEx pays $30 million to $35 million annually for the position, including TV ad units, branding, hospitality and a contribution to the bonus prize money for the FedEx Cup playoffs.
The assets in the extension remain virtually the same, but there will be a greater emphasis placed on integrating FedEx into the tour’s international broadcasts to more than 200 countries, as well as a greater digital presence internationally.
The PGA Tour has website partners that produce sites in China, Japan and South Korea, and PGATour.com is working on a Spanish-language version.
Express shipping is generally considered a mature market in the U.S., and much of FedEx’s focus is on international growth. Using the tour sponsorship as more of a global position will be key to FedEx’s activation in the next five years.
“The growing popularity of golf around the globe, coupled with the continuous infusion of foreign-born players onto the PGA Tour, is very important and critical to our decision to extend our relationship,” Demsky said. “FedEx is a global company, and the PGA Tour provides an excellent platform for reaching golf fans throughout the world.”
