Constellation’s expansive new sponsorship deal with the PGA of America includes rights to the coming Ryder Cup, but the agreement also is notable for what it lacks: the patron-level designation that in the past was assigned to the organization’s biggest spenders.
Though Constellation’s five-year, seven-figure annual deal announced Sept. 1 with the PGA of America is a top-tier agreement that includes rights to all PGA of America premier events such as the Ryder Cup and the PGA Championship, the organization is doing away with its “patron” designation as it revamps its sponsorship structure.
The PGA of America has three patron-level deals, with Mercedes-Benz, Samsung and Omega. Those designations, valued at seven figures annually, won’t change as long as the deals are in place. All future top-level deals, such as Constellation’s agreement, will not carry the patron designation.
Samsung’s deal ends after this year, the Mercedes-Benz deal runs through next year and Omega’s deal runs through 2022.
“We need to respect our existing relationships with Mercedes, Samsung and Omega, but moving forward our goal is to have official partners of the PGA of America,” said Kevin Ring, the organization’s chief revenue officer. “With Constellation, it is an easier story to tell as an official partner of the PGA of America and the [patron-level designation] will go away. We want more integration. We want to work with partners to tailor what best suits our needs and make it fit their objectives.”
The Constellation deal is the first top-level deal signed by the PGA of America since it hired SJX Partners last year to help sales. Constellation’s agency of record is The Strategic Agency. The agreement fills a new energy category for the PGA of America and includes traditional sponsorship elements such as media, on-course signage and hospitality. But the deal also includes a sustainability program to be carried out throughout the PGA of America.
“It was a way for us to come together in a true partnership in creating a sustainability plan for the PGA of America as a whole,” Ring said.
In 2014, Constellation signed a leaguewide deal with the NHL that also includes a sustainability program. Now, the Baltimore-based company is deepening its investment in sports with its golf agreement.
“We are pretty selective,” said Mark Huston, president of Constellation’s retail operations. “We like the NHL deal because it is very broad, and we look at this the same way. Our first priority is the Ryder Cup and the marquee events, and the second priority is how we can support the PGA of America’s membership. It will take about 12 months to really have an impact.”
