Humana made a big impact when it title-sponsored the PGA Tour event in La Quinta, Calif., starting in 2012, but the health care provider says the 2015 tournament will be its last.
The Humana Challenge in partnership with the Clinton Foundation became a unique stop on the tour each January. Not only did Humana’s sponsorship save the former Bob Hope Desert Classic, but former President Bill Clinton attended each year and used his foundation to stage a Health Matters conference, which shines a light on health and wellness issues.
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The Clinton Foundation’s Health Matters conference is expected to remain as part of the tourney.
Photo by: GETTY IMAGES
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It was a new model for the tour — combining sponsorship with a broader social issue — and it provided the tournament with a newfound flair that it had been lacking in previous years.
It was even named Sports Event of the Year at the 2012 Sports Business Awards, topping such competition as the Super Bowl, NBA Finals and Quicken Loans Carrier Classic.
While Humana will be going away after the 2015 tournament as title sponsor, the tour doesn’t intend to lose the event. Clinton’s conference is expected to remain as part of the golf tournament, the tour said.
Changes in Humana’s direct-to-consumer business focus and a change in leadership — Bruce Broussard replaced long-standing CEO Michael McCallister in 2013 — prompted the Louisville, Ky., company to change its marketing plans. Despite signing an eight-year deal that was supposed to go through 2019, Humana notified the PGA Tour recently that it would exit after the January 2015 tournament, its fourth year on the title. The long-term deal allowed Humana to exercise an option to exit at its midpoint, sources said.
Humana’s deal was signed at a time when PGA Tour title sponsorships went for $7 million to $8 million a year.
Humana works with GMR Marketing on its strategy and activation, while Colvin Sports Network helped Humana secure player endorsement deals with the likes of Gary Player, David Toms and LPGA golfer Nancy Scranton. Wasserman Media Group assists the Clinton Foundation and is expected to continue in that role.
Through the PGA Tour, a Humana executive cited the company’s shift in business priorities as the reason for exiting the deal. Humana will end its official marketing partnership, rights it has had since 2005 as the tour’s official health benefits provider, next year as well.
“We’re proud of the work we’ve done, especially when it comes to the health and well-being elements,” said Tom Noland, Humana’s senior vice president of corporate communications. As Humana’s business shifts, “we have to align our marketing and sponsorship commitments to best fit our business.”
Desert Classic Charities is the local entity that runs the tournament.
The tour already has hit the streets trying to sell the title sponsorship. While another company that works in health and wellness would be an ideal fit for the tournament and the Clinton Foundation, the tour won’t be limited to just that category, industry sources said.
In addition to replacing Humana, the tour is actively seeking a title sponsor for the WGC match play event to replace Accenture, which departed earlier his year.
