The PGA of America has outsourced its sponsorship sales efforts to SJX Partners with a goal of eventually doubling the number of its top-level partner deals.
The golf association last month signed SJX to an exclusive, multiyear deal to sell sponsorships across all of the organization’s key events, including the Ryder Cup and the PGA Championship. SJX initially will focus on selling top-level “patron” sponsors for the PGA of America but ultimately will look to bring in partners at all levels.
It’s a sharp departure in strategy for the PGA of America, which prior to retaining SJX sold all levels of its sponsorship inventory internally.
“We looked at our sales structure, and knowing we have the Ryder Cup coming [in 2016], we are looking at what is the best way to get buyers and create scale,” said Kevin Ring, PGA of America chief revenue officer. “We are a big brand with big properties, and the business has become huge. We need to continue to change.”
The shift in strategy comes after the February departure of Brian Cleek, who headed up the PGA of America’s sponsorship efforts before leaving to work with Roush Fenway Racing. The PGA of America never filled the open position and, instead, began considering signing an outside sponsorship sales partner.
Connecticut-based SJX was founded in 2011 by partners Harlan Stone and Jeff Jonas. Last year, the company was bought by Chime Communications, the London-based marketing services and agency holding company.
 |
The PGA wants more patron-level sponsors, which include Omega.
Photo by: GETTY IMAGES
|
“We looked at our structure and looked at hiring some stars, but Harlan and SJX have been around the business for a long time and they know what the business is,” Ring said. “What Chime does is bring global visibility, and that is an added benefit.”
Specific financial terms of the agreement were not disclosed, but SJX will earn commission on the net sponsorship revenue it delivers to the PGA of America. Ring and his team will also continue to court sponsors.
“We are still selling inventory,” he said.
Patron-level deals for the PGA of America typically run in the mid-seven figures in annual value and usually include on-site branding and a media buy for the association’s major events.
“We like to get to five years on patron deals and get at least two Ryder Cups in there,” Ring said. “The longer the deals, the better.”
The group’s current patron-level partners are Samsung, Mercedes-Benz and Omega.
The PGA wants three additional patron deals for a total of six top-tier corporate partners.
“From a strategy standpoint, fewer, more integrated partners is where we are trying to get as much exposure for the brands,” said Jonas, adding that SJX is looking at the insurance, airline, wine and spirits, and information technology industries as target categories.
SJX’s business isn’t limited to the patron tier, though. It also will market the PGA of America’s second-tier, partner-level deals, and it will help feed lower-level hospitality deals.
The PGA of America has partner-level deals with KitchenAid, National Car Rental, Polo Ralph Lauren, and Chase, which signed on last month in a deal negotiated by the association before bringing on SJX.
Standard Life Investments is the group’s only worldwide Ryder Cup partner. There are 13 companies with PGA of America licensee deals.
The Ryder Cup will next be played in 2016 at Hazeltine National Golf Club in Minnesota. In addition to that biennial event and the annual PGA Championship, the PGA of America’s other prime events are the Senior PGA Championship and the PGA Grand Slam of Golf.
Ring said exposure across all the properties is a goal.
“We want to avoid having a lot of people only for the Ryder Cup,” he said. “We want the patron level to be a driver. The Ryder Cup is the jewel, but we want to support all of our other initiatives.”
SJX’s other clients include the U.S. Tennis Association, Little League Baseball and Cirque du Soleil.
“The USTA is a similar business model [to the PGA of America],” Ring said. “I look at their USTA deals, how they integrated brands into the U.S. Open: SJX has been wildly successful and they will help us tell our story with a different approach.
“Jeff and I have crossed paths in the industry and there is a comfort level,” Ring added. “We have all worked with each other in the past.”
