SportsBusiness Daily — Sports Business Resources — your sports business news and information source. Learn More
Advanced
Home About Us Advertise With Us Marketplace/Classifieds College & University Program Subscribe/Trial My Account

Thursday
January 8, 2009
Print This Issue


 
MOST VIEWED STORIES
View the top 20 stories
 
Recent Issues
Leagues & Governing Bodies

PGA Tour Tees Off As Questions Surround Economy's Impact On Golf

PGA, LPGA, Nationwide and Champions Tours
All Will Offer Fewer Events In '09 Than In '08
The PGA Tour tees off its season today with the Mercedes-Benz Championship at the Kapalua Plantation Course in Hawaii, and as a result of "dwindling sponsorship dollars in a difficult economy," the PGA, LPGA, Nationwide and Champions Tours will offer fewer events in '09 than last season, though "none of the cutbacks are overwhelming -- yet," according to Jimmy Burch of the FT. WORTH STAR-TELEGRAM. Everyone involved in professional golf, from "players to tour commissioners, acknowledges 2009 could be a challenging season in an industry that relies heavily on corporate dollars to keep its purses high and its telecasts filled with profit-generating commercials." PGA Tour Commissioner Tim Finchem admitted that the Tour "could take some hits if the financial outlook does not improve for existing sponsors in the automobile and financial services industries." While Finchem indicated that "contingency plans are being made," the '09 season "should unfold with 100[%] sponsorship of existing events" (FT. WORTH STAR-TELEGRAM, 1/5). In Toronto, Ken Fidlin noted golfer Tiger Woods will miss the start of the PGA Tour season as he recovers from a knee injury, and while the "golf world awaits the return of its star, the economy is going to be a major story moving forward." The Tour itself is on "good footing, at least for this year because all their title sponsors are already on board." However, the Tour is "especially vulnerable because at each tournament site, the make or break point involves corporate participation, perhaps not as title sponsors, but in complementary roles." Woods said of the economy, "Yes, we are feeling it on the PGA Tour, there's no doubt. Individual players are feeling it, as well. We're not immune to it at all, and hopefully we'll all get through this and everything will turn around and be positive in the future" (TORONTO SUN, 1/4). 

MAKING A SWING ADJUSTMENT: The GLOBE & MAIL's Lorne Rubenstein noted 12 of the Tour's first 15 events are title sponsored by "auto, financial or electronics companies, sectors of the economy that are in trouble," and as a result '09 is an "important year for the PGA Tour." A source said, "The old model of the PGA Tour growing its core business by getting more sponsors and acquiring more tournaments is probably over. ... Finchem is going to have to learn how to manage profitability rather than trying to pile on with more dollars." Rubenstein wrote it is not "certain what the overall PGA Tour landscape will look like next year," and given the "current business climate, will it survive as a nearly year-round enterprise?" The source said, "I think the PGA Tour will be smaller and more concentrated. What's wrong with 26 tournaments (as opposed to the 43 the PGA Tour conducts today)? Is more necessarily better?" (GLOBE & MAIL, 1/7). In Toronto, Dave Perkins writes the PGA Tour should "prune a couple of tournaments out of its overcrowded schedule" and "shorten up its season a little" (TORONTO STAR, 1/8).

Tim Finchem Said Tour Is Prepared For Rough
Economy, Will Make Necessary Changes
WORK HARD FOR YOUR MONEY: Finchem said of the Tour adjusting to the tough economic conditions, "We've done a lot of preparation because we do know they're coming and so we think we're reasonably prepared. But we're going to take some hits, we're going to have some changes, we always do in a downturn. The last one in '01 and '02 (with the) dotcom bubble resulted in us losing some sponsors, bringing some new sponsors in. We'll have some of that" ("19th Hole," Golf Channel, 1/7). GOLF.com's Cameron Morfit wrote Finchem has "probably had to work harder to secure title sponsors for the 2009 slate of tournaments, and he is very publicly asking players to take fewer weeks off." But golfer Geoff Ogilvy "wondered how many of those players would add events." Also, golfer Adam Scott admitted that sponsors "might 'want a little more for their money' given the current economic climate" (GOLF.com, 1/7). The AP's Doug Ferguson wrote because of the economic downturn, most Tour events are "having to scramble to find courtesy cars, and they might have to cut back on personal services." Sponsorship trouble "comes in the middle tier of the financial structure, such as corporate hospitality, which is vital for operational costs and charitable dollars" (AP, 1/6).

ROOM FOR OPTIMISM: In Dallas, Bill Nichols writes, "Rarely has a season opened with so much anticipation" (DALLAS MORNING NEWS, 1/8). In Philadelphia, Mike Kern writes nobody knows when Woods will return to action, but "whenever that is, the buzz will return with him and not a second too soon" (PHILADELPHIA DAILY NEWS, 1/8). Finchem said of Woods' return to action, "I think all of the build-up that we assumed would happen leading to Tiger's return is going to be now enhanced because we've got more players on the stage that are ready to take him on and I think it shapes up for what could be a really, really exciting year in '09" ("19th Hole," Golf Channel, 1/7). USA TODAY's Steve DiMeglio notes 13 golfers below the age of 30 won 15 Tour events last season, including Anthony Kim and Camilo Villegas, who each won two tournaments. If "demographic trends in golf mean anything, Kim could be Woods' main challenger in the years to come" (USA TODAY, 1/8).

THIRD TIME'S THE CHARM? PGA Tour Exec VP/Communications & Int'l Relations Ty Votaw said that the FedEx Cup playoff system, although "imperfect in its first two designs, has delivered on its goals: hold fans' interest past the PGA Championship in August; energize the players; reward regular tournament sponsors; and help TV ratings." But what it "hasn't done is create a final-round shootout" at the season-ending Tour Championship. The Tour this offseason made changes to the playoff system, and Votaw said, "We believe the changes we've made will go a long way toward accomplishing that." Golfer Trevor Immelman added, "We're still trying to come to grips with the playoff system, still trying to figure it out" (USA TODAY, 1/7).


Get A Free Trial To SportsBusiness Daily

Reader Comments

To post comments on this article, log in or register for a free trial.

Related Stories By Company Related Stories By Sport
Quail Hollow Named PGA Tour Best Event
November 19, 2009 : SportsBusiness Daily

Michelle Wie's First Win Lifts LPGA
November 17, 2009 : SportsBusiness Daily

Still No Sponsor For San Diego PGA Event
November 13, 2009 : SportsBusiness Daily

Players Championship Free For Military
November 10, 2009 : SportsBusiness Daily

PGA Tour Working To Grow Golf In China
November 9, 2009 : SportsBusiness Daily

Legends Tour Trying To Spread Word Of League
November 20, 2009 : SportsBusiness Daily

Wegmans Sponsoring '10 LPGA Championship
November 19, 2009 : SportsBusiness Daily

Quail Hollow Named PGA Tour Best Event
November 19, 2009 : SportsBusiness Daily

LPGA Looks To Brighter Days Ahead
November 18, 2009 : SportsBusiness Daily

Michelle Wie's First Win Lifts LPGA
November 17, 2009 : SportsBusiness Daily

ALSO IN THIS SECTION


A Publication of Street & Smith's Sports Group.
Use of and/or registration on any portion of this site constitutes acceptance of our User Agreement (REVISED 2009-06-23) and Privacy Policy (REVISED 2009-06-23).

© 2009 Street & Smith's Sports Group and its licensors. All rights reserved.
The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Street & Smith's Sports Group.