Wyndham PGA Tour Sponsorship Negotiations To Begin Soon

Wyndham Currently Pays About $5M Annually For Title Sponsorship Of Event

Wyndham Championship tournament officials will "begin negotiations to maintain the Wyndham's position on the PGA Tour for another four years" after the conclusion of this weekend's tournament, according to Robert Bell of the Greensboro NEWS & RECORD. During the talks, "everything will be on the table for discussion," including a new date and a possible new sponsor. Wyndham Worldwide Chair, President & CEO Stephen Holmes last week said that he has been "pleased with the arrangement, but stopped short of saying the company was ready to sign up for another four years." Bell noted the hotel chain in '07 signed a four-year contract with the PGA Tour that included a two-year option after '10. Wyndham pays about $5M "annually for the title sponsorship."  With "at least 10 other tournaments" having title sponsors set to expire next year and "against the backdrop of a flattening economy, tour officials will spend the next year trying to persuade Wyndham and others to spend as much as $25[M] to renew for four more years." Securing a deal "sooner rather than later would give Wyndham officials leverage in seeking their ultimate goal: a spring date," but a shift from the current spot would "come with a heftier price tag for any title sponsor" (Greensboro NEWS & RECORD, 8/16).

TRIMMING EXPENSES: Holmes spoke with USA TODAY's Barbara De Lollis as part of the paper's "Checking In With The Chief" feature. De Lollis noted Wyndham is sponsoring the tournament "at a time when high-end hotels are feeling the fallout from corporations shying away from splashy corporate events." When asked if Wyndham is scaling back around the event this year, Holmes said, "We have gone through the process of cutting costs throughout the organization. So we've trimmed back some of the Wyndham Championship events and some of the amenities surrounding the event." Holmes said the cuts include "one of the hospitality boxes that we used for customers because we have a smaller group coming down," as well as a "dinner that we normally do on one of the nights." But he added the event "provides good exposure for our brands." Holmes: "Some people have this image of golf events being extravagant, but it was never anything that was over-the-top -- at least, ours was not that way" (USATODAY.com, 8/17).

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